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February 08, 1990

1.1 This Memorandum expresses the understandings of the Government of the Republic of the Philippines and the Government of Australia concerning the responsibilities and contributions respectively of the two Governments with regard to the implementation of the Remote Sensing Project.

1.2 The Project and its objectives and the responsibilities and contributions of the two Governments are described further in Annexes 1 to 4 of this Memorandum of Understanding.

1.3 The Project is concerned with the expanded use of remotely sensed data in providing information for the planning, development, management, regulation and monitoring of resources and national productivity improvement.

2. DEFINITIONS

In this Memorandum of Understanding:

(a) "Australian institutions, firms and organizations" means Australian institutions, firms and organizations engaged in the Project;

(b) "Australian personnel" means Australian nationals or permanent residents or other persons who are not nationals or permanent Residents of the Philippines who are working in the Philippines on the Project and whose salaries and other costs are funded from the contribution of the Government of Australia to the Project;

(c) "dependent/dependant" means the spouse or unmarried minor children of a member of the Australian personnel or any other person recognized by the two Governments as a dependent/dependant of a member of the Australian personnel;

(d) "professional and technical material" means equipment and other goods imported by members of the Australian personnel or Australian institutions, firms and organizations for their professional use in carrying out their assigned duties under the Project and paid for from funds provided by the Government of Australia;

(e) "project supplies" means equipment, material. and other goods supplied for the execution of the Project, the cost of which is funded from the contribution of the Government of Australia to the Project;

(f) "motor vehicles" means motor vehicles supplied for the execution of the Project, the cost of which is funded from the contribution of the Government of Australia to the Project;

(g) "services" means services performed by Individuals or by general professional partnerships registered in the Philippines as detailed in Annex 1;

(h) "personal and household effects" means equipment and other goods imported by Australian personnel or Australian institutions, firms and organizations for the personal use of Australian personnel and their dependents/dependants while engaged in the Project.

3. AUTHORITIES AND COORDINATION

3.1 The Executing Authorities for this Project will be:

For the Government of the Republic of the Philippines; the Department of Science and Technology (DOST); and for the Government of Australia: the Australian International Development Assistance Bureau (AIDAB) of the Department of Foreign Affairs and Trade. The Executing Authorities, however, may nominate suitably qualified agents to undertake any part of their functions on their behalf.

3.2 In addition to the functions of the Executing Authority, the following agencies have responsibilities in the Project: The National Mapping and Resource Information Authority (NAMRIA) of the Department of Environment and Natural Resources (DENR) the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) within DOST and the Training Center for Applied Geodesy and Photogrammetry of the University of the Philippines (UP).

3.3 Project coordination will be achieved through a Project Governing Board (PGB) that will meet at least twice a year. Additional meetings say be requested by the DOST, the Australian Embassy or upon the request of the majority of the members. The Board will be composed of senior representatives from each agency involved in the Project and one from the Australian Embassy. The Chairman of the Board will come from the Department of Science and Technology.

3.4 In general, the Board will provide policy direction and make periodic assessment of the progress of the Project, assisted by the Technical Advisory Committee.

4. CONTRIBUTIONS

4.1 The contributions of the Government of the Republic of the Philippines and the Government of Australia, as described in Annexes 1 to 4, are estimated to value 17.37 million Philippine pesos and 8.37 million Australian dollars respectively. The financial contribution of the Government of the Republic of the Philippines will be subject to its annual congressional appropriations. The financial contribution of the Government of Australia will be subject to the normal annual parliamentary approval of appropriations.

5. PERSONNEL

5.1 Personnel provided by the Government of Australia to the Project will be responsible for ensuring the effectiveness of the contribution of the Government of Australia to the Project and will have an advisory and consultative role.

5.2 The Australian Team Leader will have administrative control with respect to duties, discipline, leave and other administrative issues concerning personnel funded by the Government of Australia (including Philippine nationals employed as consultants) to achieve Project objectives and subject to the laws, and regulations of the Republic of the Philippines.

6. IMPLEMENTATION, MONITORING AND REVIEW

6.1 During the first three months of the Project, the Australian and Philippine project staff will examine plans for management of the Project and will present an Implementation Document for the approval of the two Governments. The Implementation Document will be adopted in accordance with Article 16 of this Memorandum of Understanding and will supersede the Design Document as the primary reference for the Project thereafter.

6.2 A, major review of the progress of the Project may be made at times arranged between, and mutually convenient to, the two Governments to be communicated through diplomatic channels. Such a review would be undertaken by a joint Investigation team appointed by the two Governments and independent of staff involved in the Project.

7. PROJECT SUPPLIES, MOTOR VEHICLES AND PROFESSIONAL AND TECHNICAL MATERIAL AND SERVICES

7.1 In respect of project supplies, motor vehicles and professional and technical material and services whether to be imported into and/or procured within the Philippines, the Government of the Republic of the Philippines will:

(a) be responsible for the payment of import duties, Value Added Tax (VAT) and other duties and taxes imposed in the Philippines; and be responsible for inspection fees, storage charges and all other levies, fees and charges;

(b) facilitate the expeditious clearance and release of imported project: supplies and motor vehicles including the provision of appropriate customs and wharfage facilities in the port of entry closest to the site of the Project; and

(c) unless provided otherwise, provide expeditious internal transport to the site of the Project.

7.2 Project supplies and motor vehicles provided by the Government of Australia for the Project will be available for the unrestricted use of the Project and will not be withdrawn from that use without the consent of the Government of Australia.

7.3 Motor vehicles provided by the Government of Australia will be under the administrative control of the Australian Team Leader for the duration of the Project. At the completion of the Project, all motor vehicles will be handed over to the Philippine Executing Authority in furtherance of the objectives of the project or other Australian-assisted projects in the natural resources sector.

8. IMPORTATION OF PERSONAL AND HOUSEHOLD EFFECTS

In respect of the importation into the Philippines of bonafide personal and household effects for the personal use of Australian personnel or their dependents/dependants which accompany such persons or arrive within six months from the date of their first arrival in the Philippines, the Government of the Republic of the Philippines will:

(a) be responsible for the payment of all customs duties, other duties, taxes levies and other charges of similar nature; and

(b) expedite their clearance through customs.

9. MOTOR VEHICLES FOR PERSONAL USE

9.1 Subject to 9.2, the Government of the Republic of the Philippines will be responsible for the payment of all customs duties, VAT and excise tax in respect of one motor vehicle imported into the Philippines or purchased locally for their personal use once during the project period provided that:

(a) such imported motor vehicle has been used by the person concerned in the country of his or her last posting or such motor vehicle is purchased locally or from a third country within the period of six (6) months from the date of his or her arrival in the Philippines;

(b) no transfer of ownership shall be made within a period of three (3) years from the time such motor vehicle was registered unless the member of the Australian personnel is posted to another country or his or her contract in the Philippines has expired; provided, however, that the vehicle should have been registered in the country for not less than twelve (12) months.

(c) the motor vehicle conforms with existing regulations on the allowable imported motor vehicles; and

(d) if the motor vehicle is sold or otherwise disposed of to non-exempt entities or personnel, it will be subject to the normal duties and other charges at the rate in force on the date the exemption was given and on its entered value at the time of disposal.

9.2 In the event of fire, theft, substantial damage or destruction, the provisions under this clause may be re-exercised at any time during the assignment of the person concerned.

10. EXPORT OF PROFESSIONAL AND TECHNICAL MATERIAL AND PERSONAL AND HOUSEHOLD EFFECTS

In respect of the export from the Philippines at the end of the assignment of Australian personnel, of professional and technical material personal and household effects and motor vehicles for personal use, the Government of the Republic of the Philippine will:

(a) be responsible for the payment of all customs duties, other duties, taxes, levies and other charges of similar nature; and

(b) expedite clearance through customs and other export controls.

11. TAXES ON INCOME

The Government of the Republic of the Philippines will be responsible for the payment of income taxes and other similar taxes on fees, salaries, wages and other similar remuneration paid for by the Government of Australia and incurred by Australian personnel firms, institutions and organizations derived from work performed under this Memorandum in the Philippines. Furthermore, Australian personnel and Australian firms, institutions and organizations will not be subject to these taxes on income derived from work performed outside the Philippines which income is not transferred into the Philippines,

12. REMITTANCE OF FUNDS

The Government of the Republic of the Philippine will facilitate repatriation by Australian personnel, firms, institutions and organizations of their funds in accordance with the rules and procedures laid down by the Central Bank of the Philippines and consistent with the rights and obligations of the Philippines as a member of the International Monetary Fund.

13. LOCAL LAWS AND REGULATIONS

The Philippine Executing Authority will exert its best efforts to inform and keep advised Australian personnel and Australian firms, institutions and organizations of local, laws and regulations which may be pertinent to the performance of their duties in the Project.

14. CLAIMS

The Government of the Republic of the Philippines will deal any with any claim which may be brought by third parties against Australian personnel and Australian firms institutions and organizations and will hold harmless said Australian personnel and/Australian firms, institutions and organizations from civil liability from acts or commissions occurring in the course of the performance of their duties in the execution of the Project except for their acts arising from gross negligence and willful misconduct.

15. DURATION

This Memorandum will take effect from the date of its signature. The contribution of the Government of Australia to the Project and all undertakings given herein will cease on 31 December 1992 or on such other date as may subsequently be arranged between the two Governments.

16. AMENDMENTS

Amendments to this Memorandum may be made at any time by written arrangement between the parties.

17. ANNEXURES AND ATTACHED DOCUMENTS

Annexures and documents referred to in and attached to this Memorandum form an integral part of it, subject to 1.2.

IN WITNESS WHEREOF, the undersigned, duly authorized by their respective Governments, have signed this Memorandum.

SIGNED at the City of Manila in duplicate, this eighth day of February of the year one thousand, nine hundred and ninety.