Thai Government to make final decision on troubled submarine deal with China
Thailand's Defence Minister has stated that the country's government will soon make a final decision regarding the possible purchase of Chinese-built diesel-electric submarines.
Phumtham Wechayachai said that the verdict will be issued either in late May or in early June upon the conclusion of consultations with Chinese and German officials as well as the Royal Thai Navy.
The proposed deal would cover Thailand's purchase of three Type 039A or Yuan-class boats.
However, in 2022, then-Prime Minister Prayut Chan-o-cha warned the Chinese Government that the deal would be discontinued if the diesel engines that had been indicated in the purchase agreement will not be fitted.
Prayut had addressed the warning to Beijing following the refusal of German manufacturer MTU to supply the engines that will power the first Type 039A submarine to be delivered to Thailand.
MTU is being prevented from supplying the engines due to an EU government embargo that prohibits the sale of military equipment and related items to China.
Lieutenant-Colonel Philipp Doert, Germany's Defence Attache to Thailand, confirmed that China had offered the MTU engines as part of the submarine contract without first informing the German Government about the engines' inclusion in the purchase agreement.
The builder of the submarines had proposed alternatives in the form of Chinese-made engines reportedly similar to the MTU diesels and the transfer of two ex-People's Liberation Army Navy submarines in place of the Yuan-class boats covered in the purchase agreement.
Thailand has reportedly rejected both offers, though consultation with the Pakistan Navy, which operates submarines powered by the same Chinese-built engines, revealed that the latter's boats have been "operating effectively."
The cancellation of the deal would mean forfeiture of THB8 billion (US$240 million) already invested by the Thai Government into the submarine program. A significant portion of the investment has reportedly been made into crew training, construction of dockyard facilities, and the establishment of a new submarine squadron.
