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Fast Attack Interdiction Craft - Missile (FAIC-M) Acquisition Project of the Philippine Navy


To replace ageing assets of the Littoral Combat Force (LCF) with assets that can protect restricted  sea lanes of communications (SLOC) within the Philippine archipelago, the Philippine Navy has embarked on the acquisition of Fast Attack Interdiction Crafts (FAIC) which are fast moving, light and small, and are armed with surface-to-surface missiles with up to 25 kilometer range.

The project, now known as the Fast Attack Interdiction Craft - Missile Capable (FAIC-M) Acquisition Project, is a special project that was not included in the Horizon 2 phase Priority Projects, but was approved for implementation after an urgent requirement.

They are said to be replace the Tomas Batilo-class PKM fast attack crafts, some of which were already retired and the rest on track for retirement in a couple of years.


The PN represented the FAIC-M project with the Shaldag Mk. V fast attack craft from Israel Shipyards. Photo taken from PN Institutional Video for 2019.


Project Summary:

Fast Attack Interdiction Craft - Missile Capable Acquisition Project

Note: Edited as of 01 February 2021:


* End User: Philippine Navy (Littoral Combat Force)

* Quantity: 8 + 1 units

* Modernization Phase: 2nd List of Horizon 2 phase of RAFPMP

* Project ABC: Php10,000,000,000.00

* Acquisition Mode: Government-to-Government (G2G) deal with the Israeli Ministry of Defense - SIBAT

* Source of Funding: AFP Modernization Trust Fund, to be paid via Multi-Year Contractual Allocation (MYCA) through General Appropriations Act (GAA) starting FY2020.

* SARO Release: SARO-BMB-D-20-0022334 dated 28 December 2020, released on 28 December 2020.

* Winning Proponent:
     - Platform: no final confirmation but most likely Israel Shipyards Ltd.
     - Weapon Systems: Rafael Advance Systems Ltd.

* Product for Delivery: 
  A. Lot 1 - Platform
    - 8 + 1 units Shaldag Mk. V Fast Attack & Interdiction Craft (platform)
    - Integrated Logistics Support Package
    - Assistance in rehabilitating Cavite Naval Yard
    - Technology Transfer (license to produce or owning design rights)

  B. Lot 2 - Combat Systems and Missiles
    - 8 + 1 units Rafael Typhoon 30mm MGS
    - 16 + 2 units Rafael Mini Typhoon 12.7mm RCWS

    - 4 units Rafael Typhoon MLS-NLOS missile launchers
    - Unspecified number of Spike NLOS missile rounds

 
* Contract Price: Php9,980,809,860.00 total:
  * Lot 1 - US$127,900,000.00 (Php6,161,838,300.00)
  * Lot 2 - US$79,379,995.00 (Php3,818,971,559.45)

* Residual Amount: Php19,190,140.55

* First post by MaxDefense: 16 August 2016

* Searching Hashtag: #PNFAICMAcquisition #PNShaldagVAcquisition

* Status: Pre-procurement phase negotiations completed with Israel Shipyards Ltd. and Israeli Ministry of Defense as of December 2020, with an additional boat with complete set of remote weapon system included on top of the original plan. SARO for initial 10% payment released on 28 December 2020. NOA released in 04 January 2021, and Contract signing and NTP release expected by February or March 2021. Deliveries are expected to start in 2022.  


The Project - Fast Attack Interdiction Craft:

Based on the approved plan, the Philippine Navy will procure eight (8) Fast Attack Interdiction Craft (FAIC) based on the technical requirements they submitted to the president. The budget will be Php10 billion (around US$193 million).

MaxDefense was informed by sources to not post the technical specifications, but based on what we have already seen, it appears that it was designed to suite the proposal made by Israel Shipyards Ltd to the Philippine Navy based on the company's Shaldag Mk V fast patrol boat.

For those who remember, MaxDefense made a previous blog entry on Israel Shipyard's offer based on the Shaldag Mk V as early as August 2016. The offer was made after a Request for Information (RFI) was released by the Philippine Navy to several shipbuilders.

For more on the Shaldag Mk. V, you may refer to an old blog entry, which can be accessed below:

"Israel Shipyard's Shaldag Mk. V Fast Patrol Boat Offered to the Philippine Navy" - first posted 16 August 2016



The Shaldag Mk. V from Israel Shipyards. Credits to original source of the photo.

Weapon Systems:

Also discussed will be the weapon systems installed on these boats - which would be acquired from a different company but would be installed once the boats are delivered.

The Philippine Navy has already selected the supplier, which would be Rafael Advance Systems Ltd (Rafael), which will supply systems mostly already familiar with the PN.

Among them are Rafael's Mini Typhoon 12.7mm  navalized Remote Controlled Weapon Stations (RCWS), the Typhoon 30mm navalized machine gun system, and the Typhoon MLS-NLOS capable of firing up to eight (8) rounds of Spike NLOS surface-to-surface missile.




The Rafael Typhoon MGS (top), and the Mini Typoon RCWS (above). The Typhoon MGS can be fitted with up to 30mm naval gun. All eight FAIC-Ms will have a Typhoon MGS armed with a 30mm gun, and two Mini Typhoon 12.7mm RCWS. Photos taken from Wikipedia (top) and Royal Australian Navy (above).

Each of the eight FAIC-Ms will be armed with one (1) Typhoon 30mm MGS and two (2) Mini Typhoon 12.7mm RCWS. But only four (4)! will be equipped with the Typhoon MLS-NLOS although the four other boats will be "Fitted for But Not With" (FFBNW) with the missile system.


The Rafael Spike NLOS MLS will be equipped to only four of the eight FAIC-Ms. This is probably due to budget constraints. Photo taken from Think Defence's website.

The Spike Non Line of Sight (NLOS) is an enhanced version and the largest and longest-ranged variant of the Rafael Spike missile family, with a 25 kilometer maximum effective range and a larger warhead than the standard Spike-ER used by the PN's MPAC Mk.3 and soon to arrive Mk.4. It is guided via a radio data link for command guidance, although it has fibre optic link up to 8 kilometers.


The Spike missile family, with the Spike NLOS (top most) being the largest and longest-ranged of the group, will be used as the missile component of the Fast Attack Interdiction Craft - Missile capable (FAIC-M).
Photo taken by MaxDefense community member Juliet XZRay during ADAS 2018.

While still unconfirmed, MaxDefense believes that the Philippine Navy may also use the Rafael Toplite Electro-Optical System (EOS), which will be installed to complement the Typhoon 30mm MGS as standard equipment. It is usual for Rafael to package it with the rest of their naval weapon system offerings especially those involving the Typhoon MGS.


The Rafael Toplight EOS is also used in patrol boats and naval ships for targeting and weapon support. Photo taken from Rafael's website.

Other Deal Inclusions:

What was not mentioned on reports is that the purchase of Shaldag Mk. V from Israel Shipyards included a Technology Transfer or License Build clause wherein the Philippine Navy shall be allowed by Israel Shipyards to license-build the Shaldag Mk. V on its own, or share the design to the PN.

To further support this, the requirement also calls for the construction of two (2) four (4) of the eight fast attack & interdiction crafts in the Philippines. Yes, local production 25% 50% of the boats. But take note, this only involves the platforms/boats itself, not the weapon systems which would still be imported from Rafael in Israel.

And to make this happen, Israel Shipyards will also help the Philippine Navy to rehabilitate the Cavite Naval Yard (CNY), which will be the one to build the two locally-made FAIC-Ms.


The Philippine Navy's Cavite Naval Yard may not be huge enough to build larger ships, but it would start from at least being able to build smaller patrol boats or fast attack crafts like the Shaldag Mk. V. This would be beneficial to the PN in the long run to support the Self-Reliance Defense Posture (SRDP) program that the entire Armed Forces of the Philippines is trying to have, but also allow the Philippine Navy to assist other government agencies.

MaxDefene reported last year in our social media posts that the Philippine Coast Guard (PCG) is among those interested in acquiring the Shaldag family of fast patrol boats. This was later confirmed by British defense media outlet Jane's when they reported that at the background of IMDEX Asia 2019 defense exhibition in Singapore, PCG has made known its interest in the Shaldag Mk.III, which is smaller than the Mk. V.

A local production capability for Shaldag family of fast boats could allow the PCG to specify the requirement for most if not all of its orders be constructed locally, which could give the CNY a good run for the money.

============
U P D A T E S:
============


28 August 2019:

Philippine Navy FOIC Vice Adm. Robert Empedrad mentioned in media interviews that four of the eight Fast Attack Interdiction Craft with Missiles (FAIC-M) that the Philippine Navy plans to acquire will be built in the country, specifically at the PN's naval shipyard in Cavite.

This is in contrast to our earlier reports that only 2 will be built locally, which came from PN's own internal reports. This means the DND and PN may have secured a better deal with Istaeli Shipyards, which the PN is still not naming despite the obvious signs and MaxDefense's own report from sources.

No changes in other plans. It will still have Spike NLOS (although only 4 boats will be initially armed with it while the 4 other boats will be fitted for but not with the missile system..


The PN FAIC-M would be based on the Shaldag V fast patrol boat from Israel. Photo from PN's video.
===============

16 November 2019:

Philippine Navy Flag Officer in Command (FOIC) Vice Adm. Robert Empedrad mentioned that among the projects they are pushing forward to reach contract signing, the Fast Attack Interdiction Craft - Missile Capable (FAIC-M) would most likely reach contract signing before year end.

This is because he believe the government particularly the Department of Budget Management (DBM) has already found the needed initial amount. This is possibly because this is the cheapest of the four major combat ship acquisition at Php10 billion, compared to the Corvette project at Php28 billion, Offshore Patrol Vessel project at Php30 billion, and Submarine project which may exceed Php50 billion.



The Shaldag V fast attack craft. Photo taken from Israel Shipyards website.

===============

25 February 2020:
MaxDefense received information from sources that the Philippine Navy will be prioritizing the acquisition of the Fast Attack Interdiction Craft with Missile (FAIC-M) because, of all the ship acquisition projects aside from the Landing Docks Acquisition, the FAIC-M project does not involve soft loans.

This means the project is fully dependent on the capacity of the Philippine government to pay for them.

So far, the Department of Budget and Management (DBM) has not released any funding for the FAIC-M Acquisition Project, which means this would still be a project that we'll have to wait for results. But no doubt, the project is expected to be awarded to Israel Shipyards Ltd. and Rafael Advance Systems Ltd. under a Government-to-Government (G2G) deal with the Israeli Ministry of Defense.


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28 December 2020:

The Philippine Navy's FOIC Vice Adm. Giovanni Bacordo confirmed that negotiations for the FAIC-M Acquisition Project has been completed with Israel's Ministry of Defense and Israeli Shipyards.

The statement also confirmed that the project has been divided into 2 separate lots: Lot 1 for Platform, which cover the actual boats, and Lot 2 for Combat Systems and Missiles, which covers the weapon systems, and the missile rounds.

As part of the negotiations, Vice Adm. Bacordo confirmed that they were able to squeeze and additional boat with one set of remote weapon systems, increasing the total number of boats to be delivered nine (9) units.

So far, there was no confirmation if the 9th boat will be missile capable. Due to lack of solid information in this new development, It is assumed that the 9th boat will be equipped with remote weapon stations like the Rafael Typhoon 30mm and Mini Typhoon 12.7mm mounts, but no missiles and launchers.

Vice Adm. Bacordo also confirmed that the deliveries will start by 2022, that is if the contract and Notice to Proceed is released by early 2021. But this would be dependent on how fast the DND and DBM would make sure the funds are ready and the awarding of the project can be made.


Also confirmed is the upgrade of the Cavite Naval Shipyard as part of the deal, which was already confirmed before in this resource page and on MaxDefense PH's blog entry. Previously MDP reported that some of the Shaldag Mk. V boats will be assembled / built in the Cavite Naval Yard, which would be the first new ships coming from the yard after almost 30 years of not producing any new boat.

The shipyard's revival would help the PN to start building new small boats and even small inshore patrol vessels on its own, like replacements for the recently retired Swift Mk. 3 and De Havilland 9206 patrol crafts, and replacements previously retired Gen. Aguinaldo-class and the current Kagitingan-class large patrol boats.

The FOIC's statements are backed by the release by the Department of Budget and Management (DBM) of the initial 10% payment for the project, as a SARO worth Php998,080,986.00 was made on 21 December 2020, and was released today 28 December 2020.

SARO released today shows 10% initial funding for the FAIC-M Acquisition Project. Photo screen grabbed from DBM SARO.

===============

01 February 2021:

The Department of National Defense (DND) has released the Notice of Award (NOA) for the Philippine Navy's Fast Attack Interdiction Craft with Missiles (FAIC-M) Acquisition Project last 04 January 2021.

The FAIC-M Lot 1 covering the fast attack craft platforms and upgrade of the Cavite Naval Shipyard, was awarded to Israel Shipyards for US$127,900,000.00 (Php6,161,838,300.00) for the supply of 8 Shaldag Mk. 5 fast attack crafts (FAC). It would be remembered that PN Flag Officer in Command (FOIC) Vice Adm. Giovanni Bacordo admitted in an earlier interview that the negotiations between the two sides allowed for an additional fast attack craft with weapons to be included in the deal.

The FAIC-M Lot 2 covering weapon systems and missile ammunition was awarded to Rafael Advanced Systems Ltd for US$79,379,995.00 / Php3,818,971,559.45 for the supply of Typhoon and Mini Typhoon RCWS for all FACs, and Typhoon-MLS NLOS and Spike NLOS missiles for 4 of the FACs.


The NOA for FAIC-M Acquisition Project Lots 1 and 2 were released on 04 January 2021 in favor of Israel Shipyard and Rafael Advanced Systems, respectively. 

The Shaldag Mk. V is being touted as the replacement for the ageing Tomas Batilo-class (South Korean Chamsuri-class) fast attack crafts, which the PN has started to gradually retire. While the Tomas Batilo-class are larger, they are armed only with guns and were designed to fight heavily-armed North Korean gunboats along the North-South Korean sea border.

This is the 1st shipbuilding project under Horizon 2 phase that reached this milestone, as all other shipbuilding projects are still stuck in pre-procurement phase. In fact, this project is not part of the Php300 billion Horizon 2 priority projects approved by Pres. Duterte, but was part of a 2nd List of Horizon 2. 

Both lots were part of G2G deal with Israel's Ministry of Defense (IMOD) are did not undergo public bidding.

With the NOA already released, it is expected that the Contract would be signed, and the Notice to Proceed (NTP) be released by February or March 2021, considering the initial funding requirements were already released by the Department of Budget and Management last year.

===============
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First post and edit: 19 June 2019 
Copyright MaxDefense Philippines / Philippine Defense Resource




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