The money will be sourced from the P5 billion earmarked annually for the modernization of the AFP.
Cruz told reporters here prior to returning to Manila yesterday that President Arroyo has already ordered Budget Secretary Rolando Andaya Jr. to release to the Department of National Defense (DND) the funds earmarked this year for the program.
"Under our defense reform program to improve our fighting capability, we are also working on standardization of our equipment where we would buy mission essential equipment," Cruz said.
"Since we have some money for modernization, I think we can buy through FMS (foreign military sales) program," he added.
Cruz joined Mrs. Arroyo’s visit here over the weekend to lead the commemoration of the 100th anniversary of the arrival of the first Filipinos in the United States.
Mrs. Arroyo also met with USPACOM chief Rear Adm. William VanMeter Alford Jr. and discussed with him ways to expand counter-terrorism and counter-insurgency training given by the US to Filipino troops, as well as increasing military support for the ongoing offensive in Sulu to capture Abu Sayyaf chieftain Khadaffy Janjalani and Jemaah Islamiyah bombers Dulmatin and Umar Patek.
Cruz said it was decided that military equipment would be procured from existing inventories of the USPACOM to speed up deliveries.
He did not specify, however, what type of equipment would be purchased though the Philippines normally buy spare parts for ships and aircraft, rifles and helicopters, among others.
The FMS allows selected foreign governments to purchase new or used weapons, spare parts and related services directly from the US.