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July 03, 1986

Excellency:

I have the honor to refer to Your Excellency's Note dated 14 March 1986, the text of which .is quoted hereunder

"I have the honour to refer to the negotiations held in Bonn on 13 and l4 August 1985 between our two Governments (item 3.2,2.2 of the Summary Record of Discussions) and to propose on behalf of the Government of the Federal Republic of Germany that, in pursuance of the Agreement of 7 September 1971 regarding Technical Co-operation, the following Arrangement concerning the Cebu Upland Project be concluded.

1. The Government of the Federal Republic of Germany and the Government of the Republic of the Philippines shall co-operate in the rural regional development programme for the upland in the municipalities of Alcoy, Boljoon and Oslob in Cebu Province.

(a) The aim of the programme:

The long-term principal aim of the overall programme is to help improve the living conditions of smallholders in a specified area of Cebu upland.

The project objectives of the overall programme are:

- qualification of the Philippine co-operating agency for the performance of supra-sectoral regional development activities,

- increasing the incomes of the target groups appropriate measures designed to promote production and improve infrastructure,

- erosion prevention through advisory assistance particularly as regards arboriculture,

- advisory assistance to target groups concerning the development of appropriate participative forms of organization,

- advisory assistance to the Philippine cooperating agency in the implementation of supplementary activities (such as in the health and education sectors).

(b) Orientation phase:

The principal aim of the envisaged initial three-year orientation phase of the programme, which at the same time also constitutes one of the project objectives of the long-term programme, is to set up an ecologically appropriate, viable development programme for the upland together with, and for the benefit of, smallholders.

The aim to be achieved by the end of this orientation phase is the preparation of the target groups (upland smallholders and counterparts from the institutions involved) for the implementation of subsequent measures of rural regional development in the upland.

2. The Government of the Federal Republic of Germany shall make the following contributions to the project;

(1) It shall

(a) Second

- one regional planner as team manager for up to 36 man/months,

- one planning expert for up to 36 man/months,

- one community development specialist experienced in forestry for up to 36 man/months,

- short- term experts for a total of up to 40 man/ months;

(b) meet the cost of employing

- one local expert in farm systems for up to 36 man/months,

- local and auxiliary personnel for a total of up to 72 man/months;

(c) Supply

- four passenger cars,

- two cross-country vehicles

- ten motor-cycles,

- construction material,

- office equipment,

- radio communication equipment,

- extension aids;

(d) make available

- a fund of up to DM 500,000 (five hundred thousand Deutsche Mark) for confidence-building measures,

- funds up to a total of DM 75,000 (seventy-five thousand Deutsche Mark) for seminars, workshops and local training activities;

(e) assume a gradually decreasing share of the operating, maintenance and repair costs with respect to the project facilities and the current costs of the means of transport and premises put at the unrestricted disposal of the personnel referred to in sub-paragraphs (a) and (b) above and used by them, up to a total of DM 240,000 (two hundred and forty thousand Deutsche Mark).

(2) It is prepared to provide, further training for Philippine experts

- abroad for a total of up to 12 man/months, and

- within the Republic of the Philippines or in other parts of South East Asia for a total of up to 18 man/months;

these experts shall be employed on the project upon their return and carry on the tasks of the seconded experts an their own.

(3) It is also prepared to meet the cost of

(a) accommodation for the seconded experts and their families, in so far as such cost is not borne by the seconded experts themselves;

(b) official travel by the seconded experts within and outside the Republic of the Philippines;

(c) transport and insurance to the project site of the material referred to in sub-paragraph 1 (c) above (this shall not include payment of the charges and storage fees referred to in paragraph 3 (2) (a) below.

3. The Government of the Republic of the Philippines shall make the following contributions to the project:

(1) It shall

(a) Provide

- experts for the project management for a total of up to 90 man/months,

- experts for three advisory teams for of up to 648 man/months.

- local and auxiliary personnel for project logistics for a total of up to 504 man/months ;

(b) meet the cost of

- official travel by the personnel referred to in sub-paragraph (a) above within the Republic of the Philippines,

- travel within or outside the Republic of the Philippines in connection with the training of counterparts abroad;

(c) make available

- one cross-country vehicle,

- funds in the countervalue of approximately DM 150,000 (one hundred and fifty thousand Deutsche Mark) for confidence-building measures,

- funds in the countervalue of approximately DM 200,000 (two hundred thousand Deutsche Mark) for implementing activities by the competent authorities,

- funds in the countervalue of approximately DM 50,000 (fifty thousand Deutsche Mark) for training activities,

- funds in the countervalue of approximately DM 240,000 (two hundred and forty thousand Deutsche Mark) for operating inputs,

- funds from the regional development fund of the Province in the countervalue of approximately DM 168,000 (one hundred and sixty-eight thousand Deutsche Mark) for agricultural production inputs,

- funds from the Province budget in the countervalue of approximately DM 42,000 (forty-two thousand Deutsche Mark) for the further training of the advisory teams.

(2) It shall

(a) exempt the material supplied for the project on behalf of the Government of the Federal Republic of Germany from licences, harbour dues, import and export duties and other public charges, as well as storage fees, and ensure that the material is cleared by customs without delay. The aforementioned exemptions shall, at the request of the implementing agency, also apply to material procured in the Republic of the Philippines;

(b) meet the project operating and maintenance costs, in so far as such costs are not assumed by the Government of the Federal Republic of Germany pursuant to paragraph 2 (1) (e) above;

(c) ensure that the functions of the seconded experts are taken over as soon as possible by Philippine experts. Where the latter are to receive basic or further training in the Republic of the Philippines, the Federal Republic of Germany or other countries pursuant to this Arrangement, it shall in good time nominate sufficient candidates for such training in collaboration with the mission of the Federal Republic of Germany in Manila or with experts designated by the mission. It shall only nominate such candidates as have given an undertaking to work on the project for at least five years after completing their training. It shall ensure that these Philippine experts receive appropriate remuneration;

(d) afford the seconded experts any assistance they may require in carrying out the tasks assigned to them and make available all necessary records and documents;

(e) ensure the provision of the contributions required to implement the project, in so far as these are not provided by the Government of the Federal Republic of Germany pursuant to the project arrangements.

4. The seconded experts and their Philippine counterparts shall

- set up the requisite project logistics as well as organizational and management structures

- set up a data pool covering the project region and develop plans for the overall programme and the sectoral activities,

- inform and motivate the target groups, identify and introduce procedures for participation in project implementation,

- plan, implement and evaluate small-scale confidence-building measures at village level,

- carry out the joint Philippine/German project evaluation and use the results in the preparation of the implementation phase,

- provide on-the-job basic and further training for the target groups, organize further-training courses in management and extension work,

- develop an appropriate monitoring and evaluation system for use as a steering instrument by the management and superordinate institutions,

- begin carrying out selected activities of the implementation phase in the third year of the orientation phase, if co-ordination of overall strategy so permits.

5. The material supplied for the project on behalf of the Government of the Federal Republic of Germany shall become the property of the Republic of the Philippines upon arrival there; the material shall be at the unrestricted disposal of the sponsored project and the seconded experts for the fulfilment of their tasks.

6. (1) The Government of the Federal Republic of Germany shall charge the Deutsche Gesellschaft fur Technische Zusammenarbeit (GTZ) GmbH, 6236 Eschborn, with the implementation of its contributions.

(2) The Government of the Republic of the Philippines shall charge the Ministry of Natural Resources with the implementation of the project

(3) The agencies charged pursuant to sub-paragraphs 1 and 2 above may jointly lay down the details of project implementation in a plan of operations or in some other appropriate form, adapting them as necessary in line with the progress of the project,

7. In all other respects the provisions of the aforementioned Agreement of 7 September 1971, including the Berlin clause (Article 9), shall apply to the present Arrangement.

If the Government of the Republic of the Philippines agrees to the proposals contained in paragraphs 1 to 7 above, this Note and Your Excellency's Note in reply thereto expressing your Government's agreement shall constitute an Arrangement between our two Governments, to enter into force on the date of your Note in reply.

Accept, Excellency, the assurances of my highest consideration."

I have the honor to inform Your Excellency that my Government agrees to the proposal contained in paragraphs 1 to 7 quoted above, and that Your Excellency's Note and this Note shall constitute an Arrangement between our two Governments, to take effect on the date of this reply.

Accept, Excellency, the renewed assurances of my highest consideration,

(Sgd.)
  SALVADOR H. LAUREL
  Vice President
  Minister for Foreign Affairs

His Excellency
Dr. Klaus Zeller
Ambassador of the Federal Republic of Germany
Citibank Centre Bldg. , Paseo de Roxas,
Makati, Metro Manila

COURTESY TRANSLATION

       

THE AMBASSADOR   OF THE FEDERAL REPUBLIC OF GERMANY

Manila, 03 July 1986

Excellency,

I have the honour to refer to the negotiations held in Bonn on 13 and 14 August 1985 between our two Governments (item 3.2.2.2 of the Summary Record of Discussions) and to propose on behalf of the Government of the Federal Republic of Germany that, in pursuance of the Agreement of 7 September 1971 regarding Technical Co-operation, the following Arrangement concerning the Cebu Upland Project be concluded,

1. The Government of the Federal Republic of Germany and the Government of the Republic of the Philippines shall co-operate in the rural regional development programme for the upland in the municipalities of Alcoy, Boljoon and Oslob in Cebu Province.

(a) The aim of the programme:

The long-term principal aim of the overall programme is to help improve the living conditions of smallholders in a specified area of Cebu upland.

The project objectives of the overall programme are:

- qualification of the Philippine co-operating agency for the performance of supra-sectoral regional development activities,

- increasing the incomes of the target groups through appropriate measures designed to promote production and improve infrastructure,

- erosion prevention through advisory assistance, particularly as regards arboriculture,

- advisory assistance to target groups concerning the development of appropriate participative forms of organization,

- advisory assistance to the Philippine co-operating agency in the implementation of supplementary activities (such as in the health and education sectors).

(b) Orientation phase: 

The principal aim of the envisaged initial three-year orientation phase of the programme, which at the same time also constitutes one of the project objectives of the long-term programme, is to set up an ecologically appropriate, viable development programme for the upland together with, and for the benefit of smallholders.

The aim to be achieved by the end of this orientation phase is the preparation of the target groups (upland smallholders and counterparts from the institutions involved) for the implementation of subsequent measures of rural regional development in the upland.

2. The Government of the Federal Republic of Germany shall make the following contributions to the project:

(1) It shall

(a) Second

- one regional planner as team manager for up to 36 man/months,

- one planning expert for up to 36 man/months,

- one community development specialist experienced in forestry for up to 36 man/months,

- short-term experts for a total of up to 40 man/ months;

(b) meet the cost of employing

- one local expert in farm systems for up to 36 man/ months,

- local and auxiliary personnel for a total of up to 72 man/months;

(c) Supply 

- four passenger cars,

- two cross-country vehicles,

- ten motor-cycles,

- construction material,

- office equipment,

- radio communication equipment,

- extension aids;

(d) make available

- a fund of up to DIM 500,000 (five hundred thousand Deutsche Mark) for confidence-building measures,

- funds up to a total of DM 75,000 (seventy-five thousand Deutsche Mark) for seminars, workshops and local training activities;

(e) assume a gradually decreasing share of the operating, maintenance and repair costs with respect to the project facilities and the current costs of the means of transport and premises put at the unrestricted disposal of the personnel referred to m sub-paragraphs (a) and (b) above and used by them, up to a total of DM 240,000 (two hundred and forty thousand Deutsche Mark).

(2) it is prepared to provide further training for Philippine experts

- abroad for a total of up Lo 12 man/months, and

- within the Republic of the Philippines or in other parts of South East Asia for a total of up to 18 man/months;

these experts shall be employed on the project upon their return and carry on the tasks of the seconded experts on their own.

(3) It is also prepared to meet the cost of

(a) accommodation for the seconded experts and their families, in so far as such cost is not borne by the seconded experts themselves;

(b) official travel by the seconded experts within and outside the Republic of the Philippines;

(c) transport and insurance to the project site of the material referred to in sub-paragraph 1 (c) above (this shall not include payment of the charges and storage fees referred to in paragraph 3 (2) (a) below).

3. The Government of the Republic of the Philippines shall make the following contributions to the project:

(1) It shall

(a) Provide

- experts for the project management for a total of up to 90 man/months,

- experts for three advisory teams for a total of up to 648 man/months,

- local and auxiliary personnel for project logistics for a total of up to 504 man/months ;

(b) meet the cost of

- official travel by the personnel referred to in sub-paragraph (a) above within the Republic of the Philippines,

- travel within or outside the Republic of the Philippines in connection with the training of counterparts abroad;

(c) make available

- one cross-country vehicle,

- funds in the countervalue of approximately DM 150,000 (one hundred and fifty thousand Deutsche Mark) for confidence-building measures,

- funds in the counte rvalue of approximately DM 200,000 (two hundred thousand Deutsche Mark) for implementing activities by the competent authorities,

- funds in the countervalue of approximately DM 50,000 (fifty thousand Deutsche Mark) for training activities,

- funds in the countervalue of approximately DM 240,000 (two hundred and forty thousand Deutsche Mark) for operating inputs,

- funds from the regional development fund of the Province in the countervalue of approximately DM 168,000 (one hundred and sixty-eight thousand Deutsche Mark) for agricultural production inputs,

- funds from the Province budget in the countervalue of approximately DM 42,000 (forty-two thousand Deutsche Mark) for the further training of the advisory teams.

(2) It shall

(a) exempt the material supplied for the project on behalf of the Government of the Federal Republic of Germany from licences, harbour dues, import and export duties and other public charges, as well as storage fees, and ensure that the material is cleared by customs without delay. The aforementioned exemptions shall, at the request of the implementing agency, also apply to material procured in the Republic of the Philippines;

(b) meet the project operating and maintenance costs, in so far as such costs are not assumed by the Government of the Federal Republic of Germany pursuant to paragraph 2 (1) (e) above;

(c) ensure that the functions of the seconded experts are taken over as soon as possible by Philippine experts. Where the latter are to receive basic or further training in the Republic of the Philippines, the Federal Republic of Germany or other countries pursuant to this Arrangement, it shall in good time nominate sufficient candidates for such training in collaboration with the mission of the Federal Republic of Germany in Manila or with experts designated by the mission. It shall only nominate such candidates as have given an undertaking to work on the project for at least five years alter completing their training. It shall ensure that these Philippine experts receive appropriate remuneration;

(d) afford the seconded experts any assistance they may require in carrying out the tasks assigned to them and make available all necessary records and documents;

(e) ensure the provision of the contributions required to implement the project, in so far as these are not provided by the Government of the Federal Republic of Germany pursuant to the project arrangements.

4. The seconded experts and their Philippine counterparts shall

- set up the requisite project logistics as well as organizational and management structures,

- set up a data pool covering the project region and develop plans for the overall programme and the sectoral activities,

- inform and motivate the target groups, identify and introduce procedures for participation in project implementation,

- plan, implement and evaluate small-scale confidence-building measures at village level,

- carry out the joint Philippine/German project evaluation and use the results in the preparation of the implementation phase,

- provide on-the-job basic and further training for the target groups, organize further-training courses in management and extension work,

- develop an appropriate monitoring and evaluation system for use as a steering instrument by the management and superordinate institutions,

- begin carrying out selected activities of the implementation phase in the third year of the orientation phase, if the co-ordination of overall strategy so permits.

5. The material supplied for the project on behalf of the Government of the Federal Republic of Germany shall become the property of the Republic of the Philippines upon arrival there; the material shall be at the unrestricted disposal of the sponsored project and the seconded experts for the fulfilment of their tasks.

6. (1) The Government of the Federal Republic of Germany shall charge the Deutsche Gesellschaft fur Technische Zusammenarbeit (GTZ) GmbH, 6236 Eschborn, with the implementation of its contributions.

(2) The Government of the Republic of the Philippines shall charge the Ministry of Natural Resources with the implementation of the project.

(3) The agencies charged pursuant to sub-paragraphs 1 and 2 above may jointly lay down the details of project implementation in a plan of operations or in some other appropriate form, adapting them as necessary in line with the progress of the project.

7. In all other respects the provisions of the aforementioned Agreement of 7 September 1971, including the Berlin clause (Article 9), shall apply to the present Arrangement.

If the Government of the Republic of the Philippines agrees to the proposals contained in paragraphs 1 to 7 above, this Note and Your Excellency's Note in reply thereto expressing your Government's agreement shall constitute an Arrangement between our two Governments, to enter into force on the date of your Note in reply.

Accept, Excellency, the assurances of my highest consideration.

His Excellency
Salvador H. Laurel
Vice President
Minister for Foreign Affairs
of the Republic of the Philippines
Manila