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December 14, 1989

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 Philippines-Australia Science and Mathematics Education Project.

1.2 This 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 has two main themes:

(i) strengthening the implementation of the science and mathematics curriculum in secondary education; and

(ii) establishing a base for utilization of higher quality and more widely accessible curricula in secondary education.

The Project is designed to play an integral part in the implementation of the Secondary Education Development Project of the Government of the Republic of' the Philippines

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, materials 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 I:

(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 Education, Culture and Sports (DECS) through the Educational Development Projects implementing Task Force (EDPITAF) and for the Government of Australia: the Australian International Development Assistance Bureau CAIDAB) of the Department of Foreign Affairs and Trade.

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

3.2 Project coordination will be achieved through the Project Manage merit Committee (PMC). This Committee will assess progress and provide policy and planning direction to the Project. A representative of the Australian Embassy will be a member of the PMC when the Project is discussed. The PMC will meet and discuss the Project at least twice in a year. Additional meetings of the PMC may be requested by the DECS or by the Australian Embassy,

4.CONTRIBUTIONS

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 50.15 million Philippine pesos and 15.12 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. PROJECT REVIEW

A major review of progress of the Project may be made at times arranged between,  and mutually convenient to, the two Governments. 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 or 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 education sector.

8. IMPORTATION OF PERSONAL
AND HOUSEHOLD EFFECTS

In respect of the importation into the Philippines of bona fide 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 Philippine, 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 9.3. 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 by Australian personnel 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 giver, and on its entered value at the time of disposal.

9.2 In respect of 9.1 the Government of the Republic of the Philippines will expedite the clearance through customs of motor vehicles imported by Australian personnel for their personal use.

9.3 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 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 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 the 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 Philippines 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 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 for acts or omissions occurring in the course of the performance of their duties in the execution of the Project except for their acts arising from gross negligence or 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 30 June 1995 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.

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

SIGNED at the City of Manila in duplicate, this fourteenth day of December of the year one thousand, nine hundred and eighty nine.

             

(Sgd.) RAUL S. MANGLAPUS	(Sgd.)
FOR THE GOVERNMENT OF THE   REPUBLIC OF THE PHILIPPINES	FOR THE GOVERNMENT OF   AUSTRALIA