Cabinet approves purchase of Rs.24 billion Russian frigate on credit line
Sri Lanka will sign a deal with Russia to procure a Gephard 5.1 Offshore Patrol Vessel (OPV) for the Navy, the Cabinet of Ministers decided last Tuesday. The unanimous decision came on a recommendation from President Maithripala Sirisena who is also the Minister of Defence.
As reported in the front page lead story of the Sunday Times last week, the Russian Government will extend credit to the tune of US$ 135 million (Rs.20 billion) exclusive of 15 percent of Sri Lanka Government’s contribution. The total ship value including on board spares and ammunition is placed at US$ 158.5 million ( Rs. 24 billion). This is besides a further Government commitment of US$ 7 million (Rs.1 billion) for training of Navy personnel.
The Government will pay a four percent interest on the credit extended by the Russian Government. Payments will be semi- annual in equal instalments within ten years including a grace period of five years. The Russian loan component is the remaining amount of a credit line of US$ 300 million which expired in 2010. It has since been re-negotiated.
Now, the Department of External Resources (in the Ministry of Finance) will finalise details for the signing of the credit agreement with Russia.
According to Rosboronoexport, one of Russia’s military products exporters, its OPV is “designed to engage surface, underwater and air targets, perform escort and patrol tasks, provide fire support to amphibious assault forces, plant minefields, guard maritime state borders and Exclusive Economic Zones, support naval operations, hoist state flag in the areas of national interests, protect sea environment and rescue distressed ships. The ship can carry out a wide range of missions independently or as part of a naval task force.”
The on board armament and equipment include Artillery Weapons (76.2mm AK-176M artillery gun mount), 30mm six-barrel AK-630M gun mount; two 14.5mm naval machine gun 76mounts.
The OPV carries mines to counter hostile warships, and electronic equipment including those for air/ surface target acquisition radar; 67R IFF suite; mutual interference avoidance system; Sigma-E combat information management system.
One of the main reasons for the acquisition, President Sirisena has said, is in view of the “superior Marine Steel used by Russian Workmanship, weaponry and sensors” He has said that the ship is “similar to a Frigate Class.”