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July 29, 1996


No. 96ZC036Y033
AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES AND THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINA ON THE UTILIZATION OF THE MILITARY ENGINEERING EQUIPMENT ASSISTANCE LOAN PROVIDED BY CHINA TO THE PHILIPPINES

With a view to further developing the friendly relations between the two Governments and their Armed Forces, the Government of the Republic of Philippines, hereinafter referred to as "the Philippine Side", and the Government of the People's Republic of China, hereinafter referred to as "the Chinese Side", and wishing to establish and promote cooperation between their defence establishments and Armed Forces, have concluded the following; AGREEMENT on the utilization of the military equipment assistance loan provided by China to the Philippines:

CLAUSE I

From the proceeds of the long-term and interest-free military equipment assistance loan from the Chinese Side in the amount of US THREE MILLION DOLLARS (US $3,000,000.00), the Chinese Side agrees to supply the Philippine Side with military engineering equipment and spares and tools from the People's Liberation Army (PLA) for the use of the Armed Forces of the Philippines (AFP) and to support related activities, described in Annex "A" which forms an integral part of this Agreement.

CLAUSE II

The Chinese Side shall be responsible for transporting the engineering equipment and spares and tools, described in Annex "A", to the Port of Manila, Philippines, within six (6) to twelve (12) months after the AFP personnel shall have chosen, documented and accepted the said items in accordance with Clause V of the AGREEMENT, with costs for said transportation and allied expenses chargeable against the loan.
Both Sides shall designate their respective representatives to sign the TRANSFER CERTIFICATE upon the arrival of the said equipment, spares and tools in the Port of Manila.
The Philippine Side will, prior to the first (1st) shipment of the said equipment, spares and tools, issue the END-USER CERTIFICATE.

CLAUSE III

The guarantee period for the China-supplied engineering equipment, spares and tools is one (1) year starting from the date of signing the TRANSFER CERTIFICATE of each arrival of the consignment. During the guarantee period, the Chinese Side shall be obligated to remedy all the defects of the equipment, spares and tools arising from inconformity with the specifications, to include replacement in whole or in part of the affected equipment, spare part or tool.

CLAUSE IV

The Chinese Side shall provide training in China for eight (8) AFP personnel in the areas of equipment maintenance and operation, with costs of training, board and lodging, round trip air transportation (Manila-Beijing-Manila) and in-country transportation and other related expenses for the AFP personnel to be charged against the loan.

CLAUSE V

The Philippine Side shall, for such duration as may be agreed upon by the AFP and PLA; send four (4) AFP personnel to China to inspect, choose, document and accept the engineering equipment and spares and tools, described in Annex "A", prior to their shipment to the Philippines, with costs of board and lodging, round trip air transportation (Manila-Beijing-Manila) and in-country transportation and other related expenses for the AFP personnel to be charged against the loan.

CLAUSE VI

This AGREEMENT shall be subject to the constitutional and statutory laws of both Sides.

This AGREEMENT shall come into force upon the date of effectivity of the Loan Protocol.
Done in duplicate in the English and Chinese languages, this AGREEMENT is signed on July 29, 1996 in Beijing, both texts being equally authentic.

FOR AND ON BEHALF OF FOR AND ON BEHALF OF
THE GOVERNMENT THE GOVERNMENT OF
OF THE REPUBLIC OF THE PEOPLE'S REPUBLIC OF
THE PHILIPPINES CHINA
(Sgd.) RENATO S. DE VILLA (Sgd.) CHI HAOTIAN
Secretary of National Defence Minister of National Defence
   
   
   

  1. The amount of US $3 million shall be utilized for the procurement of equipment and spares and tools and to support related activities, as follows:

a. 40 units, Dump Truck, 6-ton,

$1,936,000

diesel engine at $48,400 each


 


b. Spare parts and Toos

886,000

 


c. Training, board and lodging,

18,000

inland transportation, etc.,


in China, for 8 AFP personnel


trainees for 15 days


 


d. Board and lodging, inland

8,000

transportation, etc., in


China for 4 AFP personnel


for 10 days to inspect and


accept equipment and spares


and tools


 


e. International air

12,000

transportation fare for 12


AFP personnel (Manila-


Beijing-Manila)


 


f. Shipment cost (CIF Manila)

140,000

 


TOTAL:

$3,000,000

  1. Any savings or unspent balances of the amounts provided for in paragraphs lc, 1d, le and 1f above shall be used for the purchase of additional spare parts for the equipment.

  2. The Shipping Marks shall be as follows:

    Consignee:

    AFP LOGISTICS COMMAND

    Address:

    CAMP GENERAL EMILIO AGUINALDO

     

    QUEZON CITY, PHILIPPINES

    Agreement No:

    96ZC036Y033



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