Why Philippine Navy dropped Italian Maestrale-class frigate option

Many were surprised by the sudden move by the Philippine Department of National Defense (DND) and Philippine Navy (PN) to discontinue negotiations with the Italian government for the possible purchase of two Maestrale-class frigates. The ship’s presence and size will immediately make it the PN’s largest surface combatant, while the technological aspects, although not the most modern in the market, is still miles ahead from what the PN has, and what its organization can handle.

ITS Maestrale, lead ship of the Maestrale-class frigates of the Marina Militare

Let us look at what the Maestrale-class has to offer:

At around 123 meters long and a displacement of well over 3,000 tons, the ship is bigger than the PN’s largest surface combatant the Gregorio del Pilar-class. It is powered by two diesel engines and two LM2500 gas turbine engine in a CODOG configuration for rapid movements (good for hunting and evading submarines). Although the PN has at least 2 years experience with a CODOG-configured ship, the presence of the LM2500 gas turbine is a technological leap on its own. The General Electric LM2500  is one of the world’s most widely used marine gas turbine engine, powering most allied warships and is much modern than the PN-used Pratt & Whitney FT4A-6 gas turbines on the Gregorio del Pilar-class. This powerplant propels the Maestrale-class to a maximum of 33 knots, or at least 3 knots faster than the most modern US Arleigh Burkedestroyers and most large surface combatants in the region.

The ship has a wide array of sensors, which include the RAN-10S air & surface search radar, a separate SPS-702 surface search radar and SPS-703 navigation surveillance radar, 3 fire control radars for the guns and missiles, a hull mounted and towed array sonar on Raytheon ASW suit, jammers and signal interceptors for ESM & ECM, a Nixie towed torpedo decoy and SCLAR missile decoys, and a Prairie Mask air bubbler sound suppression system. 

A typical Furuno radar antenna, similar to most radar antennas in PN ships

Compared to the Gregorio del Pilar’s AN/SPS-73 and Furuno FAR-series short range surface search and navigation surveillance radar s and a single Mk.92 gun fire control radar, it’s like comparing durian to apples.

Weapons-wise, the Maestrale-class are armed with four Otomat Teseo anti-ship cruise missiles, an octuple Albatross launcher for 8 Selenia Aspide medium range anti-aircraft missile plus 16 reloads, two twin 40mm guns with DARDO close-in weapons system, a 127mm Otobreda main gun, 2 triple lightweight anti-submarine torpedo tubes for 6 torpedoes, a helideck and fixed hangar for 2 medium ASW helicopters. 

Again, comparing to the Gregorio del Pilar-class which has no missiles, no torpedoes, a 76mm Compact main gun, a 25mm Mk.38 Mod.0 gun and two 20mm Mk.16 guns, a helideck and a telescopic hangar not even enough for a medium sized helicopter. Hands down the Maestrale-class wins.

The ships are offered to the Philippine Navy for almost Php 6 billion each, including refurbishing works “zero timing” (whatever that specifically meant, haven’t heard zero timing a ship in my lifetime) of the ship’s hull and superstructure, gas turbine and diesel engines, and all other items; replacement of worn out and outdated systems; training of crewmen & provision of support teams from Italy (which are said to be joining the ship to the its trip home, and will be staying in the Philippines for several months), and full-load ammunition.

Beside all these, the Italians are willing to spice up the deal by providing freebies in the form of other Italian Navy ships for decommissioning, like the Artigliere-class frigate, Minerva-class corvettes, andLerici-class minehunters. Italian media confirms this possibility quoting senior Italian officials without saying a specific country for a possible program but looks likely they were talking about the Philippines or a South American country, probably Peru.

So why drop the chance?

The DND said their studies found out that the cheap purchase cost plus maintaining and operating the older ships are much expensive in the long run that buying newer ships plus maintaining and operating them in the long run. That makes sense, but I think even primary schoolchildren knows that too. But just basing it on that reason does not add up. MaxDefense believes that the reason is deep rooted, although there are several other possibilities that we can think of:

1. The problem is not the Maestrale ships themselves, but two other ships far from Italy. I'm talking about the BRP Ramon Alcaraz (PF-16) in South Carolina and BRP Gregorio del Pilar (PF-15) in the Philippines. In our previous blog about theRamon Alcaraz, MaxDefense believes that the Philippine Navy encountered structural, electrical and mechanical problems in both ships either wear & tear, obsolescence or damage, which may have or will affect their operational capability and readiness, as well as keep the ships to port too often. PF-15 may have only encountered the problems after commissioning, while PF-16 may have found such problems while still on port in Charleston, South Carolina. This might be the basis of DND's statements on costs maintaining & operating older ships.

The BRP Ramon Alcaraz is still in Charleston, North Carolina since May 2012. What could have the PN  found?

2. Another possible reason might be theMaestrales themselves. The ships may be too expensive for their age and the DND wanted some pricing or deal adjustment. Php 6 billion for each ship seems cheap compared to other similar types in the used warship market. But with the limited budget of the DND , it needs to push more for its money. MaxDefense sources indicate that the DND wanted a better package than what the Italians are offering for the same price, especially regarding the air defense suite and replacement of older systems like fire control systems, although no exact details were made available.

Is the Albatross-Aspide anti-aircraft missile system still effective for the PN's requirements?

3. Might there be a better offer made by somebody else? MaxDefense sources said that South Korea's Hyundai Heavy Industries (HHI) made a very juicy offer when the Maestrale deal was still ongoing. HHI reportedly offered a derivative of the Incheon-class frigate at around Php 9 billion each (incidentally this is the new budget of the PN for a new frigate). Perhaps the DND and PN were enticed to go for new instead of old by adjusting their budget. MaxDefense sources indicate that the additional Php 6 billion allocated for both ships will be taken from other naval projects as well as an additional budget coming from the Office of the President's emergency - discretionary funds or Malampaya Special Account (Fund 151). 

Was the Incheon-class (above) the reason for the change of heart?

4. Then there is the issue regarding training. MaxDefense sources indicate that the ship's technological aspect is too much for the PN to handle, and a comprehensive and continuous training program is being requested by DND & PN with the Italians. The Italians offered a compromised training & support package which has a shorter duration than what the PN requested,  but it seems the DND/PN request was so extensive to the point of temporarily stationing Italian specialists in the Philippines for a year or more. For the Italians to agree require a higher sum, which is not in DND's budget, thus declining the entire deal altogether. So far this is the most logical and clearest reason we found so far, although we're still digging for details until now even if this issue has been closed.

The Maestrale-class' RAN-30X radar (above) is said to be too advanced for  the PN's radar operators, thus requiring more training

5. A political reason is also present. There are MaxDefense sources pointing out that the PN is concerned on the inconsistent political continuity of the Philippines' political system, and although the current Aquino administration is supportive of the armed forces' cause to modernize, the next administration may not. Since the Maestrale purchase is just to bridge the a short to medium term capability gaps, a non-supportive government after Aquino may stall the PN to just the Maestrales. Thus it would be best to make use of the opportunity to get what they really need now just in case the future does not look bright for them.

Coming back to the first reason regarding higher operating and maintenance cost of older ships, the PN may have considered that increase of operating and maintenance budget may not happen should a non-supportive administration takes over in 2016. Having newer ships will lessen the dependency on such budgets, thus keeping the savings on other requirements of the navy.

Philippine President Benigno Simeon "Noynoy" Aquino III (right) with his Korean ex-girlfriend Grace Lee.
Will the next president be as supportive to the armed forces as Aquino? Who knows.

In any way, MaxDefense believes that the DND should not close its doors in getting excess defense articles for the sole reason of saving from more expensive operating & maintenance costs. It has  to consider that used items can still be effective depending on the condition of the item, the cost of the deal, and according to the capacity of the Philippine government to purchase & provide budget. EDA's can also act as force multipliers and quick relievers since they can be made available immediately, and the initial costs will always be lower. It is still the fastest way to get hulls in the water to fulfill the capability gaps especially in the face of territorial disputes in the South China Sea.

Turkey, Mexico, Pakistan, Egypt, Bahrain all bought EDA Oliver Hazard Perry -class frigates. Malaysia, Thailand & Taiwan are also considering them too. Why not the Philippines?

Even more progressive countries still make do with EDA's even if they can afford brand new. Countries like Chile, Mexico, Turkey, Greece, Portugal & Belgium bought used frigates like ex-USNOliver Hazard Perry-class, ex-RN Type 22 Broadsword-class and ex-Dutch Karel Doorman-class, Jacob van Heemskerck-class & Kortenaer-class frigates. Singapore bought several old ex-SwedishSjoormen-class and Västergötland-class submarines as their first subs. So it is not entirely impossible for the PN to have used ships in its arsenal if they can still be found cost-effective.

Singapore's Archer-class submarines are former Swedish Navy Vastergotland-class, they are old but are found to be cost-effective.
(photo courtesy of Singapore Ministry of Defence)

Besides the Italians, previous announcements of EDAs on offer are the following: Spain's Descubierta-class corvettes, France's Georges Leygues-class frigates and D'Estienne d'Orves-class corvettes, American Oliver Hazard Perry-class frigates, German Type 122Bremen-class frigates, and South KoreanUlsan-class frigates and Pohang-class corvettes.

With the impending purchase of new frigates, it would be expected that the availability of combat-capable frigates will be pushed back for several years as these new assets will not be available up until around 2016-2017 (if a contract can be signed within 2013). The PN will have to do with its current assets, or will adjust to achieve its requirements in the short-term.

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MaxDefense' suggestion is for the PN to acquire the Maestrale-class frigates as a short-medium term capability gap bridge, without upgrading major systems for now. At less around US$ 35 million each (ship only, no ammunition) plus support/training package, it is still worth the buy. Use Fund 151 and maximize the chance of getting cheap ships while it can. At the same time, acquisition of new frigates must continue to address medium-long term capability requirements. Besides theMaestrale-class. there are also other frigates & corvettes in the used defense articles market worth looking at, as well as support ships like mine countermeasures vessels, amphibious assault ships and replenishment vessels - all these types are needed by the PN someway or another.