AFP gets record P50-B modernization budget

Next year, the Armed Forces of the Philippines (AFP) is set to receive a historic P50 billion for its modernization program, a strategic move designed to enhance national defense amidst escalating tensions in the West Philippine Sea.

This unprecedented allocation is part of the proposed P419.3 billion defense budget for the year, representing a P10 billion increase from the current year’s funding. The substantial budget boost will be directed towards upgrading military hardware and systems to better equip the AFP for modern challenges.

Surigao del Sur 2nd District Rep. Johnny Pimentel revealed that the P50 billion earmarked for capital outlays will be used exclusively for the AFP’s ongoing modernization initiatives.

The funds will be administered by the Department of National Defense (DND) following the Revised AFP Modernization Program Law of 2012. This law mandates that expenditures for modernization projects must be approved based on recommendations from the relevant bids and awards committee.

In April, the Department of Budget and Management released the fourth milestone payment of P6 billion for the DND’s procurement of two advanced multi-role missile corvettes from South Korea’s Hyundai Heavy Industries Co. Ltd. Scheduled to arrive in 2025 and 2026, these P28 billion corvettes will enhance the Philippine Navy’s capabilities in anti-ship, anti-submarine, and anti-warfare operations. The total project cost of P12.75 billion has been funded through successive payments issued on 10 December 2021 (P3.75 billion), 20 May 2022 (P3 billion), and 24 May 2023 (P6 billion).

Moreover, Pimentel has introduced House Bill 1782, which proposes an additional P5 billion for the establishment of new naval forward operating bases. These bases will be strategically located to secure the West Philippine Sea’s vast natural gas and oil deposits, crucial for the country’s future energy needs. The bill aims to bolster the country’s energy security by ensuring a protective presence in these resource-rich waters.