A navy panel is likely to recommend a Chinese-made engine as a substitute for a German-made one for an S26T Yuan-class submarine being assembled in China, according to a naval source.
The panel working on the submarine engine issue is waiting for certification of the Chinese-made CHD620 engine by the Chinese Defence Ministry before drawing up a final report, said the source.
The panel chaired by navy chief-of-staff Adm Chonlathis Navanugraha has unofficially recommended the use of the CHD620 engine as a substitute for a German-made MTU 396 diesel engine.
The panel considers the submarine project essential to the navy's mission in protecting the country's maritime interest and the submarine procurement should go ahead, said the source.
The committee recently observed the testing of the Chinese-made engine, the source said, adding the engine is not for the submarine propulsion system, but for generators to produce electricity to recharge batteries that run the submarine.
China Shipbuilding & Offshore International Co (CSOC) which is contracted to build the submarine under a government-to-government agreement offered the CHD620 after Germany refused to sell its MTU 396 diesel engine to China as it is designated a military-defence item.
According to the source, if the navy eventually agrees to go with the Chinese-made engine, the procurement contract will be revised which requires cabinet approval.
If the new government approves the changes, it will take another 40 months before the submarine procurement is complete. The construction has been delayed due to the Covid-19 pandemic and is currently on hold due to the engine issue.
However, if the new government wants the submarine procurement project scrapped, it will have to negotiate with China for compensation which is expected to cover changes in submarine parts and delivery delay.
The submarine was originally to be delivered to Thailand this September but after the virus pandemic, the delivery was postponed to April next year. With the engine issue remaining unsettled, the deadline would be missed.
According to the source, the navy discussed with CSOC compensation regarding the delay in the procurement process and changes to the value of parts.
China reportedly offered to supply spare parts for free for eight years while the navy asked for a used submarine as compensation. There was no agreement.
In late April, navy commander Adm Choengchai Chomchoengpaet said China would accept three conditions regarding warranty, compensation and safety if the navy chose the Chinese-made engine.
