Philippines sign deal to buy two South Korean warships for US$556 million

MOSCOW, Jan 2 (Bernama): The Philippines has signed a US$556 million deal with South Korea's Hyundai Heavy Industries to buy two new military vessels, the country's department of national defence said recently, reported Sputnik.

The company had already won a contract for building two frigates for the Philippines navy five years ago.

"The Department of National Defence signed a contract agreement with Hyundai Heavy Industries (HHI) for the acquisition of two (2) brand new corvettes worth 28 billion pesos (US$556 million) for the Philippine Navy in a virtual signing ceremony," the department tweeted.

Manila has been actively trying to bolster its navy in order to counter the territorial ambitions of China in the South China Sea, which has put Beijing at odds with Vietnam, Brunei, Malaysia and the Philippines.

The Philippine Navy had become run down in recent decades - even featuring US craft from World War II - until President Rodrigo Duterte's predecessor, Benigno Aquino, began a modest modernisation programme in 2010, reported AFP.

The deal with the South Korean shipbuilding giant comes five years after the firm also won a contract to build two new frigates for the Philippine Navy.

Corvettes and frigates are small, fast warships mainly used to protect other vessels from attack.

Philippines Defence Secretary Delfin Lorenzana had saidit was important to modernise Manila's navy as it faces a dispute with Beijing in the South China Sea.

"This project will give the Philippine Navy two modern corvettes that are capable of anti-ship, anti-submarine and anti-air warfare missions," Lorenzana said in a speech at the signing ceremony in Manila.

The deal "will ensure commonality and interoperability with our existing assets," he added, as well as "ease of maintenance and repairs".

Manila has since acquired two former US Coast Guard cutters and three landing craft from Australia, as well as coast guard patrol vessels from Japan, in an effort to bolster its presence in the South China Sea, where it faces a dispute with Beijing.

China claims almost all of the waterway, through which trillions of dollars in trade passes annually, with competing claims from Brunei, Malaysia, the Philippines, Taiwan and Vietnam.

Beijing has ignored a 2016 ruling by The Hague-based Permanent Court of Arbitration that its historical claim is without basis.