Philippines may become region’s ‘defense industry hub’

Philippines President Rodrigo Duterte brandishes an AK-47 assault rifle as Russian minister of defense Sergei Shoigu applauds. Russia is weighing up a possible partnership to manufacture AK-47 rifles in the Philippines. (Reuters)
Updated 20 September 2018
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Philippines may become region’s ‘defense industry hub’

  • Israel wants to manufacture UAVs in the Philippines
  • Russia and South Korea looking for arms and defense manufacturing facilities

MANILA: The Philippines may become the region’s defense industry hub after several countries expressed an interest in basing their arms and defense manufacturing facilities in the country.

Among the facilities are firearms and force protection plants, as well as ones for aviation maintenance, repair and overhaul.

Department of National Defense (DND) spokesperson, Arsenio Andolong, cited at least three countries — Israel, Russia and South Korea — as among those with a keen interest to undertake such projects.

However no agreement has been signed yet and proposals are still in the exploratory stage, Andolong said.

There are plans, however, to create a zone processing defense material at the 370-hectare Government Arsenal (GA) in Limay, Bataan. It will be called the Government Arsenal Defense Industrial Economic Zone (GADIEZ), which will accommodate foreign defense firms that want to establish their manufacturing plants in the Philippines.

With Israel, negotiations have been ongoing. “It all began when we purchased our latest acquisitions from them, the force protection equipment during the time of (then Defense Secretary Voltaire) Gazmin,” Andolong said.

“They became more aggressive when we started doing market research for the many things that we wanted. In one of our meetings the plan to put up an export processing zone for war materiel was discussed and that’s when they expressed interest,” he said.

But Israel now changed its focus; they now want to enter into partnership with Philippine Aerospace Development Corporation.

An agreement has yet to be signed however between the Philippine government and an Israeli firm for its entry through aircraft repair.

“I think eventually it will lead to setting up a UAV manufacturing facility,” a highly placed source said.

Russia, meanwhile, is more likely to have a firearms factory in Bataan province, in central Lozun region.

That is despite the ceremonial signing of a Letter of Intent (LoI) of Silver Shadow Advanced Security Systems (SASS) and Rayo Illuminar Corporation (RIC) to “explore opportunities in the manufacturing and refurbishment of small arms and ammunition,” during Duterte’s recent visit to Israel. The project is estimated to be worth $50 million.

Russia, according to Andolong, has been sending representatives to the country to discuss their offer for a joint production facility to produce Russian assault rifles, or AK47s.

“The Russians verbally communicated that they would like to go into a partnership with the GA to manufacture AK47 rifles in the Philippines. But at this time it’s still a verbal proposal. The Department of Budget and Management (DBM) has required them to submit a feasibility study.”

A proposal by a South Korean firm that also wanted to set up a firearms factory in the Philippines was put on hold after they gave terms and conditions that were not acceptable — such as “there will be capitalization from the government.”

“So everything is still fluid but Russia is in the running because they are offering many nice goodies,” the DND spokesperson said. “Like the submarines, for example; they said if the Philippines can’t afford to purchase then they can give a soft loan to finance it. And they also mentioned about packages they can use to start up the business.”

Andolong said that the reason that these countries chose the Philippines to set up their facilities was mainly because “they want to create a hub here in the Southeast since they don’t have a presence here yet.”

“It may also be “because of our location. Aside from that we are I think the first Southeast Asian country who offered this,” he said.

“The Philippines is close to many potential markets of Russia and Israel, because these two countries, their main exports really are armaments and they have no footprint in this region,” he said.


Nigeria votes for a new president after delay

International and local electoral observers arrive to attend briefing by the chairman of the Nigerian Independent National Electoral Commission (INEC) about preparations for the rescheduled general elections in Abuja, on February 20, 2019. (AFP)
Updated 40 min 28 sec ago
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Nigeria votes for a new president after delay

  • Neither has produced evidence and the elections watchdog has worked round the clock to overcome difficulties in delivering materials, which it had blamed for the postponement

ABUJA: Nigerians vote for a new president on Saturday after a week-long delay that has raised political tempers, sparked conspiracy claims and stoked fears of violence.
Some 120,000 polling stations were due to open at 0700 GMT, from megacity Lagos and the oil hub Port Harcourt in the south, to ancient Kano in the north and the country’s rural heartlands.
Results are expected from early next week, with the winner gaining control of Africa’s most populous nation and leading oil producer for four years.
In a crowded field of 73 presidential hopefuls, the two frontrunners — incumbent Muhammadu Buhari, 76, and former vice president Atiku Abubakar, 72 — are expected to vote in their home towns.
Electors are also choosing 360 members of the House of Representatives and 109 senators from a choice of 6,500 candidates.
The Independent National Electoral Commission (INEC) last Saturday announced a one-week delay to the election, just hours before it was due to get under way.
That angered voters who had already traveled to their home towns and villages to participate, and saw the main parties accuse the other of conspiring with INEC to rig the result.
Neither has produced evidence and the elections watchdog has worked round the clock to overcome difficulties in delivering materials, which it had blamed for the postponement.
INEC chairman Mahmood Yakubu has given an indication of the scale of the task, announcing that more than 825,000 temporary staff had been drafted in to help conduct the vote.
More than 80,000 vehicles and nearly 1,000 boats have been hired to transport ballot papers, results and other materials to and from polling units.
“I want to reassure you that elections will be held on Saturday,” he said on Thursday. “There won’t be another postponement.”

The logistical fine-tuning, however, has been overshadowed by comments from Buhari that he had ordered security forces to be “ruthless” with vote-riggers and ballot-box snatchers.
Critics said his warning was a “license to kill” to the police and the military, while Abubakar said his comments were not fitting for an elected head of state.
Buhari has since sought to reassure voters not to be afraid, promising an “atmosphere of openness and peace, devoid of fear from threat or intimidation.”
Analysts SBM Intelligence say 233 people were killed in 67 incidents of election-related violence from last October to Friday — an average of two people per day.
The election campaign has come against a backdrop of wider violence from Boko Haram Islamists and criminal gangs in the north that have killed more than 200 people this month alone.
That could affect participation in some affected areas and combine with voter apathy from last weekend’s postponement to affect turnout, according to analysts.
Just over 84 million people were registered to vote but only 72.7 million (86 percent) of those will be allowed to vote, as they have picked up their voter identity cards.

In 2015, former military ruler Buhari became the first opposition candidate in Nigerian history to defeat a sitting president, beating Goodluck Jonathan by 2.5 million votes.
Buhari has again vowed to be tough on insecurity and corruption, and wants to complete much-needed road and rail infrastructure projects, as well as social mobility schemes.
Abubakar is a pro-business free marketeer whose main pledges have been to privatise giant state-run companies and float the embattled naira currency.
Nigerian elections have previously been characterised by voting along ethnic and religious lines.
But with Buhari and Abubakar both northern Muslims, that could split the northern vote, making southern states a key battleground.
Opponents have accused Buhari of trying to manipulate the judiciary that would rule on any dispute about the results, after he suspended the country’s chief justice this month.
Nigeria’s Business Day newspaper on Friday said whoever wins has to repair a “broken economy” limping back from recession, and hit by high unemployment, inflation and weak growth.
Some 87 million Nigerians live in extreme poverty, with the gulf between haves and have-nots widening.