Philippines eyes mid-range missiles, 40 fighter jets to modernise military

By Mikhail Flores and Karen Lema

MANILA (Reuters) - The Philippines wants to upgrade its military with mid-range missiles and advanced fighter jets, two senior security officials said on Thursday, spending at least $33 billion as it modernises its defence in the face of growing regional tensions.

The military wants to acquire more cutting-edge weaponry, armed forces chief Romeo Brawner told reporters, hours after Defense Secretary Gilberto Teodoro announced the Philippines was reviewing offers to buy more weapons.

"We are wanting to get more of the latest weapons systems. That includes the mid-range capability," Brawner told a joint media conference with U.S. Indo-Pacific Commander Samuel Paparo in the northern city of Baguio.

Both the Philippines and ally the United States are preparing for what could be the largest joint military exercises next year, Paparo said, as security engagements between the two nations have increased to counter what they perceive as China's growing assertiveness.

In April, the United States deployed its intermediate range missile system in the northern Philippines during military drills, angering China which said its presence "brought huge risks of war into the region".

The missile, which remains in the Philippines, was not fired during the exercises, but was shipped to test the feasibility of transporting the 40-ton weapon system by air.

The Philippines has been embroiled in frequent run-ins at sea and on air with China in the South China Sea.

It plans to spend at least 1.894 trillion pesos ($33.74 billion) to modernise and boost its military's external defence capabilities, which could include buying the 40 jets, Teodoro earlier said during a congressional hearing on his department's budget.

He declined to the name the countries that had submitted tenders or the fighter jet model it plans to acquire, adding: "The bidding is a secret process right now, but we are continuing to review tenders that are acceptable."

"We are also investing in other deterrent capabilities that are deterrents, not necessarily multi-role fighters," he said.

To fund the jets which could cost between 300 to 400 billion pesos ($5.3 to $7.1 billion), the government is looking at reasonable financing schemes, including tapping syndicated loans from private lenders, Teodoro added.

Military chief Brawner had previously said the Philippines needed "faster and more lethal" multi-role jet fighters on top of its South Korean FA-50s. Teodoro said the Philippines aims to award tenders "as soon as possible as long as our financial requirements are met".

($1 = 56.14 Philippine pesos)

(Reporting by Mikhail Flores and Karen Lema; Editing by Martin Petty and Miral Fahmy)