Treaty (10 August 2004)

August 10, 2004

MEMORANDUM BETWEEN THE GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES AND THE EUROPEAN COMMISSION NATIONAL INDICATIVE PROGRAMMES 2002-04 (REVISED VERSION) AND 2005-06

Objectives The Indicatives Programmes 2002-2004 and 2005-2006 outline objectives and priority fields for co-operation, taking into account the Government's policy agenda and the political and Socio-economic context, as set out in the Mid Term Development Plan. They aim to support sustainable economic, social and environmental development of the Philippines. Priorities The Indicatives Programmes focus on the following areas of co-operation:

1. Assistance to the poorest sectors of society in particular in supporting the Health Sector Reform Agenda with a Health Sector Programme and to contribute to the World Bank Multi Donors Trust Fund for Mindanao Reconstruction and Development in supporting the Peace process in the Southern Philippines;

2. Assistance to Trade and Investment, with a view to facilitate the integration of the Philippines in the global economy, comprising: trade sector policy formulation and institutional reform; and co-operation in higher education;

3. Good Governance as cross-cutting issue to support initiatives for better access to justice for the poor and vulnerable groups, to fight against corruption and to assist the Government in improving security and combating terrorism. The Indicative Programmes for 2002-2004 and 2005-2006 foresee the following indicative allocations to the above mentioned areas of cooperation: 2002- 2005- 2004 2006 Area of cooperation € 18 €45 million million 1. Assistance to the poorest sector of the society 33 Health Sector Programme 12 Mindanao Reconstruction and Development- Multi Donors Trust Fund 2. Assistance on Trade and Investment 3.4 Business climate enhancement - Global economy 3 (Trade Related Technical Assistance)Small Project Facility 3. Good Governance Prevention and Fight against Corruption and 5.6 Better access to Justice for the poor and vulnerable groups 6 Security and Fight against Terrorism Total 18 45 Total for 2002-2006: € 63 million Indicative Financial Envelope The indicative financial envelope is thus € 18 million for the 2002-2004 period and € 45 million for the 2005-2006 period. This allocation will be subject to budget availability and may be adjusted in the course of project identification. Any modification of the above list of areas of co-operation will be subject to the mutual agreement of both parties to these Indicatives Programmes. For and on behalf of For and on behalf of the The European Commission Government of the Philippines

(Sgd.) H.E. JOHANNES DE KOK (Sgd.) HON/DELIA DOMINGO ALBERT Head of the Delegation of the European Secretary of Foreign Affairs Commission in the Philippines Government of the Philippines Done at Manila on 10th August 2004