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January 25, 1989

1. GENERAL

1.1 This MEMORANDUM expresses the understandings of the Government of the Republic of the Philippines and the Government of Australia concerning the responsibilities and contributions respectively of the two Governments with regard to the implementation of the Natural Resources Management and Development Project (NRMDP).  The Project and its objectives are described in Annex I of this Memorandum of Understanding.

1.2 The Project aims to contribute to better and more equitable economic and social conditions through improved management of natural resources and land utilization. The Project has two main themes: (i) the strengthening of the capacity of the Government of the Republic of the Philippines to plan and implement natural resources development and land administration programs and (ii) completion of a primary geodetic control network for the Philippines. A major result of the first of these themes will be detailed designs for a series of larger downstream projects.

2. AUTHORITIES

The executing authorities for this Project will be:

For the Government of the Republic of the Philippines:

The Department of Environment and Natural Resources (DENR); and

For the Government of Australia:

The Australian International Development Assistance Bureau (AIDAB) of the Department of Foreign Affairs and Trade.  AIDAB may nominate suitably qualified agents to undertake any part of its functions on its behalf.

3. RESPONSIBILITY

3.1 In addition to DEN'R, other agencies of the Government of the Republic of the Philippines will have responsibilities for implementing specific parts of the Project. These are the National Economic and Development Authority (NEDA); the National Land Titles and Deeds Registration Administration (NLTDRA) under the Department of Justice (DOJ); the Bureau of Local Government Finance under the Department of Finance (DOF); and the Department of Agrarian Reform (DAR).  Details of agency responsibility are described in Annex 2.

3.2 Project co-ordination and implementation will be achieved through a Project Governing Board (PGB), a Project Management Office (PMO), a Technical Advisory Committee (TAC) and a Regional Co-ordinating Committee (RCC) whose functions and composition are described in Annex 3.

3.3 Final responsibility for the Project rests with the Government of the Republic of the Philippines, whose representatives will execute the Project in conformity with sound administrative and technical practice.

4. DURATION

This Memorandum will take effect from the date of its signature. The contribution of the Government of Australia to the Project and all undertakings given herein will cease on 31 March 1993 or on such other date as may subsequently be arranged between the two Governments.

5. CONTRIBUTIONS

5.1 The contributions of the Government of the Republic of the Philippines and the Government of Australia as described in Annexes 1, 2 and 4 are estimated to value 60.23 million Philippine pesos and 19.4 million Australian dollars, respectively.  Disbursements of the contributions of the two Governments will be subject to the normal annual parliamentary or congressional approval of appropriations.

5.2 Further to the estimated contributions above, additional funds will be provided by the Government of the Republic of the Philippines for payment of taxes accruing to the Project.

6. PERSONNEL

6.1 Personnel provided by the Government of Australia to the Project will be responsible for ensuring the effectiveness of the contribution of the Government of Australia to the Project and will have an advisory and consultant role.

6.2 The Australian Team Leader will provide notification to the Philippine Project Manager of all personnel provided by the Government of Australia to the Project prior to their assumption of the post assigned.

6.3 The Australian Team Leader will have administrative control with respect to duties, discipline, leave and other administrative issues, concerning personnel funded by the Government of Australia (including Philippine nationals employed as consultants) subject to the laws and regulations of the Republic of the Philippines.

6.4 The Government of the Republic of the Philippines by itself or through its executing agency or instrumentality will grant to Australian personnel (excluding Philippine nationals employed as consultants) and their dependants in the Republic of the Philippines, privileges and benefits to include:

6.4.1 Exemption from Philippine income and other taxes on salaries and allowances paid for by the Government of Australia and derived from activities performed in the Philippines under this Memorandum;

6.4.2 Exemption from import and other duties on bona fide personal and household effects for the personal use of Australian personnel or their dependants which accompany such persons or arrive within six months from the date of their arrival in the Philippines; and

6.4.3 Exemption from import duties and excise tax on one motor vehicle per expert brought into the Philippines within a period of six months, counted from the date of the first arrival of the expert, on the condition that the motor vehicle will be re-exported upon the termination of the Project or, if sold to non-exempt persons, be subject to payment of taxes and duties at the time of sale on the basis of its entered value.

7. IMPLEMENTATION, MONITORING AND REVIEW

7.1 Upon signing of this Memorandum of Understanding a work plan and budget for the first year of the project (to 30 June 1989) will be prepared by the Project Management Office. This Annual Plan will be based on the documents specified in Annex I and will be approved by the two Governments.

7.2 The Project Management Office will prepare an Implementation Document containing a forward work program and costings for the full duration of the Project with specific activities, inputs and indicators of progress and impact.  The Implementation Document will be approved by the two Governments and will supersede all previous documents (as specified in Annex 1) as the primary Project reference from 1 July 1989.

7.3 Regular joint field monitoring of the Project will be undertaken by representatives of the Technical Advisory Committee and the Australian Embassy at least twice a year. Following each monitoring visit a report will be prepared for the Project Governing Board to assess progress and make decisions on future activities.

7.4 In addition to the above monitoring a major review of progress of the Project may be made at times arranged between and mutually convenient to the two Governments. Such a review would be undertaken by a joint investigation team appointed by the two Governments, independent of staff involved in the Project.

8. SUPPLIES

8.1 The Government of the Republic of the Philippines will exempt from import duties and other taxes (or pay such duties thereon) all goods supplied by the Government of Australia for the established purposes of the Project.  This exemption will include project goods and services sourced in the Philippines by AIDAB's agents and their sub-contractors.  Where project goods and services are subject to value added tax (VAT), payment responsibility will be assumed by the executing authority of the Government of the Republic of the Philippines.

8.2 The Government of the Republic of the Philippines will facilitate the expeditious clearance and release of all imported goods supplied by the Government of Australia including the provision of appropriate customs and wharfage faci1ities in the port of entry closest to the site of the activity.

8.3 Project supplies and equipment provided by the Government of Australia will be available for the unrestricted use of the Project and will not be withdrawn from such use without the mutual consent of the two Governments.  The Australian Team Leader will exercise administrative control over such supplies and equipment for the duration of the Project or until such other time as they are released from the Project.

8.4 Vehicles provided by the Government of Australia will be registered as Official Exempt Vehicles and handed over at the end of the Project to the Departments specified as described in Annex 3.  These vehicles will be under the administrative control of the Australian Team Leader for the duration of the Project.  One additional vehicle will be provided by the Government of Australia to the Project Management Office to be under the control of the Philippine Project Manager.

8.5 The Government of the Republic of the Philippines will facilitate at the appropriate time the re-export of equipment items leased outside the Philippines by AlDAB's agent.

9. CLAIMS

The Government of the Republic of the Philippines will deal with any claim which may be brought by third parties against Australian personnel and Australian firms, institutions and organisations and will hold harmless said Australian personnel and Australian firms, institutions and organisations from civil liability for acts or omissions occurring in the course of the performance of their duties in the execution of the Project except for their acts arising from gross negligence or willful misconduct.

10. SECURITY

The Government of the Republic of the Philippines will provide security arrangement for Australian personnel and property on project sites and elsewhere when they are involved in official activities in accordance with the present Memorandum. The nature of such security arrangements will be mutually determined by the two Governments.

11. AMENDMENTS

Amendments to this Memorandum may be made at any time by written arrangement between the parties.

12. ANNEXURES

Annexures will form an integral part of this Memorandum.

SIGNED at the City of Manila in duplicate, this 25th day of January of the year one thousand nine hundred and eighty nine.