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Dakila
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[DISCIPLINE]
We need a huge stick to imprint this on the minds of most of our people.
Arigato.
Think about it this way ; look at the performance of your country now. Imagine if corruption is removed , the level of growth and development would be higher.
Cossack25A1
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Even if corruption is removed, if people cannot follow simple rules such as "No Jaywalking", well what's the point of economic success if the people are undisciplined.
What you say carries weight. There should be a combined grass roots level call for national restructuring. And I am optimistic for the Philippines and the Filipino people.
Dakila
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Thank you for believing and being optimistic on us Nihonjin. I also believe our country will eventually recover back to her glory days again, There always a light at the end of the dark tunnel and there bound to have rainbows (blessings from God) after a heavy rain fall,and when we at at the lowest time of our lives, at rock bottom and there's none further more to go down except to climb up,we will rise again. Maraming salamat!
I remember Marcos had the perfect nationalism rallying slogan in "Sa Ikauunlad ng Bayan, Disiplina ang Kailangan" (For the nation to progress, there must be discipline.). It was in my younger years and how right it is to make as the cornerstone of nation-building. For a while of many months or over a year, there were progress indeed and I remember the cleanliness drive that went well. The Aquino government should replicate this propaganda so that the people will be aware that progress and economic development is a shared responsibility with their government.
Philippines' ‘biggest’ reclamation project in Cordova closer to fruition with PB approval
Sunstar
April 08, 2015
THE Provincial Board (PB) approved a resolution authorizing Cordova to undertake a P138-billion reclamation project through a public-private partnership arrangement.
The resolution was authored by former Cordova mayor Arleigh Sitoy and seconded by PB Member Celestino “Tining” Martinez III.
Arleigh said the project will be the biggest in the country, or five times bigger than the South Road Properties in Cebu City. It will connect Shell Island in the western part of the town to the lighthouse all the way to Lava Island in the southern part of the town.
Cordova Mayor Adelino Sitoy, Arleigh’s father, told legislators during the session that SM Prime Holdings Inc. (SMPHI) will be the private proponent that will finance the project. The firm reportedly came up with an unsolicited proposal.
In phases
He said the P138 billion will be released in phases in the next eight years.
He said SM will get 49 percent of the total reclaimed area of 1,500 hectares, or 735 hectares.
The rest will be shared by the Provincial Government, the Philippine Reclamation Authority and Cordova.
The size of each parcel share is not yet known, but the Province will get 150 hectares, Adelino said.
“We are after the (realization of the) project not the sharing,” the mayor told the legislators.
Requirements
According to the resolution, Cordova, through the mayor, issued a certificate of acceptance last March 3 to SMPHI’s proposal.
Cordova’s public-private partnership selection committee found the proposal complete and beneficial to the Municipality, among others.
The mayor said the project proponent also agreed to comply with all the fisherfolk groups’ demands.
Aside from making the 2,000 fisherfolk a priority in employment for the project, SMPHI will also come up with education, health and housing programs for them and their families, as well as offer them job opportunities at SM.
The resolution also requires Cordova and SM “to submit to the governor, vice governor and the PB their livelihood project plan in the event that there will be displacements as a result of the implementation of the project.” This must be done before the project is implemented and after the joint-venture contract is signed.
Adelino said the Municipality’s fishing grounds measure 3,500 hectares. Some 2,000 hectares will be left when the reclamation is completed.
Gov’t keeps economic goals intact
Business World
April 07, 2015
THE GOVERNMENT has kept its economic growth targets for this year and next, but expects revenues to fall amid cheaper oil prices, officials of the interagency Development Budget Coordination Committee (DBCC) yesterday said.
“We maintained our growth targets for this year and 2016,” Socioeconomic Planning Secretary Arsenio M. Balisacan yesterday said in a press briefing at the Department of Budget and Management (DBM) office in Manila.
The government had set a 7-8% growth goal for 2015 and 2016.
Last year, gross domestic product (GDP) expanded by 6.1%, a few points shy of the government’s 6.5-7.5% target. Crawling farm sector output and lower-than-programmed -- and at times even contracting -- state spending had weighed on growth for much of last year.
“I think 7-8% is within reach,” Mr. Balisacan said.
“Hopefully, we don’t have any major shocks -- domestic or external.”
The official, who heads the National Economic and Development Authority as director-general, added that first-quarter GDP growth should be better than a year ago.
“It could be a good one considering that we didn’t have any major shock in the last quarter of 2014, which slowed down because of Yolanda,” Mr. Balisacan explained.
Super-typhoon Yolanda, known internationally as Haiyan, devastated parts of central Philippines on Nov. 8, 2013, killing more than 6,000 and causing billions of pesos worth of damage to agriculture and infrastructure.
Budget Secretary Florencio B. Abad, who heads the DBCC, said in the same briefing that the economy likely received an additional boost from higher capital outlays, mostly from the Department of Transportation and Communications and Department of Public Works and Highways.
Officials likewise cited the positive effect of lower oil prices on consumer spending, which then can stimulate economic growth. The DBCC now expects oil prices within a $50-70 per barrel (/bbl) band this year from a previous $90-110/bbl assumption during its January meeting.
Plunging fuel costs, however, have prompted the interagency body to cut the government’s revenue targets for this year.
Finance Undersecretary Jeremiah N. Paul, Jr. said the government has now cut its revenue target to P2.275 trillion this year from P2.337 trillion previously. Collections by the Bureau of Internal Revenue are projected at P1.673 trillion from P1.72 trillion initially, while those by the Bureau of Customs were cut to P436.5 billion from P465 billion.
Despite the lower revenue target, the government is keeping its deficit cap at 2% of GDP. In absolute terms, however, the deficit cap has been cut to P283.7 billion from P285.3 billion previously.
Officials also noted the negative effect of lower oil prices on imports, which are now expected to grow just 1% this year from 7% previously. Export growth, however, will be “more robust” this year at 5% from 4% previously.
Big firms attracted to regional airport dev’t
Business World
April 07, 2015
SOME OF THE COUNTRY’S conglomerates and foreign partners that had bid for the first airport deal under the public-private partnership (PPP) program could go head to head once more for the development, operation and maintenance (O&M) of five regional installations cumulatively worth some P108.19 billion.
The group of Megawide Construction Corp. and Bangalore-based GMR Infrastructure Ltd., which last year bagged the P34.44-billion contract to expand and operate the Mactan-Cebu International Airport Terminal, hopes to slug it out again this time for five regional airport deals now up for grabs under the public-private partnership program. -- ppp.gov.ph
PPP Center Executive Director Cosette V. Canilao told reporters on the sidelines of a pre-qualification conference in Mandaluyong City on Tuesday that “as of Apr. 7, five groups have bought bid documents for the development and O&M of five regional airports PPP.”
Ms. Canilao identified the parties as the consortium of Metro Pacific Investments Corp. (MPIC) and JG Summit Holdings, Inc.; San Miguel Corp.; Aboitiz Equity Ventures, Inc.; the group of Megawide Construction Corp. and Bangalore-based GMR Infrastructure Ltd.; and air cargo warehousing firm Philippine Skylanders, Inc.
Should the groups qualify, they can bid for one or both bundles of the five regional airports, depending on their appetite, Ms. Canilao explained.
The five regional airports for auction are now grouped into two bundles, the first being Bacolod-Silay Airport (P20.26 billion) and Iloilo Airport (P30.40 billion) and the second package composed of the New Bohol (Panglao) Airport (P2.34 billion), Laguindingan Airport (P14.62 billion) and Davao Airport (P40.57 billion).
Most of the groups that bought bid documents for these regional airport deals -- except Philippine Skylanders -- also participated in the auction of the P34.44-billion deal to expand and operate the Mactan-Cebu International Airport Terminal that was awarded in April last year to the group of Megawide and GMR Infrastructure.
“Investors interested in these regional airports can still buy bid documents until May 17, as the deadline of submission of pre-qualification documents is on May 18,” Ms. Canilao announced during the conference.
“The shortlist of qualified bidders will also be released in May; while we target a June bid submission and award the airport projects in March 2016.”
Sought for comment, Megawide Corporate Information Officer Manuel Louie B. Ferrer said on the sidelines of the conference: “We’re interested in both bundles,”
“I think all five regional airports are strategic to us because of their combined annual passenger volume. In return, we can develop those airports and improve traffic control and management.”
MPIC President Jose Ma. K. Lim was circumspect, saying in a text message on Tuesday: “We can’t comment other than to say we have not written off any package and we would also consider if all five were bundled into one.”
Officials of San Miguel, Aboitiz and Philippine Skylanders could not be reached for comment as of press time.
The government has set a two-stage bidding process for the regional airport auction, which means qualification documents are submitted separately from the financial and technical proposals, according to an invitation to pre-qualify and bid published in newspapers last December. In that invitation, the government asked interested parties to submit offers to finance, design, build, operate and maintain the facilities for 30 years.
“Winning the bundled airports won’t disqualify the concessionaires from future airport bids,” Transportation Undersecretary for Planning Rene K. Limcaoco said during the conference.
Other airport deals in the government’s PPP pipeline are the P5.81-billion Puerto Princesa Airport O&M and Development Project; San Fernando Airport; Clark International Airport Project; and NAIA Development Project.
The Puerto Princesa airport project, which initially formed part of the regional airport auction, will “possibly be bundled... into a comprehensive tourism airport-centric strategy for Palawan airports, such as San Vicente and also Busuanga,” Transportation Spokesperson Michael Arthur C. Sagcal said last month.
Nine PPP deals cumulatively worth some P136.5 billion -- four of which worth a total of P84.48 billion are under the Department of Transportation and Communications -- have been awarded since the flagship infrastructure program was launched in 2010.
MPIC is one of the three main Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philippine Long Distance Telephone Co. (PLDT) and Philex Mining Corp. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld.
Cossack25A1
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Cossack25A1
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Military and Defense News:
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Questions Answered on Erroneous Reports on the Acquisition of M113 APC from the US and Israel for the Philippine Army
Monday, April 6, 2015
Max Defense
A few weeks ago, News5 released a report by Erwin Tulfo regarding the alleged misuse of funds for the Armed Forces of the Philippines' (AFP) Modernization program, wherein budget allocated for the transportation of donated M113 armored personnel carriers from the United States was said to be diverted to acquire second-hand M113 APCs from Israel. This issue was immediately picked-up by Senators JV Ejercito and Chiz Escudero, who themselves are asking for an investigation of the matter.
An M113 fitted with Elbit's 25mm RWS. A similar configuration is being acquired by the Philippine Army with Elbit Systems Land & C4I.
MaxDefense has kept quiet on this issue for some time, even if it was apparent that there are errors and inconsistencies in the report made by Mr. Tulfo. MaxDefense was clear on its stand that the project to acquire 28 refurbished upgraded M113s from Israel and 114 surplus M113A2 from the US are 2 distinct and different projects, with 2 separate project schedules, and 2 separate funding.
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The Issue - Mr. Tulfo's Report:
According to the reports made by Mr. Tulfo, the Department of National Defense (DND) diverted funds donated by the United States government to ship 100+ units of surplus M113 APCs from the US mainland to the Philippines. The funds, said to be worth Php 800+ million, was instead used to acquire used M113s from Israel, which were sourced from Belgium, and refurbished and installed with remote weapons systems by Elbit Systems Land & C4I. The M113s are said to be 3rd hand, wherein Belgium bought the vehicles from the US, then was sold to Israel, and are now sold to the Philippines.
The point of concern is why did the DND forego the delivery of 100+ free M113s from the US to buy "28 3rd-hand, vintage, World War II era refurbished M113s" from Israel that are older than those coming from the US, when it was apparent that free is better than paid, and 100+ is better than 28.
MaxDefense sees many discrepancies on this report, at almost the same level as the report made by Manila Times recently regarding the Dornier UH-1D helicopters.
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MaxDefense Replies:
MaxDefense separates the issues between the 2 distinct M113 projects for easy comprehension.
A. US Government Excess Defense Article Grant of 114 M113A2 to the Philippines:
In 2012, the US government awarded a grant to the Philippine DND involving the transfer of 114 surplus M113A2 vehicles for the Philippine Army. Being a grant, the Philippine government is not expected to pay anything for the vehicles themselves. In laymen's term: donation.
1. Is it true that the US government donated money to ship the donated M113 to the Philippines?
No. The US government only provided the M113A2 units to the Philippine government as part of the US Excess Defense Articles (EDA) grant, and it is up to the Philippine government to shoulder the shipping costs of bringing them from the stockyard in the US mainland to the Philippine Army facilities in the Philippines.
The US government normally do not provide donated money, but are actually in the form of US Military Assistance which the Philippine government annually receives.
To reinforce this answer, Mr. Tulfo reclarified in his later reports that the fund for the shipping was actually from the Philippine government, coming from the AFP Modernization Program. To be exact, the fund actually came from Republic Act 7898, which is the AFP Modernization Act of 1995.
2. Is the true that there is a Php 800+ million pesos budget intended for shipping of surplus M113 from the US mainland?
No. As early as 2010, the Philippine Army already requested for a budget to acquire tracked armored personnel carriers. A budget of Php882 million was allocated to acquire 14 brand new basic tracked armored personnel carriers, funded under the budget allocated covered by RA 7898 or the AFP Modernization Act.
But the plan was eventually scrapped as the Philippine Army believed that 14 new tracked APCs would not be enough to fill-up the planned Table of Organization and Equipment (TOE) of the Philippine Army's Mechanized Infantry Division (MID). The planned TOE involves several hundreds of additional tracked armored personnel carriers and infantry fighting vehicles to be placed under the command of the PA's MID.
From 2012 to 2013, the Philippine government tried to seal a deal with the Italian Ministry of Defense, wherein the DND decided to use the budget from the cancelled acquisition of 14 new APCs in favor shipping and refurbishing 100+ units of used VCC-1 armored vehicles (reported as M113) and 25 units of used FH-70 155mm towed howitzers, all formerly from the Italian Army. This was known in the DND and AFP as the "Italian Package", which includes theMaestrale-class frigates, naval helicopters, light combat aircraft, and other retired Italian military equipment.
With talks between the Italian and Philippine defense officials failed and the acquisition of the "Italian Package" cancelled in 2013, the DND and Army decided to use the Php 882 million budget to acquire refurbished but heavily upgraded M113s in a government-to-government deal under the supervision of the US Department of Defense.
The Philippine Army almost got hold of 100 VCC-1 Camilino tracked APCs, which are actually Italian version, Italian license copy of the American M113 APC.
Photo taken from Armyrecognition.com.
3. What are the physical condition of the M113A2 APCs from the US?
The M113A2 are formerly US Army armored personnel carriers. They are newer derivatives of the M113A1 being used by the Philippine Army, and were built starting 1979 up to 1986. The US Army heavily used these armored vehicles in deployment around the world, and were eventually replaced by the newer and more capable M2 Bradley AIFV starting in the late 1980s. Retired M113A2 vehicles are currently stored in desert open storage facilities in the US mainland, and are being sold or granted to friendly countries by the US government.
114 units were allocated by the US government to the Philippines, divided into 2 batches (100 and 14). According to MaxDefense sources, officials from the Philippine Army and DND were given a chance to choose the vehicles a few years ago in a total sample of more than 700 vehicles. Only 96 vehicles are still in working condition, but will require servicing, repair, and refurbishing in one way or another, and are not ready to use vehicles. The 18 other vehicles will need major spare parts and servicing before the PA can commission them, or they may just make them spare parts hulk for the rest of the fleet.
All 114 M113A2 do not include the machine guns and armored cupolas, which the Philippine Army will need to acquire separately.
It will definitely cost the Philippine Army a significant amount of money and time to prepare these vehicles, although the DND received Php141 million from the US government as part of US Military Assistance to the Philippines, specifically allocated for the refurbishing of the said vehicles. But even so, it appears that the amount is not enough to repair and arm all 114 vehicles, and the Philippine Army must shoulder the balance should it decide to commission all vehicles. Estimates made by MaxDefense's source said the amount is only good to fully upgrade and equip around 25 units.
4. If the money for the shipping of M113A2 from the US is different from the money to pay for the upgraded M113s, where is the shipping money?
This is the tricky part. Originally the DND opened a bidding for the shipping of 114 M113 armored vehicles from Sierra Army Depot in Herlong, California to the Philippines. Budget allocated for this is from the cancelled project to re-engine and upgrade 18 FV101 Scorpion vehicles of the Philippine Army worth around Php 200 million. The bidding failed, and no shipping company was awarded a contract. Further delays required the DND to return the money to the Department of Budget Management (DBM). But when the DND again requested for the DBM to release the budget, it did not materialize due to technical concerns on the release of Special Allotment Release Orders (SARO), and was later on affected by the government's decision to scrap the SARO system in 2013.
Instead, the DND and Philippine Army decided to use part of the US Military Financing Assistance fund worth Php 141 million initially allocated for the repair, refurbishing and rearming of the 114 M113A2, with the approval of the US government. This Php 141,008,183.06 budget was actually among those included in the Revised AFP Modernization Program under RA 10349. But as Typhoon Yolanda / Haiyan struck in late 2013, the DND again requested the US government to allow them to use the budget for humanitarian assistance and disaster relief operations, which was approved.
Since the budget was already used-up, the DND then requested for a new budget allocation for the shipping from the national government, and is still being processed by the Department of Budget Management. So far, the requested amount has not yet been released.
But the budget release is currently the worry of the Philippine Army and DND, because another MaxDefense source confirmed that the US government already sent a communication early this year asking for a commitment from the Philippine government to ship out the armored vehicles from the Sierra Army Depot in California. If the Philippines failed to take the vehicles out as per the agreed commitment, the US government will offer these vehicles to other interested foreign governments. It was also confirmed by MaxDefense sources that there are already other military inspectors from foreign countries interested on the specific vehicles previously selected by the Philippine Army inspection teams.
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B. Acquisition of 28 refurbished & upgraded M113 from Elbit Systems Land & C4I:
5. Who are involved in the deal to acquire the refurbished & upgraded M113A2+ from Elbit Systems Land & C4I?
All acquisitions involving US-made or US license-built military equipment will require the involvement of the US Department of Defense (DoD). The M113, in all its form and licensed copies, is among those that need the US DoD's approval before any sale or transfer happens. This is true not only for the Philippines, but for any government or entity that acquires US military equipment.
When the DND and PA decided to acquire refurbished and upgraded M113 vehicles, it was initially coordinated with the US DoD which gave approval of the planned acquisition. It was actually the US Army's Infrastructure Modernization (IMOD) office that recommended to award such contract to Elbit Systems Land & C4I, with the approval of the Israeli Ministry of Defense and its Defense Export & Defense Cooperation (SIBAT) office.
6. Are the M113s sold by Israel are 3rd hand, World War II vintage vehicles?
A strong No. Elbit Systems Land & C4I of Israel is supplying the armored vehicles for the Philippine Army in a government-to-government contract entered by the DND last year. The M113s to be used are former Belgian Land Component (Belgian Army) M113A1-B vehicles.
The M113A1-B is the Belgian version of the M113 armored vehicles, with the "B" denoting "Belgium". They were made in Belgium by the Belgian Mechanical Fabrication (BMF) Company. Although designated as an "A1", they are actually very much more similar to the US M113A2 version than the older M113A1. Modifications made by the Belgians include using the same suspension as the US M113A2, and nuclear-biological chemical (NBC) protection, among others. They were built from 1982 to 1988, which means that these vehicles are actually newer than the US-made M113A2. And since World War II ended in 1945, or 37 years after the first M113A1-B rolled out of BMF's factory, these are incorrectly and outrageously termed as vintage World War II era vehicles!
The FMC M113 first appeared in 1960, or 15 years after World War II. The Philippines was among the first users of the type, receiving them in the late 1960s. But the versions being acquired by the Philippines now are newer versions produced between 1979-1986.
7. So if they are not vintage, is it true that the vehicles are dilapidated and "bulok"?
No. After the Belgian Land Component reduced its TOE size and replaced older vehicles, the M113A1-B were among those retired from service. The specific M113A1-B units to be sold to the Philippines passed through the Belgian defense company Sabiex International S.A., a subsidiary of Elbit Systems Land & C4I.
Elbit Systems through Sabiex now has the retired Belgian M113A1-B for the PA and are now doing the refurbishing works in Belgium. But it does not mean the M113A1-B were bought by the State of Israel, as they were acquired by a Belgian company (Sabiex) to be sold to other interested governments or entities. No other military used these vehicles after the Belgians. If 28 of these vehicles are transferred to the Philippine Army, it may seem that they are already the 3rd hand owner, with the Belgian Land Component as the 1st owner, Sabiex S.A./Elbit Systems as the 2nd owner, and the Philippine Army as the 3rd. But since Sabiex/Elbit does not use the vehicles for military operations, Sabiex and Elbit are similar to sales agents, retailers or consignees in commercial terminologies. So officially, the Philippine Army is the 2nd owner.
Aside from being newer than the US-sourced M113A2, the Belgian M113A1-B are actually far better in terms of condition and usage. A MaxDefense source confirmed that the M113A1-B units chosen by the Joint Visual Inspection team from the DND and Philippine Army are actually very much new, with only more than 1,000 kilometers mileage!
How is that possible? It appears that the vehicles chosen by the DND and PA were used by the Belgians only for military and royal parades, displays, and training exercises within Belgium, and were not used in NATO deployments across Europe. They were also among the last units retired by the Belgians before being replaced with the MOWAG Piranha IIIC 8x8 armored vehicle. The Belgians never used the chosen units in any minor or major armed conflict, military operation, or peacekeeping mission. Add to that the fact that the refurbishing includes zero-timing the vehicles. So in effect, these vehicles are practically new!
A Belgium Land Component M113A1-B.
Aside from that, as part of the deal between the DND and Elbit Systems, Sabiex will refurbish these M113A1-B vehicles to M113A2+ standards, undergoing a complete refurbishing and overhaul of the body and engine, new Allison TX1001A transmission system, a new fuel system, hydraulic steering system, and an improved suspension.
After refurbishing to M113A2+ standards, the vehicles will be fitted with the advanced remote weapons systems (RWS) made by Elbit Systems, and 76mm gun turrets from decommissioned Philippine Army FV101 Scorpion combat recon vehicles, converting these APCs into armored fighting vehicles. They won't be just bringing in soldiers to the combat zone like what standard M113s do, but because of the advanced weapons systems, they will be with the soldiers in combat in a similar way that other modern IFVs are used by foreign armies.
Once in service, the 28 upgraded M113s are actually the most modern armored vehicles in the Philippine military, being the only one equipped with these advanced features.
8. The Philippine Army will provide 76mm turrets from decommissioned FV101 Scorpions?
Yes. That is part of the deal. The Philippine Army has several British-made FV101 Scorpion "light tanks" that are out of action for some time due to lack of spare parts. After several failed attempts to repair and re-engine these Scorpions, the Army decided to retire them for good. Instead of leaving them in the army's storeyards, it was decided that the L23A1 turrets, with its 76mm low pressure gun, are still worth using. As part of the plan, 14 of these turrets will be removed from the Scorpion vehicles.
Unfortunately, the Philippine Army's fleet of Scorpion CRVTs are declining fast. And with the turrets still working, the Army decided to transplant them to the M113A2+.
9. The M113A2+ are in Belgium. The RWS, FCS, and other components are in Israel. The 76mm Turrets are in the Philippines. So how will they be put together?
The 76mm gun turrets from the Scorpions will be repaired and refurbished locally by the Philippine Army with assistance from Sabiex personnel, using components provided by Elbit Systems. Once upgraded, Elbit Systems will check and accept these turrets and then integrate them with their new Fire Control System, as the RWS and FCS from Israel will be shipped to the Philippines separately from the M113A2+ from Belgium.
Once the vehicles, weapons systems, and other components are here, they will be integrated by Elbit Systems in the Philippines, under supervision by the Philippine Army. Elbit Systems being the contractor of the project will make sure that the entire system will be in accordance to the standards required by the client (DND/Army), and will be in charge of warranties, integrated logistics support, and product support.
There might be questions on why the Philippine Army will do the repair and refurbishing of the L23A1 turrets when Elbit Systems is already part of the project, but it appears that this decision to have the Army do the work with only assistance from Sabiex/Elbit was made even before the contract was signed. Aside from these, the contract between the DND and Elbit Systems includes the provision of 4 free armored recovery vehicles by Elbit Systems.
10. What, free Armored Recovery Vehicles?
Yes. The contract between the DND and Elbit Systems actually cover only 24 vehicles. These are the 4 units to be installed with 25mm RWS gun system, 6 with 12.7mm RWS gun systems, and 14 with the refurbished 76mm gun turrets from the Scorpions. As part of the deal, Elbit will give 4 refurbished M113A2+ in armored recovery vehicle configuration. This was even reported previously by the media.
Photo taken from Sabiex's website.
11. So is 100+ free M113A2 better than 28 refurbished M113s from Belgium-Israel?
Neither. The Philippine Army both needs quantity and quality. Its TOE requires hundreds of tracked armored vehicles in its inventory, and even if the 114 M113A2 from the US and 28 M113A2+ from Israel comes, the PA will still need more. While 114 M113A2 seems better than 28 M113A2+, many fail to consider that the 28 M113A2+ to be delivered by Elbit Systems are fully refurbished, almost new, technologically superior, and heavily armed variants as compared to those from the US grant. If you put the 28 M113A2+ to combat against the 114 M113A2, MaxDefense believes the upgraded units will definitely hold its own even if they are less in numbers.
In the end, the Philippine Army needs both projects to be implemented and delivered. And the PA will need to request more funding to acquire more armored vehicles, which include the future plan to have Main Battle Tanks in its arsenal.
12. Is there anything wrong with buying second hand, refurbished military equipment?
No. Our lawmakers, decision makers, and the public must understand that the military's modernization program requires tens of billions of dollars to fully implement and transform it to first class, modern armed forces. Tens of billions of dollars that the government does not provide, and instead only a few million dollars are made available every year. If we insist on buying new equipment everytime, until when can the AFP realize its required number of equipment then?
In its current plans, the Philippine Army may require up to 700 tracked armored personnel carriers and infantry fighting vehicles to fill its TOE. Currently it only has less than 150. Add the 114 surplus M113A2 from the US and 28 M113A2+ from Belgium/Israel and we now have less than 300 units. So the Army is still lacking 400 units! Another example: the Philippine Air Force requires around 100 serviceable combat utility helicopters at any given time. So it means they need at least 135 helicopters, considering maintenance and servicing for other units. Currently they have 40 units combined for working and non-working aircraft. They are buying 8 new Bell 412EP, so that brings 48 units. If the PAF bought more new Bell 412EP instead of refurbished Dornier-Bell UH-1D, the budget allocated by the government cannot even buy 3 new helicopters! So when the can the PAF get their 135 helicopters?
Refurbishing of old military equipment is a normal trend around the world that has becoming more prevalent with the defense cuts faced by even the richest countries. Service Life Extension Programs (SLEP) is a refurbishing and upgrading program that involves overhauling the entire equipment, replacing damaged or old parts with new ones, restoring the body and other non-moving parts, and installing upgrades to improve the vehicle's performance. This is what was done to the 28 M113A1-B from Belgium to become the M113A2+ the Philippine Army specified.
Singapore refurbished their M113 fleet by installing new technology and replaced old parts. It also included the installation of a RWS system as shown above.
Photo taken from tanknutdave's website.
Aside from the Philippines, the latest country to have bought refurbished M113A1-B from Belgium and supplied by Sabiex is the Indonesian Army. Some of the M113s were even delivered in time for the 69th Anniversary of the Indonesian Armed Forces (TNI) last year.
Indonesia's Belgian-made M113A1-B supplied by Sabiex S.A. The first batch shown above were delivered on time to be included in the 69th Anniversary of the Indonesian Armed Forces. On the left is the ARV variant, which the PA will receive 4. The vehicle on the right is the standard APC variant.
Photo taken from fallenpx's Flicr account.
Even the richest countries with defense budgets several times higher than the Philippine military gets acquire second hand and refurbished equipment depending on the urgency, schedule, and budget flow they are facing. Several examples: Singapore bought 100+ used Leopard 2A4 tanks from Germany, and with refurbishing, they are now the most modern and most capable main battle tanks in Southeast Asia. Indonesia with a military modernization budget of US$15 billion in 5 years (the PH is less than US$2 billion in the same timeline), also recently acquired 100+ refurbished Leopard 2A4 tanks and 50 refurbished Marder IFVs from Germany, and upgraded most of them to become as capable as Singapore's Leopard 2SG. They also recently acquired 24 mothballed F-16C/D from the and upgraded them to become one of their top fighters in their Air Force. Japan bought used refurbished C-130H Hercules transport aircraft from the US recently, which they used in the recently concluded Cope North Exercises. Australia bought second hand refurbished M1A1 Abrams tanks from the US. Thailand's entire tank fleet, with exception to their new tanks from Ukraine, are actually used surplus US Army stocks. Taiwan is a regular buyer of refurbished naval ships from the US, with recent procurements include the Kidd-class destroyers and Oliver Hazard Perry-class frigates. Chile is the best example of a capable military using refurbished equipment, with used missile frigates from UK and the Netherlands, used fighters (F-16AM/BM) from the Netherlands, and used tanks and armored vehicles from Germany, the Netherlands, Belgium and the US (Leopard 2, Leopard 1, Marder, YPR-765, M113), they are now one of the most capable armed forces in South America! Even America, with all its power and money, recently bought used AV-8B Harrier jets retired by the British Royal Air Force and Royal Navy! So what the Philippines did is nothing wrong, but just being practical and realistic.
The most modern main battle tanks in Southeast Asia, the Singaporean Leopard 2SG (above) and the Indonesian Leopard 2 Revolution (below), are nothing more but decades old, second hand, refurbished Leopard 2A4 tanks from Germany. And yet they are more capable than the most modern and newest main battle tanks from China.
13. Finally, what do our lawmakers and government need to do to modernize the Armed Forces of the Philippines?
If our lawmakers really desire that our soldiers get the best equipment available, all they need to do is increase the annual defense procurement budget. Recently, AFP Chief of Staff Gen. Pio Catapang stressed the need to increase the annual military modernization budget to at least 1% of the annual national government budget. That request is a very modest one, but still the government is having problems granting that practical request. If the government is really serious to improve the country's armed forces, then provide what they need.
Another important matter is that the procurement process for defense equipment must be changed immediately. Not only does tendering enable certain entities of learning a lot of details on the military's requirements, but it also stops the military from getting the best product they require due to the process of having the cheapest product win. It also delays important projects, which is a very crucial factor especially that the country is facing a lot of internal and external threats, as well as environmental ones.
There might be a possibility of corruption and illegal activities brought up by Mr. Erwin Tulfo with regards to his report on the acquisition of M113s. But the way the report was made showed lack of understanding on the product being demonized. It appears now to be no different from the false accusations made by another reporter regarding the capabilities and history of the Dornier-Bell UH-1D.
Like what MaxDefense pointed out in its previous blog on the Dornier-Bell UH-1D, reporters should not make baseless statements and reports against the equipment involved just to create a foundation for their accusations. There's no need to do that! And the worst part is, they are feeding the general public wrong information when it is the media's responsibility to look for the truth! If the truth is what they are searching for, then they must start from a strong foundation of truth as well.
There is nothing wrong with the calls for investigations because it is for the benefit of the Filipino people to know the truth. But if certain individuals, media, or organizations accuse DND and AFP officials of corruption, all they have to do is go directly to the issue, show evidence that there are indeed irregularities on the deals. No need to blow out the issue by making made-up stories and erroneously tainting the product's image with untrue or incorrect information, which can be debunked by people who knows their military equipment very well or even by simple research.
MaxDefense will be closely monitoring this projects and will be posting updates later on should more information arrive.
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MaxDefense: Questions Answered on Erroneous Reports on the Acquisition of M113 APC from the US and Israel for the Philippine Army
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Questions Answered on Erroneous Reports on the Acquisition of M113 APC from the US and Israel for the Philippine Army
Monday, April 6, 2015
Max Defense
A few weeks ago, News5 released a report by Erwin Tulfo regarding the alleged misuse of funds for the Armed Forces of the Philippines' (AFP) Modernization program, wherein budget allocated for the transportation of donated M113 armored personnel carriers from the United States was said to be diverted to acquire second-hand M113 APCs from Israel. This issue was immediately picked-up by Senators JV Ejercito and Chiz Escudero, who themselves are asking for an investigation of the matter.
An M113 fitted with Elbit's 25mm RWS. A similar configuration is being acquired by the Philippine Army with Elbit Systems Land & C4I.
MaxDefense has kept quiet on this issue for some time, even if it was apparent that there are errors and inconsistencies in the report made by Mr. Tulfo. MaxDefense was clear on its stand that the project to acquire 28 refurbished upgraded M113s from Israel and 114 surplus M113A2 from the US are 2 distinct and different projects, with 2 separate project schedules, and 2 separate funding.
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The Issue - Mr. Tulfo's Report:
According to the reports made by Mr. Tulfo, the Department of National Defense (DND) diverted funds donated by the United States government to ship 100+ units of surplus M113 APCs from the US mainland to the Philippines. The funds, said to be worth Php 800+ million, was instead used to acquire used M113s from Israel, which were sourced from Belgium, and refurbished and installed with remote weapons systems by Elbit Systems Land & C4I. The M113s are said to be 3rd hand, wherein Belgium bought the vehicles from the US, then was sold to Israel, and are now sold to the Philippines.
The point of concern is why did the DND forego the delivery of 100+ free M113s from the US to buy "28 3rd-hand, vintage, World War II era refurbished M113s" from Israel that are older than those coming from the US, when it was apparent that free is better than paid, and 100+ is better than 28.
MaxDefense sees many discrepancies on this report, at almost the same level as the report made by Manila Times recently regarding the Dornier UH-1D helicopters.
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MaxDefense Replies:
MaxDefense separates the issues between the 2 distinct M113 projects for easy comprehension.
A. US Government Excess Defense Article Grant of 114 M113A2 to the Philippines:
In 2012, the US government awarded a grant to the Philippine DND involving the transfer of 114 surplus M113A2 vehicles for the Philippine Army. Being a grant, the Philippine government is not expected to pay anything for the vehicles themselves. In laymen's term: donation.
1. Is it true that the US government donated money to ship the donated M113 to the Philippines?
No. The US government only provided the M113A2 units to the Philippine government as part of the US Excess Defense Articles (EDA) grant, and it is up to the Philippine government to shoulder the shipping costs of bringing them from the stockyard in the US mainland to the Philippine Army facilities in the Philippines.
The US government normally do not provide donated money, but are actually in the form of US Military Assistance which the Philippine government annually receives.
To reinforce this answer, Mr. Tulfo reclarified in his later reports that the fund for the shipping was actually from the Philippine government, coming from the AFP Modernization Program. To be exact, the fund actually came from Republic Act 7898, which is the AFP Modernization Act of 1995.
2. Is the true that there is a Php 800+ million pesos budget intended for shipping of surplus M113 from the US mainland?
No. As early as 2010, the Philippine Army already requested for a budget to acquire tracked armored personnel carriers. A budget of Php882 million was allocated to acquire 14 brand new basic tracked armored personnel carriers, funded under the budget allocated covered by RA 7898 or the AFP Modernization Act.
But the plan was eventually scrapped as the Philippine Army believed that 14 new tracked APCs would not be enough to fill-up the planned Table of Organization and Equipment (TOE) of the Philippine Army's Mechanized Infantry Division (MID). The planned TOE involves several hundreds of additional tracked armored personnel carriers and infantry fighting vehicles to be placed under the command of the PA's MID.
From 2012 to 2013, the Philippine government tried to seal a deal with the Italian Ministry of Defense, wherein the DND decided to use the budget from the cancelled acquisition of 14 new APCs in favor shipping and refurbishing 100+ units of used VCC-1 armored vehicles (reported as M113) and 25 units of used FH-70 155mm towed howitzers, all formerly from the Italian Army. This was known in the DND and AFP as the "Italian Package", which includes theMaestrale-class frigates, naval helicopters, light combat aircraft, and other retired Italian military equipment.
With talks between the Italian and Philippine defense officials failed and the acquisition of the "Italian Package" cancelled in 2013, the DND and Army decided to use the Php 882 million budget to acquire refurbished but heavily upgraded M113s in a government-to-government deal under the supervision of the US Department of Defense.
The Philippine Army almost got hold of 100 VCC-1 Camilino tracked APCs, which are actually Italian version, Italian license copy of the American M113 APC.
Photo taken from Armyrecognition.com.
3. What are the physical condition of the M113A2 APCs from the US?
The M113A2 are formerly US Army armored personnel carriers. They are newer derivatives of the M113A1 being used by the Philippine Army, and were built starting 1979 up to 1986. The US Army heavily used these armored vehicles in deployment around the world, and were eventually replaced by the newer and more capable M2 Bradley AIFV starting in the late 1980s. Retired M113A2 vehicles are currently stored in desert open storage facilities in the US mainland, and are being sold or granted to friendly countries by the US government.
114 units were allocated by the US government to the Philippines, divided into 2 batches (100 and 14). According to MaxDefense sources, officials from the Philippine Army and DND were given a chance to choose the vehicles a few years ago in a total sample of more than 700 vehicles. Only 96 vehicles are still in working condition, but will require servicing, repair, and refurbishing in one way or another, and are not ready to use vehicles. The 18 other vehicles will need major spare parts and servicing before the PA can commission them, or they may just make them spare parts hulk for the rest of the fleet.
All 114 M113A2 do not include the machine guns and armored cupolas, which the Philippine Army will need to acquire separately.
It will definitely cost the Philippine Army a significant amount of money and time to prepare these vehicles, although the DND received Php141 million from the US government as part of US Military Assistance to the Philippines, specifically allocated for the refurbishing of the said vehicles. But even so, it appears that the amount is not enough to repair and arm all 114 vehicles, and the Philippine Army must shoulder the balance should it decide to commission all vehicles. Estimates made by MaxDefense's source said the amount is only good to fully upgrade and equip around 25 units.
4. If the money for the shipping of M113A2 from the US is different from the money to pay for the upgraded M113s, where is the shipping money?
This is the tricky part. Originally the DND opened a bidding for the shipping of 114 M113 armored vehicles from Sierra Army Depot in Herlong, California to the Philippines. Budget allocated for this is from the cancelled project to re-engine and upgrade 18 FV101 Scorpion vehicles of the Philippine Army worth around Php 200 million. The bidding failed, and no shipping company was awarded a contract. Further delays required the DND to return the money to the Department of Budget Management (DBM). But when the DND again requested for the DBM to release the budget, it did not materialize due to technical concerns on the release of Special Allotment Release Orders (SARO), and was later on affected by the government's decision to scrap the SARO system in 2013.
Instead, the DND and Philippine Army decided to use part of the US Military Financing Assistance fund worth Php 141 million initially allocated for the repair, refurbishing and rearming of the 114 M113A2, with the approval of the US government. This Php 141,008,183.06 budget was actually among those included in the Revised AFP Modernization Program under RA 10349. But as Typhoon Yolanda / Haiyan struck in late 2013, the DND again requested the US government to allow them to use the budget for humanitarian assistance and disaster relief operations, which was approved.
Since the budget was already used-up, the DND then requested for a new budget allocation for the shipping from the national government, and is still being processed by the Department of Budget Management. So far, the requested amount has not yet been released.
But the budget release is currently the worry of the Philippine Army and DND, because another MaxDefense source confirmed that the US government already sent a communication early this year asking for a commitment from the Philippine government to ship out the armored vehicles from the Sierra Army Depot in California. If the Philippines failed to take the vehicles out as per the agreed commitment, the US government will offer these vehicles to other interested foreign governments. It was also confirmed by MaxDefense sources that there are already other military inspectors from foreign countries interested on the specific vehicles previously selected by the Philippine Army inspection teams.
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B. Acquisition of 28 refurbished & upgraded M113 from Elbit Systems Land & C4I:
5. Who are involved in the deal to acquire the refurbished & upgraded M113A2+ from Elbit Systems Land & C4I?
All acquisitions involving US-made or US license-built military equipment will require the involvement of the US Department of Defense (DoD). The M113, in all its form and licensed copies, is among those that need the US DoD's approval before any sale or transfer happens. This is true not only for the Philippines, but for any government or entity that acquires US military equipment.
When the DND and PA decided to acquire refurbished and upgraded M113 vehicles, it was initially coordinated with the US DoD which gave approval of the planned acquisition. It was actually the US Army's Infrastructure Modernization (IMOD) office that recommended to award such contract to Elbit Systems Land & C4I, with the approval of the Israeli Ministry of Defense and its Defense Export & Defense Cooperation (SIBAT) office.
6. Are the M113s sold by Israel are 3rd hand, World War II vintage vehicles?
A strong No. Elbit Systems Land & C4I of Israel is supplying the armored vehicles for the Philippine Army in a government-to-government contract entered by the DND last year. The M113s to be used are former Belgian Land Component (Belgian Army) M113A1-B vehicles.
The M113A1-B is the Belgian version of the M113 armored vehicles, with the "B" denoting "Belgium". They were made in Belgium by the Belgian Mechanical Fabrication (BMF) Company. Although designated as an "A1", they are actually very much more similar to the US M113A2 version than the older M113A1. Modifications made by the Belgians include using the same suspension as the US M113A2, and nuclear-biological chemical (NBC) protection, among others. They were built from 1982 to 1988, which means that these vehicles are actually newer than the US-made M113A2. And since World War II ended in 1945, or 37 years after the first M113A1-B rolled out of BMF's factory, these are incorrectly and outrageously termed as vintage World War II era vehicles!
The FMC M113 first appeared in 1960, or 15 years after World War II. The Philippines was among the first users of the type, receiving them in the late 1960s. But the versions being acquired by the Philippines now are newer versions produced between 1979-1986.
7. So if they are not vintage, is it true that the vehicles are dilapidated and "bulok"?
No. After the Belgian Land Component reduced its TOE size and replaced older vehicles, the M113A1-B were among those retired from service. The specific M113A1-B units to be sold to the Philippines passed through the Belgian defense company Sabiex International S.A., a subsidiary of Elbit Systems Land & C4I.
Elbit Systems through Sabiex now has the retired Belgian M113A1-B for the PA and are now doing the refurbishing works in Belgium. But it does not mean the M113A1-B were bought by the State of Israel, as they were acquired by a Belgian company (Sabiex) to be sold to other interested governments or entities. No other military used these vehicles after the Belgians. If 28 of these vehicles are transferred to the Philippine Army, it may seem that they are already the 3rd hand owner, with the Belgian Land Component as the 1st owner, Sabiex S.A./Elbit Systems as the 2nd owner, and the Philippine Army as the 3rd. But since Sabiex/Elbit does not use the vehicles for military operations, Sabiex and Elbit are similar to sales agents, retailers or consignees in commercial terminologies. So officially, the Philippine Army is the 2nd owner.
Aside from being newer than the US-sourced M113A2, the Belgian M113A1-B are actually far better in terms of condition and usage. A MaxDefense source confirmed that the M113A1-B units chosen by the Joint Visual Inspection team from the DND and Philippine Army are actually very much new, with only more than 1,000 kilometers mileage!
How is that possible? It appears that the vehicles chosen by the DND and PA were used by the Belgians only for military and royal parades, displays, and training exercises within Belgium, and were not used in NATO deployments across Europe. They were also among the last units retired by the Belgians before being replaced with the MOWAG Piranha IIIC 8x8 armored vehicle. The Belgians never used the chosen units in any minor or major armed conflict, military operation, or peacekeeping mission. Add to that the fact that the refurbishing includes zero-timing the vehicles. So in effect, these vehicles are practically new!
A Belgium Land Component M113A1-B.
Aside from that, as part of the deal between the DND and Elbit Systems, Sabiex will refurbish these M113A1-B vehicles to M113A2+ standards, undergoing a complete refurbishing and overhaul of the body and engine, new Allison TX1001A transmission system, a new fuel system, hydraulic steering system, and an improved suspension.
After refurbishing to M113A2+ standards, the vehicles will be fitted with the advanced remote weapons systems (RWS) made by Elbit Systems, and 76mm gun turrets from decommissioned Philippine Army FV101 Scorpion combat recon vehicles, converting these APCs into armored fighting vehicles. They won't be just bringing in soldiers to the combat zone like what standard M113s do, but because of the advanced weapons systems, they will be with the soldiers in combat in a similar way that other modern IFVs are used by foreign armies.
Once in service, the 28 upgraded M113s are actually the most modern armored vehicles in the Philippine military, being the only one equipped with these advanced features.
8. The Philippine Army will provide 76mm turrets from decommissioned FV101 Scorpions?
Yes. That is part of the deal. The Philippine Army has several British-made FV101 Scorpion "light tanks" that are out of action for some time due to lack of spare parts. After several failed attempts to repair and re-engine these Scorpions, the Army decided to retire them for good. Instead of leaving them in the army's storeyards, it was decided that the L23A1 turrets, with its 76mm low pressure gun, are still worth using. As part of the plan, 14 of these turrets will be removed from the Scorpion vehicles.
Unfortunately, the Philippine Army's fleet of Scorpion CRVTs are declining fast. And with the turrets still working, the Army decided to transplant them to the M113A2+.
9. The M113A2+ are in Belgium. The RWS, FCS, and other components are in Israel. The 76mm Turrets are in the Philippines. So how will they be put together?
The 76mm gun turrets from the Scorpions will be repaired and refurbished locally by the Philippine Army with assistance from Sabiex personnel, using components provided by Elbit Systems. Once upgraded, Elbit Systems will check and accept these turrets and then integrate them with their new Fire Control System, as the RWS and FCS from Israel will be shipped to the Philippines separately from the M113A2+ from Belgium.
Once the vehicles, weapons systems, and other components are here, they will be integrated by Elbit Systems in the Philippines, under supervision by the Philippine Army. Elbit Systems being the contractor of the project will make sure that the entire system will be in accordance to the standards required by the client (DND/Army), and will be in charge of warranties, integrated logistics support, and product support.
There might be questions on why the Philippine Army will do the repair and refurbishing of the L23A1 turrets when Elbit Systems is already part of the project, but it appears that this decision to have the Army do the work with only assistance from Sabiex/Elbit was made even before the contract was signed. Aside from these, the contract between the DND and Elbit Systems includes the provision of 4 free armored recovery vehicles by Elbit Systems.
10. What, free Armored Recovery Vehicles?
Yes. The contract between the DND and Elbit Systems actually cover only 24 vehicles. These are the 4 units to be installed with 25mm RWS gun system, 6 with 12.7mm RWS gun systems, and 14 with the refurbished 76mm gun turrets from the Scorpions. As part of the deal, Elbit will give 4 refurbished M113A2+ in armored recovery vehicle configuration. This was even reported previously by the media.
Photo taken from Sabiex's website.
11. So is 100+ free M113A2 better than 28 refurbished M113s from Belgium-Israel?
Neither. The Philippine Army both needs quantity and quality. Its TOE requires hundreds of tracked armored vehicles in its inventory, and even if the 114 M113A2 from the US and 28 M113A2+ from Israel comes, the PA will still need more. While 114 M113A2 seems better than 28 M113A2+, many fail to consider that the 28 M113A2+ to be delivered by Elbit Systems are fully refurbished, almost new, technologically superior, and heavily armed variants as compared to those from the US grant. If you put the 28 M113A2+ to combat against the 114 M113A2, MaxDefense believes the upgraded units will definitely hold its own even if they are less in numbers.
In the end, the Philippine Army needs both projects to be implemented and delivered. And the PA will need to request more funding to acquire more armored vehicles, which include the future plan to have Main Battle Tanks in its arsenal.
12. Is there anything wrong with buying second hand, refurbished military equipment?
No. Our lawmakers, decision makers, and the public must understand that the military's modernization program requires tens of billions of dollars to fully implement and transform it to first class, modern armed forces. Tens of billions of dollars that the government does not provide, and instead only a few million dollars are made available every year. If we insist on buying new equipment everytime, until when can the AFP realize its required number of equipment then?
In its current plans, the Philippine Army may require up to 700 tracked armored personnel carriers and infantry fighting vehicles to fill its TOE. Currently it only has less than 150. Add the 114 surplus M113A2 from the US and 28 M113A2+ from Belgium/Israel and we now have less than 300 units. So the Army is still lacking 400 units! Another example: the Philippine Air Force requires around 100 serviceable combat utility helicopters at any given time. So it means they need at least 135 helicopters, considering maintenance and servicing for other units. Currently they have 40 units combined for working and non-working aircraft. They are buying 8 new Bell 412EP, so that brings 48 units. If the PAF bought more new Bell 412EP instead of refurbished Dornier-Bell UH-1D, the budget allocated by the government cannot even buy 3 new helicopters! So when the can the PAF get their 135 helicopters?
Refurbishing of old military equipment is a normal trend around the world that has becoming more prevalent with the defense cuts faced by even the richest countries. Service Life Extension Programs (SLEP) is a refurbishing and upgrading program that involves overhauling the entire equipment, replacing damaged or old parts with new ones, restoring the body and other non-moving parts, and installing upgrades to improve the vehicle's performance. This is what was done to the 28 M113A1-B from Belgium to become the M113A2+ the Philippine Army specified.
Singapore refurbished their M113 fleet by installing new technology and replaced old parts. It also included the installation of a RWS system as shown above.
Photo taken from tanknutdave's website.
Aside from the Philippines, the latest country to have bought refurbished M113A1-B from Belgium and supplied by Sabiex is the Indonesian Army. Some of the M113s were even delivered in time for the 69th Anniversary of the Indonesian Armed Forces (TNI) last year.
Indonesia's Belgian-made M113A1-B supplied by Sabiex S.A. The first batch shown above were delivered on time to be included in the 69th Anniversary of the Indonesian Armed Forces. On the left is the ARV variant, which the PA will receive 4. The vehicle on the right is the standard APC variant.
Photo taken from fallenpx's Flicr account.
Even the richest countries with defense budgets several times higher than the Philippine military gets acquire second hand and refurbished equipment depending on the urgency, schedule, and budget flow they are facing. Several examples: Singapore bought 100+ used Leopard 2A4 tanks from Germany, and with refurbishing, they are now the most modern and most capable main battle tanks in Southeast Asia. Indonesia with a military modernization budget of US$15 billion in 5 years (the PH is less than US$2 billion in the same timeline), also recently acquired 100+ refurbished Leopard 2A4 tanks and 50 refurbished Marder IFVs from Germany, and upgraded most of them to become as capable as Singapore's Leopard 2SG. They also recently acquired 24 mothballed F-16C/D from the and upgraded them to become one of their top fighters in their Air Force. Japan bought used refurbished C-130H Hercules transport aircraft from the US recently, which they used in the recently concluded Cope North Exercises. Australia bought second hand refurbished M1A1 Abrams tanks from the US. Thailand's entire tank fleet, with exception to their new tanks from Ukraine, are actually used surplus US Army stocks. Taiwan is a regular buyer of refurbished naval ships from the US, with recent procurements include the Kidd-class destroyers and Oliver Hazard Perry-class frigates. Chile is the best example of a capable military using refurbished equipment, with used missile frigates from UK and the Netherlands, used fighters (F-16AM/BM) from the Netherlands, and used tanks and armored vehicles from Germany, the Netherlands, Belgium and the US (Leopard 2, Leopard 1, Marder, YPR-765, M113), they are now one of the most capable armed forces in South America! Even America, with all its power and money, recently bought used AV-8B Harrier jets retired by the British Royal Air Force and Royal Navy! So what the Philippines did is nothing wrong, but just being practical and realistic.
The most modern main battle tanks in Southeast Asia, the Singaporean Leopard 2SG (above) and the Indonesian Leopard 2 Revolution (below), are nothing more but decades old, second hand, refurbished Leopard 2A4 tanks from Germany. And yet they are more capable than the most modern and newest main battle tanks from China.
13. Finally, what do our lawmakers and government need to do to modernize the Armed Forces of the Philippines?
If our lawmakers really desire that our soldiers get the best equipment available, all they need to do is increase the annual defense procurement budget. Recently, AFP Chief of Staff Gen. Pio Catapang stressed the need to increase the annual military modernization budget to at least 1% of the annual national government budget. That request is a very modest one, but still the government is having problems granting that practical request. If the government is really serious to improve the country's armed forces, then provide what they need.
Another important matter is that the procurement process for defense equipment must be changed immediately. Not only does tendering enable certain entities of learning a lot of details on the military's requirements, but it also stops the military from getting the best product they require due to the process of having the cheapest product win. It also delays important projects, which is a very crucial factor especially that the country is facing a lot of internal and external threats, as well as environmental ones.
There might be a possibility of corruption and illegal activities brought up by Mr. Erwin Tulfo with regards to his report on the acquisition of M113s. But the way the report was made showed lack of understanding on the product being demonized. It appears now to be no different from the false accusations made by another reporter regarding the capabilities and history of the Dornier-Bell UH-1D.
Like what MaxDefense pointed out in its previous blog on the Dornier-Bell UH-1D, reporters should not make baseless statements and reports against the equipment involved just to create a foundation for their accusations. There's no need to do that! And the worst part is, they are feeding the general public wrong information when it is the media's responsibility to look for the truth! If the truth is what they are searching for, then they must start from a strong foundation of truth as well.
There is nothing wrong with the calls for investigations because it is for the benefit of the Filipino people to know the truth. But if certain individuals, media, or organizations accuse DND and AFP officials of corruption, all they have to do is go directly to the issue, show evidence that there are indeed irregularities on the deals. No need to blow out the issue by making made-up stories and erroneously tainting the product's image with untrue or incorrect information, which can be debunked by people who knows their military equipment very well or even by simple research.
MaxDefense will be closely monitoring this projects and will be posting updates later on should more information arrive.
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MaxDefense: Questions Answered on Erroneous Reports on the Acquisition of M113 APC from the US and Israel for the Philippine Army
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US, Japan reaffirm ties with Philippines, vow support for Mindanao peace
The Philippine Star
April 9, 2015
MANILA, Philippines - They may be enemies during World War II but both are now allies of the Philippines for peace and security.
During the commemoration of the Day of Valor in Bataan on Thursday, the United States' and Japan's ambassadors to the Philippines expressed support for the country amid the growing tensions in the disputed South China Sea.
American Ambassador Philip Goldberg reiterated US President Barack Obama's statement last year that their defense commitment to the Philippines is "ironclad."
"In good times and bad, we stand together, shoulder-to-shoulder. In 2015, as in 1942, we face challenges and threats together as partners, friends, and in many cases now, family," Goldberg said in his speech.
"And when the Philippines is threatened, it is not alone," he added.
Goldberg said the US is working with its former enemy, Japan, in defending the Asia-Pacific region.
"And when we talk about the defense of our common interests and values, let us not forget that 70 years after the end of World War II, we are joined in our efforts to protect the security and defense of this region by Japan. Yesterday’s enemies are today’s allies and strategic partners," he said.
Defense alliance with Japan
Ambassador Kazuhide Ishikawa apologized for Japan's atrocities during World War II, but he assured that his country has become a "peace-loving" nation that upholds human rights and respects the rule of law.
He said Japan is determined to make greater contributions toward peace, stability and prosperity for the Asia-Pacific region and the entire international community.
"We are very pleased to work together with the Philippines, the United States, and all of our partners to this end. Seventy years ago, we were enemies. Now, we are friends, close friends. May this friendship be forever," he said.
Ishikawa said the alliance between the Philippines and Japan has been expanding through security and defense cooperation.
The Japanese official said the two nations signed a memorandum of defense cooperation and exchange in last January in Tokyo.
"Our cooperation in maritime security issues based upon the rule of law is a good example," he said.
Peace in Mindanao
Ishikawa said Japan is not only a partner of the Philippines in trade, infrastructure and socioeconomic development and during times of disasters.
"Peace building in Mindanao has also become one of the top priorities for assistance from Japan," he said.
Goldberg, meanwhile, remembered the police commandos who died in Mamasapano, Maguindanao on January during an operation against high-valued terrorists.
"We honor all those who have fallen in the name of freedom, and we also honor the memory and heroism of the 44 Special Action Force (SAF) members who laid down their lives to protect us all against a modern scourge: international terrorism," he said.
The Philippines is commemorating the Day of Valor amid the political crisis over the Mamasapano incident.
The peace process in Mindanao now hangs in the balance after the SAF troopers were killed in the hands of Moro rebels.
The Mamasapano tragedy has also ignited calls for the resignation of President Benigno Aquino III, who has been under heavy fire for his perceived ineptitude in handling the Mamasapano mission.
Japan e-tricycle maker targets 6,000 units; makes the Philippines its hub
Business Mirror
April 8, 2015
BEMAC Uzushio Electric Co. Ltd, a Japan-based electrical equipment supplier, is making the Philippines its manufacturing hub in the Asean region for its locally manufactured electric tricycle.
The company, through its local unit Bemac Electric Transportation Philippines, said it already invested in an assembly facility in Carmona, Cavite in 2013, making it the first electric vehicle maker in the country with a full assembly line.
The Japanese firm launched the Bemac 68VM Electric Vehicle, an e-tricycle, on Tuesday. It has partnered with local bus and truck manufacturer Almazora Motors Philippines for the assembly of the vehicle and has invested an accumulated P500 million since it began local operations in 2013.
The 68VM is priced at P450,000 inclusive of value-added tax and is over 60 percent locally sourced.
“Our sales target for the year is 3,000 [units] to 6,000 units and the year after that 10,000 units. This is in line with our plan to make the Philippines our home base or the hub in the Asean region. Preparations are in place to achieve this,” Yvonne Palomar Castro, assistant vice president for Bemac Philippines, said.
Initial preparations, according to Castro, entail scouring other markets in the Asean to export the electric vehicle from the Philippines.
Castro said they hope to deliver the first order by 2016 after the marketing studies in the Asean are done. She also said Malaysia, Thailand and possibly India are likely candidates as export markets.
Masato Oda, president of Bemac, said the long-haul view is to make the Philippines their regional hub. But for now, the domestic market and not the larger regional market is the focus of the company.
“The focus of the company is really to cater to the domestic market now. If in the future other countries become interested and we go over the capacity, that’s the time that we put in more investments in the Philippines or in other countries,” Oda said.
The Bemac Cavite plant has a maximum annual production capacity of 12,000 units, according to Oda.
The company looks to the domestic mass public transport sector to fuel its growth and has started engaging mass-transport operators, as well as local government units as possible clients. It is also aims to pursue programs with future clients to train personnel on managing and maintaining the electric vehicles.
The company’s future plans include introducing an e-jeepney as early as 2016. Bemac Uzushio Electric Co. Ltd is a top supplier of electrical products for shipping lines and factories, with presence in China, Vietnam, Singapore employing 1,500 workers.
Philippine burger chain sets sights on Europe, Japan
Nikkei staff writer
MANILA -- Philippine fast-food giant Jollibee Foods is considering Japan or Europe for the next leg of its global expansion.
Chief Financial Officer Ysmael Baysa said on March 24 the company might open stores in these areas in the next two to three years.
Baysa said he is still searching for the right locations, preferably ones with large Filipino communities. Government statistics show there are about 240,000 Filipino expats in Japan and some 770,000 in Europe as of 2012.
Jollibee Foods has also been successful in expanding in countries like Vietnam and China, where there are relatively few Filipinos. In these areas, Jollibee offers meals that are already popular with local customers, such as pho in Vietnam and noodles in China.
However, Jollibee is unsure whether this strategy will work in Europe, which is already dominated by McDonald's, and in Japan, which has established homegrown fast-food chains.
"It depends on the competitive situation, and the consumer behavior and profile," Baysa told reporters when asked how the company decides its expansion strategy. "In the case of Vietnam, it is not yet a very well-developed market. In many towns, we are the first fast-food chain, so we develop the market."
This year, the company hopes to open its first Jollibee store in Toronto, and expand its existing network in the Middle East, where the largest group of expat Filipinos live. Its joint venture with Asian investment company RRJ Capital Master Fund II will also begin rolling out Dunkin' Donuts stores in parts of China this year.
The company, which operates a dozen restaurant brands, has set aside larger capital expenditure this year -- 9.1 billion pesos ($203 million) from 5.4 billion pesos in 2014 -- to open 330 restaurants, 220 in the Philippines and 110 overseas.
Jollibee Foods, which dwarfs McDonald's store count in the Philippines, was founded by Chairman Tony Tan Caktiong as an ice cream shop in Manila in the 1970s. Three decades later, it is one of the biggest fast-food companies in Asia by market capitalization.
The Philippine Star
April 9, 2015
MANILA, Philippines - They may be enemies during World War II but both are now allies of the Philippines for peace and security.
During the commemoration of the Day of Valor in Bataan on Thursday, the United States' and Japan's ambassadors to the Philippines expressed support for the country amid the growing tensions in the disputed South China Sea.
American Ambassador Philip Goldberg reiterated US President Barack Obama's statement last year that their defense commitment to the Philippines is "ironclad."
"In good times and bad, we stand together, shoulder-to-shoulder. In 2015, as in 1942, we face challenges and threats together as partners, friends, and in many cases now, family," Goldberg said in his speech.
"And when the Philippines is threatened, it is not alone," he added.
Goldberg said the US is working with its former enemy, Japan, in defending the Asia-Pacific region.
"And when we talk about the defense of our common interests and values, let us not forget that 70 years after the end of World War II, we are joined in our efforts to protect the security and defense of this region by Japan. Yesterday’s enemies are today’s allies and strategic partners," he said.
Defense alliance with Japan
Ambassador Kazuhide Ishikawa apologized for Japan's atrocities during World War II, but he assured that his country has become a "peace-loving" nation that upholds human rights and respects the rule of law.
He said Japan is determined to make greater contributions toward peace, stability and prosperity for the Asia-Pacific region and the entire international community.
"We are very pleased to work together with the Philippines, the United States, and all of our partners to this end. Seventy years ago, we were enemies. Now, we are friends, close friends. May this friendship be forever," he said.
Ishikawa said the alliance between the Philippines and Japan has been expanding through security and defense cooperation.
The Japanese official said the two nations signed a memorandum of defense cooperation and exchange in last January in Tokyo.
"Our cooperation in maritime security issues based upon the rule of law is a good example," he said.
Peace in Mindanao
Ishikawa said Japan is not only a partner of the Philippines in trade, infrastructure and socioeconomic development and during times of disasters.
"Peace building in Mindanao has also become one of the top priorities for assistance from Japan," he said.
Goldberg, meanwhile, remembered the police commandos who died in Mamasapano, Maguindanao on January during an operation against high-valued terrorists.
"We honor all those who have fallen in the name of freedom, and we also honor the memory and heroism of the 44 Special Action Force (SAF) members who laid down their lives to protect us all against a modern scourge: international terrorism," he said.
The Philippines is commemorating the Day of Valor amid the political crisis over the Mamasapano incident.
The peace process in Mindanao now hangs in the balance after the SAF troopers were killed in the hands of Moro rebels.
The Mamasapano tragedy has also ignited calls for the resignation of President Benigno Aquino III, who has been under heavy fire for his perceived ineptitude in handling the Mamasapano mission.
Japan e-tricycle maker targets 6,000 units; makes the Philippines its hub
Business Mirror
April 8, 2015
BEMAC Uzushio Electric Co. Ltd, a Japan-based electrical equipment supplier, is making the Philippines its manufacturing hub in the Asean region for its locally manufactured electric tricycle.
The company, through its local unit Bemac Electric Transportation Philippines, said it already invested in an assembly facility in Carmona, Cavite in 2013, making it the first electric vehicle maker in the country with a full assembly line.
The Japanese firm launched the Bemac 68VM Electric Vehicle, an e-tricycle, on Tuesday. It has partnered with local bus and truck manufacturer Almazora Motors Philippines for the assembly of the vehicle and has invested an accumulated P500 million since it began local operations in 2013.
The 68VM is priced at P450,000 inclusive of value-added tax and is over 60 percent locally sourced.
“Our sales target for the year is 3,000 [units] to 6,000 units and the year after that 10,000 units. This is in line with our plan to make the Philippines our home base or the hub in the Asean region. Preparations are in place to achieve this,” Yvonne Palomar Castro, assistant vice president for Bemac Philippines, said.
Initial preparations, according to Castro, entail scouring other markets in the Asean to export the electric vehicle from the Philippines.
Castro said they hope to deliver the first order by 2016 after the marketing studies in the Asean are done. She also said Malaysia, Thailand and possibly India are likely candidates as export markets.
Masato Oda, president of Bemac, said the long-haul view is to make the Philippines their regional hub. But for now, the domestic market and not the larger regional market is the focus of the company.
“The focus of the company is really to cater to the domestic market now. If in the future other countries become interested and we go over the capacity, that’s the time that we put in more investments in the Philippines or in other countries,” Oda said.
The Bemac Cavite plant has a maximum annual production capacity of 12,000 units, according to Oda.
The company looks to the domestic mass public transport sector to fuel its growth and has started engaging mass-transport operators, as well as local government units as possible clients. It is also aims to pursue programs with future clients to train personnel on managing and maintaining the electric vehicles.
The company’s future plans include introducing an e-jeepney as early as 2016. Bemac Uzushio Electric Co. Ltd is a top supplier of electrical products for shipping lines and factories, with presence in China, Vietnam, Singapore employing 1,500 workers.
Philippine burger chain sets sights on Europe, Japan
Nikkei staff writer
MANILA -- Philippine fast-food giant Jollibee Foods is considering Japan or Europe for the next leg of its global expansion.
Chief Financial Officer Ysmael Baysa said on March 24 the company might open stores in these areas in the next two to three years.
Baysa said he is still searching for the right locations, preferably ones with large Filipino communities. Government statistics show there are about 240,000 Filipino expats in Japan and some 770,000 in Europe as of 2012.
Jollibee Foods has also been successful in expanding in countries like Vietnam and China, where there are relatively few Filipinos. In these areas, Jollibee offers meals that are already popular with local customers, such as pho in Vietnam and noodles in China.
However, Jollibee is unsure whether this strategy will work in Europe, which is already dominated by McDonald's, and in Japan, which has established homegrown fast-food chains.
"It depends on the competitive situation, and the consumer behavior and profile," Baysa told reporters when asked how the company decides its expansion strategy. "In the case of Vietnam, it is not yet a very well-developed market. In many towns, we are the first fast-food chain, so we develop the market."
This year, the company hopes to open its first Jollibee store in Toronto, and expand its existing network in the Middle East, where the largest group of expat Filipinos live. Its joint venture with Asian investment company RRJ Capital Master Fund II will also begin rolling out Dunkin' Donuts stores in parts of China this year.
The company, which operates a dozen restaurant brands, has set aside larger capital expenditure this year -- 9.1 billion pesos ($203 million) from 5.4 billion pesos in 2014 -- to open 330 restaurants, 220 in the Philippines and 110 overseas.
Jollibee Foods, which dwarfs McDonald's store count in the Philippines, was founded by Chairman Tony Tan Caktiong as an ice cream shop in Manila in the 1970s. Three decades later, it is one of the biggest fast-food companies in Asia by market capitalization.
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May the partnership between Japan and the Philippines be forever. We Japanese will support you guys through whatever end. We will never leave Philippines alone, ever.
Cossack25A1
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Pwede na pwede ! Meron Jollibee sa USA , Pwede na Pwede !
Question land Ito sayo, 'amigo, Pwede ba teriyaki pancit combo ? Ha ha ha.
Cossack25A1
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Sigurado pwede XD
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