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September 23, 1986

Excellency:

I have the honor to refer to Your Excellency' s Note dated 22 May 1986 the text of which is quoted hereunder:

"I have the honour to refer to the exchange of Notes of 23 April/10 September 1985 and to propose on behalf of the Government of the Federal Republic of Germany that, in pursuance of the Agreement of 7 September 1971 between our two Governments regarding Technical Co-operation the following Arrangement concerning the project Rational Utilization of Energy (KITS), Philippines, be concluded.

1. The Government of the Federal Republic of Germany and the Government of the Republic of the Philippines shall, co-operate in assisting Philippine industrial and commercial enterprise in their efforts to reduce energy costs through energy conservation and other appropriate measures with a view to increasing the competitiveness and efficiency of Philippine businesses and helping to reduce oil imports.

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

(1) It shall

(a) second one expert in industrial energy management and one expert in industrial metrology for a total of up to 48 man/months, as well as short-term experts to deal with special problem in the field of industrial power engineering or energy management for a total of up to 20 man/months;

(b) Supply

- one minibus ("energy bus") equipped with measuring instruments for analysing the energy utilization of industrial and commercial enterprises and with training facilities,

- one minibus for preparatory assignments and for transporting the additional measuring equipment required,

- one pick-up truck to increase the mobility of the seconded experts within the region and to transport any installation material that may be required.

- material to assist the seconded experts in conducting seminars;

(c) meet the costs arising from the operation and maintenance of the "energy bus" and the pick-up truck, up to a maximum amount of DM 60,000 (sixty thousand Deutsche Mark).

(2) It is ready to provided each of up ten Philippine experts with one month of further training in power technology and energy management, consisting of fact-finding visits to German industrial enterprises and to institutions working on the rational utilization of energy,

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

(a) accommodation of the seconded experts and their families, in so far as this cost is not met by the 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 (b) above (excluding the charges and storage fees referred to in paragraph 3 (2) (c) below.

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

(1) It shall

(a) make available

- two graduate engineers to work with the German experts in drawing up and implementing industrial energy strategies and in preparing, monitoring and revising their implementation, as well as in performing technical and managerial tasks relating to energy,

- one clerk to do the requisite typing and other clerical work,

- one driver for the minibus;

(b) provide

- offices for the seconded experts,

- a secured parking area for the vehicles,

- servicing facilities for the vehicles, if available, and the requisite personnel,

- the use of the measuring equipment and laboratory apparatus available at the Bureau of Energy utilization, as required,

- the use of the available maintenance and repair facilities for the measuring instruments;.

(c) take the following action:

- assist in organizing energy audits,

- organise and conduct seminars and workshops,

- disseminate knowledge by means of suitable publications to promote the rational utilization of energy.

(2) It shall

(a) provide at its own expenses suitable offices for the project, including all equipment and furnishings not supplied by the Government of the Federal Republic of Germany at German expense;

(b) meet the cost of running and maintaining the minibus;

(c) exempt the material supplied for the project on behalf of the Government of the Federal Republic of Germany from licenses, 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 is the Republic of the Philippines;

(d) ensure that the tasks of the seconded experts are taken over by experts from the Republic of the Philippines.

Where these experts 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 , in collaboration with the mission of the Federal Republic of Germany in the Philippines or with experts designated by the mission, sufficient candidates for such training;

(e) 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;

(f) ensure the provision of the contributions require to implement the project , in so far as these are provided by the Government of the Federal Republic of Germany pursuant, to the project arrangements;

4. The seconded experts and their Philippine counterparts shall work for the Bureau of Energy Utilization on the following tasks:

- preparation of energy strategies for industrial, and commercial enterprises; identification of potential savings, using the "energy bus",

- technical and economic evaluation of energy cost-reducing measures,

- technical assistance to enterprises in carrying out energy cost-reducing measures

- training of energy experts from industrial enterprises and of Bureau of Energy Utilization staff,

- conducting seminars ,workshops, etc.,

- preparation of energy management plans for industrial enterprises,

- preparation of training material.

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 on arrival in the Philippines; the material shall be at the unrestricted disposal of the sponsored project and the seconded experts for the fulfillment 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 Bureau of Energy Utilization with the implementation of the project.

(3) The agencies charged pursuant to sub-paragraphs 1 and 2 above shall jointly lay down details of the implementation of the project 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 assurance 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 and
  Minister for Foreign Affair

His Excellency
Dr. Klaus Seller
Ambassador of the Federal Republic of Germany
Paseo de Roxas, Makati,
Metro Manila

COURTESY TRANSLATION

       

THE AMBASSADOR   OF THE FEDERAL REPUBLIC OF GERMANY

Manila, 22 May 1986

Excellency,

I have the honour to refer to the exchange of Notes of 23 April/ 10 September 1985 and to propose on behalf of the Government of the Federal Republic of Germany that, in pursuance of the Agreement of 7 September 1971 between our two Governments regarding Technical. Co-operation, the following Arrangement concerning the project Rational Utilization of Energy (RUE), Philippines, be concluded.

1. The Government of the Federal Republic of Germany and the Government of the Republic of the Philippines shall co-operate in assisting Philippine industrial and commercial enterprises in their efforts to reduce energy costs through energy conservation and other appropriate measures with a view to increasing the competitiveness and efficiency of Philippine businesses and helping to reduce oil imports.

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

(1) It shall

(a) second one expert in industrial energy management and one expert in industrial metrology for a total of up to 48 man/months, as well as short-term experts to deal with special problems in the field of industrial power engineering or energy management for a total of up to 20 man/months;

(b) Supply

- one minibus ("energy bus") equipped with measuring instruments for analysing the energy utilization of industrial and commercial enterprises and with training facilities.

- one minibus for preparatory assignments and for transporting the additional measuring equipment required,

- one pick-up truck to increase the mobility of the seconded experts within, the region and to transport any installation material that may be required,

- material to assist the seconded experts In conducting seminars;

(c) meet the costs arising from the operation and maintenance of the "energy bus" and the pick-up truck, up to a maximum amount of DM 60,000 (sixty thousand Deutsche Mark).

(2) It is ready to provide each of up to ten Philippine experts with one month of further training In power technology and energy management, consisting of fact-finding visits to German industrial enterprises and to institutions working on the rational utilization of energy.

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

(a) accommodation of the seconded experts and their families, in so far as this cost is not met by the 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 (b) above (excluding the charges and storage fees referred to in paragraph 3 (2) (c) below.

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

(1) It shall

(a) make available

- two graduate engineers to work with the German experts in drawing up and Implementing industrial energy strategies and in preparing, monitoring and revising their implementation, as well as in performing technical and managerial tasks relating to energy,

- one clerk to do the requisite typing and other clerical work,

- one driver for the minibus;

(b) Provide

- offices for the seconded experts,

- a secured parking area for the vehicles,

- servicing facilities for the vehicles, if available, and the requisite personnel,

- the use of the measuring equipment and laboratory apparatus available at the Bureau of Energy Utilization, as required,

- the use of the available maintenance and repair facilities for the measuring instruments;

(c) take the following action:

- assist in organizing energy audits,

- organize and conduct seminars and workshops,

- disseminate knowledge by means of suitable publications to promote the rational utilization of energy.

(2) It shall

(a) provide at its own expense suitable offices for the project, including all equipment and furnishings not supplied by the Government of the Federal Republic of Germany at German expense;

(b) meet the cost of running and maintaining the minibus;

(c) 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 their implementing agency, also apply to material procured in the Republic of the Philippines;

(d) ensure that the tasks of the seconded experts are taken over by experts from the Republic of the Philippines.

Where these experts 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, in collaboration with the mission of the Federal Republic of Germany in the Philippines or with experts designated by the mission, sufficient candidates for such training;

(e) 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;

(f) 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 work for the Bureau of Energy Utilization on the following tasks:

- preparation of energy strategies for industrial and commercial enterprises; identification of potential savings, using the "energy bus",

- technical and economic evaluation of energy cost-reducing measures,

- technical assistance to enterprises in carrying out energy cost-reducing measures,

- training of energy experts from industrial enterprises and of Bureau of Energy Utilization staff.

- conducting seminars, workshops, etc.,

- preparation of energy management plans for industrial enterprises,

- preparation of training material.

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 on arrival in the Philippines; 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 Bureau of Energy Utilization with the implementation of the project.

(3) The agencies charged pursuant to sub-paragraphs 1 and 2 above shall jointly lay down details of the implementation of the project 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 1371, 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 assurance of my highest consideration.

His Excellency
Mr. Salvador H. Laurel,
Minister of Foreign Affairs
of the Republic of the Philippines,
Manila