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Sea-Air Combat Power Improvement Plan Purchase Special Regulation CH

Announced Date: 2021-11-23
By Order, Hua-Zong-Yi-Yi-Tze No. 11000106061 of the President of the Republic of China (ROC.), made on the 23rd Day of November 2021, of a total 8 Articles are hereby enacted and promulgated, and shall remain in effect as of the Date of Promulgation until the 31st Day of December 2026.
Article 1
In response to the threat of enemy hostilities and urgent national defense needs, this Act is hereby enacted in order to rapidly acquire, primarily through indigenous defense production, precision missiles, naval fast attack vessels, and equipping Coast Guard vessels with wartime weapon systems, to enhance naval and air defense capabilities and joint warfare effectiveness, to ensure national security and regional peace and stability, as well as to achieve the goal of strengthening national defense self-reliance and domestic economic development.

Article 2
The Competent Authority of this Act shall be the Ministry of National Defense.

Article 3
The term “Sea-Air Combat Power Improvement Plan Purchase” as referred to in this Act shall mean the acquisition, production, maintenance, engineering and training of various types of precision missiles, high-performance naval vessels, coast guard vessel weapon system and relevant supporting system by the Competent Authority, its subordinate agencies and military units, subject to rectification by the Executive Yuan.

Article 4
“Sea-Air Combat Power Improvement Plan Purchase” as referred to in this Act includes the following items:
1. Mobile Coastal Defense Cruise Missile.
2. Air Defense Artillery System.
3. Land-Based Air Defense System.
4. UAV System.
5. Wan-Chien Air-to-Ground Missile System.
6. HF II E Missiles.
7. High-Performance Naval Vessels.
8. Equipping Coast Guard vessels with Wartime Weapon Systems.

Article 5
The acquisition, production, maintenance, engineering and training of the items listed in the Project Procurement of the preceding Article may be conducted through limited tendering procedures, carried out by domestic juridical persons, institutions or organizations established in accordance with the law, notwithstanding the restrictions stipulated in Article 19 and Article 22(1) of the Government Procurement Act.
With respect to the carrying out of procurement by a juridical person, institution or organization referred to in the preceding Section which exceeds a certain amount, such amount, method of procurement and other matters to be complied with shall be prescribed by the Competent Authority.
In the event that dispute concerning procurement, tender process, award of contract, and contractual performance involving any juridical person, institution or organization which exceeds a certain amount as referred to in the preceding Section arises, the provisions of the Government Procurement Act concerning objection, complaint and mediation procedures shall mutatis mutandis apply.

Article 6
The maximum expenditures required by this Act shall be NTD 240 billion, which shall be financed as a special budget. This budget is not subject to restriction concerning prohibition of use as current expenditure, imposed under Article 23 of the Budget Act.
Notwithstanding Article 5(7) of The Public Debt Act, the source of expenditure as referred to in the preceding Section may be financed by the transfer of surplus of previous fiscal years or by public finance-debt. The total amount of debt to be raised by the Central Government during the period in which this Act is in force shall not exceed fifteen percent of the sum of the total annual expenditure of the general budget and the special budget for that period.
During the implementation period of this Act, the estimated outstanding balance of public finance-debts raised by the Central Government for more than one year shall be conducted in accordance with Article 5(1) of The Public Debt Act.

Article 7
The auditing agencies shall audit the implementation of the budget planned pursuant to this Act in accordance with the law.
The Competent Authority shall submit a written report on the implementation progress of the previous year's procurements and the following year’s expenditure plan to the Legislative Yuan for its review by the end of May of each year.
The Competent Authority shall prepare a summary report on its implementation of this Act and submit it to the Legislative Yuan, before end of May of the year following the date on which this Act expires.

Article 8
This Act shall be effective as of the Date of Promulgation until 31 December 2026.
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