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June 21, 1988

The Government of the Republic of the Philippines (hereinafter called "PHILIPPINES") and the Government of Canada (hereinafter called "CANADA"), desiring to record an understanding concerning a Canadian development assistance Project concerning Telecommunications Technical Assistance have agreed as follows:

ARTICLE I

NATURE OF THE MEMORANDUM OF UNDERSTANDING

SECTION 1.01

This Memorandum of Understanding is a subsidiary arrangement made pursuant to the General Agreement in Development Cooperation between the PHILIPPINES and CANADA dated the 13th day of November 1987 and is intended only to set out the responsibilities of the two Governments in relation to the Project.

ARTICLE II

RESPONSIBLE AUTHORITIES

SECTION 2.01

CANADA designates the Canadian International Development Agency (hereinafter called "C1DA") as the agency responsible for the implementation of its obligations under this Memorandum of Understanding.

SECTION 2.02

The PHILIPPINES designates the Department of Transportation and Communications (hereinafter called "DOTC") as the agency responsible for the implementation of its obligations under this Memorandum of Understanding.

ARTICLE III

THE PROJECT

SECTION 3.01

CANADA and the PHILIPPINES shall participate in a Telecommunications Technical Assistance Project (hereinafter called the "Project"). The objective of the Project is to contribute to economic growth and development requirements through improvements to the telecommunications sector. The Project is more particularly described in Annex "A" attached hereto.

ARTICLE IV

MANAGEMENT PLAN

SECTION 4.01

For implementation of the Project, CANADA and the PHILIPPINES will develop a Management Plan which will constitute an operational document between DOTC and CIDA. The Management Plan will be completed and signed within ninety (90) days from the date of this Memorandum of Understanding, and when duly signed on behalf of CANADA and the PHILIPPINES will be attached hereto as Annex "D" and will contain, interalia, the following:

(a) a detailed description of the Project;
 
(b) an outline of the methods and means to be used to carry out the Project;
 
(c) a schedule for the implementation of the Project activities, including a milestone chart;
 
(d) the reporting requirements for the Project;
 
  (e) the nature, timing and responsibilities for Project evaluations and the means by which they shall be made;
 
  (f) the resources required for the Project; and
 
  (g) a statement of additional obligations, duties and responsibilities of CANADA and the PHILIPPINES together with their contributions.

ARTICLE V

CONTRIBUTION OF CANADA

SECTION 5.01

The contribution and responsibilities of CANADA shall consist of the provision of a Canadian Executing Agency (CEA) under contract to CIDA, professional services of Canadian advisors, training aid equipment, and the services of Canadian agencies for monitoring and evaluation, all as more particularly set forth in Annex "B". The total value of CANADA'S contribution shall not exceed five million Canadian dollars (Cdn$ 5,000,000.00).

SECTION 5.02

The proceeds of the contribution shall not be used by the PHILIPPINES to pay any taxes, fees, cutoms duties or any other levies or charges imposed directly or indirectly by the PHILIPPINES on any goods, materials, equipment, vehicles and services purchased or acquired for, or related to, the execution of the Project.

ARTICLE VI

CONTRIBUTION OF THE PHILIPPINES

SECTION 6.01

The contribution and the responsibilities of the PHILIPPINES shall consist of the provision of qualified personnel, counterparts to Canadian advisors and all labor, materials, facilities, equipment, services and other Project requirements all as more particularly set forth in Annex "C".

ARTICLE VII

INFORMATION

SECTION 7.01

The PHILIPPINES and CANADA shall ensure that this Memorandum of Understanding is carried out with due diligence and efficiency and each shall furnish to the other all such information relating to the Project as shall reasonably be requested.

ARTICLE VIII

COMMUNICATIONS

SECTION 8.01

Any communications or documents given, made or sent by either the PHILIPPINES or CANADA pursuant to this Memorandum of Understanding, shall be in writing and shall be deemed to have been duly given, made or sent to the party to which it is addressed at the time of its delivery by hand, mail, telegram, cable, fax or telex at its respective address, namely:

SECTION 8.02

Any one of the parties hereto may, by written notice to the other party hereto, change the address to which any notice or request intended for the party so giving such notice shall be addressed.

SECTION 8.03

All communications and documents submitted to CANADA either the English or the French language, and those the PHILIPPINES shall be in the English language.

ARTICLE IX

INTERPRETATION

SECTION 9.01

Differences which may arise in the application of the provisions of this Memorandum of Understanding shall be settled by means of negotiations between CANADA and the PHILIPPINES or by any other manner mutually agreed upon by their respective Governments.

ARTICLE X

ENTIRE UNDERSTANDING

SECTION 10.01

This Memorandum of Understanding together with Annexes "A", "B" "C" and "D" which form an integral part hereof constitutes the entire understanding between the Parties with respect to the Project.

ARTICLE XI

CONSULTATION

SECTION 11.01

CANADA and the PHILIPPINES will endeavour to consult each other in respect of any matter that may from time to time arise in connection with this Memorandum of Understanding.

ARTICLE XII

GENERAL PROVISIONS

SECTION 12.01

This Memorandum of Understanding shall come into force and effect on the date of signature and shall expire on 31 March 1994. This Memorandum of Understanding may be amended from time to time, as deemed necessary, by mutual agreement by an exchange of letters.

IN WITNESS WHEREOF, the undersigned have signed this Memorandum of Understanding in duplicate in Manila, Philippines on the 21st day of June, 1988.