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Agreement ALA/94/29

The Commission of the European Communities, hereinafter referred to as "THE COMMISSION," acting for and on behalf of the European Community (EC), hereinafter referred to as "THE COMMUNITY,"

of the one part, and

The Government of the Republic of the Philippines, hereinafter referred to as "THE RECIPIENT"

of the other part,

HAVE AGREED AS FOLLOWS:

Objectives of Rider N° 2:

The objectives of Rider N° 2 are to

- modify the duration of this Memorandum, which is now valid until 31 December 2003 and

- adapt the cost estimates and contributions to the different items by means of a reallocation of funds.

All terms and conditions of the Financing Memorandum, its Annexes and Rider N° 1 remain unchanged except for the following modifications:

ARTICLE 2 - COMMITMENT OF THE COMMUNITY

The text is replaced by the following:

The commitment of THE COMMUNITY is fixed at 20,000,000 EURO (Twenty Million EURO), hereinafter referred to as "THE EC GRANT".

Any reference to ECU is replaced by EURO from the date of 1 January 1999.

The commitment is subject to a final implementation date. THE COMMISSION may however, depending on the circumstances, agree to an appropriate extension of this date, should such extension be requested and properly justified by THE RECIPIENT.

For the project, the implementation period is extended until 31 December 2001. The duration of this Memorandum is therefore modified and is now valid until 31 December 2003, this latter date allowing for processing of payments and evaluations related to project closure.

SIGNATURES:

Done at 27.09.2000	Done at
For THE COMMUNITY	For THE RECIPIENT
(Sgd.)	(Sgd.)

ANNEX A

MODIFIED TECHNICAL AND ADMINISTRATIVE PROVISIONS

2. PROJECT DESCRIPTION

2.2 Project Inputs

The text of the last hyphened (-) paragraph is replaced by the following:

- technical assistance, amounting to some 213 man-months of expatriate consulting services, and some 396 man-months of local consulting services.

2.3 Time Schedule

The text is replaced by the following:

The project will be implemented over a period of 74,5 months (from 10 October 1995^[1] until 31 December 2001). It is foreseen that the first 12 months of the implementation period will largely be concerned with inception activities, though a priority will nevertheless be given during this period to proceeding with land-transfer activities, and to establishing consultations with local beneficiaries and partners.

2.5 Cost estimates

2.5.1 EC grant

The table is replaced by the following:
	Original FM & Rider I EURO	Modifications EURO	Rider No. 2 EURO
Land transfer	1,735,000	87.300	1,822,300
Institutional strengthening	1,940,000	260.140	2,200,140
Productivity systems development (Incl. Credit Res & Rural Infra.)	9,245,000	-519.560	8,725,440
Project administration	3,625,000	833.000	4,458,000
Technical assistance	2,515,000	169.120	2,684,120
External evaluation	110,000	-	110,000
Contingencies	830,000	-830.000	0
Total	20,000,000	0	20,000,000

Philippine Government contribution

	Original FM & Rider 1 EURO	Modifications EURO	Rider No. 2 EURO
Land transfer	4,000,000	-	4,000,0001,822,300
Institutional strengthening	1,267,000	-	1,267,000
Project administration	1,566,000	-	1,566,000
Total	6,833,000	0	6,833,000

This Philippine Government contribution shall be made from the budgetary resources of the national government. The figures shown above are inclusive of the normal salary costs of permanent government personnel assigned to the project, and the cost of providing office space for the Project Management Office in Cebu, and the Liaison Office in Manila. However, these figures do not include the cost of land acquisition, the cost of land required for project facilities or investments (including any compensation for rights of way), which shall also be covered in full by the government.

3. SPECIAL CONDITIONS

A new article is inserted and read as follows:

3.10 Visibility

The Programme must at all times provide maximum visibility for the co-operation managed by the Commission. The Recipient shall pay particular attention to preventing any confusion between this programme and projects by other international bodies and donors, with the aim of making co-operation between the European community and the Philippines Government clearly visible. Special attention shall be devoted to implementing these rules at events and in all public and official written material connected with the Programme. Objects, equipment and documentation connected with the project shall carry the European Symbol (a blue flag bearing twelve yellow stars) with text in English. The symbols identifying the Union shall be of the same size and appearance as any symbols identifying the recipient, should the latter be present. All such activities shall be co-ordinated in close co-operation with the Commission Delegation.

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^[1] TA contract signature