MEMORANDUM OF UNDERSTANDING RELATING TO THE METRO MANILA URBAN TRANSPORTATION STRATEGY IMPLEMENTATION PROJECT IN THE REPUBLIC OF THE PHILIPPINES

GENERAL

1.

This MEMORANDUM expresses the
understanding of the Governments of the Republic of the Philippines and
Australia concerning the responsibilities and contributions respectively
of the two Governments in regard to the Metro Manila Urban
Transportation Strategy Implementation Project, (hereinafter referred to
as the Project) located In Manila which is intended to assist with the
implementation of low cost projects identified as part of the Metro
Manila Urban Transport Strategy Project as further described and
detailed in Annex 1 to this Memorandum.

AUTHORITIES

2.

The Executive Authorities for this
Project will be :

For the Government of the Republic of the
Philippines: The Ministry of Transportation and Communications (MOTC).

For the Australian Government: The Australian Development
Assistance Bureau of the Department of Foreign Affairs.

The Australian Development Assistance Bureau may nominate
suitably qualified agents to undertake any part of its functions on its
behalf.

DURATION

3.

This Memorandum will take effect from the
date of its signature and the Project will be deemed to have commenced
from 1 July 1984. The Australian contribution to the Project and all
undertakings given herein will cease 18 months after the date of its
signature of this Memorandum or on such other date as may subsequently
be arranged between the two Governments.

RESPONSIBILITY

4.1

A senior level Metro Manila
Transportation Strategy Project committee will be responsible for the
review of the Project and the provision of policy direction to an
Executive Co-ordinating Committee. The membership of the Metro Manila
Transportation Strategy Project Committee will include:

• The Minister of Transportation and Communications;

• The Minister of Public Works and Highways;

• The Vice Governor of the Metro Manila Commission;

• The Chief of Constabulary/Director General of the
  Integrated National Police; and

• The Australian Ambassador to the Republic of the
  Philippines.

4.2

Responsibility for co-ordination of the
activities of member agencies associated with the Project, for the
review of progress of the Project directly, and for the making of
appropriate recommendations or comments on the Project to the Strategy
Policy Committee will be vested in an Executive Co-ordinating Committee.
The membership of the Executive Co-ordinating Committee will include:

CONTRIBUTIONS

5.

The contributions of the Philippine and
Australian Governments are detailed in Annex II and are estimated to
value $600,000. Disbursement of Australian contributions will be subject
to the normal annual parliamentary approval of appropriations.

EVALUATION

6.

An evaluation of progress of the Project
may be made at times arranged between, and mutually convenient to, the
Government of the Philippines and the Australian Government. Such an
evaluation would be undertaken by a joint investigation team appointed
by the two Governments and independent of staff involved in the Project.

PERSONNEL

7.

For the purposes of this Project, the
Government of the Philippines will facilitate the recruitment of, and
employment by, the Australian Government or its agent of personnel as
required for the Project and established between the two Governments by:

SUPPLIES

8.

(a) Granting exemption from income or other taxes on
salaries and allowances;

(b) Granting exemption from import and other duties on
personal and household effects;

(c) granting exemption from import duties on one motor
vehicle per employee on condition that it be re-exported or duty paid on
its assessed value at time of sale within the Philippines;

(d) Granting to Australian Project personnel all rights
and entitlements accorded to the aid personnel of any other donor
country; and

(e) expediting the issue of all documentation required for
the entry of and performance of work by Project personnel.

CLAIMS

9.

Since assistance under this Memorandum of
Understanding is provided for the benefit of the Government and people
of the Philippines, the Government of the Philippines will bear all
risks arising from operations under this Memorandum of Understanding.
The Government of the Philippines will deal with any claims which may be
brought by third parties against the Australian Government, its
servants or Australian personnel and will hold harmless the Australian
Government and Australian personnel in case of any claims resulting from
operations under the Memorandum of Understanding except where it is
established in the course of mutual consultation and determination by
the two Governments that such claims arise from gross negligence or
willful misconduct of agents of the Australian Government or of
Australian personnel.

SECURITY

10.

The Government of the Philippines will
arrange for any protective services deemed necessary to ensure the
safety of the person and property of Australian personnel, and of their
dependants and Australian Project supplies.

AMENDMENTS

11.

Amendments to this Memorandum maybe made
at any time by an exchange of letters between the signatories.