Topic: Progressive payment scheme eyed for P18-billion frigate program 22 Aug 2014

[A7x]

This was confirmed by Commodore Roland Mercado, Navy technical working group head, in a text message to the Philippines News Agency.

“The issue that has to be resolved is the progressive payment scheme because this will affect proponents’ financial proposals,” he said.

Mercado also stressed that the GPPB or Government Procurement Policy Board must also give its go-ahead for this setup to speed up the frigate program.

Sources earlier said that the DND is looking at the possibility of making eight payments for the two ships, which will give the Navy a much-needed boost in surveillance and firepower capability.

This can be broken down into the following:

15 percent during the awarding of the contract.
15 percent for the finalization of the contract.
10 percent for the laying of the keel of the ships.
10 percent for the construction of the vessel.
15 percent for installation of engines, weapons, communications, sensor systems, and auxiliary machinery.
15 percent during the acceptance trials.
10 percent during the delivery of the frigates to the Philippines.
10 percent for the completion of the warranty period.

Building of the two ships is expected to be completed within two years.

http://businessmirror.com.ph/~businf...rigate-program

[gotenks]

So imagine if you're building this in the Philippines,how the heck are you going to pay for materials and labor?I'm guessing that the Koreans will win this one,they have deep pockets,they can pay their labor and they already have the materials,so they can afford the increment payments.

[gotenks]

What's going on with this one do they still have the money to go thru with brand new ones? By the way this is going the frigates wont be in the Philippine hands until 2017.