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MEMORANDUM OF AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

   This Memorandum of Agreement is entered into and executed this 25th day of August 1995 at Legazpi City, Philippines, by and between:

   The NATIONAL GOVERNMENT AGENCIES of Region V (Bicol), represented herein by Regional Directors/Heads, whose names and signatures appear in this document, and hereinafter referred to as NGAs;

   The GOVERNORS, CITY and MUNICIPAL MAYORS of the Province of Albay, Camarines Sur and Camarines Norte, whose names and signatures appear on this document, and hereinafter referred to as LGUs;

   The NON-GOVERNMENT ORGANIZATIONS of Region V (Bicol), represented herein by the Regional Governor of the Bicol Chamber of Commerce and Industry (BCCI), the Presidents of local Chamber of Commerce and Industry, Chairman of the RAFC and the President of Ateneo de Naga, and hereinafter refereed to as NGOs;

and

   The REGIONAL DEVELOPMENT COUNCIL, REGION V, represented herein by its Chairman, and  hereinafter referred to as the RDC.

WITNESSETH

   WHEREAS, the Medium-Term Philippine Development Plan (MTPDP CY 1993-1998) emphasizes dispersed development as a spatial strategy towards the development of the agri-industrial sector and the attainment of poverty alleviation, employment generation, equitable distribution of wealth and sustainable growth;

   WHEREAS, consistent to the above, the Bicol regional spatial strategy considers a corridor type of development between the two major growth poles of the region which shall serve as conduits of development for the secondary growth centers of the different municipalities along the corridor and other areas within accessible ranges;

   WHEREAS, the Bicol Regional Development Summit held in Naga City from June 1-5, 1993 has supported the implementation of and has come up with a time frame for the development of the project dubbed as the "LEGAZPI-IRIGA-NAGA (LIN) GROWTH CORRIDOR PROJECT";

   WHEREAS, said Corridor Project is conceived consistent with the provisions of Sec. 33 of the Local Government Code of 1991 where LGUs may group themselves, consolidate and coordinate their efforts, services and resources for purposes beneficial to them;

   WHEREAS, the LGUs covered by the LIN Gorwth Corridor have shown interest in pursuing the development of the area;

   WHEREAS, the NGAs of Region V with the Department of Trade and Industry as the lead agency, have indicated their willingness to provide support to the LGUs in all stages of project development; and

   WHEREAS, for and in consideration of the foregoing, the RDC, LGUs, NGAs and NGOs do hereby agree to work collectively for the development of the LIN Growth Corridor;

   NOW THEREFORE, in consideration of the foregoing, the RDC, LGUs, NGAs and NGOs agree and bind themselves to undertake the following tasks as herein enumerated:

1. Regional Development Council (RDC)

• shall deliberate on soundness/relevance of project components and acitivities on the basis of the identified goals and policies

• shall conduct monitoring and periodic review of the project in relation to the qachievement of targets, objectives and goals.

2. The LIN Corridor Project Board

• shall, as collective body, undertake the coordination and management of the Project.

1. Local Government Units of Legazpi City, Naga City, Iriga City, Pili, Bula, Baao, Nabua, Bato, Polangui, OAs, Ligao, Guinobatan, Camalig, Darag and Daet, Camariens Norte

1. shall provide data/information such as municipality/city plans during the conduct of studies pertaining to the project

2. shall pass legislations giving incentives to agri-industrial and support industries which will locate within the project area

3. shall provide the necessary support towards the realization of the goals and objectives of this project

4. shall coordinate with other LINDGC members on other components of the project, starting with the conduct of pre-implementation activities

5. shall assign permanent representatives/staff to the Technical Wotking Group.

2. Provincial Governments of Albay, Camarines Sur and Camarines Norte

1. shall provide data/information such as provincial plans during the conduct of studies pertaining to the project

2. shall pass legislations giving incentives to agri-industrial and support industries which will locate within the project area

3. shall provide the necessary support towards the realization of the goals and objectives of this project

4. shall coordinate with other LINGC Project Board members on other components of the project, starting with the conduct of pre-implementation activities

5. shall assign permanent representatives/staff  to the Technical Working Group

3. Department of Trade and Industry (DTI)

1. shall be the lead agency in project pre-implementation and implementation activities

2. shall identify priority projects to be located at identified sites, in coordination with other LINGC members and the private sector

3. shall attract/encourage potential investors through promotional materials or activities and BOI incentives

4. shall coordinate with other LINGC members on other components of the project, starting with the conduct of pre-implementation activities

5. shall assign permanent representatives/staff to the Technical Working Group

4. Department of Agriculture (DA)

1. shall identify production areas which could support the needs of potential industries

2. shall provide technical assistance to the LGUs within the corridor particularly concerning agricultural projects

3. shall pursue programs/projects/activities which could contribute to the development of agri-industries along the corridor

4. shall coordinate with other LINGC members on other components of the project, starting with the conduct of pre-implementation activities

5. shall assign permanent representatives/staff to the Technical Working Group

5. Department of Interior and Local Government (DILG)

1. shall identify extent and limitations of incentives to be granted to investors in the coverage area

2. shall provide technical assistance to the LGUs within the corridor particularly in their exercise of powers, functions and duties identified in the Local Government Code

3. shall pursue programs/projects/activities which could contribute to the development of agri-industries along the corridor

4. shall coordinate with other LINGC members on other components of the project, starting with the conduct of pre-implementation activities

5. shall assign permanent representatives/staff to the Technical Working Group

6. National Economic and Development Authority (NEDA)

1. shall provide data/information with bearing on the effective and efficient pre-implementation and implementation activities

2. shall provide technical expertise and assist in fund sourcing for the conduct of project studies

3. shall coordinate with other LINGC members on other components of the project, starting with the conduct of pre-implementation activities

4. shall assign permanent representatives/staff to the Technical Working Group

7. Department of Public Works and Highways (DPWH)

1. shall identify road networks and related infrastructure for rehabilitation/upgrading, as well as inclusion in agency budget

2. shall undertake the conduct of surveys and the preparation of plans/specifications, estimates and design of all engineering/infrastructure work, in close coordination with the concerned LGUs, specifically the local Engineering Offices

3. shall undertake the construction/rehabilitation/upgrading of identified projects/activities

4. shall coordinate with other LINGC members on other components of the project, starting with the conduct of pre-implementation activities

5. shall assign permanent representatives/staff to the Technical Working Group

8. Department of Agrarian Reform (DAR)

1. shall provide necessary data pertaining to land classification/use

2. shall provide technical assistance on land conversion, if needed

3. shall coordinate with other LINGC members on other components of the project, starting with the conduct of pre-implementation activities

4. shall assign permanent representatives/staff to the Technical Working Group

9. Department of Transportation and Communication (DOTC) 

1. shall determine the transportation needs along the corridor and identify projects in response to said need

2. shall determine/identify and initiate possible projects to modernize telecommunication facilities along the corridor

3. shall study and initiate the establishment of an intra-corridor or inter-municipal telecommunication system

4. shall coordinate with other LINGC members on other components of the project, starting with the conduct of pre-implementation activities

5. shall assign permanent representatives/staff to the Technical Working Group

10. Department of Environment and Natural Resources (DENR) - through its mandated Bureaus:

1. shall, together with DOT, identify watershed areas and parks along the corridor which are not to be considered as industrial areas

2. shall identify projects/activities which could encourage tourism and/or economically productive endeavors in DENR-covered areas

3. shall pursue environmentally relevant programs/projects/activities supportive to the development of agri-industries along the corridor

4. shall coordinate with other LINGC members on other components of the project, starting with the conduct of pre-implementation activities

5. shall assign permanent representatives/staff to the Technical Working Group

11. Department of Tourism (DOT)

1. shall, together with DENR, identify ecology areas and parks along the corridor which are not to be considered as industrial areas

2. shall identify projects/activities which could encourage tourism in the entire area covered by the growth corridor

3. shall pursue tourism programs/projects/activities supportive to the development of agri-industries along the corridor

4. shall coordinate with other LINGC members on other components of the project, starting with the conduct of pre-implementation activities

5. shall assign permanent representatives/staff to the Technical Working Group

12. Department of Health (DOH)

1. shall provide health-related data/information on the population in the corridor area

2. shall identify and conduct programs/projects/activities which will contribute to the physical well-being of the area population, such as medical missions and outreach programs

3. shall look into the possibility of modernizing and providing adequate health facilities, equipment and manpower in government-owned hospitals/clinics

4. shall coordinate with other LINGC members on other components of the project, starting with the conduct of pre-implementation activities

5. shall assign permanent representatives/staff to the Technical Working Group

13. Department of Labor and Employment (DOLE)

1. shall identify the number and type of skills existing in the corridor area which could be tapped by the project

2. shall identify and conduct projects/activities which could improve/upgrade existing skills in the entire area covered by the growth corridor

3. shall identify labor-related incentives supportive to the development of agri-industries along the corridor

4. shall coordinate with other LINGC members on other components of the project, starting with the conduct of pre-implementation activities

5. shall assign permanent representatives/staff to the Technical Working Group

14. Department of Science and Technology (DOST)

1. shall identify mature technologies ready for small and medium scale commercialization

2. shall provide trainings on agri-industrial technologies

3. shall assign permanent representatives/staff to the Technical Working Group

15. Housing and Land Use Regulatory Board (HLURB/HUDCC)

1. shall identify regulations which will cover locators in identified sites within the project area

2. shall provide assistance to agri-industrial and other support/infrastructure projects within the area

3. shall coordinate with other LINGCP members on other components of the project, starting with the conduct of pre-implementation activities

4. shall assign permanent representatives/staff to the Technical Working Group

16. Non-Government Organizations (NGO)

1. shall provide the necessary support towards the realization of the goals and objectives of this project

2. shall coordinate with other LINGCP members on other components of the project, starting with the conduct of pre-implementation activities

3. shall assign permanent representatives/staff to the Technical Working Group

FUNDING  SUPPORT AND MANAGEMENT OF FUNDS

   Funding requirements of the Project under this Agreement shall be shouldered by the provinces of Camarines Norte, Camarines Sur and Albay and the municipalities along the LIN Growth Corridor, namely: City of Legazpi, Daraga, Camalig, Guinobatan, Ligao, Oas, Polangui, Bato, Baao, Nabua, City of Iriga, Bula, Pili, City of Naga and Municipality of Daet, Camarines Norte. The amount contributed by each LGU shall be equivalent to 1/6 of 1 percent of their FY 1984 Internal Revenue Allotment (IRA).

   Fund management shall be vested to the City Government of Naga which shall act as trustee of the project funds. Such fund shall be deposited as a trust fund and withdrawals thereof can only be effected based on the Work and Financial Program approved by the Project Board. Disbursements shall be made upon request of the Project Director and approved by the Project Board Chairman.

SEPARABILITY CLAUSE

   If, for any reason, any part of this Agreement is found to be invalid, contrary to law or otherwise rendered ineffective, the remainder hereof not affected shall remain in force and in effect.

REPEALING CLAUSE

   This Agreement repeals, amends, modifies or supercedes any and all other agreements or parts of agreements, order or regulations, found inconsistent herewith.

EFFECTIVITY CLAUSE

   This Agreement takes effect immediately and shall continue to be in full force and in effect unless otherwise terminated upon mutual consent of the parties involved.

   IN WITNESS WHEREOF, the parties hereto bind themselves and hereby affixed their signatures on this __ day of _________________, 1995.

LEGAZPI - IRIGA - NAGA (LIN) GROWTH CORRIDOR PROJECT BOARD

By:

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES    )  S. S.
CITY OF LEGAZPI                           ) 

   BEFORE ME, a NOTARY PUBLIC for and in the above jurisdiction, personally appeared: