South Korea is offering to finance the Philippines' acquisition for the Navy of two modern corvettes, worth P30 billion,from Korean shipbuilder Hyudai Heavy Industries.
"Its government to government because we're having difficulty producing the amount. The two corvettes cost P30 billion," Defense Secretary Delfin Lorenzana said.
"And the Korean government is willing to finance it and we'll pay it through the years, maybe five to 10 years. So its a very enticing proposal because we don't have outright money," said Lorenzana.
The purchase of the two warships is among the big ticket items in the ongoing modernization program of the Armed Forces.
Hyundai is now building two frigates ordered that the Philippines ordered. The frigates are due in 2020 and 2021.
Lorenzana said the deal for the corvette is still being finalized.
"I would like it to be done as soon as possible. We're just finalizing the paperworks and how we're going to do it," Lorenzana said.
"The corvette is not yet signed with Hyundai but that is what the Navy wants so the builder of the frigates and the corvettes is going to be one only, so that the systems, parts are similar, there will be inter-operability and so that if they, its easy to repair them," he added. —NB, GMA News