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February 29, 1984

1. GENERAL
2. AUTHORITIES
3. DURATION
4. CONTRIBUTIONS
5. PERSONNEL
6. MONITORING AND EVALUATION
7. SUPPLIES
8. CLAIMS
9. SECURITY
10. AMENDMENTS

Annex 1 Project Description and Objectives

A Project Description

B Statement of Project Objectives

Annex 2 Functions of the Committee Structure:NSIRDP Organizations

Annex 3 Philippine Government Contribution

Annex 4 Australian Government Contribution

Annex 5 Cost Estimates for the Joint Project

A - Australian Technical Assistance Team 

1. GENERAL.

1 .1 This MEMORANDUM expresses the understandings of the Governments of the Republic of the Philippines and Australia concerning the responsibilities and contributions respectively of the two Governments with regard to the implementation of Phase II of the Northern Samar Integrated Rural Development Project (NSIRDP Phase II) located in the Province of Northern Samar. The Project is described end its objectives set out in Annex I to t his Memorandum of Understanding.

1.2 The Project aims to improve the quality of life for the majority of residents in the Province. Phase I comprised those activities undertaken in compliance with the Memorandum of Understanding between the Governments of the Republic of the Philippines and Australia, signed in Manila on 25th January 1979. Phase II of the Project provides for the continuation of the work commenced during Phase I and incorporates changes to the design, organisation and management of The Project which have been agreed to by both Governments.

1.3 Australian assistance under the provisions of this Memorandum of Understanding is limited to activities which will benefit the Province of Northern Samar.

2. AUTHORITIES

2.1 The Executing Authorities for this Project will be:

For the Government of the Republic of the Philippines: The Samar Integrated Rural Development Project (SIRDP) of the National Council on Integrated Area Development (NAC1AD).

For the Australian Government: The Australian Development Assistance Bureau (ADAQ) of the Department of Foreign Affairs. ADAS may nominate suitably qualified agents to undertake any part of its functions on its behalf.

2.2 Responsibility for the integrated rural development program in Northern Samar will rest with NACIAD and the appointed Cabinet Co-ordinator.

2.3 Integration and co-ordination during planning and implementation of NSIRDP II will be a function of the 5IRDP in Catarman and Manila. The Project Director will be responsible for these functions with respect to the SIRDP, delegating to the Deputy Project Director (DPD) responsibility for matters relating to IMSIRDP. Integration of the NSIRDP with the ongoing activities of the GDP will take place through the 5IRDP involvement in the Provincial Development Council's (PDC) Executive Committee.

2.4 The Joint Policy Board (3PB) chaired by the Cabinet Co-ordinator and composed of senior representatives of the two Governments will be responsible for inter-government co-ordinated Implementation of the NSIRDP program In accordance with a joint budget approved by that body and financed jointly by the two Governments. Inter-agency co-ordination will be the responsibility of the NSIRDP Working Committee (NSIRDPWC) to ensure that implementation is in accord with sectoral policies and ongoing sectoral programs.

2.5 Supervision and. management of implementation at the regional level for agriculture and at the national level for contract roads, bridges and water supplies will be by Project committee which have been established for this purpose.

2.6 Implementation of Project activity will take place through the responsible agencies of the Government of the Republic of the Philippines.

2.7 Final responsibility for the Project rests with the Government of the Republic of the Philippines, whose representatives will execute the Joint Project in conformity with sound administrative, financial, engineering and agricultural practices.

2.8 Full details of the Commitee Structure for NSIRDP are shown at Annex 2. The prevision of Filipino personnel to the committees shall be subject to the existing Administrative and Financial rules and regulations of the Philippines.

3. DURATION

3.1 This Memorandum will take effect from the date of its signature. The Australian contribution to the Project and all undertakings given herein will cease on 31 December 19S8 or on such other date as may subsequently be arranged between the two governments.

4. CONTRIBUTIONS

4.1 The contributions of the Philippine and Australian Governments are detailed in Annexes 3 and k and are estimated to value 535 million Philippine pesos and ^0 million Australian dollars respectively1 Disbursement of Australian contributions will be subject to the normal annual parliamentary approval of appropriations.

4.2 The program of work will be approved annually by the <3P3 fallowing consultations held in the Philippines between a representative of the Australian Government and Project personnel.

5. PERSONNEL

5.1 Personnel provided by Australia to the Joint Project will be primarily responsible for supervising the Australian Government's contribution to the Project and will also have an advisory and consultant role.

5.2 The Australian Consultant Manager will have final jurisdiction with respect to duties, discipline, leave and other administrative issues, concerning Australian personnel subject to the laws and regulations of the Republic of the Philippines,

5.3 The Government of the Republic of the Philippines by itself or through its executing agency or instrumentality will grant to the Australian Government experts and their families in the Republic of the Philippines, privileges and benefits to include:

5.3.1 Exemption from Philippine income and "other "taxes on salaries and allowances;

5.3.2 Exemption from import and other duties on personal and household effects;

5.3.3 Exemption from import duties, taxes and charges on one motor vehicle per expert brought into the Philippines within a period of six months, counted from the date of the first arrival of the expert, and the condition that the motor vehicle will be re-exported upon the termination D the Project or, if sold, will be subject to payment of taxes and duties on its value at the time of sale.

5.4 The Government of the Republic of the Philippines will expedite the issue of all documentation required for the entry of, and performance of work by, Project personnel.

6. MONITORING AND EVALUATION

6.1 An evaluation of progress of the Project may be made at times arranged between, and mutually convenient to, the Government of the Republic of the Philippines and the Australian Government. Such an evaluation could be undertaken by a joint investigation team appointed by the two Governments, independent of staff involved in the Project.

6.2 In addition to the above evaluation, there will be field reviews of the Project towards the end of each program year undertaken jointly by specified members of the JPB and a representative of the Australian Government. Following each review the work program for the next year will be discussed and placed before the JPB for approval.

7. SUPPLIES

7.1 The Government of the Republic of the Philippines will exempt from import duties and other taxes (or pay such duties thereon) all goads supplied by Australia for the established purposes of the Project.

7.2 The Government of the Republic of the Philippines will facilitate movement of Project supplies by providing appropriate customs and wharfage facilities in the port closest to the Project site and will be responsible for expeditious transport of such supplies to site.

7.3 Project supplies provided by Australia will be available for the unrestricted use of the Project and will not be withdrawn from such use without the consent of the Consultant Manager appointed by the Australian Government, The Consultant Manager will exercise administrative control over such supplies for the duration of the Project or until such other time as Australia agrees they may be released from the Project.

8. CLAIMS

8.1 Since assistance under this Memorandum of Understanding is provided for the benefit of the Government and people of the Philippines, the Government of the Republic of the Philippines will bear all risks arising from operations under this Memorandum of Understanding. The Government of the Republic 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 from 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 grass negligence or wilful misconduct of agents of the Australian Government or of Australian personnel.

9. SECURITY

9.1 The Government of the Republic of the Philippines will arrange for any protective services deemed necessary to ensure the safety of the person 2nd property of Australian personnel and their dependents and of Project supplies provided by Australia.

10. AMENDMENTS

10.1 Amendments to this Memorandum may be made at any time by an exchange of letters between the signatories.

ANNEXURES to this Memorandum form an integral part of it.

SIGNED at Manila in duplicate, this 29th day of February, 1984