KAI to Sign Contract to Export “FA-50” to the Philippines

A contract for exporting the light supersonic Korean-made fighter “FA-50” to the Philippines is expected to be signed as early as this month.

According to the producer of the fighter, Korea Aerospace Industries (KAI), the Filipino government finalized the plan to purchase the FA-50, and President Benigno Aquino gave a final approval to the payment plan of around $422 million for 12 units of the aircraft.

A spokesperson for KAI said “we reached an agreement with the Philippines on the sticky issues raised during the negotiations. All there is left to do is to write the contract, have it reviewed by both parties, and sign it. As a result, the contract is expected to be signed this month.

The Philippines’ Department of National Defense agreed to terms such as payment during the negotiation with KAI, and had been waiting for the President’s authorization. Both parties consented to paying 15 percent of the total payment for the contract to KAI in advance and the remaining sum on an installment basis.

Parts of the fighter will be delivered over a 60-day period, extended from the 30-45 day period initially suggested by the Philippines, with one-year warranty period for the components. The fighters will reportedly be delivered to the Philippines from the first half of next year. In addition to $422 million budget for buying the FA-50, the Philippines set aside a $3 million budget to operate its base support system.

By Kim Min-su : Here