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August 18, 1989

This Memorandum of Agreement is entered into by and between:

THE DEPARTMENT OF FOREIGN AFFAIRS of the Republic of the Philippines, represented herein by the Secretary of Foreign Affairs, with office address at Philippine International Convention Center, Manila, hereinafter referred to as "DFA";

-and-

THE NATIONAL ECONOMIC AND DEVELOPMENT AUTHORITY of the Republic of the Philippines, represented herein by the Acting Director-General, with office address at Amber Avenue, Pasig, hereinafter referred to as "NEDA";

-WITNESSETH-

WHEREAS, the Government of Japan has committed itself to finance a youth scholarship program in each of the ASEAN member countries with a view to assisting national efforts through the development of human resources by contributing annually from 1980-1989 to the Association of South East Asian Nations (ASEAN) the amount of US$1 million for a period of ten years and, thereafter, has declared the intention to add new provisions and to start a new program with a total of US$10 million in new funding over the next five years starting in 1990;

WHEREAS, by virtue of the aforementioned grant, the Philippines received, through the ASEAN Secretariat in Jakarta, the amount of US$200,000.00 annually from 1980-1989, which is subject to augmentation under the new provisions and/or new program;

WHEREAS, in order to establish a framework and system relative to the administration of the Philippine component of the Japan Scholarship Fund for the ASEAN Youth (JSFAY), the ASEAN National Secretariat of the Department of Foreign Affairs and the Pamantasan ng Bagong Lipunan (University of Life) of the then Ministry of Human Settlements signed a Memorandum of Understanding dated 23 December 1980;

WHEREAS, after the change in government in the Philippines in early 1986, the organizational and legal status of the Pamantasan ng Bagong Lipunan became untenable with the consequence of impeding its compliance with the stipulation of the Memorandum of Agreement dated 23 December 1980, namely: (a) to convene meetings of the Advisory Council, the body which is responsible for the administration of the Scholarship Fund; and (b) ;to submit the report on the management and disbursement of funds and comprehensive report on the project, which are conditions for the annual disbursement of funds;

WHEREAS, the inability of the Pamantasan ng Bagong Lipunan to perform its role in the administration of said Scholarship Fund has prevented the Philippines from effectively utilizing the funds available under the grant since 1986;

WHEREAS, the DFA, exercising functional supervision over the ASEAN National Secretariat or Office of ASEAN Affairs is charged with the task of ensuring the efficient utilization of the JSFAY and the establishment of the appropriate mechanism for such purpose;

WHEREAS, the NEDA possesses the necessary institutional machinery, manpower and. expertise to co-administer and implement the Scholarship Fund in view of the fact that it is mandated to coordinate, monitor and oversee all foreign grants and scholarships with the aim of ensuring that they dovetail with the national development plans;

NOW, THEREFORE, for and in consideration of the foregoing, the DFA and NEDA agree to co-administer and implement the Philippine component of the Japan Scholarship Fund for the ASEAN Youth under the following terms and conditions:

ARTICLE 1.
  THE PROGRAM

Section 1.1 Name. The Scholarship Program shall be known Fund for the ASEAN Youth (JSFAY).

Section 1.2 Scope - The Program will consist of the formulation of the procedures for the administration of JSFAY, the selection of scholars, courses and schools and the promulgation and implementation of the terms and conditions of the grants as well as the remittances of the grants within a period specified by the Office of ASEAN Affairs : Provided, That the elements of the Program may he changed by written agreement of the Parties hereto without need of any amendment to this Agreement.

ARTICLE 2
  FUNDING

Section 2.1 Scholarship Expenses. The annual Philippine allocation under the JSFAY shall be used to defray all necessary expenses for the implementation of JSFAY Program.

The Government of the Philippines may, in the future, augment funds to support the activities requiring additional cost relative to the implementation of the Program.

Section 2.2 Disbursements. The first disbursement shall be due from the ASEAN National Secretariat upon submission by the NEDA In writing, satisfactory in form and substance, of the details of the Program that will implement the JSFAY.

Succeeding annual releases shall be undertaken In the procedure aforementioned, with the additional requisite report on the disbursement of the funds and a comprehensive status report of the Program of the preceding year.

ARTICLE 3
  INTER-INSTITUTIONAL ARRANGEMENTS

Sect ion 3.1 Composition. There shall be a Committee to be composed of the following:

Director-General, ASEAN Philippines, DFA Executive Officer, Special Committee on Scholarships, NEDA Desk Officer, for ASEAN Committee on Social Development (COSD), DFA

Section 3.2 Function. The Committee shall agree to establish the rules and regulations regarding the recruitment, selection and monitoring of the grantees, disbursement of grants, selection of courses and educational institutions to be covered by the Program, and such other matters necessary for the effective implementation of this Program: Provided, That until revised by the Committee, Annex I hereof shall be the criteria for the selection of the grantees.

The Committee shall meet within fifteen (15) days upon the signing of this Agreement. It shall ensure that the initial set of grantees under the Program shall have been selected at the start of the School Year 1990-1991.

The Committee shall also meet once in every quarter of the year or as often as may be required to discuss the status of implementation of the Program.

ARTICLE 4
  RESPONSIBILITIES OF THE ADMINISTERING AGENCIES.

Section 4.1 The DFA. The DFA shall:

(a) Act as liaison on all matters pertaining to the Program with the ASEAN Secretariat in Jakarta and the Government of Japan;

(b) Ensure the availability of the funds for the JSFAY at its commencement and for the duration thereof;

(c) Prepare the required reports for presentation to the annual ASEAN-Japan Forum; and

(d) Prepare a report in coordination with NEDA on the release of the funds, including, inter alia, the list of grantees, their areas of specialization, institutions enrolled in and the amount of the cost per individual grants.

Section 4.2 The NEDA. The NEDA shall

(a) Provide requirements in the adequate technical and secretariat support selection and monitoring of grantees;

(b) Prepare a report in coordination with DFA on the disbursement of funds including the list of grantees, their areas of specialisation, institutions where they are enrolled in and the training cost per individual grantee; and

(c) Assess development plan. the impact of the program on the national development plan.

ARTICLE 5
  GENERAL GUIDELINES AND PROCEDURES

(a) Selection of grantees will be based on the implementing guidelines agreed on by both Parties.

(b) The existing coordinative arrangement between the Government of Japan, through the Office of ASEAN Affairs (Philippines), and the Department of Foreign Affairs and the NEDA shall be followed in the programming of all the awards identified and agreed on. All communications pertaining thereto shall be channelled through the Department of Foreign Affairs in the Philippines.

ARTICLE 6
  RATE OF EXCHANGE

Funds provided under this Program shall be converted into the currency of the Philippines at the highest rate of exchange which, at the time of conversion, is not unlawful in the Republic of the Philippines.

ARTICLE 7
  TERMS OF THE AGREEMENT

This Agreement shal1 enter into force upon the signing of the Agreement and shall remain in force for the period wherein the Office of ASEAN Affairs shall be in receipt of the annual Philippine allocation from the Japan Scholarship Fund for the ASEAN Youth: Provided, That the DFA may terminate the Agreement fifteen (15) days after issuance of notice of termination.

IN WITNESS WHEREOF, the parties hereto have signed this Memorandum of Agreement on this 18^th day of August 1989 in Metro Manila, Philippines.

Annex 1

CRITERIA FOR THE SELECTION OF THE GRANTEE

1. The candidate must be a Filipino citizen of good moral character.

2. The candidate must be in good health as indicated by a certified medical examination.

3. The candidate must not be mo re than forty (40) years of age."

4. The candidate must display adequate understanding and utilization of English to enable him/her to participate effectively in the training program provided.

5. The candidate must have been admitted by an educational institution for a university degree or non-degree program.

6. The candidate who is employed in either a government or nongovernment agency must have a permanent appointment and must have been employed by the nominating agency for at least two (2) years from the date of application.

7. The candidate must not have a pending application for scholarship under another program.

8. The candidate mu st not have a pending administrative or criminal charges filed against him/her.

9. Where the candidate who has previously gone abroad on a scholarship is applying for a field of training diffeent from that previously enjoyed there should be at least four (4) years interval between the date of his return and the start of the new program being applied for.

10. A married man/woman candidate must submit a written cosent of the wife/husband for him/her to go abroad.

11. A woman candidate who is in the family way or who has a child less than two (2) years of age shall be disqualified.