Armed Forces of the Philippines Receives an Extra USD 670 million Budget for Modernization

October 2022

The Armed Forces of the Philippines Modernization Program (AFPMP) is bound to get a PHP 40 billion (USD 670 million) increase in fresh funding for the military’s capability-building procurement projects, as indicated in the National Expenditure Program (NEP) for financial year 2023. For 2022, the AFPMP has PHP 29 billion (USD 492 million) and PHP 10 billion (USD 170 million) in programmed and unprogrammed appropriations, respectively.

According to Surigao del Sur Rep. Johnny Pimentel, who previously served as House strategic intelligence committee chairperson, there is PHP 40 billion in programmed appropriations for the AFPMP in next year’s budget, plus PHP 5 billion (USD 85 million) in unprogrammed appropriations. Pimentel favors bigger modernization projects for the Philippine Navy and the Philippine Marines Corps in the years ahead. “We need a naval force capable of deterring potential foreign aggressors at sea,” Pimentel said

In December 2021, the Department of National Defense (DND) signed a PHP 28 billion (USD 475 million) contract with South Korea’s Hyundai Heavy Industries Co. Ltd. for the procurement of two brand-new corvettes capable of conducting anti-ship, anti-submarine, and anti-aircraft missions. And in January this year, the DND also inked a PHP 18.9 billion (USD 322 million) deal with India’s BrahMos Aerospace for the delivery of three brand-new shore-based supersonic ramjet missile batteries. Further, in June 2022 the DND signed a PHP 30 billion (USD 509 million) contract with Hyundai for the acquisition of six brand-new 94.4-meter offshore patrol vessels (OPVs) for the Philippine Navy.

(Source: PNA)

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