(Dan Tri) – Thailand’s purchase of Chinese submarines is facing difficulties in not being able to deliver on time and in the right goods due to not being able to buy German engines.

Yuan-class S-26T submarine model that Thailand ordered from China (Photo: SCMP).

Thailand’s 13.5 billion baht ($392 million) deal to buy a Chinese-built submarine was hailed as one of the centerpieces of Beijing’s defense export plan when it was signed.

However, this agreement is facing the risk of delay because the manufacturer cannot obtain German-made diesel engines as stipulated in the contract.

The first of three S26T diesel-electric submarines with German-made MTU engines that Thailand ordered from China is expected to be delivered in 2024.

But due to difficulties related to engine supply, the delivery date may be postponed.

Previously, some exports from European countries to China were still allowed, but it appears the rules are being enforced more strictly this time around.

A German official at the Embassy in Thailand said in February that Beijing did not coordinate with Berlin before signing the contract with Bangkok in 2017.

In fact, according to SCMP, the issue is whether China can deliver refurbished old submarines to Thailand as a form of compensation for not being able to buy German engines to build new submarines under the contract.

Opposition politicians in Thailand have called for the submarine deal to be scrapped, claiming to protect the country’s interests.

The Thai Prime Minister is trying to protect this agreement while facing pressure from all sides and a stagnant economy after the Covid-19 pandemic.

But observers say the deal is unlikely to be canceled.

In 2020, three years after the first deal with Chinese state-owned conglomerate China Shipbuilding & Offshore International was signed, the Thai Navy said the submarines would help protect maritime interests for an estimated 24 million years.

Submarines are sold at preferential prices, with the `buy 3 for 2` policy, accompanied by an extended warranty program;

The price of 36 billion baht ($1.05 billion) for the three ships was expected to be paid in installments until 2027, but the Thai Navy last year withdrew its request to the National Assembly for a budget to pay for the two ships.

Thailand also considered offers from Germany, South Korea, Russia, Sweden and France in its plan to buy 2 submarines, but found China’s offer to sell 3 submarines for the price of 2 more attractive.