Manila: The Philippine government has signed an agreement with South Korean shipbuilder Hyundai Heavy Industries for the construction and delivery of two missile-equipped frigates.

Defence Secretary Delfin Lorenzana signed the P15.74 billion ($311 million or Dh1.14 billion) contract in Manila in behalf of the Philippine government with South Korean Ambassador Kim Jai-shin in simple ceremonies on Monday.

The agreement marks the first time that the Philippines ordered a brand new modern warship that is capable of launching surface-to-surface missiles — most likely rocket-assisted anti-aircraft projectiles. Most of the vessels in the Philippines fleet are ships bought from or donated by allies such as the United States, the UK, Australia, South Korea and Japan.

According to a press statement issued by Hyundai Heavy Industries, the frigate will have a length of 107 metres similar to South Korea’s Incheon class ships and is smaller than the typical frigate and about the same size as a corvette.

The ships are “tailored to the requirement of the Philippine Navy”, the statement said.

Earlier, the US Navy said that a likely conflict in Asia would likely be fought in the South China Sea and would be fought in littoral waters or close to the shorelines such as near islands.

With the benefit of relatively shallow draft, the frigates ordered by the Philippines can get closer to the islands which it would be likely to defend in the event conflict breaks out over these areas.

Hyundai Heavy Industries added that the frigates will be diesel powered and capable of travelling at 25 knots and negotiating waves with height of up to four metres.

The decision to acquire two frigates was made in June 2013 during the administration of President Benigno Aquino III with Department of National Defence seeing the need to acquire hardware capable of taking out threats in the air, sea and underwater.

Aside from anti-ship missiles, the two vessels will be armed with anti-aircraft missiles, torpedo, guns and sensors for electronic warfare.

In view of threats, the Philippines had been modernising its naval capability. Last May, the Philippines welcomed the biggest ship in its fleet, the 7,200-tonne strategic sealift vessel BRP Tarlac.

Its sister ship is expected to be delivered by Indonesian shipbuilder PT PAL sometime next year.

Prior to this, the Philippines had acquired two 40-year-old frigates from the US under the Excess Defence Articles Act.

A third similar-classed ship is arriving by 2017.

The Philippines aims to build up its naval capability to provide “credible defence” against external threats. An archipelagic country, it has a vast expanse of maritime areas to protect.