MEMORANDUM OF UNDERSTANDING BETWEEN LATVIAN NATIONAL ARMED FORCES AND ESTONIAN DEFENCE FORCES CONCERNING TRAINING OF FIGHTER CONTROLLERS OF LATVIAN AIR FORCE IN LIVE AIRCRAFT INTERCEPT MISSION

The Latvian National Armed Forces, as represented by the Latvian Air Force and the Estonian Defense Forces, as represented by the Estonian Air Force (hereinafter – the Parties),

Recalling the Agreement between the Ministry of the Republic of Estonia, the Ministry of Defense of the Republic of Latvia and the Ministry of National Defense of Lithuania on co-operation in the fields of defense and military relations, signed in Vilnius on February 27, 1995,

Regarding that the Estonian Defense Forces according to the regulations of European Union has made the procurement on training of the fighter controller of the Estonian Air Force in live aircraft intercept mission,

Have reached the following understanding:

Section I

General provision

1.1. The purpose of this Memorandum of Understanding (MoU) is to set forth the principles and procedures between the Parties for training fighter controllers of the Latvian Air Force in live intercept mission using aircraft which are rent by the Estonian Air Force for training its fighter controllers in live intercept mission and reimbursement of expenditures which are related to the training of fighter controllers of the Latvian Air Force.

1.2. The provisions of this MoU are not intended to conflict with the national laws of the states of the Parties, or with international law. If any conflict arises the Parties will notify each other immediately and internationally law and/or national laws of the states of the Parties will prevail.

Section II

Definitions and abbreviations

For the purpose of this MoU:

“Fighter controller” means the members of the Latvian Air Force who will undergo training in live aircraft intercept mission at the Estonian Air Force base Ämari and Ämari CRP.

“Flying hour” means one (1) hour of one (1) aircraft during training mission.

“Ämari CRP” means Command and Reporting Post at Ämari, Estonia.

Section III

Conduct of training

In accordance with NATO requirements and training schedules, training of the fighter controllers in live intercept missions will be conducted at Estonian Air Force base Ämari and using Ämari CRP equipment.

Section IV

Responsibilities

4.1. The Estonian Air Force will:

4.1.1. Provide training mission on reimbursement basis as required, according to the training schedule of the fighter controllers (if circumstances, e.g. weather conditions permits);

4.1.2. Calculate and document the number of flying hours provided for each fighter controller;

4.1.3. Provide invoices together with a report of flying hours executed to the Latvian Air Force for reimbursement of training mission costs.

4.2. The Latvian Air Force will:

4.2.1. Ensure according to the legislation of the Republic of Latvia the condition of service as well as salaries, taxation, transportation, accommodation, social (including health insurance) and legal guarantees;

4.2.2. Cover all expenditures for their personnel assigned as Fighter controllers for the period of training mission in Ämari airfield and Ämari CRP;

4.2.3. Reimburse training mission costs to the Estonian Air Force.

Section V

Calculation of the training mission costs

5.1. Training mission costs for the Latvian Air Force will be calculated multiplying the costs of one (1) flying hour by the number of flying hours provided by the Estonian Air Force for Fighter controllers.

5.2. The costs of one (1) flying hour is approximately 2 800,00 (two thousand eight hundred) EUR and it is specified in Annex.

5.3. The total amount of the expenditures on training of the Fighter controller is 224 000,00 EUR.

Section VI

Command and Control

6.1. During the stay in the territory of the Republic of Estonia the Fighter controllers will remain under full national command of the Latvian Air Force.

6.2. During the training at the Estonian Air Force base Ämari and Ämari CRP the Fighter controllers will comply with the instructions of the Commanding Officer of Ämari CRP.

Section VII

Working language

English language will be the working language during the training period.

Section VIII

Status of personnel

While in the territory of the other Party the status of the Fighter controller is governed by the “Agreement between the Parties to the North Atlantic Treaty regarding the Status of their Forces”, done in London on 19 June 1951 (NATO SOFA).

Section IX

Settlement of disputes

Any dispute arising under or relating to this MoU will be resolved only through consultation between the Parties and will not to be referred to any national or international tribunal or to any other forum of settlement. The disputes will be resolved at the lowest level possible.

Section X

Financial arrangements

10.1. The Latvian Air Force will pay the invoice within 30 (thirty) days after receipt of the invoice.

10.2. The Parties will cooperate to meet their State’s accounting and auditing standards and practice.

10.3. The Parties agree that invoices and payments will be made in EUR.

Section XI

Final provision

11.1. This MoU will enter into effect on the date of the last signature and will be effective for an unlimited period of time.

11.2. This MoU may be amended or terminated by mutual agreement of the Parties.

11.3. The Parties may withdraw from this MoU by giving 3 (three) months written notice in advance to the other Party.

11.4. In the event of withdrawal from or termination of this MoU the provisions of this MoU will be applicable until all outstanding payments, claims and disputes are settled.

Done in 2 (two) original copies in the English language, each of these copies having an equally binding legal effect.

Annex

Breakdown of the costs of flying hour for jet trainer aircraft L-39 Albatross

1. The costs of one flying hour of L-39 consists of:

a. Costs for rent in €:

– First 40 hours 2421,25 €, after 40 hours 2345,80 € per hour per a/c

– Average cost 2383,50 € per hour per a/c

b. Costs for fuel JET-1 per hour in €:

– 431,20 € (maximum 700 liters per hour at 0,616 € per liter)

– 400,40 € (average 650 liters per hour at 0,616 € per liter)

c. Costs for navigation services when Ämari becomes u/s due snow and icing:

– Landing fee at Tallinn airport 22,60 €

– Terminal navigation services 29 €

– Total fees per mission, per a/c: 51,60 € (average 35 € per hour)

2. The average costs of one flying hour are equal to 2784 € (2815 € at maximum fuel consumption) plus 51,60 € for each mission starting and ending in Tallinn from approximately the end of October.