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March 31, 1987

The Government of the Republic of the Philippines (hereinafter referred to as "the Philippines") and the Government of the Kingdom of Norway (hereinafter referred to as "Norway") desiring to co-operate in the implementation of the Coastal Fleet Renewal Project and thereby strengthen the friendly relations that exist between the Philippines and Norway,

have agreed as follows;

Norway shall:

1. During the years 1987-1988, subject to Parliamentary appropriations, within the financial limit of NOK 6,000,000,-(six million) commission a firm of consultants (hereinafter referred to as "the Consultants") to carry out the studies and training in connection with the Coastal Fleet Renewal Project referred to in Section 3 of Annex I to this Agreement (hereinafter referred to as "the Studies").

2. Norway will effect payments under this Agreement directly to the Consultants in accordance with the provisions contained in the Contract to be entered into between Norway and the Consultants. The Contract shall be forwarded to the Philippines for information.

The Consultants shall be responsible to Norway for the conduct, execution and quality of the services.

The Philippines shall:

i) Provide and bear the costs of necessary office space, telecommunication and support personnel to the Consultants.

ii) Assign a competent counterpart team who shall i.a. assist the Consultants in scheduling and participate in trips and meetings and gathering of additional data.

iii) Provide the Consultants with all transport data, ongoing and longterm port development plans, national economic development plans and maritime industry development plans.

iv) Exempt the Consultants and their employees from the payment of any income or other tax on, or calculations in relation to income payable under Philippine Law in respect of emoluments paid by Norway.

v) Exempt items, whether new or used, of specialist equipment imported by the Consultants required to effect the Studies, from import duties or levies. However, if any item is disposed of in the Philippines otherwise than to a person or organization entitled to a similar exemption, such person or organization will be liable to pay import duties and levies at the rate required by Philippine Law.

vi) Exempt all personnel of the Consultants entering the Philippines from immigration restrictions and alien registration requirements and furnish expediently the visa and work permits necessary to execute the work in the Philippines.

vii) Grant all necessary licenses and foreign exchange permits that may be required in connection with the execution of the Studies.

viii) Promptly inform Norway of any condition which interferes with, or threatens to interfere with a successful accomplishment of the purpose of this Agreement.

1. In matters relating to the implementation of the Agreement the Maritime Industry Authority (MARINA) shall be competent authority to represent the Philippines and the Ministry of Development Cooperation (MDC) represented by the Norwegian Agency for International Development (NORAD) shall be competent authority to represent Norway.

1. The Philippines and Norway shall co-operate fully to ensure that the purpose of this Agreement will be accomplished in an efficient manner. To that end, each Party shall furnish to the other all such information as it shall reasonably require pertaining to the Studies.

1. If any dispute arises relating to the implementation or interpretation of the present Agreement, there shall be mutual consultations between the Parties with a view to secure a successful implementation of the Studies.

2. This Agreement shall enter into force on the date of its signature and shall remain in force until both Parties have fulfilled all obligations arising from it.

3. Notwithstanding the previous paragraph both Parties may terminate the present Agreement by giving three months' written notice to the other Party.

In witness whereof, the undersigned, acting on behalf of their respective Governments, have signed the present Agreement in two originals in the English language.

Done at Manila this 31st day of March 1987