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US to Upgrade Philippine Naval Base Near South China Sea

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The US Department of Defense has contracted a US firm to upgrade the Philippine Navy’s main base near the South China Sea, enabling it to support small boats and unmanned surface vessels (USVs).

Under the $975,000 design-build project, New Mexico-based Ace Builders will construct a small boat maintenance facility at Naval Detachment Oyster Bay in Western Palawan, USNI News reported.

The bay hosts US-provided Cyclone-class patrol ships and fast attack craft, in addition to the Maritime Tactical Systems Devil Ray T-38 USV delivered by the US to the Philippines.

“The building’s structure, air conditioning, and electrical systems shall support various Host Nation vessels, including 11.6-meter (38-feet) unmanned surface vessels,” USNI News quoted from the project notice.

Manila received one Devil Ray T-38 and four Maritime Tactical Systems Mantas T-12 USVs last year under US maritime domain awareness support efforts.

Naval Detachment Oyster Bay

As the nearest naval support point to the strategic Spratly Islands, Naval Detachment Oyster Bay facilitates the transport of supplies and personnel to Manila’s scattered outposts in the disputed South China Sea.

The facility enables Manila to monitor Chinese forces in the disputed waters more effectively than the more developed ports on Palawan’s distant eastern side.

Another Repair Facility

In addition to Oyster Bay, the US plans to fund another repair facility in southern Palawan.

Located in Quezon municipality, the second facility lies just 240 kilometers (150 miles) east of Second Thomas Shoal, where a series of confrontations have occurred between Chinese and Filipino forces.

The facility is expected to support at least five vessels, including rigid-hulled inflatable boats (RHIBs) and assault boats, according to project documents.

Washington aims to have it operational by the first quarter of fiscal 2026, before the “arrival and initial use” of the RHIBs and assault boats.

The move comes as Washington ramped up its defense and security assistance to the Philippines in 2023 following flashpoints at Second Thomas Shoal.

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