Lorenzana ‘almost certain’ Australia loan for ships exempted from Duterte memo

Defense Secretary Delfin Lorenzana has expressed confidence that the procurement of offshore patrol vessels (OPV)

from Australia for the Philippine Navy would be excluded from the government’s foreign loan ban.

President Rodrigo Duterte earlier ordered all government agencies to suspend all negotiations for loans and grants from 18 countries, including Australia, which supported the United Nations resolution that sought a review of his war on illegal drugs.

“I still have to make the formal request, but I am almost certain that he will approve it,” Lorenzana told reporters Thursday night on the sidelines of Australia’s exhibit on the history of Philippine-Australia defense ties.

A scale model of the OPV being proposed by Australian shipbuilder Austal was on display at the exhibit.

The defense establishment is currently in talks with the Australian government for a soft loan to finance the purchase of six OPVs for the Philippine Navy. It would be built at Austal’s Cebu shipyard.

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