81mm Mortar with Ammunitions (2012) Acquisition Project of the Philippine Army

The Philippine Army raised a requirement for new 81mm Mortars to replace ageing ones and equip units for fire support requirements.

An example of an 81mm mortar with a variety of ammunition. Photo credits to ESD.

Project Summary:

81mm Mortar with Ammunition (2012) Acquisition Project:

Note: Edited as of 19 April 2025.

* End User: Philippine Army (multiple units)

* Quantity: 100 units, 81mm Mortars, 2,000 rounds of ammunition and logistics support

* Modernization Phase: Capability Upgrade Program of the AFP Modernization Program (RA 7898)

* Project ABC: Php189,500,000.00

* Acquisition Mode: Public Bidding

* Source of Funding: AFP Modernization Trust Fund

* SARO Release/s: N/A

* Winning Proponent: Joint Venture of Joavi Philippines Inc (Philippines) and Talon Security Consulting & Trade Ltd. (Israel)

* Product/s for Delivery: M89B 81mm Mortar from BNT Tvornica Masina I Hidraulike (Bosnia & Herzegovina)

* Contract Price: Php189,500,000.00

* Residual Amount: Php0.00

* First post by MaxDefense: TBC

* MaxDefense Searching Hashtag: #PA81mmMortar2013Acquisition

* Status: The Invitation to Bid was released on November 2010, although it took several rounds of public bidding before it hurdled bidding failures. The NOA was made in favor of JV of Joavi Philippines and Talon Security Consulting & Trade Ltd. of israel in 2012, with the Contract and Notice to Proceed released ion the same year. The mortars were said to have been delivered starting 3rd quarter of 2013, and was already in display during the AFP Anniversary on December 2013. Project was declared complete by the DND as of March 2014.. PROJECT COMPLETED.


Overview:

The Department of National Defense (DND) released an Invitation to Bid on November 2010, for a new project called 81mm Mortar Acquisition Project with project number AFPMP-G-PA-10-004.

This project involves the acquisition of 100 new 81mm mortars, and 2,000 rounds of 81mm mortar ammunition.

The Approved Budget for the Contract (ABC) of this project is Php 190,320,000.00, with the mortar worth Php 170,320,000 while the ammunition is worth Php 20,000,000.00.

Only one company, a joint venture of Joavi Philippines Corp. and Israeli firm Talon Secuirty Consulting and Trade Ltd. (Talon) submitted a bid worth Php189,500,000.00.

Interesting is the background of Talon which was also involved in a controversial deal for mortar ammunition with the AFP in 2009, which they were cleared later on.

They were also involved in a controversial arms trade in Iraq by being the agent of defense companies in Serbia and Montenegro. This is probably the connection that was also used in winning the 81mm Mortar Acquisition Project, wherein the joint venture of Joavi and Talon offered the M69B from Bosnia & Herzegovina.

The M69B mortar during tests prior to delivery. Photo taken from the PARDC Facebook page.

The M69B was based on the Yugoslavian M69 which was originally designed as an 82mm mortar for the Yugoslav People's Army.

Upon the dissolution of the Socialist Federal Republic of Yugoslavia in the early 90s, most of the country's former states like Serbia and Bosnia brought with them the industry, technical know-how, and skill to make arms and weaponry.

With the democratization of these former Yugoslav states, arms standardization slowly leaned towards NATO's own standard, which eventually affected the production of the M69 mortar.

An 81mm NATO-compatible version was built, designated as M69B, which is the same model offered to the Philippine Army. 

The original M69 mortar uses a 82mm caliber, non-NATO compliant version. A NATO-compatible version, the M69B, is the model sold to the Philippine Army. Photo taken from Krusik Holdings Corp. website.

According to media reports, the mortars were supplied by a Serbian company to the Joavi-Talon joint venture.

Our parent page MaxDefense Philippines also initially thought it was Serbian-sourced, being the dominant former Yugoslav state and home to most of the former Yugoslavia's defense manufacturing sector.

But a MaxDefense Philippines source from the defense industry and involved in the actual transaction and testing of the mortars confirmed that the mortars were actually made by a Bosnian company, BNT-Tvornica Masina i Hidraulike, d.d (BNT-TMiH), based in Novi Travnik, Bosnia and Herzegovina.

This company actually made the mortar's major components like the barrel, breech, breech block and the undercarriage, and also make mortar and artillery components for other major manufacturers from other Western countries.

This company is also the manufacturer of the 155mm howitzer being offered by Joavi Philippines to the DND as part of the 155mm Howitzer Acquisition Project which is discussed in a separate Resource page. 

In turn, this company's products were marketed internationally by a Serbian defense marketing agent which has the connections to the Israeli company. So to those asking, that was the reason why these mortars are actually Bosnian.

The mortars were delivered starting by 3rd quarter of 2013, with the initial batch already on display during the Armed Forces of the Philippines' anniversary on December 2013.

Delivery completion was made in early 2014, with the DND in its report declaring the project completed by March 2014.

The M69B 81mm mortars on display during AFP Anniversary on December 2013. Photo credits to Philippine Army.

===============

With the M69B 81mm Mortars and 2,000 rounds of  already delivered and formally inducted with the Philippine Army as of 2014, MaxDefense and Philippine Defense Resource officially consider the 81mm Mortar with Ammunitions (2012) Acquisition Project of the Philippine Army as COMPLETED.

===============
x x x x x x x x x x x 

===============

===============
First edit and release: 19 April 2025
Copyright MaxDefense Philippines / Philippine Defense Resource