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September 15, 1994

Between the Government of the Kingdom of Belgium on the one part,

and

The Government of the Republic of the Philippines " on the other part,

CONSIDERING the relations of friendship between the Kingdom of Belgium, hereafter referred to as "Belgium", and the Republic of the Philippines, hereafter referred to as "the Philippines",

RECALLING the foundation for cooperation between Belgium and the Philippines, as laid down in the Agreement on Economic, Industrial, Scientific, Technical and Development Cooperation between the Belgo-Luxembourg Economic Union and t the Republic of the Philippines, signed on the 15th of February 1937,

STRESSING the mutual willingness to reaffirm and strengthen the cooperation and enhance the partnership between Belgium and the Philippines, with due respect for the principles enshrined in the Charter of the United Nations,

RECOGNIZING that the cooperation ties between Belgium and the Philippines and this agreement in its entirety are based on the respect for democratic principles and human rights, which Inspires the domestic and external policies of both Belgium and the Philippines, and which constitutes a major clement of this agreement,

RECOGNIZING that States cooperate with each other in ensuring development and eliminating obstacles to development,

CONVINCED that this cooperation, on the basis of equality, non-discrimination and mutual respect, will benefit the development of both countries,

STATING that this cooperation should aim at economic growth and sustainable development; at the improvement of the living conditions of the poor and the alleviation of poverty; at the protection of the environment and at the enhancement of the participation of the people in the development effort, with special emphasis on the role of women in development,

HAVE AGREED AS FOLLOWS:

1. Size of the cooperation:

Subject to the yearly budgetary allocations to the Belgian Administration for Development Cooperation (B.A.D.C.), the indicative planning figure for the bilateral cooperation between the Philippines and Belgium will be defined in the framework of the overall aid budget for the ASEAN-region, taking into account the specific needs of the Philippines.

2. Selected sectors:

In the coming period of three years Belgium and the Philippines will cooperate primarily in the following sectors:

2.1. Agriculture and Agrarian Reform

2.2. Promotion of Small and Medium Enterprises

2.3. Energy, Transport and Communication

2.4. Protection and empowerment of the most vulnerable groups

2.5. Institution-building

2.6. Developmental components of other sectors which may be defined by the Joint Commission provided for by the Agreement on Economic, Industrial, Scientific, Technical and Development Cooperation between the Belgo-Luxembourg Economic Union and the Republic of the Philippines signed on the 15th of February 1987, will also be considered.

The present situation of the project proposals, that have been identified until now in the various sectors, is explained in the annex.

3. Forms:

The cooperation can be implemented in different ways

3.1. Project aid;

3.2. Programme aid;

3.3. Technical assistance.

The precise modalities for each project will be laid down in Specific Agreements. They will be signed by both partners after the completion of the necessary preparatory work. In these Agreements the terms and the conditions for each project (grant , in cash or in kind, or B.A.D.C.-soft loan) will be defined after consultation between the two partners.

The National Economic and Development Authority of the Philippines, in coordination with other agencies of the government, shall meet annually with the Belgian Administration for Development Cooperation to review the ongoing projects and programmes.
Signed at Brussels this 15th day of September 1994.

For the Government of the Republic of the Philippines	For the Government of the Kingdom of Belgium
(Sgd.) R. ROMULO	(Sgd.) E. DERYCKE
Secretary for Foreign Affairs	State Secretary for Development Cooperation

ANNEXES:

1. Present: situation of the project proposals in the selected sectors:

1.1. Agriculture and Agrarian Reform:

It is felt that with the Comprehensive Agrarian Reform Programme, approved by the passing of RA 6657 in June 1988 the instrument is at hand to improve the living conditions of the rurai population. Given the fact that the successful implementation of this programme is essential to bring about an equitable development process, Belgium is prepared to cooperate in this field with the Philippine partners. It will concentrate its efforts on the provision of the supporting services. In the following weeks the Development Cooperation Section of the Belgian Embassy in Manila will establish contact with the authorities concerned in order to elaborate a proposal. The project will take into account the desire of the Philippine authorities to involve local NGO's and people's organisations in the preparation and the implementation of the programme.

1.2. Promotion of Small and Medium Enterprises:

The Philippine government stated in its Medium Term Philippine Development Plan (1 993-1 998) that development stems from the economic initiatives of individuals, households, communities, firms and cooperatives, which implies a reliance on markets, entrepreneurship, innovation and increased efforts by the people. Several initiatives have been taken by the Philippine government in order to foster and promote the development of small and medium enterprises, as sources of income and employment.

A pre-identification mission, that took place in May 1994, concluded that there is a broad scope for cooperation, given Belgium's tradition and know how in the field of small and medium enterprises. Specific project proposals will be prepared in the following weeks.

1.3. Energy, Transport and Communication:

In both sectors specific programmes can be proposed and discussed in the following months. In order to be taken into consideration for support by the Belgian Administration for Development Cooperation the projects should contribute to broad based sustainable development.

1.4. Protection and empowerment of the most vulnerable groups:

During the fact finding mission of B.A.D.C. in January 1994, discussions with Philippine officials led to the identification of possible areas for cooperation like enhancing the capabilities of legitimate unions and rural workers' organisations, promotion of women workers1 welfare and protection, and programs to prevent the exploitation of children.
In the context of migrant labour, concern was raised over the fate of the victims of illegal recruitment, especially those in the entertainment sector. Belgium and the Philippines recognize that the responsibility to address this problem lies with both countries and that a preventive policy should include comprehensive measures.

Both sides agree to set up a pilot project involving: research on the judicial, social, economic and cultural aspects of the phenomenon and concrete projects to create public awareness of the problem and to facilitate the reintegration of the returnees in Philippine society.

1.5. Institution building:

Given the process of institutional and economic reform in the Philippines, special emphasis will be put on the restructuring and the strengthening of the local, regional and national institutions and centers in the above-mentioned sectors and in those sectors that are vital to the efficient and fair functioning of the society.

2. Modalities of cooperation:

2.1. Project aid;

2.2. Programme aid;

2.3. Technical assistance:

Belgium is willing to put at the disposal of the Philippines both long and short term experts in the selected fields.

Belgium will also offer postgraduate scholarships and training opportunities in Belgium and in other countries.

In order to facilitate the collaboration between the Belgian administration for development cooperation and its Philippine counterparts, the Philippine officials in charge of the development programme with Belgium will be invited to Belgium to familiarize themselves with Belgian development cooperation procedures, structures and methodology.