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November 23, 1984

(a) Clause 1.2

(1) Amend to read:

"The objective of the ZDSP for the remainder of Phase II is to consolidate program activities and to place greater emphasis on developing the capacity of Philippine agencies in the Province of Zambuanga del Sur to ensure that all relevant project functions are able to be undertaken by those agencies on withdrawal of the Austrailan involvement in the project."

(b) Clause 2.1

(1) Amend third phrase to read:

"The National Council on Integrated Area Development (NACIAD) of the Office of the Prime Minister."

(c) Clause 2.2

(1) Amend second sentence to read:

"Diagrams illustrating proposed structural arrangements during the final transition stage of ZD5DP II are appended as part of Annex II."

(d) Clause 2.3.1 

 

(1) Amend to read:

"At the national level there will be a coordinating authority for the project namely the NACIAD, abd a ZDSP National Committee to serve as an advisory and major policy making body with representatives from th NACIAD, the Australian Embassy and the Project, and the Provincial Governor.

 

A Cabinet Coordinator will be appointed and will responsible to NACIAD for the project. The Cabinet Coordinator will be chairman of the ZDSP National Committee. In the absence of the Cabinet Coordinator, meeting wll be chaired by the NACIAD representative. The ZDSP National Committee shall meet semi-annually or as often as is deemed necessary by the chairman."

(e) Clause 2. 3. 2

(1) Amend to read:

"To be able to elicit participation from the regional and provincial offices, an Inter-Agency Regional Advisory Committee will be formed with the members drawn from the Regional Offices of NEDA and the implementing Ministries, and will include the Provincial Governor as Chairman, the Project Director, the Australian Executive Officer and a representative of the Regional Autonomous Government."

(f)Clause 2.3.3

(1) Following paragraph to be addeded at end of the the Clause:

"The functions of the Technical Coordinating Committee will be subsumed within the Provicial Development Council of the provicial government."

(g) Clause 2.4

(1) Amend to read:

"Then Inter-Agency Regional Advisory Committee shall meet not less than once every quarter. The Technical Coordinating Committee shall meet not less than once every quarter."

(h) Clause 2.5

(1) New text to read:

"At the project level, a project office is to be established in Pagadian City with a Project Director who will be directly responsible for project activities to the NACIAD." 

(i) Clause 2.6

(1) New text to read:

"A Manila Liaison Office will be established by the NACIAD and will be responsible to the Project Director. The Manila Liaison Office will maintain close contact with the Australian Embassy, the Cabinet Coordinator and the various representatives of the participating agencies responsible for project activities at the national level. The Manila Liaison Office will provide secretariat support to the ZDSDP National Committee."

(j) Clause 2.7

(1) New text to read:

"Designated line agencies will be responsible for the implementation of their parts of identified project components. Where necessary a Project Officer will be appointed to coordinate and assist in the implementation of all ZDSDP related projects. The Project Officer will report to the Project Director and to the Ministry concered. Memoranda of Agreement will be executed between relevant agencies and the project and will delineate funding and planning arrangements which will apply during the final stages of the project and contan a program of activity of institutionalisation up to the comleation of the project in December 1985." 

(k) Clause 2.8

(1) Amend text to read:

"Closely coordinating with the Project Director will be an Autralian Executive Officer. The Executive Officer will be responsible for a team of Australian Consultants providing technical assistance to designated provincial and line agencies of the Philippine Government. The Executive Officer will also provide management advice to the Project Director and relevant provincial agencies."

(1) Clause 2.9

(1) Text Identical to old Clause 2.8

(m) Clause 2.10

(1) New clause:

Text identical to old Clause 2.9 

(n) Clause 3

(1) Amend first sentence to read:

"This Memorandum will take effect from the date of its signature and should be read in conjunction with the MOU for the first stage of ZDSDP Phase II which was signed by both governments on 11 November 1981."

(o)Clause 4

(1) The Australian Government contribution amended to read:

 

A$ 23,500,000." 

(p) Clause 4.1

(1) Delete.

(q) Clause 5.1

(1) Following sentence to be added at end of Clause:

"In making such decisions the Australian Executive Officer will consult and liaise closely with relevant; Philippine authorities."

(r) Clause 5.2.3

(1) Delete.

(s) Clause 6

(1) Delete.

(t) Clause 6.1

(1) Renumber as 6 and amend to read:

"There will be field reviews of the project every six months undertaken jointly by the NACIAD, the Project Office and the Australian Government to ascertain the extent of capacity developed in the line agencies and to ensure that the gradual handover of responsibilities from the project to relevant agencies is progressing. the review will report on its findings to the ZDSDP National Committee which shall meet to discuss and decide on review findings."

(u) Clause 7

(1) Amend to read:

"The Government of the Philippines will deal with any claims which may be brought by third parties against the Australian Government, its servants or Australian personnel and will hold harmless the Australian Government and Australian personnel in case of any claims resulting form operations under the Memorandum of Understanding 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 agents of the Australian Government or of Australian personnel." 

(v) Annex 1. Clause 1

(1) Amend to read:

"In its final stages the ZDSDP-II is primarily concerned with the coordination of the transfer of ZDSDP functions to the responsible government units at the regional and provincial levels." 

(w) Annex 1. Clause 1.2

(1) Delete.

(x) Annex 1. Clause 1.3

(1) Renumber as Clause l.2 and delete the final sentence.

(y) Annex 1. Clause 2

(1) Following paragraph to be included:"

"The ZDSDP-II will complete roads included in the approved 1983 road construction program and whi"

 

(2) Following additional sentence to be added at end of Clause:

"The MPWH through the PADAP Project Management Office will be responsible for construction or all bridges in the program by contract."

(z) Annex 1. Clause 2.1

(1) Delete.

(aa) Annex 1. Clause 2.2

(1) Delete.

(bb) Annex 1. Clause 2.3

(1) Renumber as Clause 2.1 and amend last sentence to read:

"To achieve this objective the ZDSDP-II will supply to the PEO maintenance equipment, workshop facilities and managerial and administrative support to enable the Province of Zamboanga del Sur to take over responsibilitiy for the management and operation fo the ZDSDP workshop as well as assigned equipment."

(cc) Annex 1. Clause 2.4

(1) Renumber as Clause 2.2

(dd) Annex 1. Clause 2.5

(1) Renumber as Clause 2.3

(ee) Annex 1, Clause 2.6

(1) Delete.

(ff) Annex 1, Clause 3

(1) Following sentence to be added: 

"Effective 1 January 1984, full responsibility for construction work undertaken at the Sibugay Valley Irrigation Scheme will be vested in the National Irrigation Authority."

(gg) Annex 1, Clause 4

(1) Amend to read:

"The ZDSDP II will assist the District Engineer's Office of the Ministry of Public Works and Highways and to a limited extent the Provincial Engineers Office in undertaking the development of a comprehensive water supply program for the Province of Zamboanga del Sur and will also assist in the training of appropriate staff of the Government of the Philippines."

(hh) Annex 1, Clause 5

(1) Amend to read:

"Responsibility for consideration of all questions relating to the end use of the ZDSDP Base Complex will be vested in a special committee set up for this purpose and chaired by the Provincial Development Coordinator."

 

(ii) Annex 1, Clause 6

(1) Replace this clause and all sub-clauses with following statement:

"Emphasis will be given in this final stage of the project to developing the capacity of line agencies in the province to maximize on-farm development. The existing program and approach will thus change from one which is project action or commodity oriented to one oriented towards specific line agency programs. Priority will therefore be given to: 

1. The Multiple Cropping Program, including farming and relevant research;

2. Livestock Development Programs; and 

3. Freshwater Fisheries Development."

(jj) Annex 1, Clause 7

(1) Change heading and text to read:

"7. TRAINING AND SKILLS DEVELOPMENT

Responsibility for all training and skills development will be vested with the National Manpower and Youth Council (NMYC) which will draw on available GOA technical assistance and funding."

(kk) Annex 1, Clause 7.1

(1) Delete but text becomes Clause 8.1 (see below)

(11) Annex 1, Clause-: 8

(1) Change heading to read:

"8. SOCIAL SERVICES PROGRAM." 

(2) Insert new clause 8.1 with same text as old clause 7.1 to read:

"8.1 A study will be undertaken to up-date the 1976 Sociological Study in order to identify and quantify benefits accruing in the project area since itsinception, giving particular attention to changes in aggregate output and income distribution. The study will also serve to identify the priority needs of the target group of the population, which may be used to define further studies In such specific; Fields cis heal t'n, nutrition and education with a view to identifying project inputs to improve social welfare in the Province , "

(3) Insert new clause 8.2 to read:

"8.2 A Social Services Program shall be undertaken by the ZDSDP II in collaboration with the Ministries of Education"

(mm) Annex 1, Table .1.1

(1) Delete.

(nn) Annex II

(1) Amend first sentence to read:

"Attached diagram illustrate the management and coordination sturcture throught necessary during the final transition stage of ZDSDP II

(oo) Annex II, Clause1.2

(1) Amend to read:

"ZDSDP National Commitee. This Committee will be responsible for overall policy coordination at the National level and for major decisions relating to the project. It will also ratify operational policies and decisions made by the Inter-Agency Regional Advisory Committee"

(pp) Annex II, Clause 1.3

(1) Replace by following:

1.3 ZDSDP Manila Liaison Office. This Office will be headed by an Executive Assistant appointed by the NACIAD who will be responsible to the Project Director in Pagadian. The Manila Liaison Office will serve as a liaison point and will assist the Project Director in facilitating the delivery of supportive actions/decisions from/ to national agencies. The Manila Liaison Office will also provide secretariat support to the ZDSDP National Committee and will function as an information arm of the Cabinet Coordinator."

(qq) Annex II, Clause 1.4

(1) Replace by following:

1.4 Inter-Agency Regional Advisory Committee. This Committee will:

1. Formulate policies and guidelines on planning and implementation coordination and where necessary submit these for ratification by the ZDSDP National Committee.

2. Review performance, project reports and budget proposals for the project.

3. Serve as a forum for resolution of technical and inter-agancy management problems."

(rr) Annex II, Clause 1.5

(1) Replace by following:

"1.5 Project Director. Thy Project Director will:

1. Execute and administer the policies, guidelines and decisions of the NACIAD, the ZDSDP National Committee and the Inter-Agency Regional Advisory Committee.

2. Advice the Cabinet Coordinator on matters which require the consideration of NACIAD or the ZDSDP National Committee.

3. Ensure that wall conditions contained in the Memorandun of Understanding between the Government of the Philippines and the Government of Australia are faithfully complied with by all concerned in the implemantation of the project.

4. On behalf of the Cabinet Coordinator and the NACIAD review consolidated plans, budgets and work programs of the implementing agencies.

5. Review the periodic finanacial and work accomplishment reports and submit these reports to the NACIAD, the Office of the Budget and Management, the NEDA, the Preidential Management Staff, the Australian Embassy, and other agencies concerened.

6. Coordinate the activities of the implementing agencies in the province in the planning and implementation of the project.

7. Call upon provincial office of implementing agencies, the provincial gorvernment, other agencies, public or private, to assist in the planning and implementation of the project.

8. Confer regularly with the Australian Executive Officer on matters pertaining to the use of the Australian grant and technical assistance.

9. Keep and maintain records of all equipment and services procured under the project and collect and consolidate all project accounts maintained by the implementing agencies.

(2) Add two additional points reading:

"10. Enter into contract with private or public entities in connection with the functions of the Project Office, subject to the approval of the Cabinet Coordinator.

11. Appoint personnel of the Project Office and define their duties and responsibilities."

(ss) Annex II, Clause 1.6

(1) Amend text to read:

"the Executive Officer is to assist the Project Director in the achievement of his functions. The Executive Officer will also be responsible for the Australian team of consultants."

(tt) Annex II, Clause 1.7

(1) Replace by following:

"1.7 Assistant Directors. The Project Director shall be assisted by two Assistant Directors. The Assistant Directors for Planning, Monitoring and Staff Services shall be responsible for the supervision and control of the Adminstration Dvision, the Policy, Planning and Programming division, the Information and Publications Division and the Monitoring and Evaluation Division. The Assistant Directors for implementation and Coordination shall be reponsible for the technical supervision of the transitional Road Programing, Planning and Design Division, the Contruction Division and the Equipment and Workshop Division. This second position will be phased out as road design, construction and workshop functions are transferred to the Provincial Engineer's Office and the MPWH Project Management Office."

(uu) Annex II, Clause 1.8

(1) Replace by following:

"1.8 Project Officers. Project Officers will coordinate inter-agency planning activities with respect to the ZDSDP The officers are responsible for the preparation of plans and work programs related to the ZDSDP in consultation with the Project Director."" 

(vv) Annex II, Clause l.9 to 1.12

(1) Delete all. 

(ww) Annex II, Clause 2

(1) Delete all parts.

(xx) Annex III, Table 3.1

(1) Replace by new table.

(yy) Annex IV

(1) Replace Table by following statement:

"All cooperating line agencies shall staff their programs in such a manner as to ensure effective and efficient implementation. The Project Director's Office and the Manila Liaison Office shall also be staffed to implement the ZDSDP II program effectively and efficiently. The number of Filipino personnel assigned to the ZDSDP II will be gradually reduced as functions are absorbed by line agencies and/or the provincial goernment during the remaining stages of Australian involvement."

(zz) Annex V, Clause 2

(1) Remove heading and amend text to read:

"2. A Manila Liaison Office shall be established with functions and respinsibilities as outlined in Clause 2.6 of the MOU and in Annex II, Clause 1.3"

(aaa) Annex V, Clause 4

(1) Existing clause is to remain unchanged. The Australian Government does not agree to the deletion of the provision which refers to reimbursement of duties and taxes paid.

(bbb) Annex VI Introductory paragraph.

(1) The Australian Government's contribution amended to read:

"A$ 23,500,000."

(ccc) Annex VIl, Clause 1

(1) Replace text by the following:

"Australian management and staff necessary to achieve the objective of the ZDSDP II will be provided on either a long or short term basis and are described in Annex III. Australian staff are required to train and advise both ZDSDP staff and the staff of participating institutions.""

(ddd)Annex VI, Clause 2

(1) Replace all text by following:

Funding of spare parts and tyres will be continued for basically the first three years of ZDSDP-II

(eee) Annex VI, Clause 3

(1) Delete introductory sentence and text of first three points:

(2) Introduction to fourth point to read:

"Fund for the purchase of plant and equipment are proposed on the basis that"

 

(3) In last two sentence change

"Inter-Agency Steering Committee" to read

"ZDSDP National Committee."

Full text of Clause 3 therefore to read:

"Funds for the purchase of plant and equipment are proposed on the basis that all plant, equipment, vehicles ans spare parts supplied by Australia will become the property of the Philippine Government on being shipped c.i.f. from Australia to Zamboanga del Sur and the Philippine Government will provide the Australian Embassy in Manila, with documentary caonfirmation of the receipt of each consignment. Its is understood that no items of this plant, equipment etc. will be withdrawn from its identified area, for the duration of this Agreement without prior agreement between the ZDSDP National Committee and the Australian management. Major modification to the proposed equipment items may be made only with the approval of the ZDSDP National Committee and then only within the limits of the Australian contribution."

(fff) Annex VI, Clause 4

(1) Replace text by the following:

"Funding of the Agricultural component of ZDSDP-II will be provided to continue the program commenced in ZDSDP-I, viz, to develop better farming systems." 

HIS EXCELLENCY ARTURO M. TOLENTINO,
Minister for Foreign Affairs of the
Republic of the Philippines,
MANILA.