
SEVERAL modernization projects of the Armed Forces of the Philippines (AFP) have advanced and are in various stages of procurement, the Department of National Defense (DND) said.
It cited programs covering land-based firepower, naval weapons, air defense, aviation support and military infrastructure.
The DND's Procurement Monitoring Report for the first semester of 2026 showed that a number of high-value projects have reached milestones ranging from the issuance of notices of award to ongoing bid evaluations, while others remain under technical review or are awaiting government-to-government arrangements before procurement can proceed.
Among the projects with completed procurement are the Philippine Air Force's acquisition of three-year spare parts for the FA-50PH fighter aircraft fleet.
One of the biggest developments during the reporting period was the issuance of a Notice of Award on June 25 for the Philippine Army's P2.565-billion procurement of 80mm and 81mm mortars under a negotiated procurement scheme.
The DND also issued a Notice of Award on July 21 for the Philippine Air Force's P1.252-billion Ground-Based Air Defense System requirement through direct contracting.
Defense monitoring group MaxDefense Philippines clarified that the award does not cover the acquisition of a new battery.
For the Philippine Navy, the report said the process for the approval of the Notice of Award is ongoing for the P5.349-billion Frigate Weapons and Sensor System Upgrade Project, which covers the installation of a close-in weapon system and towed array sonar for the Jose Rizal-class frigates.
The DND also reported continued progress on the Corvette Weapons and Sensors System Upgrade for the Miguel Malvar-class frigates.
The project consists of Lot 1A covering the surface-to-air missile system worth P7.79 billion and Lot 1B covering 35mm ammunition worth P690 million.
Both projects remain under direct contracting, with the report stating that the Technical Working Group is coordinating with the AFP Special Management Office and the Office of Legal Affairs to amend the funds and technical specifications.
Another major Philippine Army project awaiting implementation is the P5.5 billion acquisition of 155mm self-propelled howitzers under the "PGM Ready" program.
The Army's P1.418 billion Night Fighting System Capability Development for the Philippine Army Maneuver Unit and the 11th Infantry Battalion also remains in the procurement process under limited source bidding.
The Air Force's acquisition of an S-70i Black Hawk Full Flight Simulator worth P3.039 billion is in the pre-negotiation and negotiation stage.
The DND is also pursuing the P14.687 billion Additional Air Defense Surveillance Radar System with Radar Basing Support System under negotiated procurement. The project's terms of reference are being finalized.
Radar Basing Support System Phase 2, worth P1.4 billion, is also in the pipeline.
Another high-value Air Force project is the acquisition of a new presidential aircraft worth P8.814 billion under direct contracting.
The report said the project is awaiting a revised decision package from the Office of Legal Affairs.
The Philippine Air Force's FA-50PH Systems Upgrade project, valued at more than P2 billion, also remains under procurement.
The report covers Lots 2A, 2B and 3, with Lot 2A to be procured through direct contracting and Lots 2B and 3 through the United States' Foreign Military Sales program.
For the Philippine Navy, procurement continues for the acquisition of a 3,500-ton floating dry dock for the Naval Sea Systems Command worth P2.265 billion under competitive bidding.
Meanwhile, the Philippine Army's acquisition of Forward Support Equipment, covering three project lots worth about P872 million, is underway.
The report likewise showed that the Army's acquisition of one lot of 105mm Towed Howitzer System worth P1.4328 billion will be pursued through a government-to-government arrangement with South Korea.
Another project is the Philippine Army's Combat Engineer Equipment Lot 2 for a Floating Support Bridge worth P1.7 billion.
Apart from the firepower and mobility projects, the procurement report also lists several other modernization initiatives that remain under various procurement stages, including the Counter-Unmanned Aircraft System Project, the Electronic Warfare Enhancement Acquisition Project, and the Maritime Situational Awareness System Integration Project.
South Korean shipbuilder HD Hyundai Heavy Industries has said it expects to secure a follow-on contract from the Philippine Navy for additional 3,200-ton frigates in the third quarter of 2026 as it completes the necessary procedures for the planned acquisition.



