AGREEMENT BETWEEN THE GOVERNMENT OF THE MUNICIPALITY OF TORREON OF THE
STATE OF COAHUILA DE ZARAGOZA OF THE UNITED MEXICAN STATES AND THE
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT FOR THE PURPOSE
OF IMPROVING THE REGULATORY QUALITY OF GOVERNMENT FORMALITIES (HEREINAFTER
REFERRED TO AS THE “Agreement”).
The Government of the Municipality of Torreon of the State of Coahuila de Zaragoza of the
United Mexican States (“THE MUNICIPALITY”) and the Organisation for Economic Cooperation and Development (“THE OECD”), hereinafter referred to individually as a “PARTY”
and collectively as “THE PARTIES”;
WHEREAS in 2012 “THE OECD” published the "Guide to Improve the Regulatory Quality of
State and Municipal Formalities and Mexico’s competitiveness" (hereinafter referred to as
“THE GUIDE”);
WHEREAS the above-mentioned guide includes 26 high impact recommendations to
improve government formalities, regulatory transparency, and efficiency in the management
of state and municipal formalities;
CONSIDERING that it is necessary to strengthen efforts to enhance the competitiveness of
“THE MUNICIPALITY”, in order to attract additional investment and bolster the development
of new enterprises and the creation of jobs; and
WHEREAS the 14 December 1960 OECD Convention establishes that for the purpose of
attaining the Organisation’s goals, its Members shall consult among themselves on a
continuous basis, carry out studies, and participate in agreed projects.
“THE PARTIES” agree as follows:
ARTICLE I
OBJECTIVE
“THE OECD” will carry out, as part of the OECD Programme of Work and Budget for 2015 2016 [Output area 5. Regulatory reform at the national and regional level; output result:
Implementing Regulatory Reform], a study (“THE STUDY”) and other capacity-building
measures, as described in Article II and the Annex attached to this Agreement (“THE
ANNEX”), and “THE MUNICIPALITY” shall finance this work as sets forth in Article VI.
ARTICLE II
SCOPE OF THE WORKSHOPS AND “THE STUDY”
1. “THE STUDY” will analyse and identify the specific actions to be undertaken by the
agencies and administrative units of “THE MUNICIPALITY” to improve the
institutional framework and the quality of government formalities. THE STUDY will
contain advices in order to generate savings in time and costs for businesses and
citizens alike, and consequently increasing productivity and competitiveness of “THE
MUNICIPALITY”.
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2. “THE STUDY” will be prepared using a comparative perspective, using as background
“THE GUIDE” and other relevant directives produced by “THE OECD” that focus on
the efforts necessary to improve the efficiency of government formalities.
3. In order to prepare “THE STUDY”, an implementation plan, including timetables and
guidelines to undertake regulatory improvement actions (“THE PLAN”), will be
developed.
4. As part of “THE PLAN”, “THE OECD” will design an electronic tool which will allow
tracking progress of “THE PLAN” (“THE CONTROL BOARD”), which will be periodically
updated, as set forth in “THE ANNEX”.
5. “THE STUDY” will also identify other regulatory improvement measures with a direct
impact in two areas:
a) Easiness to start, sustain, and facilitate growth for businesses in “THE
MUNICIPALITY”; and
b) Improvement and streamlining of interactions between entrepreneurs/citizens
and “THE MUNICIPALITY”.
6. “THE WORKSHOPS” will address the main concepts of regulatory policy and
governance, as well as the main lessons from “the GUIDE”.
7. “THE ANNEX” provides an illustration of how “THE STUDY” and “THE WORKSHOPS”
might be organised.
ARTICLE III
TIME SCHEDULE
The time for completion of “THE STUDY” and “THE PLAN” shall be subject to “THE OECD’s”
capacity to carry out the activities set forth in “THE ANNEX” and its receipt of all necessary
information from the “THE MUNICIPALITY” to enable “THE OECD” to prepare “THE STUDY”.
ARTICLE IV
PHASES OF THE PROJECT
“THE STUDY”, “THE PLAN”, and follow up activities shall be carried out in accordance with
the phases detailed in “THE ANNEX”.
ARTICLE V
FOLLOW-UP MECHANISM
“THE PARTIES” hereto have designated the following officials as follow-up liaisons for the
activities connected with this Agreement:
“THE MUNICIPALITY”
Javier Lechuga Jiménez Labora
Municipal Comptroller
“THE OECD”
Jacobo Pastor Garcia Villarreal
Senior Policy Analyst
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Municipality of Torreon
jlechuga66@hotmail.com
+52 871 7275657
Public Sector Integrity Division
Organisation for Economic Co-operation and
Development
jacobo.garciavillarreal@oecd.org
Tel +52 55 91386243
Through the follow-up mechanism “THE OECD” will regularly inform “THE MUNICIPALITY” of
its progress in the elaboration of “THE STUDY” and “THE PLAN”.
ARTICLE VI
CONTRIBUTION
“THE MUNICIPALITY” hereby commits to provide “THE OECD” with a contribution in the
amount of EUR 200,000 (two hundred thousand euros) to finance all activities described in
the Annex to this Agreement. This amount shall be paid in two instalments:
(1) EUR 120,000 (one hundred and twenty thousand euros), shall be paid upon signature of
this Agreement, and receipt of the corresponding invoice from “THE OECD”;
(2) EUR 80,000 (eighty thousand euros), shall be paid by 30 October 2015, upon receipt of
the corresponding invoice from “THE OECD”.
ARTICLE VII
FINANCIAL REPORTS
“THE OECD” shall manage the financial resources mentioned in Article VI in accordance with
its Financial Regulations, as well as in accordance with other relevant “OECD” rules,
procedures and policies, which currently provide for an administrative recovery cost
equivalent to 6.3% of the total contribution amount.
Expenditures will be registered in the accounts of “THE OECD”, in compliance with generally
accepted accounting principles and subject to auditing in accordance with the “OECD”
standard audit rules.
At the conclusion of all the activities contemplated under this Agreement, “THE OECD” will
submit a financial report to “THE MUNICIPALITY”, detailing the manner in which financial
resources mentioned in Article VI were used.
ARTICLE VIII
CONFIDENTIALITY OF THE INFORMATION
“THE PARTIES” agree that the information they use to carry out “THE STUDY” shall be subject
to the rules of information classification and declassification of “THE OECD”, taking into
account, as may be appropriate, the classification made by “THE MUNICIPALITY” for its own
materials.
This Agreement will not be made publicly available without the prior written agreement of
“THE PARTIES”. This does not however limit in any way the right of either PARTY to disclose
the existence, subject matter, or contribution provided to “THE OECD” by “THE
MUNICIPALITY”, under this Agreement.
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ARTICLE IX
PRIVILEGES AND IMMUNITIES
“THE PARTIES” acknowledge that the legal status, privileges, exemptions and immunities of
“THE OECD”, its officials and representatives shall be in compliance with the terms of the
Agreement between the Government of the United Mexican States and the Organisation for
Economic Co-operation and Development, regarding the privileges and immunities of “THE
OECD” in the United Mexican States, as executed in Paris on 14 April 1994.
“THE MUNICIPALITY” or its staff may not, in any way, claim the benefits of enjoying the
privileges and immunities enjoyed by the “OECD” or its staff.
ARTICLE X
STAFF
“THE MUNICIPALITY” shall designate the officials who, given the nature of their positions
and responsibilities, are necessary for the purpose of implementing the present Agreement.
Staff designated by “THE PARTIES” for the execution of this Agreement shall work under the
orders and responsibility of the organisation or institution to which they may be ascribed, at
all times maintaining their labour relationship with said organisation or institution. Their
work will not create a labour relationship with any other organisation or institution, thereby
cancelling the figure of surrogate employer.
ARTICLE XI
DISPUTE RESOLUTION
Any differences stemming from the interpretation of, compliance with or execution of this
Agreement shall be resolved by “THE PARTIES” by mutual agreement.
ARTICLE XII
COPYRIGHT
“THE STUDY”, “THE PLAN”, as well as any other work carried out under this Agreement shall
be the property of “THE OECD”.
Subject to the rights of third parties, and subject also to the rules and policies of “THE OECD”
on classification and declassification of documents, if applicable, “THE OECD” hereby grants
“THE MUNICIPALITY” a non-exclusive, non-transferable, irrevocable, fully paid, worldwide
license to copy and distribute paper versions of the final version of “THE STUDY” for any
non-commercial purposes, subject to always crediting “THE OECD” properly as per the
OECD’s standards. “THE MUNICIPALITY” shall also be authorized to embed on its website a
full “read only” (html 5) version of “THE STUDY”.
Any material or document which is the property of “THE MUNICIPALITY” and that is given by
“THE MUNICIPALITY” to “THE OECD” in the course of carrying out “THE STUDY” and/or “THE
PLAN” shall remain the property of “THE MUNICIPALITY”. However, “THE OECD” will have
the right to use or incorporate such material for the purpose of preparing “THE STUDY”
and/or “THE PLAN”.
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“THE OECD” shall not use the materials and documents provided by “THE MUNICIPALITY” for
any purposes that are not directly connected with preparation of “THE STUDY” and/or “THE
PLAN” or the carrying out of the activities contemplated in this Agreement.
ARTICLE XIII
FINAL PROVISIONS
This Agreement will come into force upon signature by both “PARTIES” and will terminate on
30 September 2016. All activities carried out by “THE OECD” shall be subject to its own
standards, procedures, and policies.
This Agreement may be amended, including its content, milestones and specific goals,
through written agreement by “THE PARTIES”.
Either of “THE PARTIES” may terminate this Agreement by giving the other party thirty (30)
days’ notice in writing, when such counterpart has violated any of its material obligations
under this Agreement without correcting such non-compliance within thirty (30) working
days after having received a prior written notification of such non-compliance.
In the event of termination under the present Article, “THE MUNICIPALITY” will pay “THE
OECD” unpaid costs already incurred or irrevocably committed in good faith for the
implementation of this Agreement, without surpassing the financing set forth in Article VI.
All unspent or uncommitted amounts will be refunded by “THE OECD” to “THE
MUNICIPALITY” within thirty (30) working days following the effective date of termination,
unless otherwise agreed in writing by “THE PARTIES”.
In witness whereof, the duly authorized representatives of “THE PARTIES” have signed this
Agreement in four original copies in Spanish and four original copies in English, both being
equally identical. In case of discrepancy between the two texts, the English version shall
prevail.
FOR THE MUNICIPALITY OF TORREON OF THE
STATE OF COAHUILA DE ZARAGOZA OF THE
UNITED MEXICAN STATES
FOR THE ORGANISATION FOR ECONOMIC
CO-OPERATION AND DEVELOPMENT
Miguel Angel Riquelme Solis
President of the Municipality of
Torreon
Date:__________
Rolf Alter
Director of Public Governance and Territorial
Development
Date:__________
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Anthony J. Rottier
Executive Director
Date:__________
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ANNEX
THE WORKSHOPS
1. Workshop on regulatory improvement: this workshop will introduce the basic concepts of
regulatory policy and governance including:
 Definition and objectives of regulatory policy and governance
 The regulatory governance cycle
 The three pillars for regulatory improvement: policies, institutions, and tools
 Administrative simplification
2. Workshop on “THE GUIDE”. The workshop will include the following topics:
 Objective of “THE GUIDE”
 Its development
 Recommendations offered by “THE GUIDE”
 Implementation in “THE MUNICIPALITY”
Each of the two above-mentioned workshops will last approximately three hours with a
maximum audience of 30 (thirty). Each workshop will be carried out a maximum of two
times. Specific dates will be agreed between “THE PARTIES” according to the timetable
included below.
The facilitators for the workshops will be:
 Two OECD experts
 A consultant hired by “THE OECD”
“THE MUNICIPALITY” shall designate the attendees to the workshops. It is recommended
that the attendees comprise officials of “THE MUNICIPALITY” who will be directly involved in
implementing the recommendations to be suggested by “THE OECD” in “THE STUDY”
“THE MUNICIPALITY” will provide the facilities for the workshops and will directly cover the
corresponding costs.
EXPECTED CONTENTS OF “THE STUDY”
“THE STUDY” should consist of three sections:
1. Regulatory improvement actions:
The regulatory improvement actions will be prepared using “THE GUIDE” as background.
Therefore, the regulatory improvement actions will include recommendations to:
 Improve the process for starting up a business;
 Improve the process of construction permits;
 Improve the process of property registration;
 Improve the process of bidding for public procurement;
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

Improve access to regulatory information, regulatory transparency, and regulatory
information quality; and
Improve the efficiency of the management of formalities.
2. “THE PLAN”: “THE PLAN” will include identification of the administrative units within
“THE MUNICIPALITY” responsible for implementing each action, as well as an estimated
budget of the resources needed to carry out the actions. If the regulatory improvement
actions are implemented, “THE MUNICIPALITY” will be solely responsible for providing the
necessary resources.
3. “THE CONTROL BOARD”: “THE OECD” will provide updates to “THE CONTROL BOARD”
using the information provided by “THE MUNICIPALITY”, according to the timetable included
below.
EXPECTED TIMETABLE
Activity
Date
Official launching of the project
First workshop on regulatory improvement
Second half of July 2015
Second half of July 2015
First workshop on “THE GUIDE”
First fact-finding mission to Torreon
Second workshop on regulatory
improvement
Second half of July 2015
3-7 August 2015
First half of November 2015
Second workshop on “THE GUIDE”
Second fact-finding mission to Torreon
Final version of the regulatory improvement
actions
Final version of “THE PLAN” and “THE
CONTROL BOARD” of “THE STUDY”
Updates to “THE CONTROL BOARD” which
will be based on the results of the
implementation actions undertaken by “THE
MUNICIPALITY”
First half of November 2015
First half of November 2015
1 February 2016
1 March 2016
“THE CONTROL BOARD” to be updated on:
May 2016
July 2016
September 2016
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PROJECT BUDGET
Category
Total Estimated
Cost
EUR
Staff costs
65,016
Chargeback (office space, IT etc)
11,011
Experts - fees
70,200
Mission Costs (OECD Staff)
38,000
Miscellaneous (eg printing, photocopies, publications)
OECD Grant Administration Charge (6.3%)
TOTAL COSTS
3,173
12,600
200,000
Note : any overspend on one budget line may be compensated by an
underspend on another budget line while remaining within the overall budget
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