A G R E E M E N T on General Terms and Procedures of Development Co-operation. between. the Government of the Republic of Finland

Transcription

1 A G R E E M E N T on General Terms and Procedures of Development Co-operation between the Government of the Republic of Finland and the Government of the People"s Democratic Republic of Ethiopia The Government of the Republic of Finland (hereinafter referred to as the Government of Finland) and the Government of the People's Democratic Republic of Ethiopia (hereinafter referred to as the Government of Ethiopia) desirous of strengthening the ties of cordial friendship between Finland and Ethiopia and of furthering the development co-operation between the two countries ; Have agreed as follows ;

2 z ARTICLE I SCOPE )F THE AGREEMENT 1. This Agreement seis forth the general terms and procedures of develcpment co-operation between the Governments of Finland and Ethiopia and shall apply in the implementation of projects, programmes and joint activities out of grants made available by the Government of Finland. This Agreement shall apply to matters not provided under Specific Agreements. 2. The specific terms and procedures, including the financial and other obligations of the two Governments, in regard to each project, programme or joint activity, shall be agreed upon in Specific Agreements. ARTICLE II COMPETENT AUTHORITIES AND DELEGATION OF COMPETENCE The Office of the State Committee for Foreign Economic Relations, OSCFER, and the Ministry for Foreign Affairs of Finland, through the Finnish International Development Agency, FINNIDA, (hereinafter referred to as the Competent Authorities) respectively, shall unless otherwise agreed, be the representatives of the two Governments in the implementation of this Agreement and the Specific Agreements made hereunder. FINNIDA may, with the consent of the Ethiopian Competent Authority, contract with a Finnish public authority or d012 a any other Finnish organization or legal entity as Implementing Agencies which will be responsible for the actual implementation of projects, programmes or other joint activities under this Agreement or any Specific Agreement. OSCFER may, with the consent of the Finnish Competent Authority, designate an Ethiopian implementing agency to be responsible for the actual implementation of projects, programmes or other joint activities under this Agreement or any Specific Agreement. ARTICLE III FORMS OF CO-OPERATION The forms of co-operation between the two Governments include : 3.1 the provision of goods and services to Ethiopian authorities, corporations and organizations ;

3 the provision af funds to Ethiopia ; 3.3 the granting cf scholarships to the citizens of Ethiopia for studies or training in Finland, in Ethiopia or in third countries ; 3.4 the provision of experts by the Government of Finland, and 3.5 any other co-operation that may be agreed upon by the Competent Authorities. ARTICLE IV IMPLEMENTATION OF PROJECTS, PROGRAMMES AND JOINT ACTIVITIES 4.1 The Government of Finland shall, unless otherwise agreed in the Specific Agreement, pay the fees and costs, excluding the costs ta be covered by the Government of Ethiopia as stipulated in paragraph 4.2 below, of the Implementing Agencies delegated by FINNIDA to be responsible for the implementation of projects, programmes or other joint activities pursuant to Article II above. 4.2 The Government of Ethiopia shall grant the following to the Implementing Agencies not registered in Ethiopia : 4.2.a issuance, free of charge, of all necessary permits and authorizations ; 4.2.b exemption from income tax in respect of any emoluments paid from funds or resources outside Ethiopia for services rendered in Ethiopia under this Agreement ; 4.2.c exemption from customs duties, taxes and other related charges on equipment, material or vehicles temporarily imported by Implementing Agencies for the implementation of projects., programmes or joint activities under this Agreement. Such equipment may be re-exported free from customs duties, taxes or other charges upon the completion of the project or shall be subject to the payment of customs duties, taxes or other_related charges if sold locally to persons other than those entitled to similar privileges ; 4.2.d permission to open and operate transferable birr accounts in accordance with the regulations of the National Hank of Ethiopia ; 4.2.e exemption from registration and licence requirements.

4 v 4 ARTICLE V PERSONNEL 5.1 For the purpose of this Agreement the term "Personnel" means the personnel employed by the Implementing Agencies for the implementation of any activity under this Agreement. 5.2 The Government of Finland shall cover the salaries, fees and costs of the'personnel, excluding the costs to be covered by the Government of Ethiopia as stipulated in paragraph 5.3 below, as well as the costs of the international travel of the Personnel to and from Ethiopia. 5.3 The Government of Ethiopia shall grant the following to the expatriate Personnel and their families, as appropriate : 5.3.a. multiple entry and exit visas, identity cards, and residence permits as well as other necessary permits and authorizations for the entire duration of their assignment ; 5.3.b. exemption from customs duties, taxes and other relevant charges in respect of their personal and household effects, as per the list attached as Annex to this Agreement imported into Ethiopia or purchased from Ethiopia for their exclusive use within six months of their arrival into Ethiopia. Such importations may be re-exported free from customs duties, taxes and other charges, or shall be subject to the payment of duties, taxes and charges if sold locally to persons other than those entitled to similar exemptions.the sale of vehicles to persons other than those entitled to similar exemptions shall be in accordance with relevant directives. In the event that the vehicle is damaged beyond repair at reasonable costs or otherwise lost without neglect on the part of the Personnel and their families, the exemptions mentioned in that paragraph shall apply to the importation or purchase of new ones depending on the remainins duration of their stay ; 5.3.c exemption from personal income tax including contributions to national Social security schemes, in respect of any emol.:ments paid to them for their services in Ethiopia under i is Agreement ; 5.3.d. exemption from duty to submit to the Ethiopian authorities any tax or financial declarations required from the citizens of Ethiopia or aliens residing in Ethiopia ; 5.3.e. permission to open and operate transferable birr accounts in accordance with relevant regulations of the National Sank of Ethiopia ;

5 5 5.3.f. exemption from professional registration and licence requirements ; 5.3.g. exemption from any national or military service obligations ; 5.3.h. the full protection of the law ; 5.3.i. repatriation facilities as are accorded to personnel of a similar status serving in Ethiopia in the event of a national crisis ; 5.3.J. in the event of arrest or detention for any reason whatsoever of the Personnel or the members of their families, or of criminal proceedings being instituted against them, immediately notify the Government of Finland or FINNIDA, as appropriate, through diplomatic channels in order that legal representation and visits by the representative of FINNIDA to the person concerned may be arranged in a mutually acceptable manner ; 5.4 The Government of Ethiopia shall have the right to demand the recall or replacement of a member of the Personnel whose work or conduct is deemed unsatisfactory. Unless the circumstances demand that a member of the Personnel be recalled immediately, the demand for the recall or replacement shall be made in writing to the Government of Finland The Government of Finland shall have the right, upon prior notice in writing to the Government of Ethiopia, to recall a member of the Personnel. ARTICLE VI EXPERTS 6.1 For the purpose of this Agreement the term Experts means persons recruited and contracted by the Ministry for Foreign Affairs of Finland in accordance with the expert staff regulations of the Government of Finland, and placed at the disposal of the Government of Ethiopia. 6.2 Selection of the Experts : 6.2.a. The Government of Ethiopia, when submitting requests for Experts, shall provide the Government of Finland with complete Job descriptions specifyint the duties and the qualifications of the Experts to be recruited as well as such background and other relevant information as may be required for the selection of the Experts. i

6 6 6.2.b. The Government of Finland, acting on the request, shall provide the Government of Ethiopia with all the information necessary for the appraisal of the candidates including details of their training and previous professicnal experience and shall obtain approval of each candidate from the Government of Ethiopia before his/her assignment. The Government of Ethiopia shall without undue delay inform the Government of Finland of the approval cr disapproval of the proposed candidates. 6.3 The Government of Finland shall : 6.3.a. pay the salaries and the costs of international travel to and from Ethiopia, as well as related costs in accordance with the expert staff regulations of the Government of Finland ; 6.3.b. train and otherwise prepare the Experts for their assignment, and 6.3.c. communicate, from time to time, the contents of the expert staff regulations mentioned in paragraph 6.1. above to the relevant Ethiopian Competent Authority. 6.4 The Government of Ethiopia shall : 6.4.a. assist the Experts and their families in finding accommodation ; 6.4.b. provide local support for the work of the Experts, including office space with all the necessary facilities ; 6.4.c. allow the Experts annual leave in accordance with the terms of their respective employment contracts at a time mutually agreed between the Expert and the Ethiopian authorities concerned. The Embassy of Finland in Addis Ababa shall be informed whenever sick leave or annual leave are granted to the Experts ; 6.4.d. provide the Experts transportation and allowance at the rates payable to Ethiopian civil servants of a similar or comparable status in the event of official travel in Ethiopia outside the Expert's duty station ; and 6.4.e. grant the Experts the rights and privileges set forth in Article V paragraph 5.3 above and Article X below.the rights and privileges specified in Article V paragraph 5.3.a. above shall be given free of charge. 6.5 In the performance of their official duties the Experts shall be undur the direction of the Government of Ethiopia or the agencies or organizations to which they are assigned.

7 7 6.6 The rights of the two Governments in respect of recall or replacement of the Experts are as set f_-rth in Article V paragraphs 5.4 and 5.5 above. 6.7 If agreed between the Government of Finland and the Government of Ethiopia, the Experts may be transferred from one post to another during their assignments. ARTICLE VII GOODS 7.1 For the purpose of this Agreement the term "Goods" means materials, vehicles, machinery, electronic or other equipment and any other commodities or spareparts therefor made availabl by the Government of Finland or an Implementing Agency for projects, programmes or other joint activities under this Agreement The Government of Finland shall, unless otherwise agreed in the Specific Agreement : 7.2.a. cover the costs of purchase, transport and, as appropriate, insurance connected with each consignment of the Goods ; 7.2.b. be responsible for the delivery of the Goods to Ethiopia ; 7.2.c.ensure that the Implementing Agencies notify designated agencies in Ethiopia of the estimated date of the arrival of the consignments immediately upon dispatch and forward shipping documents, invoices and other relate information to them. 7.3 The Government of Ethiopia shall, unless otherwise agreed in the Specific Agreement : 7.3.a. notify, if appropriate, the Government of Finland of the import clearance agents to be used and of the documentation required for customs clearance and inform the Government of Finland of clearance procedures applied in Ethiopia ; 7.3.b. promptly issue, free of charge, the necessary import licenses and other permits on importation of the Goods ; 7.3.c. exempt the Goods From, or bear the costs of all customs duties, taxes and other related charges pertainin to their entry into Ethiopia ;

8 Gv 7.3.d. ensure swift and safe reception, berthing, handling, clearing, forwårding as well as storing and onward transportation of the imported Goods : 7.'.e. take all appropriate measures and institute any proceedings that may be necessary with regard to claims for loss or damage whether total or partial of any consignment of Goods and notify the Government of Finland promptly thereafter ; 7.3.f. be responsible and bear the costs of the measures mentioned in paragraph 7.3.d. above after the Goods have been handed over to the Government of Ethiopia. 7.4 The Goods shall become the property of the institution or agency to be designated in each Specific Agreement. ARTICLE VIII STUDY AND TRAINING OPPORTUNITIES 8.1 The Government of Finland shall : 8.1.a. provide the citizens of Ethiopia with study and training opportunities in the form of fellowships, scholarships and partic1pation in courses in Finland, Ethiopia or in third countries ; 8.1.b. grant scholarships including the payment of international travel From Ethiopia to and from Finland or a third country in accordance.with the Scholarship regulations of the Ministry for Foreign Affairs of Finland, the contents of which regulations shall from time to time be communicated to the Government of Ethiopia. 8.2 The Government of Ethiopia shall inform the citizens of Ethiopia of these study and training opportunities and, in co-operation with the Government of Finland, select the candidates to be trained. in ARTICLE IX LIASILITY 9.1 The Government of Finland shall : 9.1.a. not be liable to intemnify any third party in respect of any claim, debt, damage or demand arising out of the implementation of this. Agreement and which may be made against the Implementing Agencies, the Personnel or the Experts ; and

9 9 9.1.b. not be liable for ccmpensation for the disability death, or other hazards suffered by any Ethiopian personnel as a result of their employment on work is the which subject matter of this Agreement. 9.2 The Government of Ethiopia shall : 9.2.a.indemnify and hold harmless the Government of Finland, against any and all li_ability, suits, actions, demands, damages, costs or fees on account of death and injury to persons or property or any other losses resulting from or connected with any act or omission by the Implementing Agencies, the Personnel or the Experts in the course cf the operations under this Agreement ; 9.2.b. assume liability in respect of damage to a third party caused by the Implementing Agencies, the Personnel or the Experts during the performance of their duties under this Agreement, unless such liability arises from an act criminal in nature, willful misconduct or gross negligence on the part of the Implementing Agencies, the Personnel or the Experts concerned. The existence of wilful misconduct, gross negligence or criminal conduct under this paragraph shall be established by an Ethiopian Court. The Government of Ethiopia will inform the Government of Finland of the commencement and outcome of any such proceedings. 9.2.c. In the event the Government of Ethiopia meets any claim under paragraphs 9.2.a. and 9.2.b. it shall be entitled to exercise and enforce any right of set-off. counterclaim, insurance, indemnity, contribution or guarantee to which the Government of Finland, the Implementing Agencies, the Personnel or the Experts may beaome entitled. The Government of Finland shall, when requested by the Government of Ethiopia. facilitate the exercise and enforcement of such rights. ARTICLE X SPECIAL PROVISIONS 10.1 The Governments of Finland and Ethiopia shall : 10.1.a. take all appropriate measures necessary to maintain the safety of the Personnel serving in Ethiopia and their families ; 10.1.b. any extra costs accrued to the Government of Finland-as a result of the measures taken under paragraph 10.1.a. above shall be covered by the Government of Finland from the allocations of the Government of Finland to the Government of Ethiopia for development co-operation

10 lu purposes or as may he separazely agreed upon between the two Governments The Government of Finland shall oblige that the Implementing Agencies, the Personnel or the Experts observe the laws and respect the cuszoms of Ethiopia during their stay in Etilic, pia The Governmennr_ nf Ethiopia shali : 10.2.a. furnish the (Jc, vernment _f Finland, the Implementing Agencies, the Personnel and the Experts serving in Ethiopia with such information, data, advice and other assistance, as may reasonably be required for the carrying out of the activities under this Agreement ; 10.3.b. take all appropriate measures to ensure the effective use of the Implementing Agencies, the Personnel and the Experts and appoint counterparts to them, as may be required ; 10.3.c. render such assistance and take such action as may be necessary for the smooth and expeditious implementation of the activities under this Agreement ; 10.3.d. facilitate visits by the representatives of the Government of Finland, the Implementing Agencies, the Personnel and the Experts to all sites of a project, programme or a joint activity under this Agreement ; 10.4 Funds made available by the Government of Finland to the Government of Ethiopia under this Agreement shall not be used for the payment of taxes, customs duties or charges The Goods made available under this Agreement or Specific Agreement shall always be at the exclusive disposal of the respective project, programme or other joint activity. ARTICLE XI SETTLEMENT OF DISPUTES Any dispute or difference arising out of the implementation of this Agreement shall be amicably settled through diplomatic channels between the Parties hereto. ARTICLE XII AMENDMENT If either of the two Governments considers it desirable to amend any provision of this Agreement it may request consultations with the other Party. Any amendments so agreed j

11 1 1 upon shall Authorit be made in writing between the Competent ARTICLE XIII ENTRY INTO FORCE AND TERMINATION 13.1 This Agreement shall enter into force on the date of its signature and remain in force unless terminated by either of the Parties as provided in paragraph 13.3 below.this Agreement replaces the Agreement on Technical Co-operation between the Government of Finland and the Government of Ethiopia, signed on 20 December This Agreement shall also be applied in respect of the on-going projects, programmes and other joint activities within the Finnish-Ethiopian development co-operation This Agreement may be terminated by either of the Parties by giving a six months prior written notice to that effect to the other Party. In witness whereof the undersigned, being duly authorized by their respective Governments, have signed this Agreement in two originals in the English language in Addis Ababa this 9th day of March For the Government of the Republic of Finland For the Government of the People's Democratic Republic of Ethiopia 1

12 ANNEX 1. List of personal and household effects : - one stcve/ccoker, micro-wave oven, refrigerator, deep freezer, dish washing machine and universal kitchen machine, - one washing machine, dryer, vacuum cleaner and sewing machine, - one radio, tape recorder and record player, - one TV-video set, one set of photographic, cine and video equipment, - one personal compuzer per family - one typewriter, - minor electrical appliances, - sports and musical equipment, - furniture, - one motor vehicle per family 2. The importation of these items would depend on the duration of stay in Ethiopia of the Expert or Personnel as per relevant directives.