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April 18, 2002

The Government of the Republic of the Philippines and the Government of the Republic of Chile hereinafter referred to as the "Parties";

WISHING to promote bilateral cooperation with the end in view of economic development, social progress and strengthening of democratic institutions;

CONSIDERING that the provision of housing is a fundamental necessity for the development of the societies of both Parties;

TAKING into account that both Parties are committed to the improvement of the quality of life of their citizens, especially the poorest, by guaranteeing access to safer and hygienic housing in an appropriate environment;

CONSIDERING that the provision of adequate housing contributes towards the strengthening of the family as the fundamental social unit in both Parties;

TAKING into account the achievements attained by the Republic of Chile in the field of socialized housing through its Viviendas Sociales program;

WISHING to further develop the existing bilateral relations between them;

HAVE REACHED THE FOLLOWING UNDERSTANDING:

ARTICLE 1
GENERAL PROVISION

The Parties shall promote technical cooperation in the area of socialized housing specifically planning and technology, housing finance, and program implementation.

ARTICLE 2
AREAS OF COOPERATION

The Parties shall cooperate in the area of socialized housing through the exchange of information and technology on the subject, as well as the exchange of experts and officials involved in the area of housing, urban development and re-settlement of informal settlers.

The proposed technical cooperation shall consist of, but not limited to, the following major components:

1. Dispatch of Chilean Experts on Socialized Housing and Urban Development to the Philippines. The experts on socialized housing, finance, urban development, and resettlement from Chile shall assist their Philippine counterparts in the formulation of a strategic plan and program for the provision of shelter security ala Viviendas Sociales.

2. Learning Visit of Philippine Experts to Chile on the Viviendas Sociales. A team comprising of representatives from relevant Philippine national agencies and relevant representatives from the private sector and civil society shall be organized to conduct a learning visit to Chile on the Viviendas Sociales. The Philippine team shall conduct an appraisal of Chile's mass housing program. A report shall be prepared by the Philippine team documenting the findings of the Learning Visit and the recommended next steps to be undertaken under the bilateral Technical Cooperation.

3. Best Practices Documentation. The Parties shall jointly formulate/document the best practices and lessons learned in the implementation of the housing, urban development and resettlement approaches/technology used in the Viviendas Sociales. This Best Practices Document shall be used as the basis for the replication/adaptation of the Viviendas Sociales in the Philippines.

4. Pilot-Testing of a Socialized Housing Program/Project ala Viviendas Sociales. Through this Bilateral Technical Cooperation, a pilot program/project shall be developed and implemented in the Philippines in areas selected by the Philippines in accordance with Article 6.

5. Post Bilateral Technical Cooperation Assessment. The Parties shall prepare an assessment report of the Technical Cooperation on Socialized Housing which may serve as a guide for future technical cooperation in the area of socialized housing between the Parties.

ARTICLE 3
RESPONSIBLE AUTHORITIES

The Government of the Philippines designates the Housing and Urban Development Coordinating Council (HUDCC) as the agency responsible for the implementation of its obligations under this Memorandum of Understanding. The Government of Chile designates the Ministry of Housing and Urbanization as the agency responsible for the implementation of its obligations under this Memorandum.

ARTICLE 4
TECHNICAL ASSISTANCE

Upon request by the Government of the Republic of the Philippines, the Republic of Chile shall endeavor to provide the Philippines with technical assistance, with a view to establishing in the Philippines a program similar to the Viviendas Sociales of Chile.

ARTICLE 5
FUNDING

All cooperative activities and programs under this Memorandum of Understanding shall be subject to the availability of funds and resources of the Parties.

ARTICLE 6
IMPLEMENTING ARRANGEMENTS

Specific projects to be implemented under this Memorandum of Understanding shall be subject to such implementing arrangements as may be agreed upon by the Parties for each specific project.

ARTICLE 7
SETTLEMENT OF DISPUTES

Any dispute arising out of the interpretation or implementation of the provisions of this Memorandum of Understanding and its implementing arrangements shall be settled amicably between the Parties, by consultations or negotiations, through diplomatic channels.

ARTICLE 8
ENTRY INTO FORCE

This Memorandum of Understanding shall enter into force on the date of the later written notification by either of the Parties, through diplomatic channels, indicating that the domestic requirements for its entry into force have been complied with.

ARTICLE 9
AMENDMENTS

Any amendment or revision to the text of this Memorandum of Understanding shall be done in writing and mutually agreed upon by the Parties. Such amendment or revision shall enter into force in accordance with its Article 8.

ARTICLE 10
VALIDITY

This Memorandum of Understanding shall be valid for three (3) years from the date of its entry into force unless either of the Parties notifies the other Party, through diplomatic channels, of its decision to terminate this Memorandum at least six (6) months prior to its expiration date. The termination of this Memorandum, however, shall be without prejudice to the completion of the on-going projects entered into under this Memorandum. Extension of this agreement beyond the 3-year validity period shall be upon the written consent of both Parties, and in accordance with Article 9 hereof.

DONE in Santiago, Chile, on the eighteenth day of April of year 2002, in two (2) original copies in the English and Spanish languages, both versions being equally authentic.