PT PAL points to geopolitical conditions amid delays in Philippine contract

The first vessel in the follow-on contract for two more SSVs is seen here at its keel-laying ceremony in January 2024. (PT PAL)

A follow-on contract to supply the Philippine Navy with two more landing platform dock (LPD)-like strategic sealift vessels (SSVs) has been ‘adjusted' due to geopolitical conditions, said PT PAL.

This statement on the delay was issued following a report by Janes on 28 August, which noted that PT PAL had failed to meet four key milestones in the follow-on contract it had signed with the Philippine government.

Manila signed a follow-on contract for two more SSVs with PT PAL in June 2022. This contract represents a repeat order after PT PAL received a USD92 million contract in June 2014 for similar vessels, which have since been commissioned into service with the Philippine Navy as the Tarlac class.

According to contractual milestones stipulated in the follow-on contract, the first vessel under this deal should have been launched on 22 August 2024 and delivered to the Philippine Navy on 22 January 2025.

Similarly, the second vessel should have been launched on 22 February 2025 with delivery slated for 22 July 2025, as stipulated in the contract.

Documents provided to Janes by a source close to the matter confirm that these milestones have not been fulfilled despite PT PAL having met the steel-cutting and keel-laying milestones for both ships.

The keel for the first vessel in the follow-on contract was laid down by PT PAL in January 2024 while the keel for the second ship was laid down in May 2024.

In its statement provided to Janes