TREATIES AND OTHER INTERNATIONAL ACTS SERIES 13-903

________________________________________________________________________

CONSERVATION

Agreement Between the

UNITED STATES OF AMERICA

and the PHILIPPINES

Signed at Manila July 18, 2013 

 
 NOTE BY THE DEPARTMENT OF STATE

 Pursuant to Public Law 89—497, approved July 8, 1966

(80 Stat. 271; 1 U.S.C. 113)—

“. . .the Treaties and Other International Acts Series issued

under the authority of the Secretary of State shall be competent

evidence . . . of the treaties, international agreements other than

treaties, and proclamations by the President of such treaties and

international agreements other than treaties, as the case may be, 

therein contained, in all the courts of law and equity and of maritime

jurisdiction, and in all the tribunals and public offices of the

United States, and of the several States, without any further proof

or authentication thereof.”
 PHILIPPINES

 Conservation

Agreement signed at Manila July 18, 2013;

 Entered into force September 3, 2013.
AGREEMENT BETWEEN

THE GOVERNMENT OF THE UNITED STATES OF AMERICA

AND

THE GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES

CONCERNING THE ESTABLISHMENT OF A SECOND TROPICAL FOREST

CONSERVATION FUND

The Government of the United States of America and the Government of the

Republic of the Philippines (hereinafter the Parties),

Seeking to facilitate the conservation, protection, restoration, and sustainable use

and management of tropical forests in the Philippines, which play a vital role in the

protection of the world's climate and biodiversity and provide a wide range of

environmental, social, and economic benefits to people at local, national, and

international levels,

Desiring to enhance the friendship and spirit of cooperation between the Parties,

Recognizing that tropical deforestation and forest degradation continue to be

serious problems in many regions of the world.

Also recognizing that the alleviation of external debt can reduce economic

pressures on countries and result in increased conservation of tropical forests,

Wishing to ensure that resources freed from debt are targeted to the conservation

of tropical forests.

Seeking to complement and build upon the Agreement Between the Government

of the United States of America and the Republic of the Philippines Concerning the

Establishment of a Tropical Forest Conservation Fund and a Tropical Forest

Conservation Board, signed on September 19, 2002 (hereinafter the 2002 Tropical Forest

Agreement),

Wishing to further the Second Agreement Between the Government of the United

States of America and the Government of the Republic of the Philippines Regarding the

Reduction of Certain Debts Owed to the Government of the United States of America and

its Agencies, signed this date (hereinafter the Second Debt Reduction Agreement), which

reduces certain debts owed to the U.S. Government through the exchange of old

obligations for new obligations,
Recognizing the effectiveness of the 2002 Tropical Forest Agreement and the

Agreement Between the Government of the United States of America and the

Government of the Republic of the Philippines Regarding the Reduction of a Certain

Debt Owed to the Government of the United States and Its Agencies, signed on

September 19, 2002 (hereinafter the 2002 Debt Reduction Agreement),

Desiring to facilitate the establishment of a Second Tropical Forest Fund by

utilizing the existing structure of the Tropical Forest Fund established under the 2002

Tropical Forest Agreement, and

Also desiring to establish a Tropical Forest Conservation Board to administer the

Second Tropical Forest Fund, and to harmonize the operations of this Tropical Forest

Conservation Board with the operations of the Tropical Forest Conservation Board

established under Article HI of the 2002 Tropical Forest Agreement as set forth in this

Agreement.

Have agreed as follows:

Article I

PURPOSE

The purpose of this Agreement is to provide for the establishment of a Second Tropical

Forest Conservation Fund and the operation of an administering body in order to promote

activities designed to conserve, maintain, and restore the forests of the Philippines.

Article II

SECOND TROPICAL FOREST FUND

1. Within six (6) months of the entry into force of this Agreement, the Government of

the Republic of the Philippines, in accordance with its own laws, shall establish a

Tropical Forest Conservation Fund, hereinafter known as the Second Tropical Forest

Fund, which shall be administered by a Tropical Forest Conservation Board as

provided in Article III of this Agreement (hereinafter the Board). Any monies

deposited in the Second Tropical Forest Fund, or grants made from this Fund, will be

free from any taxation, levies, fees or other charges imposed by the Parties to the

extent permissible by the laws of the Parties. The Second Tropical Forest Fund may

be established within the Tropical Forest Conservation Fund created pursuant to

Article 11 of the 2002 Tropical Forest Agreement (hereinafter the First Tropical Forest

Fund), provided that funds in the Second Tropical Forest Fund shall not be comingled with other funds or accounts, including those in the First Tropical Forest

Fund, and shall be used exclusively for the purposes of this Agreement.

2. Monies, in the form of local currencies or other currencies, from other sources,

including but not limited to public and private creditors of the Government of the

Republic of the Philippines, and voluntary contributions from the Government of the

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Republic of the Philippines, other governments, and non-governmental entities, may

also be deposited into the Second Tropical Forest Fund.

3. The amounts deposited in the Second Tropical Forest Fund shall be subject to the

provisions of this Agreement The Government of the Republic of the Philippines

shall make payments to the Second Tropical Forest Fund pursuant to the provisions of

the Second Debt Reduction Agreement.

4. The Parties shall select, through a competitive selection process to be determined by

the Parties, a fiscal agent for the Second Tropical Forest Fund (hereinafter Fiscal

Agent), who shall be charged with the investment and disbursement of the monies in

the Second Tropical Forest Fund. The Fiscal Agent appointed pursuant to Article

paragraph 5, of the 2002 Tropical Forest Agreement may also serve as the Fiscal

Agent for the Second Tropical Forest Fund. The contract between the Government of

the Republic of the Philippines and the Fiscal Agent shall: (i) be concluded as soon as

possible, but no later than six (6) months after the closing date as defined in Article II

of the Second Debt Reduction Agreement; (ii) specify the subordinate relationship of

the Fiscal Agent to the Board; and (iii) specify that the Fiscal Agent shall take

direction with respect to the Second Tropical Forest Fund only from the Board or,

pursuant to Article VIII, from the Government of the Republic of the Philippines.

The Fiscal Agent is responsible for promptly notifying the Board in writing when the

Government of the Republic of the Philippines makes a payment to the Second

Tropical Forest Fund, or if a payment is overdue.

5. Monies in the Second Tropical Forest Fund shall be invested by the Fiscal Agent until

disbursed, with every effort made to ensure that such investments yield a positive real

rate of return within acceptable limits of risk in accord with sound investment

practices. To accomplish this goal, the Parties, upon the recommendation by the

Board. may jointly authorize the Fiscal Agent through formal writing to convert all or

part of the monies in the Second Tropical Forest Fund into U.S. dollars or other "hard

currencies" for investment purposes. Returns on investment shall be deposited by the

Fiscal Agent in the Second Tropical Forest Fund until disbursed, pursuant to the

procedures set forth in Article VI of this Agreement.

Article III

COMPOSITION OF THE BOARD TO ADMINISTER THE SECOND TROPICAL

FOREST FUND

I The Government of the Republic of the Philippines shall establish in accordance with

its laws, a Second Tropical Forest Conservation Board (the Board) to administer and

manage the Second Tropical Forest Fund. The Board shall be discrete and separate

from any existing board, commission, foundation. or other entity. except as

specifically set forth in this Agreement with respect to the Tropical Forest

Conservation Board established under Article III of the 2002 Tropical Forest

Agreement (hereinafter the 2002 Board). The Parties may agree that the members of
the Board under this Agreement shall be the same as those of the 2002 Board.

Subject to the provisions of this Agreement, the Board established under this

Agreement shall have authority to administer and manage the Second Tropical Forest

Fund, which authority shall be separate and distinct from that of the 2002 Board to

make decisions with respect to the First Tropical Forest Fund in accordance with the

2002 Tropical Forest Agreement. For avoidance of doubt, the Board established

under this Agreement shall make decisions pertaining to the Second Tropical Forest

Fund separately and independently from decisions made to administer and manage

the First Tropical Forest Fund. Operations of the Board under this Agreement and the

2002 Board may he jointly administered to the extent consistent with this Agreement

and other applicable agreements between the Parties.

The Board shall consist of nine (9) members, who shall be appointed and shall serve

as prescribed in Article III of the 2002 Tropical Forest Agreement.

3. The Board shall ensure that it has available, at all times, significant and specific

expertise and experience in REDD+, including reducing emissions from deforestation

and forest degradation, conservation of forest carbon stocks, sustainable management

of forests, and enhancement of forest carbon stocks, either through Board

membership or through advisor(s) hired to support and advise the Board.

4. Board members named as prescribed in Article III (2)(A) and (B) of the 2002

Tropical Forest Agreement shall serve ad honorem and at the discretion of the

naming Party. Board members appointed as prescribed in Article Ill (2)(C) of the

2002 Tropical Forest Agreement shall serve ad honorem, except that the

administrative expenses of such Board members may be paid as provided in Article

IV, paragraph 9 of this Agreement. Such Board members shall serve in their expert

capacity for a four (4)-year term, and may be removed prior to the end of their term

only for malfeasance or dereliction of duty. A member of the Board may serve

consecutive terms if both Parties agree.

5. A Board member may not participate in the approval of any proposed grant which, if

approved, would result in a financial benefit for the member. any member of his

family, an organization which employs the member or with which the member has an

affiliation, or an organization in which the member or any member of his family has a

direct financial interest. Further, a Board member may not participate in the approval

of any proposed grant to an organization which the member represents.

Article IV

FUNCTIONS OF THE BOARD TO ADMINISTER AND MANAGE THE SECOND

TROPICAL FOREST FUND

1. The Board shall be responsible for: (i) administration and management of the Second

Tropical Forest Fund; (ii) disbursements from this Fund to support eligible activities;

and (iii) oversight of all activities financed pursuant to this Agreement. The

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Government of the Republic of the Philippines shall ensure that the Board has the

necessary authority to carry out the functions assigned to it in this Agreement, and

upon request to the Government of the Republic of the Philippines shall provide

information regarding this authority to the U.S. Government.

2. With respect to the administration and management of the Second Tropical Fo t

Fund, the Board shall:

(a) Issue and widely disseminate a public announcement on the call for grant

applications which states the purpose of the Second Tropical Forest Fund,

eligible activities and applicants in accordance with Article V, the criteria for

the selection of grant recipients, the schedule of the grants process, and any

other procedural and format requirements established by the Board;

(b) Receive applications for grants from entities described in paragraph 5 of

Article V and award grants to such entities for activities consistent with

paragraph 1 of Article V on the basis of evaluating applications for their

merits and chances of success:

(c) Publicly announce grants awarded by the Board;

(d) Develop with each grant recipient a grant agreement, which outlines the terms

of the grant;

(e) Within six (6) months of the date of appointment of the Board members

described in paragraph 2 of Article III of this Agreement, develop and submit

to the Parties for their approval a long-term strategic plan for the operation of

the Second Tropical Forest Fund, including an annual budget showing

prospective activities and expected administrative and program costs;

(0 Take steps to meet the relevant performance criteria set forth in the Tropical

Forest Conservation Act (TFCA) Evaluation Sheet, the current form of which

is contained in the Annex to this Agreement, recognizing the document may

be amended from time to time by the U.S. Government in its sole discretion;

(g) Submit to the Parties, on an annual basis, information including:

An annual budget showing prospective activities and expected

administrative and program costs;

A completed TFCA Evaluation Sheet, unless the time elapsed since

the signing of this Agreement is less than eighteen (18) months;

A report on grant activities for the previous year, including multi-year

activities, funded by the Board. which shall include information

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regarding grants awarded, grant recipients, grant amounts, grant

activities funded, status of grant implementation. and audits of

randomly selected grants; and

(iv) A financial audit conducted in accordance with generally accepted

international accounting standards by an independent auditor, covering

the previous program year; and

(h) With the concurrence of the Parties, appoint an executive director to

coordinate and execute with the guidance of the Board all necessary actions

required for the adequate functioning of the Board, including the hiring of

additional staff, if necessary, with the approval of the Board. At the discretion

of the Board and with the concurrence of the Parties, the Executive Director

appointed pursuant to Article IV, paragraph 2(F), of the 2002 Tropical Forest

Agreement may also serve as the Executive Director for the Second Tropical

Forest Fund.

Proposed grants with a life-of-project total in excess of US$100,000 which are

endorsed by the Board shall be presented by the Board to both Parties for their

concurrence in writing. If either Party disapproves such a grant, that Party must

notify the Board of its disapproval, in which case the Board shall not award the

proposed grant Proposed grants not disapproved by either Party within thirty (30)

Philippine Business Days of presentation to the Parties' members on the Board shall

no longer be subject to either Party's disapproval. For the purposes of this

Agreement. "Philippine Business Days" means days on which the Bangko Sentral ng

Pilipinas ("Central Bank of the Philippines") is open for business.

4, The Board, by majority vote, may choose to apply the same bylaws and procedures

for the operation of the Board and Second Tropical Forest Fund, as applied to the

operation of the 2002 Board, to the extent consistent with this Agreement, or may

choose other bylaws and procedures subject to approval by the Parties. No

disbursements pursuant to Article VI may be made prior to the adoption of these

procedures.

5. The Board shall approve procedures and schedules for the grant process, including

procedures and schedules relating to public announcements, grant applications and

review, monitoring, and auditing. The Board may choose to apply the same

procedures and schedules for the grant process as applied to the operation of the 2002

Board, to the extent consistent with this Agreement, subject to approval by the

Parties.

6. The Board shall establish and make public selection criteria for awarding grants,

which should include the means for evaluating the merits of an application and the

chances of success of proposed activities. The Board may establish specific selection

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criteria and methods of evaluation for grant applications for proposed REDD+

activities.

7. The Board shall monitor performance under grant agreements to determine whether

time schedules and other performance goals are being achieved. Grant agreements

shall provide for periodic progress reports from the grantee to the Board. Such

reports will review all activity components essential to the successful achievement of

the goals of the activity. A provision shall be included in each grant agreement

awarded pursuant to this Agreement to address the recovery of funds misspent or

misused by, and the return of any unused grant funds held by, a grantee.

8. The Board shall meet at least once every three (3) months.

9. The Board may draw sums from the Second Tropical Forest Fund necessary to pay

for reasonable administrative expenses of the Board, including the audit required

pursuant to paragraph 2(g)(iv) of this Article. Board members appointed as

prescribed in Article III (2)(C) of the 2002 Tropical Forest Agreement may be

compensated from the Fund only for travel expenses and reasonable per diem. Such

expenses incurred by Board members appointed as prescribed in Article III (2)(A)

and (B) of the 2002 Tropical Forest Agreement shall be borne by the respective Party.

Administrative expenses shall not exceed a ceiling established by the Parties, taking

into account anticipated administrative expenses and funds available in the Second

Tropical Forest Fund. The initial ceiling will be established within one hundred

twenty (120) Philippine Business Days of the entry into force of the Agreement. The

Parties' representatives on the Board shall periodically review and adjust, as

appropriate, the ceiling for administrative expenses.

10.To the extent that administrative expenses relate to the shared operation of both the

First Tropical Forest Fund and the Second Tropical Forest Fund, the Board shall

determine. with the concurrence of the Parties, an appropriate proportional rate to

draw from each Fund to pay for such administrative expenses.

11, The Board shall award grants only within the financial capacity of the Second

'Tropical Forest Fund and strictly on the merits of proposals presented to the Board.

12. The Board's bylaws, written policies, operating procedures, summaries of

proceedings, books, records, reports. and any organizing statutes shall be retained in

the tiles of the Board. A permanent record shall also be maintained of the decision

criteria used in the award of each grant. The Board shall make available for easy

public inspection, such as by posting such documents on the internet where

appropriate, its bylaws, written policies. operating procedures, summaries of

proceedings, and decision criteria used in the award of each grant. Upon request,

authorities of either Party shall be granted access to all Board documents, including

minutes of meetings, books, records, and reports.

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Article V

ELIGIBI E ACTIVITIES AND GRANT RECIPIENTS

I. Amounts deposited in the Second Tropical Forest Fund shall be used only to provide

grants to conserve, maintain, or restore tropical forests in the Philippines specified in

paragraph 4 of this Article through one or more of the following eligible types of

activities:

(a) Establishment, restoration, protection, and maintenance of parks, protected areas.

and reserves. Such activities could include, for example. demarcation of

protected forest areas and indigenous reserves, establishment of new or expanded

protected forests and buffer zones, identification of unique or representative forest

areas, or inventory and protection of areas featuring high levels of forest carbon,

species richness or endemism;

(b) Development and implementation of scientifically sound systems of natural

resource management. including land and ecosystem management practices.

Such activities could include, for example: (i) implementation of sustainable

forest management practices to improve carbon stocks, development and

implementation of scientifically sound systems of forest land and forest resources

management; (ii) forest resources assessment and inventory; (iii) land and

resource use monitoring and evaluation; (iv) application of criteria and indicators

for forest conservation and sustainable management; (v) development and

implementation of forest management information systems; (vi) development and

implementation of watershed ecosystem management and community-based

forest management strategies to enhance carbon stocks and other ecosystem

values while promoting livelihoods; (vii) adoption of research-based forest

technologies; (viii) plantation establishment on degraded lands; (ix) natural forest

regeneration, rehabilitation and management; or (x) testing and application of

silvicultural techniques;

(c) Training programs to increase scientific, technical, and managerial capacities of

individuals and organizations involved in forest conservation efforts. Such

activities could include, for example: (1) short-term institutional training courses,

internships and study tours; (ii) development of community extension services;

(iii) environmental education and public awareness programs; (iv) enhancement

of university curricula in forest management, mapping, monitoring or

conservation biology; or (v) education and training to develop capacity of local

entities;

(d) Restoration, protection, or sustainable use of diverse animal and plant species.

Such activities could include, for example: (i) rehabilitation of degraded forests;

(ii) reforestation with native species. if linked to conserving broad, biologically

diverse landscapes: (iii) sustainable hunting, fishing and animal farming; (iv)

improvement of forest health and vitality and relevant research and development:

S
or (v) efforts to assess and address associated illegal practices, including illegal

logging. In no case shall funds be used to promote or support the expansion of

industrial logging into primary tropical forests;

(e) Research and identification of medicinal uses of tropical forest plant life to treat

human diseases. illnesses and health related concerns. Such activities could

include, for example: (1) ethnobotany studies; (ii) sample collection and analysis;

or (iii) technical document preparation, publication, and dissemination; or

(f) Development and support of the livelihoods of individuals living in or near a

tropical forest in a manner consistent with protecting such a tropical forest and

protecting or increasing its carbon stocks. Such activities could include, for

example: (i) development of community-based enterprises involving wood or

non-wood products or ecosystem services that contribute to tropical forest

conservation, application of low i mpact logging practices; or (ii) development of

multiple-use tree species outside natural forests

2. To the extent consistent with paragraph 1 and the goal of conservation of biological

diversity, the Board shall endeavor to ensure, in coordination with the Parties, that

grants from the Second Tropical Forest Fund contribute to climate change mitigation

objectives through "REDD+" activities consistent with the Philippine National REDD

Plus Strategy (PNRPS). These REDD Plus activities include:

(a) Reducing emissions from deforestation;

(b) Reducing emissions from forest degradation;

(c) Conservation of forest carbon stocks;

(d) Sustainable management of forests; and

(e) Enhancement of forest carbon stocks.

3. The Board shall require, as a condition of any grant, the application of appropriate

social and environmental safeguards to grant-funded activities and the compliance of

such activities with applicable existing Philippine environmental laws and

regulations.

4. Activities shall be focused on and support forest conservation and REDD+ in a

maximum of four (4) landscapes of an ecologically significant scale (which may cross

provincial boundaries where ecologically appropriate) lying within the following four

(4) geographic areas or other areas. if so decided by the Board and Parties:

A. Sierra Madre;

B. Samar/Leyte;

C. Palawan Province; and

Bukidnonavlisamis.

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5. Entities in the Philippines which shall be eligible to receive grants from the Second

Tropical Forest Fund are:

(a) Nongovernmental, environmental, forestry. conservation, and indigenous people

organizations of, or active in the Philippines, including those organizations

involved in development, education, scientific research, or forest management;

(b) Other appropriate local or regional entities of. or active in, the Philippines: or

(c) In exceptional circumstances, the Government of the Republic of the Philippines.

6. In providing grants, priority shall be given to projects that are run by

nongovernmental organizations and other private entities and that involve local

communities in their planning and execution.

7. Further, in providing grants, preference shall be given to those projects that are at

levels commensurate with achieving measurable impact on large landscapes while

maintaining accountability and efficacy.

8. No grants shall be provided to any entity listed by the Government of the Republic of

the Philippines, the U.S. Government (Office of Foreign Assets Control), or the

United Nations as a terrorist, narcotics trafficker, or other specially-designated

national. Further, no grants shall be provided to those associated with such entities,

as determined by the Parties.

Article VI

DISBURSEMENT OF FUNDS

The Board shall instruct the Fiscal Agent appointed pursuant to paragraph 4 of Article

II to disburse grant monies from the Second Tropical Forest Fund to entities selected

to receive grants pursuant to Article V. All disbursements shall be made pursuant to a

grant agreement, as prepared pursuant to Article IV, paragraph 2(d) of this

Agreement.

The Fiscal Agent appointed pursuant to paragraph 4 of Article II shall make

disbursements promptly to designated recipients in accordance with directions

received from the Board. In no case shall more than ten (10) Philippine Business

Days elapse between the Fiscal Agent's receipt of a direction for disbursement and

actual disbursement of funds to a grant recipient.

Article VII

DISPUTE RESOLUTION AND REVIEW

Upon the written request of either Party, the Parties shall consult each other

concerning the implementation or interpretation of this Agreement. These

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consultations shall be completed within sixty (60) Philippine Business Days after a

request for consultations is received from the other Party.

2. Consultations between the Parties concerning the interpretation or implementation of

this Agreement may be conducted through written submissions between the

Department of State of the U.S. Government and the Department of Finance of the

Government of the Republic of the Philippines. Unless the U.S, Government

otherwise notifies the Government of the Republic of the Philippines, the Assistant

Secretary of State for Oceans and International Environmental and Scientific Affairs

shall be the contact point in the Department of State. Unless the Government of the

Republic of the Philippines otherwise notifies the U.S. Government, the

Undersecretary or Officer-in-Charge of the International Finance Group shall be the

contact point in the Department of Finance.

Either Party may request consultations with the Board and the other Party after

reviewing the Board's reports and audits presented pursuant to Article IV. Such

request shall be made in writing. These consultations shall be completed within sixty

(60) Philippine Business Days after a request for consultations is received from the

other Party.

4. The Parties shall meet to review the operation of this Agreement one (I) year from

the date of its entry into force, and periodically thereafter as the Parties so agree.

Article VIII

SUSPENSION OF DISBURSEMENTS

If at any time either of the Parties determines that any issue requiring consultation

under Article VII has not been satisfactorily resolved, such Party may notify the other

in writine.

2. Notwithstanding any other provisions of this Agreement, upon receipt of such written

notification from the U.S. Government, the Government of the Republic of the

Philippines shall immediately suspend disbursements to be made under Article VI of

this Agreement.

Notwithstanding any other provisions of this Agreement, upon providing such written

notification to the U.S. Government, the Government of the Republic of the

Philippines may immediately suspend disbursements to be made under Article VI of

this Agreement.

4. Suspension of disbursements pursuant to paragraph 2 or 3 of this Article shall mean

that no further approval of grants shall be undertaken until the Parties have agreed to

resume such activity. However, disbursements pursuant to already approved grant

agreements shall proceed unless the specific grant agreement is suspended pursuant to

the terms of the grant agreement.

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5. Should the Parties jointly certify in writing to the Board that a grant agreement

inconsistent with the terms of this Agreement or the procedures of the Board was

awarded. the Government of the Republic of the Philippines shall, upon joint decision

of the Parties, suspend disbursements under that grant agreement. Should

disbursements be so suspended, no further approval of any grants shall be undertaken

until both Parties agree to resume the receipt of grant applications and the review and

award of grants.

6. If the Government of the Republic of the Philippines fails to suspend disbursements

made under Article VI of this Agreement within seven (7) Philippine Business Days

of receiving written notification from the U.S. Government referred to in paragraphs

1 and 2 above ("the Notification Period"), the Government of the Republic of the

Philippines agrees that it will take any and all actions necessary to freeze the Second

Tropical Forest Fund until both Parties confirm in writing that the issues that led to

freezing of the Second Tropical Forest Fund have been resolved.

Article IX

TERMINATION

1, The Agreement shall automatically terminate in the event that the Second Debt

Reduction Agreement automatically terminates under paragraph I of Article VI of the

Second Debt Reduction Agreement.

2. The Agreement may be terminated by either Party upon six (6) months' written notice

to the other Party if: (i) the Second Debt Reduction Agreement is terminated under

paragraph 2 of Article VI of the Second Debt Reduction Agreement. and (ii) all funds

resulting from the Payments in accordance with the Second Debt Reduction

Agreement have been expended.

3. Upon termination under paragraph 2 of this Article, the provisions of the Agreement

shall continue to apply for the purpose of completion of any previously-authorized

grants.

Article X

ENTRY INTO FORCE, AMENDMENT AND OTHER ARRANGEMENTS

I. This Agreement shall enter into force on a date that is to be jointly decided in advance

by the Parties in writing, provided that such date shall fall at least forty-five (45) days

after signature of this Agreement. If the Agreement has not been brought into force

by the end of September 5. 2013, entry into force shall be precluded. Once in force,

this Agreement shall remain in force unless terminated in accordance with Article IX

of this Agreement

2. This Agreement may be amended by written agreement of the Parties.

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FOR THE GOVERNMENT OF

THE UNITED STATES OF

AMERICA:

3. Nothing in this Agreement shall prejudice other arrangements between the Parties

concerning debt reduction or cooperation and assistance for tropical forest

conservation purposes.

IN WITNESS WHEREOF the undersigned. being duly authorized by their respective

Governments, have signed this Agreement.

Done at Manila, this 13 day of July 2013, in duplicate, in the English language.

FOR THE GOVERNMENT OF

THE REPUBLIC OF THE

PHILIPPINES:

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TFCA Evaluation Sheet

Category Function Criteria

Fund Comments

(w/ supporting material

citation as appropriate) Rating

definition: "OM and its implementor" = The Oversight Committee/

Board and its Fund Administrator or Office of Executive Director.

Excellent (4. Acceptable

(3); Needs Impmvement

(2); Unacceptable (I ); NA

Al' Implementation

of , ments

A.I .1 The OC/B and its implementor become operational within oneyear

from the si ',nine of the a 4,- nents.

,

A.I.2 The Fund, or other implementor of the TFCA agreement, is in

compliance with all articles of the agreements. including the legal registry

of the antropriate implementing bodieS.

A.I.3 The Fund, or other implementor of the TFCA agreement,

completes, and makes accessible, annual audits, plans and reports as may

be required in the agreements.

B. Governance Planning 13.1.1 Within one year of becoming operational, the 0C/13 has established

a written strategic plan that includes (a) specific. key objectiw.s. (b) a list.

in order of importance. of conservation and funding priorities in order to

meet those objectives, and (c) target dates for completion of objectives.

13.1,2 The established goals & objectives complement plans/programs of

others (e.g. national environmental plans. donors, swap partners),

B.I .3 The ()C7B. or its implementors. have established all internal

operational policies and procedures in accordance with normal business

standards.

Implementation B.2.I The 0C/13 meets in accordance with the bilateral agreement with

achieves a quorum at these meetings,

( info should include no of

meetings, no. of meetings at

which vomit) was achieved)

Monitoring B.3.I The 0(7B evnluates, on an annual basis, progress toward the key

objectives specified in the strategic plan, and implements any changes

judged necessary to remedy deficiencies in meeting the key objectives.

13.3.2 Within one year of.lanuary 1. 200_ or within one year of becoming

operational, the OC/B has established and implemented a monitoring and

evaluation plan for determining the conservation impact of funded

projects. 0C/13 monitors assessment of impact of projects,

(please provide details of

monitoring and evaluation

methodology, percentage of

projects undergoing M&F.:

number of visits per project;

results of monitoring.

administrator/0013 corrective

lions as annlicablel
TFCA Evaluation Sheet

Category Function Criteria

Fund Comments

(w/ supporting material

citation as appropriate) Rating

B.33 The OC/B conducts an annual performance review of institutional

management (itself, the implementors, and if applicable. the Trustee or

Ittstirtent Manager),

C Grant

Management

Planning C 1.1 The percentage of total funds paid into the Foundation or Fund (or

other vehicle established to receive payments resulting from the Forest

Conservation Agreement or Tropical Forest Agreement) disbursed as

rants tutu lv. is a reaso bl 1 N I.

Implemeittation C2.1 Request for Applications (RFAs), or other grant soliciation

mechanisms used, are undertaken on a schedule consistent with an OC/B

approved expenditure plan. if applicable, and widely publicized (if

C.2.2 Grant processing, including fund disbursement periods, is

maintained within reasonable targeted timeframes.

Monitoring C.1.1 Grant agreements require reporting on the conservation impact of

.mject.

C.3.2 The OC/B has a policy on the need for, and the frequency of,

financial audits of grant recipients.

C.3.3 Implementor ensures that all necessary grant recipient financial

audits and/or impact reports are submitted as required by agreements.

C.3.4 The OC/B. through its implementors, ensures periodic on-site

reviews of grant projects.

(e.g. number of active projects.

number of active projects

receiving site inspections, and

number of site inspections per

°mica),

D. Financial

Mann ement $

Planning I/ I.1 The OC/B has established a financial plan (complete with budgets.

forecasts of income and expenditures).

111.2 As appropriate. the OC/B has established a written investment

policy (guidance for the implementor or fund manager). .

Implementation 1)2.1 The administrative costs were kept within the limits established by

the bilateral agreement or its amendments during the last fiscal year.

1).2.2 The OC/B has established, as appropriate, in-house or outsour ced

investment monitoring capabilities (separate from the investment

Manager).

D.2.3 Assuming fund sustainability beyond the life of the TRA

agreement is an objective, the fund has diversified its sources of revenue

(fund raising).