MANILA, Philippines - Malacañang has approved the payment scheme
for the purchase of 12 lead-in fighter trainer jets from South Korea,
taking the deal to acquire the air assets a step closer to completion.

The defense department has been allowed to make an advance payment
of 15 percent of the total contract price to South Korean firm Korean Aerospace Industries (KAI).

The project has an approved budget of P18.9 billion and is one of the
big-ticket items in the military’s upgrade program.

Malacañang has also granted the defense department’s request to tap
a progress payment scheme, wherein the government will pay the
supplier on a mutually-agreed upon schedule.

The approval of the payment scheme was contained in a
memorandum signed by Executive Secretary Paquito Ochoa Jr. on Feb. 13.

Defense Undersecretary Fernando Manalo confirmed the approval of
the payment scheme for the multibillion-peso project.