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November 11, 1985

I have the honor to acknowledge the receipt of Your Excellency's Note of today's date, which reads as follows:

"Excellency,

I have the honour to refer to discussions between representatives of our two Governments concerning future cooperation between the Government of the Republic of the Philippines and the Government of New Zealand through an extension of the 1980/84 Philippines/New Zealand Energy Cooperation Programme. It is understood that the Government of the Philippines would welcome a continuing programme of geothermal energy cooperation (hereinafter referred to as "the programme") with New Zealand now that the current Agreement on the Energy Cooperation Programme has been completed. The Goverment of New Zealand in recognising the importance that the Government of the Republic of the Philippines attaches to geothermal exploration and assessment and training personnel involved in geothermal exploration and development, is prepared to provide a programme of continuing technical assistance to the Government of the Republic of the Philippines until 31 December 1987.

I should therefore like to propose, on behalf of the Government of New Zealand, that the following arrangements should apply to the programme:

a. the Government of New Zealand will until 31 December 1985 provide continuing technical support to the Philippines through on-the-ground consultancy services for the exploration and assessment of its geothermal power resources. In addition, the Government of New Zealand will provide through to 31 December 1987 advice on aspects of geothermal reservoir assessment and management. This will be undertaken through short-term advisory services and training in accordance with the terms and conditions as set out in the Annex to this Note;

b. the programme, which will be part of the overall New Zealand/ Philippines bilateral development assistance programme, will remain in place until December 1987. The Government of New Zealand is prepared to make available for the programme from 1 April 1985 to 31 December 1987 a total amount of up to New Zealand $2 million. This is to be-regarded as a maximum sum and is subject to annual appropriations by the New Zealand Government;

c. the programme will be subject to an annual review by representatives of the two Governments. Progress towards stated objectives should be reviewed and an assessment made of the requirements for New Zealand assistance for the forthcoming year;

d. all New Zealand -funded personnel and their dependants present in the Philippines in connection with the programme will be accorded privileges and immunities as detailed in the Annex to this Note.

This exchange of Notes including its Annex may be amended by the mutual consent of both Governments in writing.

If the provisions contained in this note are acceptable to the Government of the Republic of the Philippines, I have the honour to suggest that this Note and its Annex and your reply thereto should constitute an understanding between our two Governments which will be deemed to have entered into force on 1 January 1985. This understanding will continue in effect until 31 December 1987 unless terminated by notice in writing by either Government, to be effective after 120 days from the receipt of such notice of termination.

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

I have further the honor to confirm on behalf of the Government of the Republic of the Philippines the foregoing arrangements and to agree that Your Excellency's Note and this Note, and its Annex shall be regarded as constituting an agreement between the two governments, which will enter into force on the date mentioned in this Agreement.

I avail myself of this opportunity to renew to Your Excellency the assurances of my highest consideration.

  (Sgd.) PACIFICO A. CASTRO
    Acting Minister for Foreign affairs

His Excellency

Paul Cotton

Ambassador Extraordinary and Plenipotentiary

Of the New Zealand to the Republic

Of the Philippines

Makati, Metro Manila

ANNEX

SUMMARY OF CONTRIBUTIONS

1. New- Zealand Contribution

Within the limit of the funds provided for the overall programme, the Government of New Zealand will, through the New Zealand Ministry of Foreign Affairs:

1.1. provide student awards to undertake post graduate studies at appropriate New Zealand universities subject to the capacity of the universities to provide places and programmes;

1.2. provide training awards for PNOC-EDC employees to undertake appropriate training with New Zealand Government Departments and/or institutions in areas with application to the development of geothermal energy resources, subject to places being made available by those departments and/or institutions;

1.3. provide the services of New Zealand Government advisers, subject to their availability, to undertake short-term visits to assist in monitoring the exploration programme and to provide advice on reservoir assessment;

1.4. provide the services of New Zealand advisers, subject to their availability, to undertake short-term visits to conduct seminar training for PNOC STAFF;

1.5. commission the services of the New Zealand consultancy firm KRTA Ltd., to provide scientific advice and services:

a. in the exploration and delineation up to the development stage of agreed geothermal fields in the Philippines;

b. in environmental monitoring, and in the assessment of the impact of geothermal development on geothermal reservation areas;

c. on aspects of reservoir assessment and management through the facilities of their New Zealand Office.

KRTA staff in the Philippines will progressively be withdrawn from advisory and supervisory positions funded under the programme, as PNOC-EDC staff develop and demonstrate their own capability to perform these functions to the satisfaction of PNOC-EDC management. All New Zealand funded KRTA staff will be withdrawn from the Philippines by 31 December 1985.

1.6. purchase books and small items of scientific equipment for PNOC-EDC

where they will facilitate transfer of technology.

  2. The Philippine Contribution

The Government of the Philippines, acting through its Executing Agency, the Philippines National Oil Company-Energy Development Corporation, will provide the following services over the period of the programme:

2.1. counterpart scientific and technical personnel and support personnel required to work with the New Zealand consultants and short-term advisers;

2.2. scientific services, other than personnel, where applicable;

2.3. appropriate office facilities, equipment and furniture, secretarial and clerical assistance as required, and use of PNOC computer services as available for the efficient operation of New Zealand consultancy services under the programme and for New Zealand advisers on short-term visits;

2.4. mutually agreed monthly housing allowances towards accommodation for staff employed by KRTA under the programme in the Philippines and provision of temporary camp or hotel facilities for these persons in the field;

2.5. the provision of vehicular transport within the Philippines for short-term New Zealand advisers and KRTA staff resident in the Philippines, to facilitate their assignments;

2.6. a venue, secretarial assistance, accommodation for participants, and logistical support for seminars in the Philippines on technical and non-technical aspects of geothermal development;

2.7. annual budgetary provision for those aspects of the programme for which the Government of the Philippines accepts financial responsibility within the limit of funds available.

  3. Privileges, Exemptions and Immunities

3.1. The Government of the Republic of the Philippines in accordance with its laws and regulations in force at the time of conclusion of the exchange of Notes constituting an Understanding of which this Annex forms part, will exempt all New Zealand personnel in the Philippines in connection with the project (hereinafter in this clause referred to as "the New Zealand advisers"):

i. from income tax and any other tax levied by the Government of the Republic of the Philippines in respect of project salaries, allowances, and payments and emoluments associated with the project;

ii. from import, customs and other duties and taxes on all professional and technical equipment ordered by the Embassy of New Zealand, for the successful implementation of this project;

iii. from payment of customs and all other duties on motor vehicles imported into the Philippines by the Embassy of New Zealand for the benefit of the project;

3.2. In addition, the Government of the Republic of the Philippines will:

i. issue to the New Zealand advisers and their dependants special non-immigrant visas, known as 47(a)2 visas, and exempt them from the payment of all fees due under Philippine immigration and alien registration laws, the securing of alien certificates of registration and the obtaining of immigration clearance certificates as a requirement for departure

ii. permit each long-term New Zealand adviser to purchase, duty and tax free and without providing security, one motor vehicle for his personal use

iii. permit each long-term New Zealand adviser to import within six months after his arrival, duty and tax free and without providing security, articles intended for this personal use including all personal effects and household goods.

It is understood that the items referred to in sub-paragraph 3.2.ii and iii may be re-exported freely without customs, or any other duty, tax or charge, or may be disposed of within the Philippines to a person who enjoys similar exemption. If, however, any items which have been exempted from customs duties are subsequently sold or disposed of, other than as a gift to the appropriate Philippine Government Agency, to any person not similarly entitled to customs franchise privileges, duty will be paid on the items so disposed of, in accordance with existing rules and regulations of the Government of the Republic of the Philippines.

iv. since assistance under this agreement is provided to a project situated in the territory of the Republic of the Philippines, the Government of the Republic of the Philippines will bear all risks arising from operations under this agreement. The Government of the Republic of the Philippines will settle any claims which may be brought by third parties against the New Zealand advisers and will hold the New Zealand advisers and the New Zealand Government jointly and severally immune from legal process of any kind in case of any claims resulting from operations under the agreement, except where it is established in the course of mutual consultation and determination by the two Governments that such claims arise from gross negligence or willful misconduct of the New Zealand advisers. In the event that it should be established in the course of consultations that gross negligence or willful misconduct on the part of New Zealand advisers has occurred, there will be full consultation between the two Governments before any action is taken against the person or persons concerned.

3.3. New Zealand advisers, together with their dependants, will, while in the Philippines, have the privilege of bringing foreign currency into the Philippines and/or remitting such currency to New Zealand together with such amounts as may be earned in the Philippines pursuant to their assignment, subject to existing Philippine laws and regulations.

3.4. The Government of the Republic of the Philippines will arrange for any protective services deemed necessary to ensure the safety of the person and property of New Zealand advisers, and of their dependants and New Zealand project supplies.

3.5. Without prejudice to the foregoing provisions, the Government of the Republic of the Philippines will accord the New Zealand advisers and their dependants no lesser benefits, facilities, privileges, exemptions and immunities than those accorded to other non-Philippine nationals working in the Philippines under the Colombo Plan.

  NEW ZEALAND EMBASSY
  MANILA

11 November 1985

H E Pacifico A Castro Acting Minister of Foreign Affairs
Ministry of Foreign Affairs
Padre Faura Street
MANILA

Excellency

I have the honour to refer to discussions between representatives of our two Governments concerning future cooperation between the Government of the Republic of the Philippines and the Government of New Zealand through an extension of the 1980/84 Philippines/New Zealand Energy Cooperation Programme. It is understood that the Government of the Philippines would welcome a continuing programme of geothermal energy cooperation (hereinafter referred to as "the programme") with New Zealand now that the current Agreement on the Energy Cooperation Programme has been completed. The Government of New Zealand in recognising the importance that the Government of the Republic of the Philippines attaches to geothermal exploration and assessment and training personnel involved in geothermal exploration and development, is prepared to provide a programme of continuing technical assistance to the Government of the Republic of the Philippines until 31 December 1987.

I should therefore like to propose, on behalf of the Government of New Zealand, that the following arrangements should apply to the programme;

a. the Government of New Zealand will until 31 December 1985 provide continuing technical support to the Philippines through on-the-ground consultancy services for the exploration and assessment of its geothermal power resources. In addition, the Government of New Zealand will provide through to 31 December 1987 advice on aspects of geothermal reservoir assessment and management. This will be undertaken through short-term advisory services and training in accordance with the terms and conditions as set out in the Annex to this Note;

b. the programme, which will be part of the overall New Zealand/Philippines bilateral development assistance programme, will remain in place until December 1987. The Government of New Zealand is prepared to make available for the programme from 1 April 985 to 31 December 1987 a total amount of up to New Zealand $ 2 million. This is to be regarded as a maximum sum and is subject to annual appropriations by the New Zealand Government;

c. the programme will be subject to an annual review by representatives of the two Governments. Progress towards stated objectives should be reviewed and an assessment made of the requirements for New Zealand assistance for the forthcoming year;

d. all New Zealand-funded personnel and their dependants present in the Philippines in connection with the programme will be accorded privileges and immunities as detailed in the Annex to this Note.

This exchange of Notes including its Annex may be amended by the mutual consent of both Governments in writing.

If the provisions contained in this Note are acceptable to the Government of the Republic of the Philippines I have the honour to suggest that this Note and its Annex and your reply thereto should constitute an understanding between our two Governments which will be deemed to have entered into force on 1 January 1985. This understanding will continue in effect until 31 December 1987 unless terminated by notice in writing by either Government, to be effective after 120 days from the receipt of such notice of termination.

Accept Excellency, the assurances of my highest consideration.

  (Sgd.)
  Ambassador of New Zealand

ANNEX

SUMMARY OF CONTRIBUTIONS

1 New Zealand Contribution

Within the limit of the funds provided for the overall programme, the Government of New Zealand will through the New Zealand Ministry of Foreign Affairs:

1.1 provide student awards to undertake post graduate studies at appropriate New Zealand universities subject to the capacity of the universities to provide places and programmes;

1.2 provide training awards for PNOC-EDC employees to undertake appropriate training with New Zealand Government Departments and/or institutions in areas with application to the development of geothermal energy resources, subject to places being made available by those departments and/or institutions;

1.3 provide the services of New Zealand Government advisers, subject to their availability, to undertake short-term visits to assist in monitoring the exploration programme, and to provide advice on reservoir assessment;

1.4 provide the services of New Zealand advisers, subject to their availability, to undertake short-term visits to conduct seminar training for PNOC staff;

1.5 commission the services of the New Zealand consultancy firm KRTA Ltd., to provide scientific advice and services;

a in the exploration and delineation up to the development stage of agreed geothermal fields in the Philippines;

b in environmental monitoring, and in the assessment of the impact of geothermal development on geothermal reservation areas;

c on aspects of reservoir assessment and management through the facilities of their New Zealand Office.

KRTA staff in the Philippines will progressively be withdrawn from advisory and supervisory positions funded under the programme, as PNOC-EDC staff develop and demonstrate their own capability to perform these functions to the satisfaction of PNOC-EDC management. All New Zealand funded KRTA staff will be withdrawn from the Philippines by 31 December 1985;

1.6 purchase books and small items of scientific equipment for PNOC-EDC where they will facilitate transfer of technology.

  2. The Philippines Contribution

The Government of the Philippines, acting through its Executing Agency, the Philippines National Oil Company - Energy Development Corporation, will provide the following services over the period of the programme:

2.1 counterpart scientific and technical personnel and support personnel required to work with the New Zealand consultants and short-term advisers;

2.2 scientific services, other than personnel, where applicable;

2.3 appropriate office facilities, equipment and furniture, secretarial and clerical assistance as required, and use of PNOC computer services as available for the efficient operation of New Zealand consultancy services under the programme and for New Zealand advisers on short-term visits;

2.4 mutually agreed monthly housing allowances towards accommodation for staff employed by KRTA under the programme in the Philippines and provision of temporary camp or hotel facilities for these persons in the field;

2.5 the provision of vehicular transport within the Philippines for short-term New Zealand advisers and KRTA staff resident in the Philippines, to facilitate their assignments;

2.6 a venue, secretarial assistance, accommodation for participants, and logistical support for seminars in the Philippines on technical and non-technical aspects of geothermal development;

2.7 annual budgetary provision for those aspects of the programme for which the Government of the Philippines accepts financial responsibility within the limit of funds available.

3 Privileges, Exemptions and Immunities

3.1 The Government of the Republic of the Philippines in accordance with its laws and regulations in force at the time of conclusion of the exchange of Notes constituting an Understanding of which this Annex forms part, will exempt all New Zealand personnel in the Philippines in connection with the project (hereinafter in this clause referred to as "the New Zealand advisers"):

i from income tax and any other tax levied by the Government of the Republic of the Philippines in respect of project salaries, allowances and payments and emoluments associated with the project;

ii from import, customs and other duties and taxes on all professional and technical equipment ordered by the Embassy of New Zealand, for the successful implementation of this project;

iii from payment of customs and all other duties on motor vehicles imported into the Philippines by the Embassy of New Zealand for the benefit of the project.

3.2 In addition, the Government of the Republic of the Philippines will:

i. issue to the New Zealand advisers and their dependants special non-immigrant visas, known as 47 (a)2 visas, and exempt them from the payment of all fees due under Philippine immigration and alien registration laws, the securing of alien certificates of registration and the obtaining of immigration clearance certificates as a requirement for departure;

ii. permit each long-term New Zealand adviser to purchase, duty and tax free and without providing security, one motor vehicle for his personal use;

iii. permit each long-term New Zealand adviser to import within six months after his arrival, duty and tax free and without providing security, articles intended for his personal use including all personal effects and household goods.

It is understood that the items referred to in sub-paragraph 3.2.ii and iii may be re-exported freely without customs, or any other duty, tax or charge, or may be disposed of within the Philippines to a person who enjoys similar exemption. If, however, any items which have been exempted from customs duties are subsequently sold or disposed of, other than as a gift to the appropriate Philippine Government Agency, to any person not similarly entitled to customs franchise privileges, duty will be paid on the items so disposed of in accordance with existing rules and regulations of the Government of the Republic of the Philippines.

iv. since assistance under this agreement is provided to a project situated in the territory of the Republic of the Philippines, the Government of the Republic of the Philippines will bear all risks arising from operations under this agreement. The Government of the Republic of the Philippines will settle any claims which may be brought by third parties against the New Zealand advisers and will hold the New Zealand Government jointly and severally immune from legal process of any kind in case of any claims resulting from operations under the agreement, except where it is established in the course of mutual consultation and determination by the two Governments that such claims arise from gross negligence or willful misconduct of the New Zealand advisers. In the event that it should be established in the course of consultations that gross negligence or willful misconduct on the part of New Zealand occurred, there will be full consultation between the two Governments before any action is taken against the person or persons concerned.

3.3. New Zealand advisers, together with their dependants, will, while in the Philippines, have the privilege of bringing foreign currency into the Philippines and/or remitting such amounts as may be earned in the Philippines pursuant to their assignment, subject to existing Philippine laws and regulations.

3.4. the Government of the Republic of the Philippines will arrange for any protective services deemed necessary to ensure the safety of the person and property of New Zealand advisers, and of their dependants and New Zealand project suppliers.

3.5. Without prejudice to the foregoing provisions, the Government of the Republic of the Philippines will accord the New Zealand advisers and their dependants no lesser benefits, facilities, privileges, exemptions and immunities than those accorded to other non-Philippine nationals working in the Philippines under the Colombo Plan.