DECIDES:

Article 1.- The management of investment and construction for national defense and security must comply with the Regulations on Management of Investment and Construction issued together with Decree No.177-CP on October 20,1994 of the Government irrespective of the source of investment capital:

- The National Defense and Security Budget,

- The concentrated investment capital of the State budget, and

- Other sources.

Article 2.- The management of investment and construction for national defense and security has the following requirements:

1. Investment and construction must comply with the plan already ratified.

2. Investment and construction must suit the economic-social capability in each period and must serve the targets and requirements of national defense and security.

3. Investment and construction must closely combine the requirements of national defense and security and economic-social development.

4. Investment and construction must be kept secret.

The Ministry of Defense and the Ministry of the Interior shall prepare a plan for the defense industry in the direction laid down in Resolution 5-NQTW on July 20,1993 of the Political Bureau on the system of airports, seaports, hospitals, storages, institutes, schools..., and submit it to the Prime Minister for ratification, or they shall be empowered by the Prime Minister to ratify it.

Article 3.- On the State Budget investment capital for national defense and security:

1. The allocation of the State budget's investment capital for national defense and security shall be determined on the basis of:

- Suiting the capability of the economy while meeting the requirements of national defense and security;

- Ensuring uniform management of investment and construction in accordance with law, with the strategy, the general plan and the specific plan for national defense and security construction of the Party and the Government.

2. Each year, the buget allocations for national defense and security shall be made:

- To buy weapons and equipment,

- To build fortifications,

- To invest in technical maintenance facilities (stations, workshops) of campaign level downwards,

- To build barracks and other projects, hospitals, schools, research institutes, and information and liaison system of campaign level downwards,

- A system of permament reserves storages of campaign level downwards,

- Infrastructure projects for the daily life of the units of the Army, Police, and Border Guards,

- Temporary detention buildings at precinct and district level.

3. The investment capital belonging to the State's concentrated budget (including capital for national programs) shall be allocated:

- For investment in developing the defense industry (establishments for manufacture and repair of weapons and military equipment, for production of spare-parts, production, repair and maintenance of logistical supplies at strategic level).

- For special plans and projects:

+ Strategic reserves storages (including national reserves storages for national defense and security).

+ Airports and seaports.

+ Infrastructure facilities (electricity supply, water supply and drainage, inner roads...) at populated areas, mountain areas and islands.

+ Information and liaison system at strategic level.

- Institutes, schools, research institutes at strategic level, and provincial military schools.

- Ministerial-level hospitals and military hospitals at regional level.

- Physical culture and sports centers, culture and arts centers, and museums at central level and a number of areas.

- Office buildings of State management agencies at central and provincial levels, the system of Courts, Military Procuracies, and civil verdicts enforcement agencies of national defense, security and border guard units.

- The system of border posts and stations.

- The system of detention camps and temporary detention camps.

- Economic production projects and establishments of the armed forces.

4. The State Planning Committee shall work with the Ministry of Finance, the Ministry of Defense and the Ministry of the Interior in determining these sources of capital as a basis for planning investment for defense and security construction, and submit it to the Prime Minister for decision.

Article 4.- Investment planning for defense and security projects (irrespective of the source of capital) can be made only after the prodecure of investment and construction management is completed as stipulated by Decree No.177-CP of October 20,1994 of the Government.

In a special case, when the procedure for capital construction investment is not yet completed, the project concerned must be permitted by the Prime Minister for inclusion in the investment plan.

Article 5.- Evaluation of a project, and decision for investment:

The Prime Minister shall decide whether or not to make the investment, or shall empower the Minister of Defense or the Minister of the Interior to decide all plans and projects for defense and security construction.

1. The Prime Minister shall empower the Minister of Defense and the Minister of the Interior to decide investment for the purchase of weapons and military equipment, and the construction of projects with capital sources from the Defense and Security Budget.

The Ministry of Defense and the Ministry of the Interior shall draft the structure of investment for the projects under their management, and shall work with the State Planning Committee and the Ministry of Finance in elaborating the official plan.

2. With regard to the plans and projects undertaken with the concentrated source of capital of the State Budget and other sources of capital:

- The plans and projects invested by the economic, cultural, sports, health and social branches for defense and security units shall be evaluated and decided for investment by the authorized levels as stipulated by Decree No.177-CP of October 20,1994 of the Government.

 - With regard to the plans and projects for the defense industry, strategic reserves storages, airports, seaports, information and liaison system, institutes, military schools and research institutes at strategic level, and office buildings:

+ The Minister of Defense and the Minister of the Interior are empowered to decide investment for all plans and projects with a total investment capital of 5 billion VND, and plans for defense industry projects, airports and seaports with a total investment capital of 25 billion VND.

+ The Prime Minister shall decide investment or empower the Minister of Defense or the Minister of the Interior to decide investment at the proposal of the Minister-Chairman of the State Planning Committee for plans and projects with an investment capital of 5-50 billion VND.

+ The Prime Minister shall decide investment for plans and projects with a total investment capital of over 50 billion VND.

Article 6.- The Minister of Defense and the Minister of the Interior shall evaluate and ratify the technical design and the total estimated cost of a project.

Article 7.- Implementation of projects:

- The Minister of Defense and the Minister of the Interior shall decide the holding of biddings, select the bidder, or appoint the bidder for the draft plans and projects undertaken with the capital source of the Defence and Security Budget.

- All plans and projects with the concentrated capital source of the State Budget and other capital sources shall be undertaken according to Article 29 of the Regulations on Investment and Construction Management issued together with Decree No.177-CP of October 20, 1994 of the Government.

With regard to special projects which require high secrecy such as defense industry projects, storages, institutes, schools, research institutes, and the purchase of military equipment shall be undertaken through a limited bidding or by the appointment of a bidder among the consultancy, survey and design organizations, equipment business organizations, and construction enterprises of the Ministry of Defense and the Ministry of the Interior which have a legal status and are licensed to provide the service.

Article 8.- Allocation and disbursement of capital and statement of accounts:

1. With regard to the plans and projects belonging to the capital source of the Defense and Security Budget, the Ministry of Finance shall make allocations through the host ministry according to the structure of investment and the annual plan.

The host ministry shall decide specific allocations, grant and disburse capital and make a statement of accounts for each plan or project according to the current regulations on investment and construction management.

2. The plans and projects belonging to the concentrated source of investment capital of the State Budget shall be granted capital and managed according to Decree No.177-CP of October 20,1994 of the Government.

With regard to the special projects which require high secrecy, the Ministry of Finance shall work with the Ministry of Defense and the Ministry of the Interior in determining a suitable form of management and capital allocation.

Article 9.- The State Planning Committee shall work with the ministries and branches concerned in guiding the implementation of this Decision in accordance with the concrete conditions of each planning period.

Article 10.- This Decision takes effect from the date of its signing.

Article 11.- The Ministers, the Heads of ministerial-level agencies, the Heads of the agencies attached to the Government, the Presidents of the People's Committees of the provinces and cities directly under the Central Government shall have to implement this Decision.

For the Prime Minister

Deputy Prime Minister