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July 27, 1989

ARTICLE I
  NATURE OF THE MEMORANDUM OF UNDERSTANDING

Section 1.01

This Memorandum of Understanding does not constitute an international treaty.  It is a subsidiary arrangement made pursuant to the General Agreement on Development Cooperation between CANADA and the PHILIPPINES dated the 13th day of November 1987 and is intended only to set out the responsibilities of the two Governments in relation to the Project.

ARTICLE II
  RESPONSIBLE AUTHORITIES

Section 2.01

CANADA designates the Canadian International Development Agency (hereinafter called "CIDA") as the agency responsible for the implementation of its obligations under this Memorandum of Understanding.

Section 2.02

The PHILIPPINES designates, unless otherwise stated herein, the Department of Transportation and Communications (hereinafter called "DOTC") as the Agency responsible for the implementation of its obligations under this Memorandum of Understanding.

ARTICLE III
  THE PROJECT

Section 3.01

CANADA and the PHILIPPINES shall participate in an Airport Security Project (hereinafter called the "Project").  The objective of the Project is to assist the Philippines in improving specific aspects of airport security toward achieving acceptable international standards at Ninoy Aquino International Airport, Manila.  The Project is more particularly described in Annex "A", attached hereto.

Section 3.02

The Project will be implemented by Lavalin Aviation Canada, Inc., the Canadian Executing Agency (hereinafter called the "CEA") under a standing-offer contract with Canada.  A Project Implementation Plan (IP) prepared by the CEA shall be the basis in effectively implementing the project.  The PHILIPPINES will designate the CEA to provide procurement assistance to DOTC/MIAA for implementation of the Project.

ARTICLE IV
  CONTRIBUTION OF CANADA

Section 4.01

The contribution of CANADA for the Project shall consist of the provision of security equipment and installations, training, the professional services of Canadian advisors, and the services of Canadian agencies for implementation, procurement, monitoring and evaluation. The responsibilities of CANADA are more particularly set forth in Annex "B".  The total value of CANADA'S contribution shall not exceed One Million Four Hundred and Sixty Thousand Canadian Dollars (Cdn$ 1,460,000).

Section 4.02

The proceeds of the contribution shall not be used by the PHILIPPINES to pay any taxes, fees, customs duties or any levies or charges imposed directly or indirectly by the PHILIPPINES on any goods, materials, equipment, vehicle and services purchased or acquired for, or related to, the execution of the Project.

ARTICLE V
  CONTRIBUTION OF THE PHILIPPINES

Section 5.01

The contribution of the PHILIPPINES shall consist of the provision of qualified personnel, counterparts to Canadian advisors and all labor, materials, facilities, equipment, services and other Project requirements all as more particularly set forth in Annex "C".

Section 5.02 

The DOTC through the Manila International Airport Authority (MIAA) shall enter into an agreement with the CEA which confirms their agreement with regard to:

(a) the Project Implementation Plan (IP), as submitted by the CEA to CIDA

(b) the equipment specifications and training programs as provided in the Requisition pursuant to the Standing Offer agreed to between the CEA and CIDA;

(c)the responsibilities of the parties involved in the Project as set forth in the aforesaid Requisition.

ARTICLE VI
  INFORMATION

Section 6.01

The PHILIPPINES and CANADA shall ensure that this Memorandum of Understanding is carried out with due diligence and efficiency and each shall furnish to the other all such information relating to the Project as shall reasonably be requested.

ARTICLE VII
  COMMUNICATIONS

Section 7.01

Any communications or documents given, made or sent by either the PHILIPPINES or CANADA pursuant to this Memorandum of Understanding, shall be in writing and shall be deemed to have been duly given, made or sent to the party to which it is addressed at the time of its delivery by hand, mail, telegram, cable, radiogram, telex or FAX at its respective address, namely:

Section 7.02

Any one of the Parties hereto may, by written notice to the other Party hereto, change the address to which any notice or request intended for the party so giving such notice shall be addressed.

Section 7.03

All communications and documents submitted to CANADA shall be in either the English or the French language, and those submitted to the PHILIPPINES shall be in the English language.

ARTICLE VIII
  INTERPRETATION

Section 8.01

Differences which may arise in the application of the provisions of this Memorandum of Understanding shall be settled by means of negotiations between CANADA and the PHILIPPINES or by any other manner mutually agreed upon by their respective Governments.

ARTICLE IX
  ENTIRE UNDERSTANDING

Section 9.01

This Memorandum of Understanding together with Annexes "A", "B", "C" and "D" which form an integral part hereof constitutes the entire understanding between the Parties with respect to the Project.

ARTICLE X
  CONSULTATION

Section 10.01

CANADA and the PHILIPPINES will endeavor to consult each other in respect of any matter that may from time to time arise in connection with this Memorandum of Understanding.

ARTICLE XI
  GENERAL PROVISIONS

Section 11.01

This Memorandum of Understanding shall come into force and effect on the date of signature and shall expire on 31 March 1992. This Memorandum of Understanding may be amended from time to time, as deemed necessary, by mutual agreement by an exchange of letters.

IN WITNESS WHEREOF, the undersigned have signed this Memorandum of Understanding in duplicate in Manila on the 27th day of July, 1989.