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MEMORANDUM OF UNDERSTANDING RELATING TO THE ASEAN ENERGY PROJECT UNDER THE ASEAN - AUSTRALIA ECONOMIC COOPERATION PROGRAMME

GENERAL

1. THIS MEMORANDUM expresses the understanding and intentions of the Governments of the Republic of the Philippines and Australia concerning the administration by the Government of the Republic of the Philippines of Australian funds contributed to the ASEAN Energy Project.

DEFINITIONS

2. For the purpose of this Memorandum of Understanding, unless the contrary intention is stated:

"AAECP" means the ASEAN-Australia Economic Cooperation Programme;

"AAECP" Liaison Office means the Australian Liaison Office for the AAECP located in Kuala Lumpur;

"ADAB" means the Australian Development Assistance Bureau;

"ASEAN" means the Association of South East Asian Nations;

"AUSTRALIAN EMBASSY" means the Australian Embassy in Manila representing the Government of Australia in the Philippines;

"COST" means the ASEAN Committee on Science and Technology;

"FUNDS" means money provided by ADAB through the Australian Embassy, Manila in the form of Accountable Cash Grants from Australia's commitment to the AAECP;

"NSTA" means the National Science and Technology Authority which will be the executing authority in the Philippines for the Project;

"The Project" means the ASEAN Energy Project which is administered by the ASEAN Working Group on Non-Conventional Energy Research for ASEAN-COST, as decided on by the established Committee of ASEAN and Australian Officials known as the ASEAN-Australia and to which Project the Australian Government is providing funds;

"Secretariat" means the Working Group Secretariat located with the King Mongkut's Institute of Technology, Thonburi, (KMITT) Thailand;

"Working Group" means the ASEAN Working Group on Non-Conventional Energy Research which is responsible to ASEAN-COST for the implementation of the Project.

AUTHORITIES

3. The Executing Authorities for this Project will be:

For the Government of the Philippine : NSTA

For the Government of Australia : ADAB

ADAB may, in consultation with the Philippine authorities concerned, nominate suitably qualified agents to undertake any part of its functions on its behalf.

DURATION

4. This Memorandum will take effect from the date of its signature and all undertaking herein will cease upon completion of the Project or on such a date as may be decided upon between the two Governments.

ARRANGEMENTS

5. To assist the Government of the Philippines in implementing the aims of the Project, the Australian Government will provide funds to the NSTA. Such funds will be used by the NSTA for meeting the costs of research, development and administration activities directly related to the Project and will be paid to the NSTA on a quarterly basis in advance, taking into consideration projected expenditure on the Project for the relevant three month period.

Such funds, and any income that may be derived from these funds, will be tax exempt.

5.1. The funds will be used for the following items associated with Sub-Projects which have been assessed and approved by the Working Group and endorsed by COST:

5.1.1. Salaries for technicians and Filipino administrative staff up to the limits approved by the Working Group;

5.1.2. Economy class airfare, traveling expenses and allowances at current Australian Government rates for delegates traveling in the ASEAN Region and Australia for purposes directly related to the Project;

5.1.3. Purchase and commissioning of equipment for the Project;

5.1.4. Purchase of chemicals and other consumable items for the Project;

5.1.5. Training and Study Tours for Filipino personnel directly associated with the Project in any of the ASEAN countries and Australia, and of other ASEAN trainees in the Philippines. The cost of training and study tours in Australia may be paid in ADAB from the Project budget;

5.1.6. Books and journals relevant to the Project;

5.1.7. Hire of rooms and other essential expenditure for the Project workshops, meetings, conferences, and seminars in the Philippines;

5.1.8. Publication of reports on research, workshops, meetings and newsletters for the Project;

5.1.9. Other expenditure specifically approved by the Working Group.

5.2. The NSTA will establish an identifiable account into which the funds will be paid by the Australian Government through the Australian Embassy.

5.3. The NSTA will furnish financial statements to the Secretariat for submission as a Consolidated Statement to the Working Group. Such financial statements, duly certified or audited, will cover the periods from 1 July to 31 December and from 1 January to 30 June each year and as otherwise requested from time to time by the Working Group.

A copy of the Consolidated Statement as approved by the Working Group will be provided to the AAECP Liaison Office and acceptance by the Working Group of the audited statements will constitute an acceptance of such statements by the Australian Government.

5.4. When completion of the Project has been determined by the Working Group in consultation with ADAB, the NSTA will repay any unexpended funds to the Australian Government.

5.5. The NSTA will be responsible for the administrative arrangements required to fulfill all activities for which funds are paid by the Australian Government and which are set out in Para. 5.1 above.

TENDERING AND PROCUREMENT

6. For major items of equipment and supplies which would normally require calling tenders under the Government of the Philippines purchasing regulations, the NSTA will prepare specifications in consultation with the Secretariat.

6.1. Preference will be given to suppliers of equipment manufactured in one of the ASEAN countries or in Australia and tenders will be called accordingly.

6.2. Assets purchased for the Project with funds provided by Australia will become the property of the Working Group or other body determined by the Working Group.

6.3. The Government of the Philippines will exempt from import duties and other taxes all goods supplied from funds provided by Australia for the established purposes of the Project.

PERSONNEL

7. For the purposes of this Project, the Working Group may request the services of Australian technical advisors as and when required.

7.1. The costs associated with short-term Australian advisors may be paid by ADAB from the Project budget.

CONFIDENTIALITY

8. The Australian Development Assistance Bureau will receive six copies of any publication or report produced for the Project, at the discretion of the Working Group. The reports, or the contents thereof, will be treated with utmost confidentiality and will not be made available to any other Government, body or person except with the prior written permission of the Working Group.

REVIEW

9. A review of progress of the Project may be made at times arranged between, and mutually convenient to, the Working Group and ADAB. Such a review may be undertaken by a Joint Evaluation Team appointed by the Working Group and ADAB and independent of staff directly involved in the Project. Costs associated with the review will be met from the Project budget.

AMENDMENTS

10. Amendments to this Memorandum may be made at any time by an Exchange of Letters between the parties.

Signed at Metro Manila, in duplicate, this 2nd day of May 1985.

(Sgd.)	(Sgd.)
For the Government of the Republic of the Philippines	For the Government of Australia