MEMORANDUM OF UNDERSTANDING RELATING TO THE ASEAN ENERGY PROJECT UNDER THE ASEAN – AUSTRALIA ECONOMIC COOPERATION PROGRAMME

GENERAL

1. THIS
MEMORANDUM expresses the understanding and intentions of the
Governments of the
Republic of the Philippines and Australia concerning the
administration by the
Government of the Republic of the Philippines of Australian funds
contributed
to the ASEAN Energy Project.

DEFINITIONS

2. For the purpose of this Memorandum of
Understanding, unless the contrary intention is stated:

“AAECP” means the ASEAN-Australia Economic
Cooperation Programme;

“AAECP” Liaison Office means the Australian
Liaison Office for the
AAECP located in Kuala Lumpur;

“ADAB” means the Australian Development
Assistance Bureau;

“ASEAN” means the Association of
South East Asian Nations;

“AUSTRALIAN EMBASSY” means the Australian
Embassy in Manila
representing the Government of Australia in the Philippines;

“COST” means the ASEAN Committee on Science
and Technology;

“FUNDS” means money provided by ADAB through the
Australian Embassy,
Manila in the form of Accountable Cash Grants from Australia’s
commitment to
the AAECP;

“NSTA” means the National Science and Technology
Authority which will
be the executing authority in the Philippines for the Project;

“The Project” means the ASEAN Energy Project
which is administered by
the ASEAN Working Group on Non-Conventional Energy Research for
ASEAN-COST, as
decided on by the established Committee of ASEAN and Australian
Officials known
as the ASEAN-Australia and to which Project the Australian
Government is
providing funds;

“Secretariat” means the Working Group
Secretariat located with the
King Mongkut’s Institute of Technology, Thonburi, (KMITT)
Thailand;

“Working Group” means the ASEAN Working Group on
Non-Conventional Energy
Research which is responsible to ASEAN-COST for the implementation
of the
Project.

AUTHORITIES

3. The
Executing Authorities for this Project will be:

For the Government of the Philippine
: NSTA

For the Government of Australia : ADAB

ADAB may, in consultation with the Philippine
authorities concerned,
nominate suitably qualified agents to undertake any part of its
functions on
its behalf.

DURATION

4. This
Memorandum will take effect from the date of its signature and all
undertaking
herein will cease upon completion of the Project or on such a date
as may be
decided upon between the two Governments.

ARRANGEMENTS

5. To assist the Government of the
Philippines in implementing the aims of the Project, the Australian
Government
will provide funds to the NSTA. Such
funds will be used by the NSTA for meeting the costs of research,
development
and administration activities directly related to the Project and
will be paid
to the NSTA on a quarterly basis in advance, taking into
consideration
projected expenditure on the Project for the relevant three month
period.

Such funds, and any income that may be derived from
these
funds, will be tax exempt.

5.1. The funds will be used for the following
items associated with Sub-Projects which have been assessed and
approved by the
Working Group and endorsed by COST:

5.1.1.
Salaries for technicians and Filipino administrative
staff up to the limits approved by the Working Group;

5.1.2.
Economy class airfare, traveling expenses and
allowances at current Australian Government rates for delegates
traveling in
the ASEAN Region and Australia for purposes directly related to
the Project;

5.1.3.
Purchase and commissioning of equipment for the
Project;

5.1.4.
Purchase of chemicals and other consumable items for
the Project;

5.1.5.
Training and Study Tours for Filipino personnel
directly associated with the Project in any of the ASEAN
countries and
Australia, and of other ASEAN trainees in the Philippines. The
cost of training and study tours in
Australia may be paid in ADAB from the Project budget;

5.1.6.
Books and journals relevant to the Project;

5.1.7.
Hire of rooms and other essential expenditure for the
Project workshops, meetings, conferences, and seminars in the
Philippines;

5.1.8.
Publication of reports on research, workshops, meetings
and newsletters for the Project;

5.1.9.
Other expenditure specifically approved by the Working
Group.

5.2. The NSTA will establish an identifiable
account into which the funds will be paid by the Australian
Government through
the Australian Embassy.

5.3. The
NSTA will furnish financial statements to the Secretariat for
submission as a
Consolidated Statement to the Working Group.
Such financial statements, duly
certified or audited, will cover the periods from 1 July to 31
December and
from 1 January to 30 June each year and as otherwise requested
from time to
time by the Working Group.

A copy of the Consolidated Statement as approved
by the Working Group
will be provided to the AAECP Liaison Office and acceptance by the
Working
Group of the audited statements will constitute an acceptance of
such
statements by the Australian Government.

5.4. When
completion of the Project has been determined by the Working Group
in
consultation with ADAB, the NSTA will repay any unexpended funds
to the
Australian Government.

5.5. The
NSTA will be responsible for the administrative arrangements
required to
fulfill all activities for which funds are paid by the Australian
Government
and which are set out in Para. 5.1 above.

TENDERING AND PROCUREMENT

6. For major items of equipment
and supplies which would normally require calling tenders under the
Government
of the Philippines purchasing regulations, the NSTA will prepare
specifications
in consultation with the Secretariat.

6.1. Preference
will be given to suppliers of equipment manufactured in one of the
ASEAN
countries or in Australia and tenders will be called accordingly.

6.2. Assets
purchased for the Project with funds provided by Australia will
become the
property of the Working Group or other body determined by the
Working Group.

6.3. The
Government of the Philippines will exempt from import duties and
other taxes
all goods supplied from funds provided by Australia for the
established
purposes of the Project.

PERSONNEL

7. For the purposes of this Project, the
Working Group may request the services of Australian technical
advisors as and
when required.

7.1. The
costs associated with short-term Australian advisors may be paid
by ADAB from
the Project budget.

CONFIDENTIALITY

8. The
Australian Development Assistance Bureau will receive six copies of
any
publication or report produced for the Project, at the discretion of
the
Working Group. The reports, or the
contents thereof, will be treated with utmost confidentiality and
will not be
made available to any other Government, body or person except with
the prior
written permission of the Working Group.

REVIEW

9. A review
of progress of the Project may be made at times arranged between,
and mutually convenient to, the Working Group and ADAB. Such a
review may be undertaken by a Joint
Evaluation Team appointed by the Working Group and ADAB and
independent of
staff directly involved in the Project. Costs associated with the
review will
be met from the Project budget.

AMENDMENTS

10. Amendments to this Memorandum may be made
at any time by an Exchange of Letters between the parties.

Signed at Metro Manila, in duplicate, this 2nd day of May
1985.