The Armed Forces of the Philippines (AFP) Modernization Act, officially designated as Republic Act No. 7898, was a Philippine law that was enacted on February 23, 1995, by President Fidel V. Ramos. It was aimed to modernize all branches of the Armed Forces of the Philippines (AFP) such as the Philippine Air Force, Philippine Navy, and the Philippine Army. The law was amended by Republic Act No. 10349, also known as the Revised AFP Modernization Act, on December 11, 2012.

History The law was intended to last for 15 years with an initial budget of 50 billion pesos for the first five years, but the funding was stopped due to the 1997 Asian financial crisis. After the financial crisis, the funding for the AFP modernization was halted and later neglected by successive administrations until the law expired in 2010.

On December 11, 2012, President Benigno Aquino III amended by Republic Act No. 10349, also known as the Revised AFP Modernization Act, which extends the modernization program for another 15 years with an initial budget of ₱75 billion for the first five years in order to continue modernizing all the branches of the AFP. The amended law was made under the leadership of President Benigno Aquino III. This new law is aimed at building a defense system capable of addressing the assessed threats, at a time when the Philippines is locked with a sea dispute with China in the contested Spratly Islands along with Taiwan and other southeast Asian nations like Brunei, Malaysia, and Vietnam.

The revised AFP modernization program is divided into three horizons. The first was implemented from 2013 to 2017, the second is from 2018 to 2022, while the third is from 2023 to 2028. A total Projected Cost of US$40 billion

On June 20, 2018, President Rodrigo Duterte approved the Armed Forces modernization program's shopping list for Horizon 2. The list of projects will be implemented from 2018 to 2022, with a budget of about ₱300 billion, or about US$5.6 billion.

On October 13, 2023, Secretary Gilberto Teodoro announced that Congress will possibly allow amendment on military modernization/procurement laws.

In January 2024, President Bongbong Marcos approved the "Re-Horizon 3" initiative which overhauled the previous acquisition list contained in the original third phase of the modernization program. Re-Horizon 3 will spend up to US$35 Billion over the next decade. On October 8, 2024, the Self-Reliant Defense Posture (SRDP) Revitalization Act was signed by President Marcos.https://pco.gov.ph/news_releases/pbbm-signs-law-for-independent-dynamic-future-ready-ph-defense-posture/

Modernization programs The following acquisition programs is in-line with the ongoing AFP modernization program.

Philippine Air Force On Mar. 28, 2014, it was announced by the state arms procurement agency of South Korea that South Korea signed a US$420 million contract Friday to export 12 FA-50 light fighter jets built by Korea Aerospace Industries (KAI) to the Philippines under a government-to-government deal. The first two FA-50s were received in November 2015 and the final two were delivered by 31 May 2017. The Philippine Air Force signed a contract for eight AW109 Power light twin helicopters. These aircraft will be used to perform a range of duties including homeland security, armed reconnaissance and close support. Deliveries will start in 2014. The contract also includes initial logistics support and training for aircrew and maintenance personnel. The Department of National Defense (Philippines) stated that the project involved the purchase of eight helicopters with full night operation capability, complete weapons system and integrated logistics support package. Two companies expressed their interest in the bidding process of the eight attack helicopters. Representatives of AgustaWestland and Eurocopter attended the pre-bid conference for the purchase of eight attack helicopters. Other companies including Bell Helicopter, FN Herstal, Elbit Systems and Boeing Company also sent representatives. The Department of National Defense acquired 3 brand-new Medium Lift Fixed Wing Aircraft and its "initial" Integrated Logistics Support (ILS) for the Air Force with a budget of PHP 5.3 billion. The plan was to acquire Medium Lift Fixed Wing Aircraft that can operate in any environment and will provide organic general support for territorial defense, internal peace and security plan, internal security operations, disaster response and national development. The contract was awarded to Airbus Defense and Space for the C-295M at a cost of PHP5.29bn in February 2014 with the first units delivered in March 2015. A fourth C-295M for Command and Control/VVIP transportation was acquired and received on 11 November 2019 and an additional three C-295Ws was acquired in 2019, bringing the fleet to 7 platforms. The Department of National Defense acquired 2 brand-new Light Lift Fixed Wing Aircraft and its Integrated Logistics Support (ILS) for the Air Force with a budget of PHP 814 million. The plan is to acquire Light Lift Fixed Wing Aircraft that can operate in any environment and will provide organic general support for territorial defense, internal peace and security plan, internal security operations, disaster response and national development. The contract was awarded to PT Dirgantara in January 2014 for the NC-212i. Due to delays in certifying a replaced autopilot system, the two units were only received in June 2018. The Department of National Defense will also acquire 3 units of Full Motion Flight Simulators and its Integrated Logistics Support (ILS) package with an approved budget of PHP 246,430,000 million. This will allow pilots an almost full sensory experience that can aid in improving flight instruction, enhancing proficiency, minimizing risks associated with emergency procedures training, reducing accidents, filling up downtimes, and saving on aircraft operational and maintenance costs. The Department of National Defense will acquire 21 units of refurbished UH-1 helicopters through public bidding and will include PHP 60 million worth of Integrated Logistics Support (ILS) package. After the failure of the third bidding, the DND has proceeded with the negotiated bidding with the joint venture of Rice Aircraft and Eagle Copter and finally awarded them on December 28, 2013, for a bid price of P1.25 billion for 21 refurbished UH-1 helicopters. Those helicopters should arrive within six months after the awarding. The PAF also eyes for the JAS 39, the F-16C, the F-15E, the F/A-18 Hornet and the IAI Kfir Block 60 as one of the next generation fighters. In responding to the Philippine desire for multirole fighters, the United States offered variants of the General Dynamics F-16 Fighting Falcon, and Sweden offered the Saab JAS 39 Gripen. After a throughout study and research in 2018, the Department of National Defense prefers the Swedish-made Gripen multi-role supersonic jet fighter for the Philippine Air Force. In November 2013, the DND released an invitation to bid for the acquisition of 3 brand new Search and Rescue seaplanes with an Integrated Logistics package (ILS). The DND has allotted 2.67 billion pesos for this project. The pre-bid conference was scheduled at November 15, 2013, while the actual bidding was scheduled at November 29, 2013. The seaplanes being offered should be used by the Armed Forces of the country of origin or by the Armed Forces of at least 2 other countries. On Mar. 17, 2014, it was reported that there are plans to procure an additional eight combat utility helicopters. It was later reported that these helicopters are Bell 412s that will be acquired from Canada. Three of these helicopters will be configured as VIP transports while the remaining five will be used to replace aging Bell 412 helicopters acquired during the Ramos administration. The helicopters will be acquired from the Canadian Commercial Corp. through a government-to-government transaction. It was also reported that the contract will be signed on Mar. 28, 2014. On 2018, the DND announced that Philippines was interested in ordering 23 attack helicopters, such as the TAI/AgustaWestland T129 ATAK or other attack helicopters, like the Bell AH-1Z Viper, the Sikorsky S-70i, the Mil Mi-35, the Mil Mi-28, the HAL Rudra, and the Airbus H145M. On 18 December 2018, Philippines and Turkey signed a memorandum of understanding with the TAI for new 10 T129s for the PAF. However, due to the sanctions imposed by the US Government on Turkey, and the failure of the delivery of its engines from the UK and the US, the PAF decided to look for alternatives instead, with the Bell AH-1Z Viper, the Boeing AH-64 Apache, and the PZL Mielec S70i Attack Helicopter being offered by the US for the project. Finally, the PAF ultimately decided to push with the T-129 ATAK helicopter, with guarantees requested from TAI/AgustaWestland. In August 2020, Philippine Air Force received full delivery of three Hermes 900 and one Hermes 450 unmanned aerial systems (UAS) as part of a contract worth approximately $175 million. Each system consists of three unmanned aerial vehicles (UAVs), a ground control system and support equipment. Elbit Systems also included a spare used Hermes 450 UAV as part of the deal, for a total of 9 Hermes 900 UAVs and 4 Hermes 450 UAVs. In June 2021, an article reported that the Department of National Defense is submitting a proposal for the acquisition of Saab JAS-39 Gripen for the PAF's multi-role fighter acquisition program. The Philippine Air Force (PAF) is eyeing the South Korean-made KF-21 "Boramae", which is now undergoing development and flight testing, as one of the possible contenders for its multi-role fighter (MRF) project. PAF is closely monitoring the developments of the KF-21 whose prototype had its first flight last July 19, 2022.https://www.paf.mil.ph/node/20563

Philippine Army The Philippine Army received 114 M113A2 armored personnel carriers from the ex-US Army stocks in 2016. These are part of an earlier request by the Philippine government which was approved by the DSCA in 2012. Another batch of 28 M113A2, which includes 14 units to be armed with 76 mm turrets taken from decommissioned FV101 Scorpion tanks and fitted with modern fire control and thermal imaging equipment, 10 M113A2 with a Remote Controlled Weapons system (6 with 12.7mm machine guns, 4 with 25mm autocannons), and 4 armored recovery vehicles. These modifications will be made by Israeli company Elbit Systems Land and C4I before delivery in 2015. The government would also acquire rocket launchers, hand-held radios and night fighting equipment for the Philippine Army. In January 2014, the Philippine Army ordered 400 Airtronic RPG-7s from the United States to replace their obsolete M18 and M67 recoilless rifles. The Airtronic RPG-7 is 60 percent lighter than the recoilless rifles and deliveries are to be completed by the end of the year.Philippines acquires RPG-7 (USA) for anti-armour operations - Janes.com, 13 January 2014 The Bids and Awards Committee of the Department of National Defense has declared the United States-based Remington arms company the winning bidder to supply 50,629 pieces of Remington R4 rifles according to the Philippine representative of the company. The bid was for little less than P2-billion. "Remington submitted a total bid price of P1,944,261,591.66, saving government coffers P1,245,365,408.34, based on the total authorized budget of contract of P3,189,627,000". This would place the price for each rifle at around P38,400, or around $960. On 18 March 2014, the Philippine Army confirmed the purchase of 63,000 new-built M4 carbines for P2.4 billion, with the rifles costing P38,402 each. The M4s are part of an effort to replace the Army's Vietnam-era automatic rifles.