MANILA, Philippines — Defense Secretary Delfin Lorenzana on Tuesday said the Philippines has canceled its negotiation with an Australian company regarding six more offshore patrol vessels (OPV) for the Philippine Navy due to an increase in pricing.
Lorenzana said they have informed Australian company Austal that the country decided not to pursue the deal after the firm asked for an additional price for the patrol vessels.
According to Lorenzana, the initial cost for six OAVs is only P30 billion, but Astral had asked for an additional P12 billion.
“Sa katagalan nating paghintay na ma-approve yan ay sabi nila tumaas na raw yung cost, pati materials, yung labor and everything, humihingi sila ng dagdag,” Lorenzana said in an ambush interview in Taguig.
(Due to the long wait for the approval of the deal, they told us that there was an increase in the cost, because of the increase in labor and everything.)
The defense chief said they could also not ask the Department of Budget and Management for additional funds.
“Hindi naman tayo makakahingi ng dagdag na pera sa dahil naghirap din tayo sa COVID-19,” he stressed.
(We could not ask for additional money from the government because we have been struggling due to COVID-19.)
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