Section 12Sec./Art. 12

Modernization of the Government Arsenal. -The modernization of the government arsenal, for the development of production capabilities to enhance self-sufficiency in defense requirements, shall be part of the AFP modernization program. the government arsenal shall be effectively utilized in, the production of basic weapons, ammunition and other munitions for the use of the AFP and the Philippine National Police (PNP) , and for the sale and export of products in excess of AFP/PNP requirements. the government arsenal may use such production facilities as it may own or be provided with under this Act or as it may arrange, under joint venture, co-production or similar agreements with local and foreign entities.