By Adrian H. Halili, Reporter

MANILA and Washington should integrate technology transfer mechanisms in their plan to put up two boat facilities near a hotly contested area of the South China Sea, analysts said.

The construction of a boat maintenance facility in Palawan may only be beneficial to the Philippines if there was a technology-transfer mechanism in place, Michael Henry Ll. Yusingco, a fellow at the Ateneo de Manila University Policy Center, said.

“This move will only be beneficial to us, in terms of enhancing our maritime defense capability, if there is an embedded technology-transfer mechanism in place. This should involve both technical hardware and know-how,” Mr. Yusingco said in a Facebook Messenger chat.

He added that the proposed facility should elevate the Philippines ship-building industry.

“This has to be part of our self-reliant defense posture agenda. Simply put, this cannot be a simple and straightforward lease arrangement only,” he said.

Last week, the US Embassy in Manila confirmed that the Philippine government has approved the construction of two separate boat maintenance facilities in Oyster Bay and Quezon town, Palawan province.

Quezon, a seaside municipality, lies a little over 200 kilometers from Second Thomas (Ayungin) Shoal — the site where the grounded BRP Sierra Madre serves as a military outpost; while the Naval Detachment Oyster Bay functions as a staging area for vessels, contracted by the Armed Forces of the Philippines for its rotation and resupply missions to the BRP Sierra Madre.

“The boat maintenance facility in Palawan is a major project that should not be missed due to its strategic importance,” Chester B. Cabalza, founding president of Manila-based International Development and Security Cooperation said in a Messenger chat.

The facilities are expected to provide repair and maintenance capabilities for several small Philippine military watercraft and include two multi-purpose interior rooms suitable for equipment storage or conference use.

The Philippines and US, which are long-time treaty allies, are working together to bolster defense coordination amid increased Chinese assertiveness in the South China Sea, a key global trade route that is believed to be rich in minerals and oil deposits.

Mr. Cabalza added that the facility would also allow for the creation more reconnaissance and other interoperable requirements for Manila and Washington’s coast guard and navy to strengthen their joint maritime patrol in the South China Sea.

“That is auspicious for Philippine law enforcers and maritime actors since Palawan is eyed by China for their illegal possession,” he said.

The Philippine government has been seeking more foreign defense deals with countries outside its traditional allies, like Japan, Australia and Canada, amid its ongoing sea dispute with China.

Philippine forces have repeatedly sparred with Chinese ships and aircraft in the South China Sea due to competing claims in the area, where more than $3 trillion worth of trade passes through each year.

A United Nations-backed tribunal based in The Hague in 2016 voided China’s claim to more than 80% of the South China Sea, for being illegal.