An F-16 jet gives air support during a counter-landing live fire demonstration with its Filipino counterpart as part of the ongoing Balikatan in Aparri, Cagayan, northern Philippines Saturday, May 3, 2025. (Photo by Jeoffrey Maitem)

Philippines Mulls Options to Fund Purchase of F-16 Jets

Jeoffrey Maitem - : Jun 1, 2025 - : 1:38 am

The Philippine government is still seeking funds to cover the purchase of at least 20 F-16 multi-role fighter jets, two months after Washington approved Manila's request to improve its ability to intercept aircraft in its airspace amid increasing Chinese assertiveness...

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Online news reports quoted Philippine Ambassador Jose Manuel Romualdez as saying that Manila will have to study how it will finance the purchase of 16 F-16C Block 70/72 jets and four F-16B Block 70/72 fighters worth $5.58 billion.

The government, according to him, is currently working with U.S. defence contractor Lockheed Martin—the primary supplier for the sale—to explore ways to proceed with MRF purchase, while also considering other defence priorities that may take precedence in the country's national defence strategy.

"It's really the equipment that I think most people in our Air Force have said, signifying that it is probably the best type of fighter jet that we can use, especially with their plan of interoperability between our two countries. But again, as I said, it is a question of how we will be able to finance it," Romualdez said, as quoted by ABS-CBN news on May 30.

Currently, the Philippine Air Force has 12 South Korean-made FA-50s but sometimes only few are missions-ready due to problems that arise from delay in delivery of spare parts. In March, one of the jets crashed in the mountains of Bukidnon in the southern Philippines while on a tactical operation, killing both pilots.

"The F-16s will continue to be part of the overall plan, perhaps in the future but as of now, as I said our priority is more on land-based type of defence capability," Romuldez said.

Washington announced the approval for the MRF sale just days after President Donald Trump sent Defence Secretary Pete Hegseth to Manila in March, where he assured the strengthening of defence ties between the two countries. Manila has an existing 1951 Mutual Defence Treaty with the US that binds both countries to come to each other's aid in times of aggression.

According to experts, there are more options to support the F-16 purchase. Reached for comment, Chester Cabalza, president of the Manila-based think tank International Development and Security Cooperation, said Saturday that part of the defence acquisition package could be funded through a Special Allotment Release Order, enabling payment in tranches—similar to the setup used for the BrahMos missile deal with India.

According to Cabalza, other options Manila can explore include the Overseas Security Agreement—considered a form of soft loan offered by Japan—and public-private partnerships, which are emphasized in the revitalized Self-Reliant Defense Posture law. "These means of payment were also done by other advanced militaries in the world and the Philippines can replicate it," Cabalza added.

Another analyst, Sherwin Ona, a visiting fellow at Taiwan's Institute for National Defence and Security Research, said Manila could meet its multi-role fighter (MRF) requirements by exploring alternatives such as Sweden's JAS 39 E/F Gripen or South Korea's KAI KF-21 Boramae. Although the F16 is a practical and favoured choice due to its interoperability potential, Ona believed that there can be funding facilities that can be opened for Manila's modernization program.

Manila earlier announced plans to purchase additional FA-50 Fighting Eagle Block 20 jets for US$690 million, but Ona clarified that the proposed acquisition is not intended to replace the MRF requirement, but rather to fulfill the Surface Attack Aircraft requirement.

"As for the funding, I think the Department of National Defense floated the idea of defence bonds, although the finance department said that there is no need for it. It said that the Philippines has sufficient resources for the MRF program," Ona said.

"As for maintenance and sustainability. This has been a constant challenge. I think the offer of having in country Maintenance, Repair, and Overhaul is crucial to sustain the F16s. Overall, the idea is to quickly restore the Philippines' ability to defend its airspace and provide a credible deterrence," he added.

Manila's plan to acquire MRFs is driven by China's growing assertiveness in the West Philippine Sea—the term Manila uses for parts of the South China Sea within its exclusive economic zone.

China claims almost the entire South China Sea– including areas within the Philippines' exclusive economic zone, known locally as the West Philippine Sea. In 2016, an international tribunal at The Hague dismissed Beijing's sweeping maritime claims as having no legal basis, a ruling Beijing refused to accept.

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