4 October 2005 – Secretary of Foreign Affairs Alberto G. Romulo announced the successful conclusion of the 2nd Joint Commission Meeting (JCM) between the Philippines and the Kingdom of Saudi Arabia held on 1 – 2 October 2005 in Riyadh, Saudi Arabia, following up on pending initiatives from the first JCM and with both countries renewing their pledge to deepen bilateral relations.

Secretary Romulo said that the 2nd JCM concluded with the signing of four important bilateral agreements covering various areas of cooperation, namely:

1) The RP-KSA Agreement on the Encouragement and Protection of Investments;

2) The Loan Agreement (Development of Mindanao Roads Project) between the Saudi Fund for Development and the Republic of the Philippines;

3) The Memorandum of Understanding on Technical Education and Vocational Training between Technical Education Skills and Development Authority (TESDA) and General Organization for Technical Education and Vocational Training (GOTEVOT);  and

4) The Memorandum of Understanding on Academic and Educational Cooperation between the Commission on Higher Education (CHED) and the Ministry of Higher Education of the Kingdom of Saudi Arabia.

The RP-KSA Agreement on Encouragement and Reciprocal Protection of Investments lays out the framework for the treatment of Philippine-Saudi bilateral investments and investors which consists of two elements: 1) fair and equitable treatment with respect to admission and promotion; and 2) assurance of non-impairment and absence of arbitrary or discriminatory measures in the management, maintenance, use, enjoyment or disposal of investments.

The MOU on Technical Education and Vocational Training between TESDA and GOTEVOT would help in the realization of the goals set by GOTEVOT with the competent assistance of TESDA.  The GOTEVOT plans to expand their services in the next three years with an additional budget of SR3 billion.  Encouraged by the competence of the skilled Filipino labor in the Kingdom, GOTEVOT expressed hope to have instructors from the Philippines to assist in upgrading the skills of the Saudi female population, or half its total workforce to become more productive with the assistance of 16,000 new trainers.  GOTEVOT is also interested in forging closer cooperation with TESDA in anticipation of policy changes in the Kingdom, which would require that all domestic and foreign workers are issued skills certification by duly accredited government bodies.

The MOU on Academic and Educational Cooperation between CHED and MHE provides for the promotion and development of educational cooperation between the Philippines and Saudi Arabia.  This would also further encourage exchange of representatives of universities, institutions and organizations in the field of higher education, research and scholarships.

The Joint Commission Meeting had the innovative feature of the joint participation of government and the private sector in renewing the pledge of the two countries to strengthen relations and cooperation.  During the first day, Philippine government and business delegates met with their respective Saudi counterparts in field visits to the different Saudi government agencies and sectors concerned with investments, trade-related issues, higher education, maritime transport and shipping, agriculture and customs to discuss issues of mutual benefit and concern, and to explore areas for potential cooperation.

The Philippine delegation was composed of representatives from the government and private sectors.  The government sector was led by Department of Foreign Affairs Undersecretary for International Economic Relations Edsel T. Custodio as Head of Delegation, Deputy Head and DFA Assistant Secretary for the Office of Middle East and African Affairs Norberto Basilio and Philippine Ambassador to the Kingdom of Saudi Arabia Bahnarim Guinomla.  House Committee Chairman for Muslim Affairs Rep. Hussin Amin, and House Committee Chairman for Labor and Employment Rep. Abdullah Dimaporo represented the House of Representatives.  The rest of the government delegation consisted of officials from the Departments of Foreign Affairs, Education, Transportation and Communication, Trade and Industry, Science and Technology, Public Works and Highways, the Board of Investments, and the Commission on Higher Education, among others.

The business delegation was headed by Mr. Oscar C. de Venecia, Vice-Chairman of the Philippine Chamber of Commerce and Industry.

On the part of the Kingdom, the Saudi delegation was headed by Deputy Minister for Economic and Cultural Affairs of the Saudi Ministry of Foreign Affairs Dr. Yousef Terad Al-Saadoun, Saudi Ambassador to the Philippines Mohammad Ameen Wali, Dr. Sammy Bin Abdullah Al-Saleh, General Director of the Office of Economic Bilateral Relations of the Ministry of Foreign Affairs, and Mr. Waleed Al-Swaidan, Chairman of the Saudi-Philippine Business Council.

Undersecretary Custodio and Deputy Minister Dr. Al-Saadoum agreed that future direction of the 2nd JCM should be based on targeted, focused, and results-oriented agenda driven by synergistic and collaborative efforts of government and private sectors.  The task of the government, both leaders concurred, is to provide the enabling environment for business and economic growth with the emphasis on the development aspect during the plenary session held on 2 October 2005.

To further strengthen bilateral relations, the Philippine and Saudi Governments agreed to undertake the following actions:

1)  On the area of agriculture and fisheries, the Saudi Ministry of Agriculture will dispatch a team to visit the Philippines to observe Philippine protocol and research on cadang-cadang and the establishment of disease-free areas conducted by competent Philippine authorities and related agencies.  The visit shall also include observation of research and practices on marine products, specifically the culturing of shrimp (Saudi’s expertise).

2)  On maritime transport and shipbuilding, the Philippine side invited the Saudi Government and private sector to infuse capital into the Domestic Shipping Modernization Program, the invitation to invest in the Maritime Industrial Park, and to develop the Cotabato Port Project.

3)  On the transportation sector, the Philippine side presented three proposals for Saudi financing with the Saudi Fund for Development to help facilitate infrastructure and socio-economic development in Mindanao, namely: the Mindanao Railway System (MRS), Socialized Micro-Credit Program and Socialized Housing.  The feasibility study of the MRS is still undergoing evaluation process with NEDA.

4)  Both parties agreed to pursue enhanced cooperation and development and application of globally competitive professional expertise such as medical, energy, engineering, design, and computer and information technology services.