Memorandum of Understanding between the Ministry of Defence of the Republic of Estonia, the Ministry of Defence of the Republic of Latvia and the Ministry of National Defence of the Republic of Lithuania concerning the Operation, Funding and Administration of the Baltic Battalion Headquarters

Section I

INTRODUCTION

(1) In accordance with the Agreement between the Government of the Republic of Estonia, the Government of the Republic of Latvia and the Government of the Republic of Lithuania concerning the Baltic Battalion, signed in Tallinn on December 10, 1997, hereinafter referred to as the Agreement, and the Protocol on the status of the Baltic Battalion Headquarters and personnel of the Baltic Battalion, signed in Riga on the 16th of April 1998, hereinafter referred to as the Protocol, and the establishment of the Baltic Battalion Headquarters by Exchange of Notes as prescribed by the Protocol, the Ministry of Defence of the Republic of Estonia, the Ministry of Defence of the Republic of Latvia and the Ministry of National Defence of the Republic of Lithuania, in the following referred to as the Participants, have reached the following understanding on the operation, funding and administration of such BALTBAT HQs.

(2) The purpose of this MOU is to give provisions for the operating procedures, stationing, funding, manpower, administration and support of BALTBAT HQs. The provisions on the operation, funding and administration of the Baltic Battalion are laid down in the Memorandum of Understanding between the Participants concerning the operation, funding and administration of the Baltic Battalion, done in Tartu on 7th May, 1999, hereinafter referred to as the MOU on BALTBAT.

(3) The provisions of this MOU are complemented by Annexes A to C, which are integral parts of the MOU.

Section II

DEFINITIONS

(1) For the purpose of this MOU, the following definitions are set out:

1.1 "Baltic Battalion" (BALTBAT) means the combined infantry battalion, established in accordance with the Agreement;

1.2 "the Baltic Battalion Headquarters" (BALTBAT HQ) means any Baltic Battalion multinational headquarters and its subordinated units established by the Parties to the Protocol;

1.3 "the Baltic Support Group" (BSG) means the multinational unit, responsible for co-ordination of BALTBAT logistics;

1.4 "Ministerial Committee" (MC) means the committee, embodying the highest political authority over BALTBAT, established in accordance with Article IV, paragraph 1. a) of the Agreement, consisting of the Ministers of Defence of the Contracting Parties to the Agreement;

1.5 "Baltic Military Committee" (BMC) means the committee, embodying the highest military command authority over BALTBAT, established in accordance with Article IV, paragraph 1. b) of the Agreement, consisting of the Chiefs of Defence of the Contracting Parties to the Agreement;

1.6 "Hosting Participant" means the Participant, on whose territory BALTBAT HQ is established;

1.7 "Host Nation" means the Participant, on whose territory agreed BALTBAT activities are conducted.

Section III

ORGANISATION AND MANNING

(1) The organisation, manning and principles of rotation of personnel of BALTBAT HQs will be developed by BMC with inputs from each BALTBAT HQ and submitted for MC according to the Agreement.

(2) In accordance with the Agreement, Article VI, paragraph 3, the conditions and responsibilities governing the internal organisation of BALTBAT during deployment, will be laid down in separate arrangements relating to the specific mission. This will include a review of the need to adjust the organisation and manning of BALTBAT HQs, in order to comply with the mission undertaken.

Section IV

LANGUAGE

The working language of BALTBAT HQs is English.

Section V

RESPONSIBILITIES

(1) Services and facilities will be made available to BALTBAT HQs in accordance with Section VI of this MOU, Annex B, and supplementary Technical Arrangements (TA) to be concluded as deemed necessary by the Participants.

(2) All buildings and permanent fixtures provided by a Hosting Participant for a BALTBAT HQ remain the property of that Hosting Participant, which at the same time has the responsibility for their administration, operation and maintenance.

(3) All Participants will be responsible for funding shared costs of BALTBAT HQs in accordance with Annex A of this MOU.

(4) Each Participant will assign personnel to BALTBAT HQs in accordance with decisions following Section III of this MOU. Each Participant is responsible for timely and adequate preparation, re-posting and rotation of personnel in accordance with personnel requirements and rotation plans for BALTBAT HQs as approved by BMC.

Section VI

LOGISTIC SUPPORT

(1) The Participants will, in accordance with Annex B and as laid down in supplementary TA, render support to BALTBAT HQs, and to national units of the Participants assigned to BALTBAT, when conducting training and exercises, as agreed in the Annual Plan of Activities. The co-ordination of logistic support, as outlined in Annex B, will be performed by BSG. Logistic support during embarkation, deployment and re-deployment will be performed in accordance with the MOU on BALTBAT.

(2) Reduced availability of Host Nation or Hosting Participant resources resulting in reduction in the level of support will be equitably apportioned among the Participants. The support will not be reduced or terminated unilaterally without consultation between the Participants.

(3) Further support deemed necessary, will be provided by either of the Participants in accordance with a supplementary TA for the BALTBAT HQ in question or as agreed in MC on an ad hoc basis.

(4) Medical support to BALTBAT HQs is to be performed according to Annex C.

Section VII

FINANCIAL ISSUES

The financial principles, procedures and administrative arrangements for BALTBAT HQ are described in Annexes A and B.

Section VIII

ASSISTANCE OF THE PARTICIPANTS

(1) The Participants and each BALTBAT HQ will co-operate at all times to facilitate the proper implementation of the provisions of the Agreement, the Protocol and supplementary arrangements to them as well as the provisions of Agreement among the states Parties to the North Atlantic Treaty and the other states participating in the Partnership for Peace regarding the status of their forces (PfP SOFA).

(2) The Participants may appoint, depending on request from a BALTBAT HQ, military experts and/or military advisors to assist and advise that BALTBAT HQ.

(3) In case any legal action are instituted towards a BALTBAT HQ, and prior to any similar action to be taken by a BALTBAT HQ, MC via BMC will be informed in order for that BALTBAT HQ to obtain directions.

(4) A BALTBAT HQ is requested, prior to the conclusion of any arrangements supplementary to the Protocol, to obtain approval from MC via BMC to conclude the suggested arrangements.

Section IX

FINAL PROVISIONS

(1) This MOU is effective from the date of the last signature and is concluded for an unlimited period of time.

(2) The Participants may amend this MOU at any time by mutual consent; such amendments shall be in writing and become effective from the date of their last signature.

(3) Any Participant may withdraw or partially withdraw from the MOU by giving 6 months' notice in writing to the other Participants. If one of the Participants withdraw from the MOU, the Participants will initiate immediate negotiations related to the withdrawal from the MOU.

(4) This MOU may be terminated by unanimous decision of the Participants. If the Participants decide to terminate the MOU, the Participants will initiate immediate negotiations related to the termination.

(5) Any dispute regarding the interpretation or application of this MOU will be resolved between the Participants.

 

Done in Riga on Auigust 23 2001 in Estonian, Latvian, Lithuanian and English languages in one original copy, all texts being equally authentic. In case of different interpretation the English version will prevail. The original will be deposited to the archives of the Ministry of Defence of the Republic of Latvia, which will submit the certified copies to the Participants.

	Jūri Luik	Ģirts Valdis Kristovskis	Linas Linkevičius
	Minister of Defence	Minister of Defence	Minister of National Defence
	of the Republic of Estonia	of the Republic of Latvia	of the Republic of Lithuania

 

 

Annex A

Financial Principles, Procedures and Administrative Arrangements of BALTBAT HQ

l. Purpose

This Annex records the details of the financing of BALTBAT HQs.

2. Principles

Pursuant to Article IV, paragraph 2, c) of the Agreement, BALTBAT will have a budget, approved by MC, consisting of shared costs of the Participants. This Annex identifies the "BALTBAT Budget", understood as the total budget, comprising of the budgets adopted for each of the BALTBAT HQs. Accordingly, the Participants agree to share the funding of BALTBAT HQs, including the multinational units, as follows:

(1) Cost-sharing principles

1.1The operating costs of a BALTBAT HQ will be shared proportionally to the number of positions of the Participants in that BALTBAT HQ. The operating costs consist of the costs stated in sub-paragraph 1.1 of Section 5 of this Annex.

1.2 Investment costs will be shared proportionally in accordance with the number of the Participants. Investment costs consist of the costs stated in sub-paragraph 2) of paragraph (1) of Section 5.

(2) Rolling of interest revenue and expenditures savings will be subject to the law of the Hosting Participant.

(3) The currency used for budget and estimates will be euro. The currency used for international payments will be euro.

(4) The calculation of each Participant's share of the funding will be rounded up to a full currency unit - euro.

(5) A BALTBAT HQ is authorised to dispose funds only within the approved budget. Supplementary funding of costs beyond the approved budget will be considered only in extraordinary circumstances and with the prior approval of MC.

3. Responsibilities

The Participants will fulfil the obligations of assessments and payments approved by MC.

4. Assets

(1) The assets of a BALTBAT HQ consist of the funds transferred by the Participants, equipment donated by third parties and transferred by the Participants to that BALTBAT HQ ownership, as well as assets, acquired as approved in and funded by the BALTBAT budget share for that BALTBAT HQ.

(2) Equipment, owned or used by a BALTBAT HQ, will be recorded in separate inventory lists kept by that BALTBAT HQ. Inventory lists will include specification of ownership of the equipment.

(3) The property provided for the use of a BALTBAT HQ by one of the Participants remains the property of that Participant. If this MOU is terminated, property of the Participants will be returned to the Participant, to whom it belongs.

(4) If this MOU is terminated, all financial assets will be shared proportionally in accordance with respective Participants share of funding in the actual fiscal year.

(5) If this MOU is terminated, physical assets acquired by a BALTBAT HQ from the BALTBAT budget or transferred by either of the Participants to the ownership of a BALTBAT HQ will be shared between the Participants in accordance with procedure set in Article 15 of the Protocol. Physical assets donated by third parties will be distributed in accordance with the documents of donation or as agreed between the Participants.

5. Shared costs of the Participants

(1)Shared costs of the Participants consist of:

1.1 The operating costs of a BALTBAT HQ:

1.1.1 Heating, gas, electricity, water, waste disposal and communications (except for private communications) for facilities provided for that BALTBAT HQ in accordance with a supplementary TA.

1.1.2 Maps, stationary, badges, flags and similar items.

1.1.3 Costs resulting of claims, contractual as well as non-contractual, for which that BALTBAT HQ is legally responsible.

1.1.4 Costs connected with the organisation and hosting of seminars, conferences, visits and costs for representation.

1.1.5 Transportation costs (including fuel) connected with BALTBAT HQ duties and performed in means of transportation owned or rented by that BALTBAT HQ .

1.1.6 Costs connected with maintenance of vehicles and equipment owned by that BALTBAT HQ.

1.2 Investment costs of a BALTBAT HQ:

1.2.1 Investment in and replacement of furniture and office equipment.

(2) If equivalent operating costs connected to the administration and operation of a BALTBAT HQ or to maintenance of equipment, owned by a BALTBAT HQ are identified, such costs will, unless otherwise agreed by the Participants, be shared as set out above. Costs related to investments or replacement of equipment, not mentioned in paragraph 1.2.1. of this Section, will be authorised separately by decision of MC.

6. National Expenditures

of the Participants

(1) National expenditures of the Participants consist of:

1.1 Salaries and other payments to personnel employed by the respective Participant.

1.2 Costs connected to the stay of the personnel, employed by the respective Participant and their dependants, in the territory of the Hosting Participant, including accommodation and uniforms, sustenance costs (combat rations).

1.3 Medical expenditures as stipulated in Annex C.

1.4 Travelling costs related to the posting of personnel, employed by the respective Participant, to and from the BALTBAT HQ to which the personnel is assigned as well as costs for duty trips and courses of such personnel while it is assigned to that BALTBAT HQ, in accordance with the national procedure of the respective participant.

1.5 Any other expenditure related to the personnel or other purely national issue.

7. Budget Cycle

(1) The fiscal year begins at 1st of January and ends at 31st of December.

(2) Each year by 1st of April, each BALTBAT HQ submit to MC through BMC a budget project for that BALTBAT HQ for the next fiscal year.

(3) Each BALTBAT HQ will request payments of the assessed shares quarterly by the 1st day of the first month of each quarter. By the 15th day of the first month of each quarter, the Participants will conduct money transfers to cover the budgetary expenses for the coming quarter.

(4) Quarterly by the 1st day of the second month, each BALTBAT HQ will issue Statement of Payments from the Participants.

(5) Quarterly by the 15th day of the next quarter, each BALTBAT HQ will submit statements of expenditures for the previous quarter to the Participants.

(6) By the 15th of February of the following year, each BALTBAT HQ will submit to MC through BMC a Year-end-Report.

8. Accounting

Accounts will be established and operated in accordance with the legislation of the Host Nation. If so decided by BMC, a BALTBAT HQ will make special arrangements with the Hosting Participant concerning the accounting of the BALTBAT budget share for that BALTBAT HQ.

9. Auditing

The audit of BALTBAT budget will be made on a regular basis by the auditors assigned by the Participants. Additional auditing of the budget may be carried out by any of the Participants. The Participant conducting the auditing will carry the expenditures for such auditing.

10. Payment of assessments

(1) The Participants will transfer the assessed payments to each BALTBAT HQ, to the bank account duly designated by the BALTBAT HQ.

(2) Payments will be made free of charge for the beneficiary.

11. Reporting documents

(1)Each BALTBAT HQ will provide budget documentation, consisting of:

1.1 Actual and Planned expenditures by category;

1.2 Acquisitions of non-consumable equipment;

1.3 Acquisitions of consumable equipment;

1.4 Account of share of expenditures planned among the Participants;

1.5 Calculation of expenses used for energy resources.

(2) The Statement of Payments Report will consist of Finance report.

(3) The Statement of Expenditures will consist of:

3.1 Report on execution;

3.2 Report on received financial resources;

3.3 Report on Acquisition of Consumable Equipment;

3.4 Report on Acquisition on non-consumable equipment.

(4) The Year-end-Report will document the financial resources transferred by Participants and the expenditures actually spent during the year.

 

Annex B

Hosting participant and Host Nation Support to BALTBAT HQs

1. Purpose

This Annex records the details of the Hosting Participant and Host Nation Support to be rendered to BALTBAT HQs, including multinational units.

2. Principles

(1) Hosting Participant and Host Nation Support will, depending on the availability, be provided in accordance with this Annex and supplementary Technical Arrangement (TA) concluded for each BALTBAT HQ as deemed necessary by the Participants. Support is rendered either free of charge or on reimbursement basis, as stated in this MOU or in the relevant TA.

(2) The Hosting Participant will, subject to request, assist other Participants in finding accommodation and handling other practical arrangements.

(3) This Annex does not include any support to dependants of the personnel of BALTBAT HQs, as this support is regarded as an individual or national responsibility.

3. Responsibilities

Hosting Participants and Host Nation support will - where appropriate and subject to decision of the Hosting Participant/Host Nation - be rendered through military installations.

4. Logistic supplies.

(1) Personnel of BALTBAT HQs will be granted access to purchase their meals in the Host Nation's Armed forces mess hall.

(2)Subject to request and reimbursement, the Participant acting as Host Nation will provide BALTBAT HQ with combat rations in periods of field exercises.

(3)The Host Nation will on request provide other logistic supplies (NATO class II- IV) on a reimbursement basis.

5. Logistic Services

(1) Transportation of personnel and/or cargo of a BALTBAT HQ will be arranged and co-ordinate through BSG. The Participant acting as Host Nation can, on request and subject to reimbursement, support a BALTBAT HQ with transport.

(2) The Hosting Participant will, subject to request and reimbursement, render maintenance and repair of BALTBAT HQ vehicles in military garages.

(3) Transportation for off duty purposes is an individual or national responsibility.

(4) The Host Nation will provide waste disposal on reimbursement basis.

(5) Upon request the Host Nation will provide laundry service for bedclothes on reimbursement basis. Laundering of uniforms and personal clothes is an individual or national responsibility.

(6) The Hosting Participant will, free of charge, provide cleaning in offices, rooms and barracks made available for a BALTBAT HQ.

(7) Upon request the Hosting Participant will, free of charge, provide mutually agreed internal maintenance and external maintenance of buildings made available for a BALTBAT HQ.

(8) Subject to the decision by the MC, Hosting Participant will modify facilities or will provide new additional facilities. The costs will be shared as decided by MC on a case-by-case basis.

(9) Medical Support will be provided in accordance with Annex C.

6. Other Services

(1) The Hosting Participant will, free of charge, provide guarding and security services for a BALTBAT HQ facilities.

(2) In the case of special need, the Hosting Participant can support a BALTBAT HQ with additional personnel.

 

 

Annex C

Medical Support provided to the Personnel of BALTBAT HQs

1. Purpose

This annex records the details of the Hosting Participant and Host Nation medical support for the personnel of BALTBAT HQ, including multinational units.

2. Definitions

(1) Outpatient care is understood as medical support not leading to hospitalisation (NATO role I).

(2) Inpatient care is understood as short-term hospitalisation at the infirmary or long term hospitalisation in civilian hospitals (NATO role II-IV).

3. Principles

(1) Medical support will be provided in accordance with this Annex on reimbursement basis from the respective Participants.

(2) This Annex does not include any support to dependants of the personnel of BALTBAT HQs.

(3) The Participants will furnish their personnel with health insurance.

4. Responsibilities

(1) The Hosting Participant and the Host Nation will be responsible for the provision of medical support to the personnel assigned to BALTBAT HQs within the capabilities of the Armed Forces Health Service.

(2) The Participants will co-operate to facilitate necessary co-ordination of medical support.

5. Extent of Military Medical Support

(1) Military Medical Support of personnel in BALTBAT HQs includes:

1.1 Emergency and life-saving treatment. Military medical facilities or civilian hospitals will render emergency and life-saving treatment. In an emergency, movement of patients will take place by transportation means provided by any one of the Participants, depending on which Participant is in the best practical position to carry out the emergency transport.

1.2 Outpatients care. The Infirmary will render outpatient care. If sufficient capacity is not available, patients will be referred to other facilities of the military medical service or to civilian physicians (including specialists), dentists or hospitals.

1.3 Inpatients care. Inpatients care will be rendered either by infirmary or civilian hospitals. Treatment of prolonged duration only until the patient can be transported to another medical facility, preferably in the respective nations.

(2) The following services are not included in the medical support:

2.1 Movement of patients (except in cases of emergency).

2.2 Rehabilitation including stay at sanatorium and similar courses of treatment.

2.3 Vision and hearing aids

2.4 Orthopaedic and other appliances.

2.5 Prostheses.

2.6 Services and deliveries by dental laboratories and dental shops.

6. Notification and Maintenance of Medical Records

(1) The infirmary has the right to request the Participants for medical documents and records required for medical support.

(2) Members of a BALTBAT HQ will carry copies of his/her own personal medical documents and records while being posted to the BALTBAT HQ.

(3) Upon termination of treatment originals or copies of all medical records prepared during outpatient care will be forwarded in confidence to the military medical services of the Participant to which the patient belongs. In the case of possible serious consequences to the collective health of personnel, actions can be taken in accordance with regulations of respective national Health acts and International law.

7. Costs

(1) Services in the course of emergencies and life saving will be rendered by the civilian authorities or from the military authorities on reimbursement basis and settled according to the health insurance policies in respective countries and/or international agreements.

(2) Outpatient care, including of ordinary dental care at military medical facilities, will be rendered on a reimbursement basis. Ordinary medical care in the civilian sector by choice of an individual person will be the responsibility of that individual.

(3) The respective Participants will render inpatient care and special dental care at the infirmary on a reimbursement basis. Inpatient care and special dental care at civilian medical facilities by referral from the Armed Forces medical services will be rendered on a reimbursement basis by the respective Participants. The costs of consulting civilian physicians, dentists, hospitals and other specialists without referral from the Armed Forces Health Service are to be paid directly by the individual.