FINANCING AGREEMENT FOR THE ASEAN-EC MANAGEMENT CENTRE.

The Commission of the European Communities, hereinafter referred to as 'THE COMMISSION' acting for and on behalf of the European Community, hereinafter referred to as 'THE COMMUNITY"

and the Government of Brunei Darussalam hereinafter referred to as 'THE HOST COUNTRY' acting for an on behalf of the Association of South-East Asian Nations (ASEAN) hereinafter referred to as 'THE RECIPIENT' or 'THE BENEFICIARY COUNTRIES',

Recalling the decision of the Establishment Agreement on the ASEAN-EC Management Centre signed in Kuala Lumpur, Malaysia, on 23rd July 1991.

DO HEREBY AGREE AS FOLLOWS :

The measures referred to in Article 1 of this Agreement shall be implemented and financed from THE COMMUNITY budget in accordance with the provisions set in this financing memorandum.

The agreement comprises provisions, entitled

"General Conditions" (Annex I) which are of general effect and provisions, entitled "Special Provisions" (Annex II), which apply specifically to the project referred to in Article I below.

ARTICLE 1
NATURE OF THE PROJECT

As part of its policy of providing aid to developing countries and especially in the context of its programme of aid to non-associated developing countries, in particular in the field of training, THE COMMUNITY shall finance by means of a grant the following project :

Project Number : 88/AS/R1/28
Title : ASEAN-EC MANAGEMENT CENTRE

Hereby referred to as "THE PROJECT"

ARTICLE 2
COMMITMENT OF THE COMMUNITY AND THE HOST COUNTRY

As per the Establishment Agreement, the Financial Contribution of THE COMMUNITY is set as a maximum amount of ECUs 1,973,400 whereas THE HOST COUNTRY is set at a maximum amount of ECUs 2,268,926, during the project period.

ARTICLE 3
UNDERTAKING FOR IMPLEMENTATION

THE RECIPIENT and THE COMMUNITY undertake to ensure the proper implementation of the project.

ARTICLE 4
ADDRESSES

FOR THE COMMUNITY

Commission of the European Communities
200 rue de la Loi
1049 Brussels
Telephone : 32.2.299.11.11
Fascimile : 32.2.299.02.04
Telex : 21877 COMEU B

FOR THE RECIPIENT

Ministry of Foreign Affairs of Brunei Darussalam
Jalan Subok
BANDAR SERI BEGAWAN 1120
Telephone : 6732 224117, 240281, 240282
Fascimile : 6732 224709, 229904
Telex : 0809 2411

ARTICLE 5
NUMBER OF COPIES

This Agreement is drawn up in the English language in two copies each being equally valid.

ARTICLE 6
ENTRY INTO FORCE

This Agreement shall enter into force on the date of its signature.

Annex I, Annex II, and Annex III ("Arbitration") shall be deemed as integral parts of this Agreement.

IN WITNESS WHEREOF this undersigned, being duly authorised there to by their respective Authorities, have signed this Agreement.

Signed in Davao City, Philippines on 21 January 1994

For the Community

(Sgd.) MR. JUAN PRAT
(Director General for External Economic Relations, EUROPEAN COMMUNITY)

(Sgd.) DATO PADUKA HJ MOHD ADNAN BUNTAR
(Director General for ASEAN-Brunei Darussalam)

TITLE I
FINANCING OF PROJECT

ARTICLE 1
COMMITMENT OF THE COMMUNITY

The commitment of THE COMMUNITY (hereinafter referred to as the "EC CONTRIBUTION"), the amount of which is laid down in the Special Provisions (Annex II), shall determine the limit within which commitment and execution of payments shall be carried out, within the framework of duly approved contracts and estimates.

ARTICLE 2
COMMITMENT OF THE BENEFICIARY COUNTRIES

Where programme execution depends on financial commitments out of THE BENEFICIARY COUNTRIES' own resources, the disbursement of the EC grant, in accordance with the provisions laid down in Annex II, shall be conditional upon performance of the obligations incumbent on THE BENEFICIARY COUNTRIES.

ARTICLE 3
DISBURSEMENT

Within the limit set on the financial contribution by THE COMMUNITY, requests for funds shall be presented by THE PROJECT in accordance with the provisions laid down in Annex II and on presentation of documentary evidence relating to payments made in respect of THE PROJECT.

TITLE II
CONTRACTS

ARTICLE 4
CONCLUSION OF CONTRACTS

The procedure to be followed prior to conclusion of contracts is as set down below.

ARTICLE 5
PROCUREMENT

Participation in invitations to tender and contracts shall be open on equal terms to all natural persons, firms and companies falling within the scope of the Treaty establishing THE COMMUNITY and to all natural persons, firms and companies of THE BENEFICIARY COUNTRIES.

ARTICLE 6
AWARD OF CONTRACTS

1. THE HOST COUNTRY should administer the grant on behalf of THE BENEFICIARY COUNTRIES. However, THE BENEFICIARY COUNTRIES may permit the conclusion of a contract between THE COMMUNITY, acting for and on behalf of THE BENEFICIARY COUNTRIES, and a European coordination body to undertake the administration of the EC grant.

2. Contracts shall be concluded following invitation to tender, or, by direct agreement when technical, economic or financial reasons so justify.

3. For each project, one or more candidates shall be selected on the basis of criteria guaranteeing their qualifications, experience and independence taking into account their availability for the project in question.

4. Contracts shall be drawn up, negotiated and concluded as specified in the Special Provisions (Annex II)

TITLE III
EXECUTION OF CONTRACTS

ARTICLE 7
ENTRY AND RESIDENCE FACILITIES

Natural and legal persons taking part in contracts shall benefit, under equal conditions, from a provisional right of residence and installation if the nature of the contract so justifies.

ARTICLE 8
IMPORT AND RE-EXPORT OF EQUIPMENT

1. THE HOST COUNTRY shall, in conformity with its laws and regulations, grant permits necessary for the importation of professional equipment required to execute THE PROJECT.

2. THE HOST COUNTRY shall further, in conformity with its laws ant regulations, grant natural and legal persons who have executed works, supplies or services contracts the permits required to re-export the said equipment.

ARTICLE 9
EXCHANGE CONTROL

THE HOST COUNTRY shall grant the permits necessary to repatriate funds received in respect of THE PROJECT, in accordance with the foreign exchange control regulations in force in THE HOST COUNTRY.

ARTICLE 10
TAXATION AND CUSTOMS

1. Taxes, customs and import duties shall not be financed out of the EC CONTRIBUTION.

2. Contracts financed out of the EC CONTRIBUTION shall not be subject in THE HOST COUNTRY to documentary stamp or registration duties or fiscal charges having equivalent effect, whether such charges exist or are to be instituted.

3. Natural or legal persons, including expatriate staff, from the EC countries executing technical cooperation contracts financed out of the EC CONTRIBUTION shall be exempt from business and income tax.

TITLE IV
COLLABORATION BETWEEN THE COMMISSION AND THE BENEFICIARY COUNTRIES

ARTICLE 11
FOLLOW UP OF THE EXECUTION

THE COMMISSION and THE BENEFICIARY COUNTRIES shall have the right to send its own agents or duly authorised representatives to carry out any technical or financial mission or audit that is considered necessary to follow the execution of THE PROJECT.

THE PROJECT, hereby undertakes to supply all information and documents which shall be requested of it, and to take all suitable measures to facilitate the work of persons instructed to carry out audits or inspections. It shall be kept informed of the visit of the officials referred to above.

THE PROJECT shall maintain records and accounts adequate to identify the outgoing supplies or services financed under the financing memorandum in accordance with sound accounting procedures. The Court of Auditors of THE COMMISSION shall have the right to carry out, on the basis of documents and if need be locally, any financial audit or inspection, as regards the accounts, invoices and other documentation relating to THE PROJECT which may be available in THE BENEFICIARY COUNTRIES and which relate to the EC CONTRIBUTION.

ARTICLE 12
FOLLOW UP OF THE PROJECT

THE COMMISSION shall follow the execution of THE PROJECT, may request any explanation and, where necessary, may agree, with the consent of THE BENEFICIARY COUNTRIES, on a new project orientation which is agreed to be better adapted to the objectives in view.

THE PROJECT shall make reports to THE COMMISSION and THE BENEFICIARY COUNTRIES following the provisions laid down in Annex II, throughout the period of THE PROJECT execution and after completion thereof.

TITLE V :
GENERAL AND FINAL PROVISIONS

ARTICLE 13
RENUNCIATION

THE BENEFICIARY COUNTRIES and THE COMMISSION may, by mutual agreement, renounce in whole or in part the execution of THE PROJECT.

An exchange of letters shall set out the details of the said renunciation.

ARTICLE 14
AMENDMENT

Any amendment to this Agreement must be agreed between the parties hereto and shall only be adopted after an exchange of letters between the parties.

ARTICLE 15
CONSULTATION - DISPUTES

1. Any question relating to the execution or interpretation of the Agreement shall be the subject of consultation between THE BENEFICIARY COUNTRIES and THE COMMISSION.

2. Any dispute relating to this Agreement which cannot be resolved by applying paragraph 1 of this article shall be settled according to the arbitration procedure referred to in the Annex hereto (Annex III).

ARTICLE 16
NOTICES - ADDRESSES

Any notice and any agreement between the parties provided for herein must be the subject of a written communication referring explicitly to the number and title of THE PROJECT. Such notices or agreement shall be made by letter sent to the party authorised to receive the same, and sent to the address notified by the said party. In case of urgency, telegraphic or telex communications shall be permitted and deemed to have been validly served, provided that they are confirmed immediately by letter.

The addresses are set out in the Financing Memorandum.