In July 1994, the CPC Central Committee and the State Council held their Third Conference on Work in Tibet. It was decided during the conference to undertake 62 projects in Tibet, which are of direct bearing on the social and economic development in Tibet, as well as on the livelihood of the Tibetans. They included 17 projects, 28 percent of the total, to be undertaken in Lhasa. All of these projects have been completed and have produced good economic and social benefits.

The Potala Palace Square, built with an investment of more than 100 million yuan from the State, has become the venue for rallies. Tourists and local people love to visit the square. Construction of a ring road helped ease traffic jams in Lhasa and also beautified the environment. The Tibet Museum, built with about 100 million yuan, is the first modern museum in Tibetan history. Covering an area of 49,500 square meters, with a construction area of 22,490 square meters, the museum features Tibetan style. It joins the nearby Tibet Exhibition Center, the Tibet Library, the Tibet TV Station, and the Norbu Lingka to form the cultural zone in the western suburbs of Lhasa.

The Central Government pays a great amount of attention to the health of the Lhasans, and made special arrangements for the construction of the Tibet Autonomous Regional Hospital for Infectious Diseases, the Tibet Autonomous Regional Pharmaceutical Factory, the Tibet Autonomous Regional Health Birth Training Center, and the In-Patient Department of the Lhasa Municipal People's Hospital. The Tibet Autonomous Regional Hospital for Infectious Diseases, with a construction area of 13,000 square meters, was built with aid from Shanghai in accordance with State second class hospitals. The hospital provides medical treatment for people suffering from contagious diseases and gives guidance to medical workers. The Tibet Autonomous Regional Pharmaceutical Factory expanded its workshops with aid from Jiangsu Province. Covering an area of 13,869.6 square meters, it produces 18 million doses of orally taken medicated liquid, 27 million bags of medicine to be taken after being mixed with boiling water, and 51 million capsules. It supplies medicine to other parts of the Tibet Autonomous Region, and even to other parts of China. Other projects with a direct bearing on the life of the Lhasans include the construction of the Lhasa Cereals and Oils Processing Factory, the Lhasa Western Suburb Long-Distance Telecom Building, the Lhasa-Xigaze Optical Cable, the Party and Government Office Building of the Tibet Autonomous Region, and the Comprehensive Building of the Party School of the Tibet Autonomous Region.