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March 25, 1969

Note: The Agreement entered into force, March 25, 1969.

Reference: This Agreement is also published in VIII DFA TS No. 1, p. 50.

WHEREAS, an Agreement on Technical Assistance between the Repub­lic of the Philippines and the Federal Republic of Germany was signed on February 5, 1963 by His Excellency Emmanuel Pelaez, Vice President and concurrently Secretary of Foreign Affairs to the Republic of the Philippines, and His Excellency Gerhardt Schroeder, Minister of Foreign Affairs of the Federal Republic of Germany;

WHEREAS, said Agreement became effective on October 2, 1964;

WHEREAS, pursuant to the objectives of the said Agreement and in accordance with its provisions, particularly Article 1, paragraph 2, the signatory Governments have decided to establish a Pilot Reforestation and Erosion Control Training Project in the Philippines with the technical assistance of the Federal Republic of Germany:

NOW THEREFORE, the Governments of the Republic of the Philip­pines and the Federal Republic of Germany have agreed on the following:

FEDERAL REPUBLIC OF GERMANY TECHNICAL ASSISTANCE

TO THE REPUBLIC OF THE PHILIPPINES ON THE

ESTABLISHMENT OF A PILOT REFORESTATION AND EROSION CONTROL TRAINING PROJECT PLAN OF OPERATION

For the purpose of implementing the Pilot Reforestation and Erosion Control Project to be undertaken with the assistance of the Federal Republic of Germany, this Plan of Operation shall serve as the Plan of Operation as provided for in the Agreement in Technical Assistance signed on 5 February 1963 by the Government of the Republic of the Philippines and the Federal Republic of Germany.

I. PURPOSE AND DESCRIPTION OF THE PROJECT

A. PURPOSE OF THE PROJECT

1.1 The objectives of the Project are:

i To establish pilot units in reforestation for demonstration and training purposes in selected areas located in Itogon Reforestation Project, Itogon, Benguet, and Malasag Reforestation Project, Cagayan de Oro City. A plan will be prepared for the development and rehabilitation of these project areas, which will eventually be used as a pattern or model for the development of other similar areas throughout the Philippines.

ii. To assist the Government in formulating policy and preparing legislation to promote proper management of forests and water resources.

B. DESCRIPTION OF THE PROJECT

1.2          The selected project areas are located in Itogon, Benguet, Luzon Island {3,342 has.) and Malasag, Cagayan de Oro City, Mindanao Island (1,183 has.) consisting of second growth forests and grasslands of the public domain within the Reforestation Reservation. The Project areas offer the possibilities of remedying many major problems on the use and/or management of forest and water resources.

1.3          The Project will be divided into three phases:

i. Reconnaissance survey which will last 3 months during which time the collection and analysis of the existing information relative to soil and vegetative cover, and land use practices within the pilot units for detailed surveys will be undertaken.

ii. Detailed surveys, demonstrations and training phase which will be 3 years or more and to overlap in the third phase.

The following activities will be conducted during this phase:

a- detailed surveys of the selected areas to determine measures to be undertaken;

b- assistance if needed will be given to the Government to formulate effective policies to carry out purposes of the project; and

c. training and demonstration will be carried out within the pilot units: (1) to train local personnel in the preparation and implementation of suggested measures; and (2) to plant at least 100 hectares yearly for demonstration and better under­standing of reforestation and erosion control.

iii. Project Evaluation Phase — This is the final stage where:

a. evaluation of measures taken will be made to determine whether or not they are feasible, economical and practical;

b. an integrated development plan for the pilot areas will be prepared;

c. continuation of implementation of suggested measures through demonstrations and training such gradual transfer of the responsibilities to the local personnel will be carried out; and

d. initiation and continuation of training of personnel abroad will be undertaken.

1.4 The location of the headquarters of the Project will be in Diliman, Quezon City. Unit headquarters will be provided in Baguio City.

II. PRIOR OBLIGATIONS

2.1 Prior to the commencement of the Project, the Government of the Republic of the Philippines agrees:

i. to provide the necessary budget and organization to finance and operate the project;

ii. to construct needed housing and related facilities for the staff and trainees in Baguio City; and

iii. to prepare a programme designed to gather quantitative and qualitative data for immediate use in demonstration and training and for practical applications to pilot and other areas.

2.2 A Chief Project Advisor and a Project Leader shall be appointed by the Federal Republic of Germany and the Government of the Philippines, respectively.

III. WORK PLAN

A. Participation and Contribution of the Federal Republic of Germany

3.1 The Government of the Federal Republic of Germany shall provide the following:

i. Experts

A total of 15 man-years of expert service as detailed in Appendix 1-1. Within the total 15 man-years of expert service, minor adjustments of individual post assignments may be made by the Implementing Agency in consultation with the Federal Republic of Germany, if this is found to be in the best interest of the project.

ii. Fellowships

A number of fellowships in the field of forestry to start at the end of the 2nd and 3rd year of operation as detailed in Appendix 1-2. Fellowships awarded under this Plan of Operation shall be administered in accordance with the fellowship regulations of the Federal Republic of Germany. Within the total allocation of $25,000 for fellowships, minor adjustments of individual fellowships may be made if this is found to be in the best interest of the project.

iii. Equipment and supplies

Equipment and supplies at a cost not exceeding $38,475 as detailed in Appendix 1-3.

iv. Miscellaneous

Miscellaneous services and facilities at a cost not exceeding $81,525 as detailed in Appendix 1-4.

B. Participation and Contribution of the Government

3.2 The Government of the Republic of the Philippines shall provide the following as a counterpart contribution in kind:

i. Personal services

a. Professional and other staff — A total of 361 man-years of professional and other personal services as detailed in Appendix II-l. Within the total 361 man-years, minor adjustments of individual post assignments may be made by the Implementing Agency, in consultation with the Chief Project Advisor, if this is found to be in the best interest of the project.

b. Temporary labor — An estimated amount of $93,750 for labor
as detailed in Appendix Il-b.

ii- Fellowships

Local salaries during the period of study for all fellows awarded fellowship under the project.

iii. Maintenance and other operating expenses as detailed in Appendix II-2.

iv. Equipment

Equipment and supplies as detailed in Appendix II-3.

v. Land and buildings (Capital Outlay)

Land and buildings as detailed in Appendix II-4. In addi­tion, a supplementary area of about 100 hectares every year, for 5 years, will be made available for demonstration and training purposes.

vi. Miscellaneous — Miscellaneous Expenses as detailed in Appendix II-5.

3.3 The personnel assigned to this Project by the Federal Republic of Germany shall have the same privileges and immunities as provided for in the basic agreement between the Federal Republic of Germany and the Republic of the Philippines signed on February 3, 1963.

C. TRANSFER OF TITLE

3.4 Titles to all materials, equipment and transport supplied by the Federal Republic of Germany will be transferred to the Philippine Government upon arrival in Manila.

D. ORGANIZATION

The Implementing Agency shall appoint a Project Leader whose respon­sibilities are:

3.5 l.To organize and implement the Project in accordance with the Plan of Operation. This will involve constant collaboration and coordination with the Chief Project Advisor and other German experts assigned to the Project by the Federal Republic of Germany.

2.To see to it that cash contributions as well as the buildings, equip­ment and facilities listed as counterpart contributions in kind in the Plan of Operation are available when needed.

3. To supervise counterpart professional and auxilliary personnel assigned to the Project.

4. To determine and set the training standards of local training.

5. To control the use of all equipment, supplies and materials and other property contributed by the Federal Republic of Germany, or by the Philippine Government.

3.6 To consult with the Chief Project Advisor along the following:

i Matters regarding the detailed planning, administration execution of the project, and

ii The selection of candidates for fellowship from the Reforestation Administration personnel.

D. SEQUENCE OF OPERATION

3 7 The Implementing Agency shall commence operations of the Project upon receipt of written authorization to do so from the Federal Republic of Germany but in no case earlier than the arrival of the Chief Project Advisor.

3.8 Upon receipt of the authorization, the Implementing Agency shall undertake recruitment and appoint the Project Leader for the Project. The Implementing Agency shall also make arrangements for the execution of the other activities of the Project as provided for in the Plan of Operation, includ ing, where applicable and necessary, entering into negotiations for the selection of sub-contractors.

3.9 The Project Leader, together with the Chief Project Advisor and in consultation with the Implementing Agency shall prepare a general Plan of Work for carrying out the project operations. It shall include such items as overall schedule for the operations, detailed lists of equipment, supplies and materials to be purchased, staffing plans, and arrangements for transport, and other services. Provisions shall be made in order to take account of suggestions of the respective experts when they arrive in the country.

3.10 The Project Leader, in consultation with the Chief Project Advisor, shall prepare a brief Forward Plan of Work for six months of the Project operations, outlining all data of the activities to be carried out during this period. An updated Plan of Work for each twelve-month period during the term of the Project shall be prepared by the Project Leader with the collabora tion of the Chief Project Advisor, and submitted to the Implementing Agency for approval (Copy furnished Government). This Plan of Work serves as a control on the project activities during the period to which it applies.

3.11 Minor adjustments in the schedules for manning the Project and provision of other facilities may be made when agreed upon by the Project Leader and the Chief Project Advisor in consultation with the Implementing Agency, if this is found to be in the best interest of the Project.

3.12 The Implementing Agency shall assign to the Project the counter-part personnel in accordance with the manning table of the Schedule of Operation, and deliver the physical facilities needed as outlined in this Schedule.

3.l3 Orders for equipment and supplies, which the Government will provide as contribution in kind, shall be placed in due course to ensure availability of these items at the appropriate time.

IV. BUDGET

4.1 The estimated cost of the services and facilities to be provided for the Project is detailed in Appendices I and II. Funds will be provided by the Federal Republic of Germany and the Republic of the Philippines as indicated below:

1. Allocation by the Federal Republic of Germany (Appendix I) in the amount of $425,000.

2. Counterpart contribution and participation by the Government (Appendix II) in the amount of $475,140.

V. REPORTS

5.1 As soon as possible, following the conclusion of the project opera­tions and not later than 6 months from that date, the Implementing Agency (RA) with the assistance of the Project Leader and the Chief Project Advisor, will submit a final comprehensive report on the Project for presentation to the Government.

VI. REVISION

6.1 The Project will be subject to periodic review during the existence of the Project. Any substantial deviation from the Plan of Operation shall be initiated by the Philippine Government and approved by the Federal Republic of Germany.

VIII. STEPS TO RE TAKEN AT THE COMPLETION OF SPECIAL FUND ASSISTANCE TO THE PROJECT

7.1 Within six months of receiving the final report, the Government shall submit to the Federal Republic of Germany a report on the benefits derived from the Project and the activities planned by the Government to implement the recommendations contained in the final report.

This Memorandum of Agreement shall take effect upon signing and in accordance with the provisions of the Agreement on Technical Assistance between the two Governments referred to above, or by such prolongation as may be mutually agreed upon between the signatory Governments.

DONE and signed in the City of Manila, Philippines this 25th day of March 1969.

( SEE TABLE VOL. 6 PAGE 51-55 )