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March 23, 1999

KNOW ALL MEN BY THESE PRESENTS:

This agreement made and entered into this 23rd day of March 1999 in Vigan, Ilocos Sur, Philippines, by and between:

The GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES, represented herein, by the Secretary of Tourism, Honorable Gemma Cruz-Araneta;

The GOVERNMENT OF SPAIN, represented herein by the Secretary of State for International Cooperation, H.E. Fernando Maria Villalonga;

The Presidential Commission for the Restoration, Conservation and Preservation of the Vigan Heritage Village, represented herein by its Chairperson, the Hon. Secretary Gemma Cruz-Araneta;

The Province of liocos Sur, represented herein by its Governor, the Hon. Luis Singson;

The Municipality of Vigan, represented herein by its Mayor, Hon. Eva Marie S. Medina;

AND

The Fundacion Santiago, represented herein by its President, Mr. Pedro E. Roxas;

all collectively referred to as, the "Parties";

WITNESSETH

SHARING the provisions of the agreement reached during the Third Joint Commission Meeting held in Manila on February 2, 1998, wherein the formulation of the Master Development Plan for the Historic Center of Vigan was approved,

EXPRESSING the desire to strengthen the friendly relations and to promote a better knowledge of the life, history and cultural heritage of the Philippines and Spain,

REALIZING that mutual study to draw the Philippines' and Spain's common cultural roots is an important means of strengthening the mutual understanding, expression of goodwill and friendly relations between their peoples,

Now therefore, in consideration of the foregoing premises and their mutual covenants hereinafter set forth, the parties hereby agree as follows:

ARTICLE I
PURPOSE

The Parties shall formulate the Master Development Plan for the Historic Center of Vigan in accordance with the programme developed by AECI on the preservation of cultural heritage in those countries where Spain has shared its history.

ARTICLE II
OBJECTIVES

To ensure the effective conduct of the project, the Parties shall observe the following objectives:

A. Development Objectives

1. To promote the preservation and conservation of Filipino historical and cultural heritage and resources;
2. To develop tourism along the lines of conserving the socio-cultural heritage, preserving the environment and sustainable development;

B. Strategic Objectives

1. To formulate a master plan for the revitalization of the historic town of Vigan;
2. To enhance knowledge in crafts/skills which are relevant to restoration and preservation;
3. To come up with a concept on the packaging and promotion of Vigan Heritage Village, with other tourism destinations within the province and the whole of Region I, in order to ensure its position in the region's tourism market; and
4. To formulate viable investment strategies in the pursuit of development in the study area.

ARTICLE III
SCOPE OF WORK

In the formulation of the Master Development Plan for the Historic Center of Vigan, the Parties shall take into consideration both the physical and the socio-economic aspects such as human development, community organization, education and livelihood, as the basis for sustainable development.

The studies component shall involve the preparation of a master plan to cover the following aspects: Physical Development Planning; Socio-Cultural and Socio-Economic; Ecological and Environmental; Legal and Financial; Project Development; and the Institutional aspect;
The parties shall, as a component of this agreement, endeavor to undertake the restoration of a public area or building in the municipality for such use and purposes as may subsequently be agreed upon in a separate instrument.

ARTICLE IV
TIME FRAME

The project shall be undertaken by the Parties for a period of 18 months beginning from the signing of this agreement and shall be in accordance with the schedule indicated in the project's Terms of Reference which is annexed hereto and made as an integral part of this agreement. This period shall include the consultations, socio-cultural awareness, and advocacy aspects of the project. Any extension thereof shall be subject to the mutual agreement by the Parties hereto.

ARTICLE V
COST OF PROJECT

The total budget for the project shall be that which is indicated and itemized in accordance with the schedule contained in the project's Terms of Reference (TOR). The Government of Spain, through the Fudacion Santiago, will contribute 616,398 US$ to the project, the Government of the Philippines through the participants will contribute as follows: Department of Tourism, Php 3,118,490, the Vigan Heritage Village Commission, Php 380,000, the Municipal Government of Vigan, 149,800 and the Provincial Government of llocos Sur, 223,200.

ARTICLE VI
MANPOWER REQUIREMENT

The manpower requirement for the project shall consist of national and international experts enumerated in item VI of the Terms of Reference whose qualifications and their respective responsibilities are likewise outlined therein.

ARTICLE VII
RESPONSIBILITIES OF THE PARTIES

GOVERNMENT OF SPAIN

1. The Government of Spain through the Fundacion Santiago shall provide the following international experts:

a. Architect/urban planner (team leader), to be in-charge of the preparation of the Master Plan and the rehabilitation of pilot area/building;

b. Engineer/infrastructure planner responsible for the traffic flow and traffic modernization studies, infrastructure, water and drainage systems, and electricity and communications systems;

c. Marketing Specialist.

The international/national experts and the team leader shall impart knowledge/technology to their respective counterparts. All project related activities shall be done in collaboration/consultation with the international/national experts.

2. Provide the following national experts whose qualifications shall be subject to the concurrence of the Parties representing the Government of the Philippines:

a. Economist/Tourism Marketing Specialist
b. Financial Analyst/Investment Specialist
c. Training Expert/Institutional Specialist
d. Sociologist/Urban Geographer/Cultural Anthropologist
e. Environmentalist
f. Legal Specialist

3. Formulate and shoulder the expenses for the preparation of the Master Development Plan and the traffic modernization studies in English and Spanish, including expenses for the national and international experts and cost of supplies, materials, printing, and reproduction;

4. Conduct and shoulder the expenses for the restoration and rehabilitation of public area/building;

5. Provide the following materials/equipment:

a. One (1) unit desktop computer for AutoCAD application
b. One (1) unit desk top computer
c. GIS software
d. Plotter of the AutoCAD and GIS application
e. One (1) unit Laser printer

6. Provide/shoulder expenses for the conduct of seminar/workshop on cultural sensitivity for all of the project team members/participants.

GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES

A. Department of Tourism

1. Organize an Advisory Board in coordination with the parties herein which shall, among others, review the output and various reports regarding the project to ensure that the preparation of the plan is consistent with the development thrust not only of the municipality but also of the region.

2. Provide the following personnel and counterpart staff including their allowances:

a. Technical Staff to be composed of the following:

- Computer expert, head of computer and programs instructor with
knowledge of GIS
- Two (2) CAD operators who will be trained to convert data into GIS
- Historian
- Editor
- Photographer

b. Counterpart staff to work under the supervision of international and national experts.

c. Administrative Staff:

- Executive Assistant for Satellite Office in Manila
- Executive Assistant for Operations in Vigan
- Secretary

d. Others:

- Fifteen (15) Senior Architecture students

3. Provide aerial and raised photographs of the study area and digitizing of cartography;

4. Coordinate and cover the expenses of the consultative meetings;

5. Assist in securing relevant materials and information required by the consultants from other government agencies;

6. Review and comment on the reports submitted by the Consultants; and

7. Review, accept and adopt the Master Development Plan for the Historic Center of Vigan upon its completion.

B. Provincial Government of llocos Sur

1. Provide relevant materials and information to the Consultants;

2. Review and comment on the reports submitted by the Consultants;

3. Provide the following manpower requirements:

a. Typist/Computer operator
b. Architect/Engineer

4. Provide the appropriate office spaces;

5. Assist the consultants in the selection of the structures for restoration, and;

6. Review, accept and adopt the completed Master Development Plan for Historic Center of Vigan.

C. Municipality of Vigan

1. Provide relevant materials and information to the Consultants;

2. Review and comment on the reports submitted by the Consultants;

3.Encourage participation of the community in consultative meetings and conduct of awareness programs;

4. Provide the following manpower requirements:

a. Counterpart staff under the supervision of international experts:

-Architect/Engineer responsible for map making
- Architect responsible for data gathering regarding the terrain

b. Technical Staff:

- Statistician
- Tourism expert
- Contact person with the municipality

5. Provide the following materials/equipment:

a. Telephone and fax line/modem;
b. Updated maps on the registration of properties and land divisions.

6. Facilitate the selection of pilot public area or building in cooperation with the property owners/homeowners; and

7. Review, accept and adopt the completed Master Development Plan for the Historic Center of Vigan.

D. Presidential Commission for the Preservation, Conservation and the Restoration of the Vigan Heritage Village

1. Provide relevant materials and information to the Consultants;

2. Review and comment on the reports submitted by the Consultants;

3. Review, accept an adopt the completed Master Development Plan;

4. Provide the following equipment/softwares:

a. One (1) unit desk top computer dedicated to AutoCAD applications
b. Two (2) units desk top computers
c. Auto CAD and dBase softwares

E. Common Undertakings of Philippine Institutions

Perform the selection of national/international experts with the concurrence of the Government of Spain.

ARTICLE VIII
MASTER PLAN BOARD

A. The Master Plan Board shall be composed of representatives from the following:

- Agencia Espanola de Cooperacion Internacional
- Fundacion Santiago
- Municipal Government of Vigan
- Provincial Government of llocos Sur
- Vigan Heritage Village Commission
- Department of Tourism

The Master Plan Board shall have the following functions:

- Approve the work plan, methodology, goals and implementation prepared by the team leader.
- Review/evaluate and approve all reports and outputs regarding the project as submitted by the consultant/experts.
- Upon its submission, review, accept and adopt the Master Development Plan for the Historic Center of Vigan as completed.

B. The Master Plan Board shall be convened not later than thirty (30) days following the signing of this MOA and regularly, thereafter, as indicated in the work plan.

ARTICLE IX
ADVISORY BOARD

A. The Advisory Board shall be constituted, among others, by representatives from the following institutions:

- Department of Environment arid Natural Resources
- Department of Public Works and Highways
- Department of Transportation and Communications
- Department of Social Welfare and Development
- Philippine Tourism Authority
- National Commission for Culture and the Arts
- National Historical Institute
- National Museum
- Housing and Land Use Regulatory Board
- NEDA-Region I
- NGO (Kaivigan/SVAHAI)
- Archdiocese of Nueva Segovia

B.The Advisory Board shall be consulted, as the need arises on issues pertaining to the herein project in relation to their respective mandates.

ARTICLE X
PROPRIETARY RIGHTS

Proprietary rights over the Master Development Plan for the Historic Center of Vigan shall belong to the Parties and shall not be used for different purposes other than for its direct application in the municipality.

AH equipment purchased/contributed by the parties by virtue of this agreement shall be turned over and donated to the Technical Office mentioned under Article XV hereof.

ARTICLE XI
MASTER PLAN IMPLEMENTATION

Upon the Master Development Plan's completion and acceptance, the Parties representing the Government of the Republic of the Philippines shall strictly observe and monitor its enforcement and the promulgation of appropriate ordinances relative to the protection/preservation of the Historic Center of Vigan and the implementation of intervention programs established under the Master Development Plan.

ARTICLE XII
IMPLEMENTATION OF INTERVENTION PROGRAMS

The institutions signing this agreement shall ensure that the short, medium and long term protocols under the plan's intervention programs shall be included in a separate instrument to be executed by the parties.

The execution of the Work Plan shall be implemented according to the Protocol documents to be made part of this Agreement.

ARTICLE XIII
IMPLEMENTATION OF PILOT PROJECT

The parties shall execute another instrument of understanding on the specific application and the initial implementation of the Master Development Plan as formulated, with respect to a pre-selected pilot projects/house(s) in the municipality.

ARTICLE XIV
TERMS OF REFERENCE

Details of all activities agreed upon by the parties are contained in the project's Terms of Reference (TOR) which is made as an integral part of this agreement.

ARTICLE XV
CREATION OF A TECHNICAL OFFICE

The agencies representing the Government of the Philippines in this agreement undertakes to create a Technical Office in the Municipality of Vigan to control and monitor the continuity of the application/implementation of the ordinances of protection and intervention programs established under the Master Development Plan. The composition and functions of the Technical Office shall be determined in the institutional aspect which shall be completed by the end of the first year of the master plan formulation.

ARTICLE XVI
EFFECTIVITY AND AMENDMENT

This Memorandum of Agreement shall enter into force on the date of the later notification by the Contracting Parties indicating compliance with their respective internal legal requirements for its entry into force.

This Memorandum of Agreement shall remain valid for eighteen (18) months from the date of its signing unless one of the Parties terminates it in writing , through diplomatic channels, by giving six (6) months prior notice.

This Memorandum of Agreement may be amended in its general or particular terms or extended, upon mutual agreement by the Contracting Parties. These amendments shall enter into force in accordance with the provisions on entry into force.

IN WITNESS WHEREOF, the Parties, each one acted on behalf of their representative, having read the document and expressed their agreement to it, hereby sign four copies of this Memorandum, 2 copies in Spanish and 2 copies in English, equally valid, on the 23rd of March of 1999 in the Municipality of Vigan, llocos Sur, Philippines.