Taiwan's Ministry of National Defence has proposed a NT$2.9 billion (US$89 million) budget to the Legislative Yuan to get an indigenous submarine project off the ground.
The Navy is planning to award a design contract next year with a budget of NT$500 million (US$15.4 million) for the first year of the project.
The full submarine project, spread over four years, is estimated to cost NT$2.9 billion, the proposal stated.
According to Want China Times quoting from the proposal, NT$820 million (US$25.2 million), spread over three years from 2016 to 2018, has been estimated for the Navy's construction of assault ships and rigid hull inflatable boats, with NT$70 million (US$2.15 million) to be spent in the first year.
There is also a plan to upgrade the electronic warfare system of the Navy's Chien Lung-class submarines at a total estimated cost of NT$290 million (US$8.9 million). That budget will be spread over four years from 2016 to 2019, with NT$90 million (US$2.77 million) listed for the first year, the ministry said.
Taiwan has been trying to buy submarines from western sources for several years now but pressure from China is reported to hindering potential deals.