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PROPOSED LAW NO. 75 /X

Exhibition of Motives

1. The program of the XVII Constitutional Government for National Defense refers, as

priorities for the modernization of the Portuguese Armed Forces, the renewal of the

equipment, so as to ensure compliance with its specific missions,

particularly of the military missions within the framework of NATO and the European Union,

as well as the development of the business sector in the area of Defence,

notably by the strengthening of investment in Research and Development.

2. The future of National Defence goes through the development of military capabilities

intrinsic and by cooperation in the framework of alliances, the level of the weaponry and the

applied research. An integrated approach to the National Forces System in

terms of convergence of the main strategic objectives and based on the

modernization of the Armed Forces is the only possible response to the current context of

interdependence and affirmation of the Country.

3. Emboding and developing the Military Programming Act the application of

public investment programs, certain is that current scenarios of constraints

budget mandates to a rationalization of public spending on the subject of

defense equipment. It is the need for an integrated approach, with the

purpose of rationalization and competitiveness as conditions sine qua non for

its viability, which impels the National Defence to strengthen its capacities in the

direct proportion of their needs. This is the role of the Programming Law

Military.

4. It is also imperative that the need to plan, in the long term, the capacities of

each of the branches of the Armed Forces, allowing to perspective a national whole

bigger and stronger than the arithmetic sum of the parts. It is sought that the Law of

Military Programming foment, either at its highest level, or at a level more

operational, this planning.

5. The awareness that the Country traverses a highly restrictive period in what

respects the public finances and that the national interest plays itself more and more in the

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context of international alliances, leads to consider as imperious a line of

development action of the National Forces System that leads to the

constitution of cores of forces and capacities of balanced size and

harmoniously integrated, endowed with technical modernity and operational value

that they will be able to make effective joint intervention capacity. The flexibility

organizational of the cores of forces and the mobility and interoperability are so

determinant conditions for the intended joint employment capacity.

6. Become, thus, indispensable that the National Forces System is to be suspended in

nuclear capabilities, specifically an effective command capacity and

control (integrated perspective of data and communications networks), of

strategic transport, projection and protection of forces, of development of the

technological capability of Defence and dual use, and integrated management of the

resources, and this nuclear complex is to develop, in a sustained manner, to the

long of the term of the Act.

7. They were defined as benchmarks in the drafting of the present Proposal

of Law the rationalization of employment of existing means or to acquire and management

efficient and effective of the available resources, translated, among others, in the following

instruments:

a) Strengthening the trend of centralisation in the Ministry of National Defence

(MDN) of the reequipment processes, with a view to, in particular, obtaining

more harmony, balance and coherence in the National Forces System, well

as greater economies of scale in the acquisitions, greater effectiveness in the

development of the cores of forces of the operational component and, still,

greater speed in the execution of procedures and consequent swiftness of the

process of transformation. This line of action is realized by ascribed to the

Bodies and Central Services of the MDN the responsibility for the management of a

significant set of procurement processes;

b) Enhancement of investment in Defence Research and Development (R&D),

in alignment with the guidelines underlying the Lisbon Strategy and the

Technological Plan, creating instruments and institutional mechanisms of

rationalization of investment;

c) Adoption of a policy of divestments of military equipment that is

considered in excess ( surplus ) face to the adopted concept of constitution of

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nuclei of technologically actualized forces, of balanced size and

harmoniously integrated into the National Forces System;

d) Development of the nuclei of forces of the branches in harmony with the

principle of the joint operative operation of the National Forces System,

anchoring them in the capabilities of command and control, of strategic transport

and of projection and protection of forces, having on the basis of effective management

integrated from resources and benefiting from the development and capacity of

innovation of the national technological base;

e) Creation of technical and operational management tools that allow

economic rationality in the maintenance and employment of equipment

technically complex and of expensive use. By way of example, the

helicopters, for their high cost of acquisition and maintenance and by their

technical and operational complexity, must be the subject of a management

centralized through the creation of a Joint Force of Helicopters.

8. In the financial framework, the implications of the decision were taken into account

EUROSTAT on the handling of military equipment in national accounts,

with incidence in the public deficit, in the years of delivery of equipment. Proposes to

the maintenance of the overall value of the law in conjunction with the reduction of the predicted value,

in real terms, for the period of the Stability and Growth Program,

retaining the overall value for the first sexennium of the term of the law.

9. The present Proposal for Law constitutes an instrument to combine resources

financial available with the edification of the operating component of the System of

National Forces, proceeding to appropriate adjustments and reconciling the

commitments made with priorities for maintenance and the

development of capacities, in a continuity optics that contributes

decisively for the stability and predictability of fundamental options in

matter of reequipment of the Portuguese Armed Forces. The proposal translates,

thus, the commitment of essential reequipment and has a perspective of

enforceable financing.

Thus:

Under the terms of the paragraph d) of paragraph 1 of the 197 of the Constitution, the Government presents to the

Assembly of the Republic the following proposal for a law:

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CHAPTER I

Military programming

SECTION I

General arrangement

Article 1.

Subject

1-A This Law shall have the object of the programming of the public investment of the Forces

Armed relative to forces, equipment, weaponry, research and

development and infrastructure with direct impact on modernization and the

operationalization of the National Forces System, concretized through the measures

(capacities) constants of the attached map.

2-A This Act also includes projects for the decommissioning of equipment, armament,

ammunition and infrastructure.

3-The measures entered into in this Law are those necessary for the achievement of the objectives

of national strength approved in the framework of the biennial cycle of force planning,

taking into account the financial programming of the adstrate costs to the respective

realization.

4-For the purposes of this Law, the plan of forces shall be deemed to be the plan of the medium term

intended to realize the system of forces and the device approved in

consequence of the military strategic concept and the missions of the Armed Forces.

SECTION II

Implementation of the programme

Article 2.

Map of measures

The measures, the overall allocations for each economic year and the maximum values

authorized for the settlement of benefits inherent in the contracts provided for in the article

3. are those listed in the map annexed to this Law, of which it is an integral part.

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Article 3.

Schedule of financial charges

1-When the national interest thus justifies it, the objectives referred to in paragraph 1 of the

article 1 may be pursued upon the conclusion of leasing contracts, or

of other legally permissible contracts, so as to allow the dilation in time

of the satisfaction of the corresponding financial burdens, without prejudice to the inscription

of the annual benefits on the map annexed to this Law.

2-The contracts provided for in the preceding paragraph may have for the purpose of the service of

maintenance and must provide for, when no purchase option is exercised by the

lessee, in cases where it is contractually foreseen, the return of the goods to the

lessor and the subsequent disposal or leasing by this to other States.

3-The contracts provided for in paragraph 1 shall not, under penalty of invalidity, contain clauses

that, directly or indirectly, impose limitations on the use of the located goods or that

allow the lessor to have access to goods or to documents which are likely to put at risk

national security, obliging the one to expressly waive the rights

that the law eventually confesses to it in that respect.

Article 4.

Schedule of appointments

1-A The conclusion of the contracts provided for in Article 3 implies fixing and approval

prior to a multiannual payment plan.

2-The multiannual plan referred to in the preceding paragraph shall establish the period of implementation of the

contract and discriminate against the financial burden to be assumed in each economic year.

Article 5.

Multiannual commitments

1-The Ministry of National Defence can make commitments from which it results

multi-annual charges, within the framework of each of the measures set out in the attached map

to this Law and with a view to its full realization, provided that the respective

amounts do not exceed, in each of the following economic years, the limits and

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deadlines set out, for this purpose, in this Law and in accordance with the criteria

annually fixed in the Act approving the State Budget.

2-The first year of the implementation of the expenditure relating to the multiannual commitments

must correspond to the one in which the commitment in question is assumed.

3-The new measures with multi-annual charges co-financed by the Programme of

Investment and Development Expenditure of the Central Administration (PIDDAC)

are the subject of contracts approved by joint office of the Minister who has his or her

job title that program, from the Minister of Finance and the Minister of National Defence.

Article 6.

Common adjudicatory procedure

1-A common adjudicatory procedure may be adopted in respect of the implementation

of measures, even if provided for in different chapters.

2-A adoption of a common adjudicatory procedure, in the terms of the number

previous, depends on authorization from the Minister of National Defence.

Article 7.

Exemption from emoluments

Where the implementation of this Law is done upon the conclusion of contracts, these

are exempt from emoluments owed by the Court of Auditors ' visa office.

Article 8.

Costs of measures

The costs of the measures evidenced in the attached map are expressed at constant prices,

by reference to the year of the revision of the Military Programming Act.

Article 9.

Annual impact on the overall balance of the administrative public sector

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1-The accounting record of the contracts provided for in Article 3 (1) respects the

rules of National Accounting, with incidence in annual public expenditure and the

corresponding impact on the overall balance of the administrative public sector.

2-In financial leasing contracts, the impact on the overall balance of the public sector

administrative corresponds, in the year of the conclusion of the contract, to the full value of

purchase of the equipment and, during the remaining years of execution of the same, to the

interest component of rents paid.

3-In operational leasing contracts, the impact on the overall public sector balance

administrative corresponds to the annual value of rents paid.

4-In the remaining contracts, the impact on the overall balance of the administrative public sector

corresponds to the one that the applicable law determines.

SECTION III

Budgetary provisions

Article 10.

Funding

1-A Law approving the State Budget contemplates annually the appropriations

necessary for the implementation of the capacities provided for in this Law, realized in

measures.

2-The financing of the charges resulting from this Law may be strengthened

upon the allocation of prescriptions that are specifically consigned to it.

3-The annual charge relating to each of the measures may, upon approval of the

Minister of National Defence, to be exceeded up to an amount not exceeding 30% of the

respective value inscribed for the year concerned, provided that it does not make it impossible to implement

of other measures, and may not, in any case, the total budgetary burden

be, in each year, higher than the sum of the respective values laid down in this Law.

4-The balances verified in the measures at the end of each economic year transitions to the

budget of the following year, to strengthen the appropriations of the same measures up to their

complete execution.

Article 11.

Budgetary limits

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1-A The Act approving the State Budget fixed annually the overall amount

maximum financial authorization to the Government for the satisfaction of charges with the

instalments to be settled referring to the contracts provided for in Article 3.

2-A change in the service of the debt resulting from the contracts provided for in Article 3.

it lacks permission from the Assembly of the Republic when it implies an increase

greater than 5% of the overall value provided for in the map annexed to this Law.

Article 12.

Transfers of appropriations

1-It is the competence of the Assembly of the Republic for transfers of monies between

different programmes, with the exception of the provisions of the following number.

2-It is the competence of the Minister of National Defence for transfers of appropriations:

a) Between programs, provided that with the same title and chapter and if you hold the

respective functional classification;

b) Among the various measures, projects or activities in a same programme;

c) Arising from the transfers of the competences of a managing entity of

a program or measure for other entities, or of the succession of these in the

competences of the first;

d) Coming from existing measures, projects or activities for new

measures, projects or activities to be created in the course of the implementation of the Budget

of state.

Article 13.

Contingent liabilities arising from criminal clauses

The Act approving the State Budget annually provides for a provisional appropriation, in the

Ministry of Finance, which supports the payments eventually resulting from the

actioning of criminal clauses against the State, provided for in the leasing contracts

referred to in Article 9 (3).

CHAPTER II

Effective, review and implementation

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Article 14.

Period of duration

1-A present law beigns for a period of three sexes, without prejudice to the

commitments made by the state to exceed that period.

2-For measures whose financing will eventually exceed the period fixed in the

previous number will be indicated the prediction of the years and the corresponding costs up to the

respective conclusion.

Article 15.

Reviews

1-A This law is ordinarily revised in the peer-reviewed years.

2-The revisions referred to in the preceding paragraph may, in case the national interest o

advise, cancel and amend the measures entered into, affect the respective balances to

other, as well as enrolling new measures.

3-The measures the implementation of which has moved away significantly from the planned, or that

have not been executed within the forecast period, are compulsorily reassessed

when the revisions referred to in paragraph 1.

Article 16.

Preparation and submission of the proposal for revision law

1-The measures to be considered in the revisions to the Military Programming Act, divided into

projects or activities, are presented in correspondence with the plan of

forces, and they compulsorily contain the timing of the respective implementation, well

as appropriate description and justification.

2-In each measure are still, where appropriate, referenced the costs inherent in the

maintenance of the subject goods.

3-In the presentation of the projects or activities are given the predictions of

addition or decrease in annual costs of normal operation, arising from the

implementation of the measures and with effect on their respective budgets.

4-The Government presents to the Assembly of the Republic, together with the proposal for a law

of review, the financing plan of the resulting measures.

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Article 17.

Competencies in the review procedure

1-Compete to the Government, through the Minister of National Defence, in articulation with the

Head of the State-Major General of the Armed Forces and with the Heads of State-

Largest of the branches, guide the drafting of the proposed law revision of the Law of

Military Programming.

2-Compete to the Military Superior Council, heard the Council of Heads of State-

Major, draft the draft draft law revision of the Programming Act

Military.

3-Compete to the Government, in Council of Ministers, heard the Superior Council of

National Defense, approve the proposed revision of the Programming Act

Military.

4-Compete to the Assembly of the Republic to approve the proposal for organic revision law

of the Military Programming Act.

Article 18.

Execution

1-Compete to the Government to promote the implementation of this Law, under direction and

supervision of the Minister of National Defence, which is, tendentially, centralised

in the central bodies and services of the Ministry of National Defence, without prejudice to the

competence of the Assembly of the Republic.

2-A The implementation of this Law concretizes itself by the assumption of the commitments

necessary for the implementation of the measures laid down therein.

3-For the purposes of the preceding paragraph, the Government promotes budgetary changes

required by virtue of this Law, within a maximum of 15 days after it

entry into force.

Article 19.

Monitoring by the Assembly of the Republic

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1-The Government submits to the Assembly of the Republic, by the end of the month of March of

each year, a report that appears in the detailing of the appropriations relating to

each measure, of the contracts made in the previous year and the responsibilities

future of them resulting, as well as all the necessary information to the control of the

implementation of this Law.

2-The Minister of National Defence annually informs the Assembly of the Republic

on the implementation of all the measures set out in the Military Programming Act and,

still, of the interest rates negotiated when it draws on the conclusion of contracts

provided for in Article 3.

CHAPTER III

Final provisions

Article 20.

Suptive regime

To the measures inscribed in the Military Programming Act, and in all that not the

contravenly, the budgetary rules of the multiannual programmes apply, they apply.

Article 21.

Transient standard

The first revision of this Law is to occur in the year 2009, producing its

effects from 2010.

Article 22.

Abrogation standard

1-Are repealed Organic Laws No. 5/2001, of November 14 and 1/2003, of 13

of May.

2-The provisions of the preceding paragraph shall be without prejudice to the application of the Organic Law No 1/2003,

of May 13, to multiannual programmes running at the date of entry into force

of this Law, even if they are not in this contemplated, until their complete

execution.

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Article 23.

Entry into force

This Law shall come into force on the day following that of its publication.

Seen and approved in Council of Ministers of June 1, 2006

The Prime Minister

The Minister of the Presidency

The Minister of Parliamentary Affairs