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July 02, 1984

2 July 1984

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 in regard to the provision of an Environmental Adviser to the National Irrigation Administration located in Manila which is intended to assist with the establishment of an Environmental Assessment Unit within the Administration as further described and detailed in Annex I to this Memorandum,

2. The Executing Authorities for this Project will be:

For the Government of the Republic of the Philippines: The-National Irrigation Administration.

For the Australian Government: The Australian Development Assistance Bureau of the Department of Foreign Affairs. The Australian Development

Assistance Bureau may nominate suitably qualified agents to undertake any part of its functions on its behalf.

This Memorandum will take effect from the date of its signature and the Project will be deemed to have commenced from 6 September 1983-The Australian contribution to the Project and all undertakings given herein will cease 14 months after the date of signature of this Memorandum or on such other date as may subsequently be arranged between the two Governments.

4. Responsibility for development and direction of the Project will be vested in a Project Co-ordinating Committee, whose chairman will be as appointed by the Government of the Republic of the Philippines. Membership of the Project Co-ordinating Committee will also include representatives of the Philippine Government Authority referred to in Clause 2 above, or nominated at the discretion of the Government of the Republic of the Philippines, as well as a nominee designated by the Australian Embassy in Manila. The Co-ordinating Committee will meet not less than twice per year. Functions of the Project Co-ordinating Committee will include:

(a) co-ordinating policy for the Project,

(b) reviewing and reporting on progress to the two Governments,

(c) recommending to the two Governments changes in program, budget and future development.

5. Final responsibility for this Project will rest with the Government of the Republic of the Philippines.

6. The contributions of the Philippine and Australian Governments are detailed in Annexes II to III-A inclusive and are estimated to value P245, 900 and $A165, 000 respectively. Disbursement of Australian contributions will be subject to the normal annual parliamentary approval of appropriations.

7. For the purposes of this Project, the Government of the Republic of the Philippines will, with regard to personnel recruited and employed by the Australian Government or its agent:

(a) grant exemption from income or other taxes on .salaries and allowances,

(b) grant exemption from import and other duties on personal and household effects,

(c) grant exemption from import duties on one motor vehicle per employee on condition that it be re-exported or duty paid on its assessed value at time of sale within the Philippines,

(d) grant to Australian Project personnel all rights and entitlements accorded to the aid personnel of any other donor country, and

(e) expedite the issue of all documentation required for the entry of and performance of work by, Project personnel.

8. (a) The Government of the Republic of the Philippines will exempt from import duties and other taxes (or pay such duties thereon) all goods supplied by Australia for the established purposes of the Project as set out in Annex I.

(b) 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.

(c) Project supplies provided by Australia shall be available for the unrestricted use of the Project and shall not be withdrawn from such use without the consent of the Expert appointed by the Australian Government. The Expert shall exercise administrative control over such supplies for the duration of the Project or such other time as Australia agrees they may be released from the Project.

9. 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 gross negligence or wilful misconduct of agents of the Australian Government or of Australian personnel.

10. 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 Australian personnel, and of their dependants and Australian Project supplies.

11. 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

Philippine environmental legislation requires environmental assessments to be made of proposed irrigation and multipurpose water resources projects. The increased assessment requirements under the legislation have made it necessary for the National Irrigation Administration and co-operating agencies, the National Power Corporation and the National Environmental Protection Council, to develop an in-house capacity for environmental assessment. An environmental adviser is to undertake a one year assignment with the N.I.A. to:

(a) assist in determining the priorities and the scheduling of environmental studies required for the N.I.A.'s short and medium term feasibility study program;

(b) prepare terms of reference, scope of work, and related documentation for the commissioning of environmental studies;

train N.I.A. counterpart staff in the approaches and techniques of environmental impact assessment applicable to developing countries; and

(d) formulate objectives, manpower and training requirements for the environmental assessment within the N.I.A.

The Australian Government will provide an adviser in environmental impact assessment for a one year assignment in the Philippines. At 1983 prices the assignment is costed as follows:

The Australian Government will meet course fees, transport, accommodation and per diem costs associated with the provision of approved in-Australia and Third Country training for Philippine Project personnel.

The Government of the Republic of the Philippines will provide:

(a) office space for the adviser at the N.I.A.'s Quezon City office;

(b) a counterpart at Senior Engineer level;

(c) technical assistance with respect to typing and drafting of any documentation associated with correspondence, Terms of Reference and reports produced on N.I.A.'s behalf;

(d) assistance in any field studies required to complete the assignment work program as finally negotiated between the adviser and the N.I.A.;

(e) transport for the adviser for official purposes to allow him to effectively undertake his assignment.

HIS EXCELLENCY ARTURO M. TOLENTINO,

Minister for Foreign Affairs of the

Republic of the Philippines, MANILA