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July 23, 1998

The Government of the Republic of the Philippines (hereinafter called the "PHILIPPINES"), and the Government of Canada (hereinafter called "CANADA") desiring to collaborate on the implementation of a Canadian development assistance project to the PHILIPPINES have reached the following understanding:

ARTICLE I
  NATURE OF THE MEMORANDUM OF UNDERSTANDING

SECTION 1.01

This Memorandum of Understanding does not constitute an international treaty. It is a subsidiary arrangement pursuant to the objectives and purposes of the General Agreement on Development Cooperation between the PHILIPPINES and CANADA dated 13th day of November 1987 and is intended to set out the responsibilities of the two governments in relation to the Project.

ARTICLE II
  RESPONSIBLE AUTHORITIES

SECTION 2.01

The PHILIPPINES designates the National Economic and Development Authority (hereinafter called "NEDA") as the agency responsible for the implementation of its obligations under this Memorandum of Understanding.

SECTION 2.02

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

ARTICLE III
  THE PROJECT

SECTION 3.01

The PHILIPPINES and CANADA shall participate in a program to strengthen the capacity of selected Government institutions to efficiently and effectively manage the development process (hereinafter called the "Project"). The objective of the Project is to assist selected, key Government of the Philippines (GOP) departments and agencies to develop their self-sustaining capacities to formulate, plan, implement, monitor and evaluate socio-economic and administrative policies and reform programs.

ARTICLE IV
  PROJECT IMPLEMENTATION PLAN

For implementation of the Project, the PHILIPPINES and CANADA will develop a Project Implementation Plan (PIP) which will constitute an operational document between NEDA and CIDA. A duly approved Project Implementation Plan will be completed and signed within thirty (30) days from the date of the first meeting of the new Project Steering Committee, and will be attached hereto as Annex "A" and will contain, inter alia, the following:

(a) project background and description including the Logical Framework Analysis (LFA) and CIDA's programming priorities and cross-cutting themes;

(b) PTTAF I Impact Assessment;

(c) GOP departments and agencies which have been identified and targeted for PTTAF II involvement;

(d) project output and activity matrix, this section provides (in chart form) a description of each output indicated in the LFA including what activities are required, the resources needed to achieve the output, who is responsible for the activity, and a description of the Canadian Executing Agency (CEA) management and administrative activities;

(e) project organization and management structure;

(f) project steering committee, this section describes the operation of the PTTAF Steering Committee (PSC), its members, its role and frequency of meetings;

(g) project budget

(h) project schedule;

(i) project reports; and

(j) unanticipated issues uncovered during the inception period which may have an effect on project implementation and annex.

SECTION 5.01

The contribution of CANADA shall consist of the provision of funds for specific project activities as well as the provision of professional services of a Canadian Executing Agency to assist in the execution of the project, all as set forth in Annex "A". The total value of CANADA'S contribution shall not exceed Ten Million Canadian Dollars (CDN$ 10,000,000).

SECTION 5.02

The proceeds of CANADA'S contribution shall not be used by the PHILIPPINES to pay any taxes, fees, customs duties or any other levies such as value added tax charges imposed directly or indirectly by the PHILIPPINES on any goods, materials, equipment, vehicles and services purchased or acquired to meet project requirements or in relation to the implementation of the Project.

ARTICLE VI
  CONTRIBUTION OF THE PHILIPPINES

SECTION 6.01

The PHILIPPINES shall, subject to its normal budgetary process, provide an estimated contribution of one million nine hundred thousand Canadian dollars (Cdn$ 1,900,000), in cash or in kind which may be required to implement specific activities more particularly set forth in the Project Implementation Plan.

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, facsimile or electronic mail at its respective address, namely:   

For the PHILIPPINES:
 
  Mail Address:
  The Director General
  National Economic and Development Authority (NEDA)
  Amber Avenue, Pasig, Metro Manila
  Philippines
  Telephone; (632) 6313716
  Fax: (632) 6313747
  E- mail: fmm@nedamis.neda.gov.ph
 
 
  For CANADA:
 
  Mail Address:
  The President
  Canadian International Development Agency
  c/o Head of the Development Cooperation Section
  Canadian Embassy
  11th Floor, Allied Bank Centre
  6754 Ayala Avenue, Makati,
  Metro Manila, Philippines
  Telephone: (632) 8670001
  Fax: (632) 8105142
  E-mail: vivien.escott@manil01 .x400.gc.ca
 

SECTION 8.02

Any one of the parties hereto may, by written notice to the other party hereto, change the address to which all documents or communications are to be submitted.

SECTION 8.03

All communications and documents submitted to the PHILIPPINES shall be in the English language and those submitted to CANADA shall be in either the English or the French 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 the PHILIPPINES and CANADA or by any other manner mutually agreed upon by their respective Governments.

ARTICLE X
  CONSULTATION

SECTION 10.01

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

ARTICLE XI
  GENERAL PROVISIONS

SECTION 11.01

This Memorandum of Understanding together with Annex "A", which forms an integral part hereof, constitutes the entire understanding between the PHILIPPINES and CANADA with respect to the Project.

SECTION 11.02

This Memorandum of Understanding may be amended as deemed necessary by the PHILIPPINES and CANADA by mutual agreement through an exchange of letters.

SECTION 11.03

This Memorandum of Understanding shall enter into force and effect on the day of signing by two sides and shall terminate on 31 December 2004.

IN WITNESS WHEREOF, the undersigned have signed this Memorandum of Understanding in duplicate in Manila, Philippines, this 23rd day of July 1998.