The Royal Thai Navy has assured it can review other options if its 13.5 billion baht deal to procure a submarine from the China Shipbuilding and Offshore International Company (CSOC) is deemed untenable, due to the company’s inability to acquire a German-made engine as stipulated in the agreement.
The company, Motor and Turbine Union (MTU), is refusing to supply China with the MTU396 diesel engine that would be used in the S26T Yuan-class submarine because of an embargo that prevents the sale of equipment classified as military/defense items.
According to Navy Chief of Staff AdmTharoengsak Sirisawat, additional discussions will be held with CSOC near the end of the month to determine whether the issue can be resolved.
Prime Minister and Defense Minister Gen Prayut Chan-o-cha had previously instructed the navy to do everything possible to complete the deal, but said the contract could be terminated should China fail to meet the terms of the agreement.(NNT)
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