The Department of National Defense must negotiate with Moscow for a possible “happy ending” over the government’s canceled deal to buy 16 Russian military heavy-lift helicopters worth P12.7 billion, a House leader said Monday.
According to House Minority Leader Marcelino Libanan, instead of asking for a refund of the P1.9 billion downpayment for the canceled chopper deal, the DND should try to get at least one helicopter plus replacement parts supplied in exchange for the money.
Libanan made the proposal just days after President Ferdinand Marcos Jr. backed his predecessor’s decision to cancel the contract, revealing that his administration has already “secured an alternative supply from the United States.”
To recall, former President Rodrigo Duterte signed the deal to purchase the Mi-17 helicopters but canceled it before his tenure ended, owing to concerns about possible Western sanctions with Russia’s invasion of Ukraine.
Ex-Defense Secretary Delfin Lorenzana and Ambassador to Washington Jose Manuel Romualdez first confirmed the government’s decision to terminate the deal in July.
Meanwhile, Russian Ambassador to the Philippines Marat Pavlov on 20 October stressed that the Philippines should honor its military helicopter deal with his country.
Pavlov insisted that since the announcement of the deal’s cancellation by certain Philippine government officials was made in August, the Russian government has not received a formal notice of cancellation.
Libanan said asking for one chopper would prevent government money from going to waste while sparing Russia the burden of reimbursing the downpayment.
“This is a practical and sensible solution that could offer both parties a happy ending,” said the 4Ps representative.
Based on the canceled deal, each helicopter costs around P800 million, and the balance of P1.1 billion may be recovered from spare parts supplies, according to Libanan.
The minority leader, during the DND budget deliberation in the lower House, had the chance to ask the Defense agency for an update on the aborted procurement of the Russian helicopters.
However, the agency’s budget sponsor, Negros Occidental Rep. Mercedes Alvarez, told members of Congress that the government remains unsure whether it can still recover the P1.9 billion upfront payment for the scrapped deal.
The Russian helicopters were meant to build up the Philippine Air Force’s chopper fleet to transport troops, equipment and supplies, medical evacuation, and disaster relief operations.
Each helicopter can carry 24 soldiers, or 12 stretchers, or even small vehicles. With an internal payload capacity of four tons, the chopper can also alternatively carry up to three tons of underslung loads.