27 June 2015

Editorial: How Did China Just Win Thailand’s New Submarine Bid?

By Prashanth Parameswaran

The country has chosen Beijing to help realize its long-deferred submarine quest.

Thailand’s navy has elected to buy three submarines from China, moving the country one step closer to acquiring a capability it has lacked for more than six decades, media sources reported June 26 (See: “Thailand Eyes Submarine Fleet”).

According to The Bangkok Post, a source on the 17-member submarine procurement committee appointed by the Royal Thai Navy (RTN) revealed that a majority of its members had voted to buy three Chinese submarines costing 12 billion baht ($355 million) each because they were the “best value for money.” The rest of the committee members were apparently split between submarines from South Korea and Germany. As I have written previously, Thailand has lacked a submarine capability since 1951 and has tried but failed since the 1990s to ink submarine deals with several suppliers, including Seoul and Berlin (See: “Will Thailand Realize its Submarine Quest?”).

The official line from military sources is that the decision to go with Chinese-made submarines was based largely on value. In a separate report, The Bangkok Post cited various sources from the navy and the procurement committee as saying that China was chosen because its submarines were not only the cheapest, but of good quality as well contrary to concerns on this score. But a committee member also disclosed that Beijing had offered military technology transfer and training as part of the package, which other countries would otherwise charge more for. That member likened buying submarines to a car purchase. “If we are able to buy a Mercedes but have no money left for petrol, we should look at a top model Toyota instead, which would still leave some money for petrol,” the source said.

Read the full story at The Diplomat