Selanjutnya

LOAN AGREEMENT

LOMBOK HIGH LEVEL DIVERSION PROJECT

BETWEEN

I

BETWEEN:

AND:

the

-f

i{

day of De. e e._r1₁ J>a ,.. 1979

THE GOVERNMENT OF THE REPUBLIC OF INDONESIA (hereinafter referred to as "Indonesia")

THE GOVERNMENT OF CANADA

herein represented by the Secretary of State for External Affairs acting through the President of the Canadian International Development Agency

(hereinafter referred to as "Canada" ).

WHEREAS Indonesia wishes to secure a development loan for the procurement

of goods and services required for the construction of the Lombok High

Level Diversion project, the whole as described in Annex "A" to this

Agreement;

AND WHEREAS Canada is willing to make a development loan available for

this purpose;

Indonesia and Canada have agreed as follows:

ARTICLE I

The Loan

Section 1. 01

Canada shall make available to Indonesia, on the terms and conditions

hereinafter set forth, a Loan in an amount not to exceed twelve million,

six hundred thousand Canadian dollars (Canadian $12,600,000).

Section 1. 02

Canada shall open on its books a Loan Account in the name of Indonesia

and shall credit to such Account the full amount of the Loan. Withdrawals,

payments and disbursements may be made from the Loan Account i n accordance

2

-Section 1.03

This Loan shall be free from interest, commitment or service charges.

Section 1.04

Repayment of the principal amount of the Loan shall be made in eighty (80)

semi-annual instalments of one hundred and fifty seven thousand five hundred

Canadian dollars (Canadian $157,500) each due and payable on March 31 and

September 30 in each succeeding year commencing on March 30, 1990 and

ending on September 30, 2029.

Section 1.05

Indonesia shall have the right to prepay the principal amount in whole or in

part on any date without notice to Canada. The amount of any such prepayment

shall be applied to the instalments of the principal then remaining payable

in the reverse order of their maturity.

Section 1.06

All payments as set forth herein shall be made by Indonesia in Canadian

dollars to the Receiver General for Canada, and shall be deemed to have been

paid when received by the Receiver General for Canada.

Section 1.07

The principal of the Loan shall be paid to Canada without any deductions

whatsoever and more particularly shall be free from any taxes, charges or

other restrictions imposed under the laws of Indonesia and those in effect

in its territories or administrative, political or judicial divisions or

subdivisions.

Section 1.08

The Parties agree that they will negotiate, at the request of either

Indonesia or Canada, concerning acceleration of payments to the Receiver

I

3

-after six (6) months before the first payment of the principal becomes due

and payable. Indonesia and Canada shall mutually determine whether such an

acceleration should take place on the basis of the capacity of Indonesia to

service a more rapid liquidation of its obligations in the light of its

internal and external financial and economic position.

Section 2 . 01

ARTICLE II

Use of the Loan

Except as may otherwise be specifically agreed to by Canada, the proceeds

of the Loan shall be used by Indonesia exclusively for the purchase of

agreed goods and services as described in Annex "A", and the procedures

for their procurement and payment shall be those set forth in Annex "B".

Each Annex shall be subject to such subsequent modifications as may be

agreed upon between Canada and Indonesia.

Section 2.02

Services, materials and equipment to be financed from the proceeds of the

Loan shall be used exclusively to carry out the Project; the goods and

services procured in Canada and financed from the Loan shall have an overall

Canadian content of not less than sixty-six and two-thirds percent (66 2/3%)

unless otherwise agreed to by Canada.

Section 2.03

Services, materials and equipment contracted for prior to the effective date

of this Agreement may not be financed out of the proceeds of the Loan except

as may otherwise be agreed to by Canada.

Section 2.04

Proceeds from the Loan shall not be used by Indonesia to meet the cost of

any taxes, fees or Customs duties imposed directly or indirectly by Indonesia

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-on any services, materials or equipment required for the Project. Proceeds

from the Loan shall also not be used by Indonesia to meet the costs of fees

and commissions paid by Canadian firms to local agents and representatives

in respect of services, materials and equipment financed out of the proceeds

of the Loan.

Section 2.05

Indonesia shall immediately notify Canada of any payment it receives for

loss or damage to commodities or materials in transit under an insurance

policy or otherwise. Unless otherwise agreed to by Canada and Indonesia,

Indonesia shall use such proceeds to replace the commodities or materials

or portion thereof with like goods from a Canadian source.

ARTICLE III

Withdrawals of Proceeds of Loan

Section 3.01

Withdrawals shall be deemed to occur on the dates on which payments are

made by Canada either directly to Indonesia or its designated agent, or to

a firm or banking institution in respect of goods and services supplied

under this Agreement.

Section 3.02

Subject to the conditions and limitations set forth herein, Indonesia shall

be entitled to withdrawals from the Loan Account in such amounts as required

to meet the costs of the goods, services, freight and insurance which are

eligible for financing as the costs become due and payable in accordance

with Annex "B".

Section 3.03

Indonesia, or its designated agent, shall provide Canada with a copy of

each contract or purchase order for the procurement of services, materials

5

-and equipment in respect of which any withdrawal is to be made, -and a copy

of each irrevocable Letter of Credit issued under this Agreement.

Section 3.04

Withdrawals from the Loan Account may be made in favour of such persons or

agencies as may be designated by Indonesia and agreed to by Canada.

Section 3.05

Indonesia or its designated agent shall furnish or cause to be furnished

to Canada such documents and other evidence in support of the Letter(s)

of Credit as Canada may reasonably request, such evidence to be sufficient

in form and substance to establish that the amounts to be withdrawn are

properly related to the purpose of the Project.

ARTICLE IV

Cancellation and Suspension

Section 4.01

Indonesia may, by sixty (60) days written Notice to Canada, cancel all or

any part of the Loan not withdrawn by Indonesia prior to the giving of

such Notice and not required to meet outstanding financial obligations to

suppliers or firms incurred under the Loan.

Section 4.02

If any of the following events occur, Canada may suspend in whole or in part

the right of Indonesia to make withdrawals under the Loan Agreement, or

declare the principal outstanding due and payable immediately and cancel

that part of the Loan not previously withdrawn:

(a) a default by Indonesia in the payment of principal or

in any other payments or repayments required under

this Agreement and the Annexes hereto;

-....

6

-(b) a default on the part of Indonesia in the performance of

any undertakings under this Agreement;

(c) any extraordinary situation which renders it impossible

for Indonesia to perform its obligations under this

Agreement.

Section 4.03

If the full amount of the Loan is not committed by Indonesia by December 1988,

the balance will be cancelled by sixty (60) days written Notice from Canada

and the final instalment or instalments of the repayment to be made shall be

reduced accordingly.

ARTICLE V

General Undertakings

Section 5.01

Indonesia shall ensure that the Project is carried out, operated and

maintained with due diligence and efficiency and in conformity with sound

engineering construction and financial practices.

Section 5.02

Canada and Indonesia shall cooperate fully to ensure that the purpose of

the Loan will be accomplished, and each shall furnish to the other all such

information as shall reasonably be requested with regard to the general

status of the Loan. Indonesia shall inform Canada as soon as possible of

any condition or contingency which interferes with, or threatens to interfere

with, the accomplishment of the Project or any matter or thing in connection

therewith.

Section 5 .03

Indonesia shall afford accredited representatives of Canada all reasonable

opportunities to visit any part of the territories of Indonesia for the

purpose related to this Loan Agreement.

Section 5.04

This Agre:ment and any Annexes thereto shall be free from any taxes, fees

or other charges that may be imposed under the laws of Indonesia and those

in effect in its territories or administrative, political or judicial

divisions or subdivisions in connection with the execution, issue, delivery

and registration thereof.

Section 5.05

It is understood and agreed by Indonesia and Canada that the Articles of

this Agreement and Annexes "A", "B", "C", "D", and "E" thereto all form an

integral part of the present Agreement.

Section 5.06

For the purpose of this Agreement and Annexes thereto, Indonesia shall

include any agent or agents authorized by and on behalf of Indonesia with

regard to its rights, duties and obligations herein.

ARTICLE VI

Communications

Section 6.01

Any communications or documents given, made or sent by either Indonesia or

Canada pursuant to this Agreement or any Annex thereto shall be in writing

and shall be deemed to have been duly given, made or sent to the party to

which it is addressed at the time of its delivery by hand, mail, telegram,

For Indonesia:

For Canada:

Section 6.02

8

-The Ministry of Foreign Affairs Jalan Pejambon 6-8

Jakarta, Indonesia.

Cable Address: Deplu, Jakarta.

and/or

Bank Indonesia

Jalan Kebon Sirih 82-84 Jakarta, Indonesia.

Cable Address: Delegasi, Jakarta.

and/or

Directorate General for International Monetary Affairs

Ministry of Finance

Jalan Lapangan Banteng Timur 2-4 Jakarta, Indonesia.

Cable Address: DITMON, Jakarta.

The President

Canadian International Development Agency Place du Centre

200 Promenade du Portage Hull, P.Q.

Canada. KlA OG4.

Cable Address: CIDA HULL

Any one of the Parties hereto may, by written notice to the other Party

hereto, change the address to which any notice or request intended for

the Party so giving such notice shall be addressed .

Section 6.03

All communications and documents pertaining to this Agreement shall be in

the English language.

ARTICLE VII

Simultaneous Execution of Agreement

Section 7.01

This Agreement may be simultaneously executed in several counterparts, each

Section 7 . 02

This Agreement and Annexes "A", "B", "C", "D" and "E", attached hereto,

which form part of this Agreement, may be amended from time to time upon

agreement of the Parties concerned. Amendment to the main body of the

Agreement shall be executed by a formal amendment signed by the authorized

representatives. However, amendments to the Annexes may be made by an

exchange of letters between the authorized representatives of Indonesia

and Canada. This Agreement will come into force at the time of its

signature.

IN WITNESS WHEREOF the Parties undersigned, being duly authorized, have

signed this Agreement.

FOR THE GOVERNMENT OF THE REPUBLIC OF INDONESIA

Signed

Prof.Dr. Mochtar Kusumaatmadja Minister of Foreign Affairs

FOR THE GOVERNMENT OF CANADA

Signed

I

ANNEX "A"

LOMBOK HIGH LEVEL DIVERSION PROJECT

1.0 Description of the Project

The Canadian International Development Agency (CIDA) has agreed to

assist Indonesia in the construction of a High Level Diversion (HLD)

scheme and related rehabilitation of main, secondary and tertiary

of the Study a feasibility of the HLD was carried out resulting in

the completion of the detailed design and related drawings.

The HLD would divert normal wet season flow from the Jangkok River

to the Renggung River. This would be accomplished by shunting the

surplus through the Babak catchment by means of two canals. One

canal would deliver the Jangkok surplus to the Jurangsate canal

thereby allowing the diversion of a similar amount of water further

upstream in the Babak catchment, via the second canal, to the

Renggung River.

2.0 Use of the Loan

The proceeds of the Loan may be used by Indonesia or its agent to

pay the Canadian dollar costs and local costs of the following:

2.1 Canadian Consulting Engineering Services

-Approximately 180 man-months of Canadian consulting engineering

services will be provided under the Project. The main task

I

a) Review and, where necessary, finalize survey and

investigation work as well as detailed design and

construction drawings;

b) Prepare tender documents, assist with the

pre-qualification of tenderers, calling and evaluation

of tenders, and with award of contracts;

c) Assist DGWRD to supervise the construction of the

Project, inspect the progress of work, and with the

commissioning of the Project upon completion;

d) Develop procedures and prepare an implementation plan

for the operation and maintenance of the works.

The full scope of work will be as set out in the contract

between DGWRD and the Canadian Consultant.

2.2 Equipment and Materials

-a) Material - All materials procured in Canada to be

used on the construction of the HLD, including but not

limited to the following: reinforcing steel,

re-inforcing mesh, trashracks, gates and hoists. The

exact lists of materials and quantities will be as

mutually agreed between CIDA and Indonesia.

b) Equipment - (i) Survey, Office and Communications

equipment procured in Canada as mutually agreed

between CIDA and Indonesia. (ii) Construction

equipment supplied from Canada including but not

limited to the following:

Approximate Quantity

4

3

4

6

10

5

5

2

6

3

-Description

80 h.p. Front-end loader/backhoe

Hand compactor

150 cfm Compressor and related equipment

14 cu.ft. Concrete mixer

Concrete vibrator

3" Diaphragm pump

4" Trash pump

6" Water pump

3

Tandem axle - 7.5 m Dump truck

The exact list of construction equipment will be as mutually agreed

between CIDA and Indonesia.

c) Purchase in Indonesia of project vehicles as will be mutually

agreed between CIDA and Indonesia.

2.3 Local Costs 75% of the following local costs

-a) Aerial photography

b) Geotechnical investigations

c) Engineering services - tertiary design

d) Civil works - HLD

(i) Diversion structures

(ii) Canals

(iii) Related structures

(iv) Rehabilitation of main and secondary canals

(v) Rehabilitation of tertiary canals

e) Access roads

2.4 Ocean Freight, Freight Forwarding and Insurance Charges

-Ocean freight, freight forwarding and marine insurance

charges are eligible items for financing from the proceeds

of the Loan.

I

PROCUREMENT AND PAYMENT PROCEDURES

1.0 Procurement of Canadian Consulting Engineering Services

1.1 Unless otherwise agreed by Canada, the selection of a Canadian

consulting engineering firm (hereinafter designated as the

Consultant) to carry out construction supervision shall be

made on the basis of written proposals solicited from competent

and interested Canadian firms approved in advance by Canada.

1.2 The evaluation of proposals and the selection of a consultant

which Indonesia wishes to employ shall be made on the basis

of:

(a) the competence and qualifications of the firm to

undertake the assignment based on an assessment of

projects of a similar type that the firm has

successfully completed in the past;

(b) the proposed staffing and professional qualifications

of the firm's personnel who are to undertake the work;

and

(c) the firm's proposed approach and methodology of project

implementation and management.

In accordance with professional ethics, competing firms must not

be asked to tender or bid against each other on the basis of

fees. The Consultant will be selected only on the basis of a

comparative evaluation of technical proposals submitted by

2

-1.3 All project personnel proposed by the Consultant shall be

Canadian citizens or landed immigrants unless otherwise agreed

to by Canada.

1.4 Indonesia will be responsible for inviting proposals, evaluating

proposals and nominating the successful consultant to CIDA.

The final selection will be subject to the prior approval of

Canada.

1.5 The contract for the work to be undertaken will be negotiated

by Indonesia and will be referred to Canada for concurrence.

2.0 Procurement of Canadian Equipment and Materials

2.1 The Consultant shall be designated by the Directorate General

of Water Resources (DGWRD) as purchasing agent for all the

Canadian goods and services.

2.2 The Consultant, on behalf of DGWRD, shall invite tenders for

materials and equipment for the Project from a representative

list of Canadian suppliers approved by CIDA and Indonesia. To

the extent possible, equipment shall be tendered against full

performance/functional specifications according to the Project

requirements. The use of trade names or the equivalent shall

be minimized and shall be used to supplement, not replace,

performance specifications.

2.3 A copy of the specifications, the invitation to tender, together

with a list of Canadian suppliers invited to tender, shall be

forwarded by the Consultant to CIDA.

2.4 Each Canadian supplier invited to tender shall be instructed:

(a) to send a copy of his tender to CIDA at the same time

I

(b) to include with the copy of the tender sent to CIDA a

completed Canadian Content form;

(c) to exclude a copy of the Declaration of Canadian Content

form from his tender being submitted to the Consultant

with the exception of the information contained in Item

Seven (7) of the Canadian Content form. The Declaration

of Canadian Content is to be forwarded only to CIDA;

(d) to include in his tender the following notation:

"We certify that the goods ordered hereby are for export.

The invoiced price shall exclude Sales Tax and refundable

Customs Duty and Excise Tax paid on the goods or on parts

and components incorporated in the goods. The goods are

covered by CIDA Project Number 472/00702";

(e) to base prices on materials and equipment on "Freight

at Shipside" (FAS) at a designated Canadian port;

(f) on equipment purchases, to supply a recommended list of

spare parts for a four year period.

2.5 Where the lowest tender received meets all requirements of the

invitation to tender the Consultant may award the contract without

further reference to CIDA. In the event that an award of contract

is required to other than the lowest tender based on quality

considerations, compatibility with existing equipment and existing

methodologies, the Consultant will secure prior approval of CIDA.

Supporting evidence of tenders will in any case be made available

to CIDA as it may require.

2.6 Where, in the opinion of the Consultant and because of the nature

of the procurement, no useful purpose would be served by the

4

-calling of tenders, the Consultant will secure prior approval of

CIDA to enter negotiations for such procurements.

2.7 The negotiation of progress payments where necessary shall be

subject to the prior approval of CIDA.

2.8 The Consultant shall arrange for shipment, transport, inspection

and insurance of the materials and equipment and shall ensure

that they are delivered by the most practical and economical

method.

3.0 Payment Procedures for Canadian Goods and Services

3.1 Bank Indonesia shall, when the consulting contract is awarded,

open through a Canadian bank an irrevocable Letter of Credit in

favour of the Consultant. The Canadian bank has to be a

correspondent bank of Bank Indonesia. The Letter of Credit

shall be issued by Bank Indonesia within 90 days of the signing

of the contract.

3.2 Following acceptance of the Letter of Credit, CIDA shall confirm

to the Canadian bank that the bank will be reimbursed by Canada

from development loan funds in accordance with the terms and

conditions of the Letter of Credit. CIDA will provide funds to

the Canadian bank from the development loan account for goods

and services upon receipt of evidence of services having been

rendered or goods having been procured in conformity with the

terms of the Letter of Credit. Such evidence in the case of

services shall be progress claims certified by the Consultant

and in the case of goods, copies of the commercial invoice

certified by the Consultant accompanied by proof of delivery to

dockside or to the forwarding agent, e.g. non-negotiable bills

of lading or receipt of acceptance by the forwarding agent.

When facilities of a freight forwarder are employed, CIDA will

provide funds to the Canadian bank upon submission of invoices

for such services accompanied by a non-negotiable bill of lading,

freight charges and a copy of the insurance certificate.

3.3 All banking charges incurred by Bank Indonesia in connection with

the opening of Letters of Credit through a Canadian bank will be

reimbursed by Canada from development loan funds. Any interest

charges that may be payable by Bank Indonesia to a Canadian bank

in the event of that bank exchanging funds to meet payments to

the Consultant will also be reimbursed by Canada from the

development loan funds.

3.4 Advance mobilization payments may be made to the Consultant

provided these are required under and in conformity with the

terms of the contract.

3.5 The Consultant will be instructed by CIDA that they should not

begin any project related activities until the contract, Letter

of Credit, and CIDA confirmation of the Letter of Credit are

in place.

3.6 If there is any delay in issuing Letters of Credit beyond ninety

(90) days and if contract costs increase as a result, Indonesia

will be responsible for all such contract costs which exceed

approved loan funds as provided for in this Loan Agreement.

3.7 Statements of disbursements will be prepared by Canada and

forwarded to Bank Indonesia on a quarterly basis.

4.0 Local Cost Procurement Procedures

I

I

6

-Consultant on behalf of DGWRD, tenders shall be invited for

each local cost contract package from prequalified Indonesian

contractors (based on Indonesian regulations and procedures).

4.2 A copy of each invitation to tender shall be forwarded to the

Canadian Embassy, Jakarta.

4.3 Each Indonesian contractor shall be instructed to send a copy

of his tender to the Canadian Embassy.

4.4 DGWRD and the Consultant, after analyzing the tenders, shall

obtain prior concurrence of the Canadian Embassy before

forwarding construction contracts.

4.5 Award of the tender shall be based on the lowest responsible

bid, unless otherwise agreed to by CIDA.

5.0 Local Cost Payment Procedures

5.1 Following the award of the contract for each contract package,

CIDA shall arrange for 75% of the equivalent Canadian dollar

value of the contract to be transferred to the Canadian Embassy.

5.2 The Indonesian contractor shall submit two monthly progress

claims. One for 25% of the work certified by the Consultant

shall be forwarded to DGWRD for payment. The second amount for

75% of the work certified by the Consultant shall be forwarded

through DGWRD for onward transmission to the Canadian Embassy.

5.3 Upon receipt and acceptance of the certified progress claim the

Canadian Embassy shall arrange for payment in rupiahs directly

to the Indonesian contractor. Confirmation of all payments

shall be made to DGWRD and copied to Bank Indonesia and the

I

-ANNEX "C"

RESPONSIBILITIES OF THE GOVERNMENT OF

THE REPUBLIC OF INDONESIA

1. 0 In carrying out the Project as described in Annex "A", Indonesia

will be responsible for:

1.1 Establishing an Advisory Committee at the project level,

representing various local agencies, to assist project

management to cope with non-technical problems. The

members of the Advisory Connnittee will be appointed by

DGWRD in consultation with other government departments

as deemed necessary.

1.2 Arranging periodic meetings to review the progress of the

Project with representation from DGWRD, the Consultant, CIDA,

the Office of the Governor of NTB, and other parties as

deemed appropriate.

1.3 Providing the financial contributions as described in

Annex "D".

1.4 Carrying out activities as described in the network diagram

attached as Annex "E".

2.0 With respect to equipment, materials and to consultant services

provided from Canada, subject to the existing rules and regulations,

Indonesia will:

2.1 Arrange with Indonesian customs officials to properly clear

through Indonesian Customs free of imports, customs and other

duties and taxes, all equipment and materials required to

I

2

-Indonesia will exempt the Consultant and his personnel

(other than personnel who are citizens or permanent residents

of Indonesia) from, or bear the cost of, any taxes, duties,

fees, levies, and other impositions imposed under its laws

and regulations or the laws and regulations in effect in its

territories or any political subdivision.

2.2 Provide at no cost to the Loan Account, local facilities and

services in accordance with local standards, to enable the

Consultant to implement the Project.

Details of facilities and service requirements shall be

subject to individual contractual obligation but shall

definitely include the following:

2.2.1 Air-conditioned furnished office accommodation at

Mataram, including electricity, water and telephone

services .

2.2.2 Living accommodation for Canadian project personnel

at Mataram, including basic furniture, electricity,

and water.

2.2.3 Assignment of drivers and provision of operation,

maintenance and repair costs for all project vehicles .

2.3 Provide:

(a) all Indonesian permits, licences and other such

documents required to enable the Consultant to carry

out his respective responsibilities in Indonesia;

(b) all export and exit permits required for the return of

any of the material, equipment or effects (including

personal effects) which are the property of or are

provided by Canada, the Consultant or the Consultant's

this Agreement; and

(c) access to those parts of Indonesia required to enable the

Consultant to carry out his responsibilities in Indonesia.

2.4 Indemnify and save harmless, at no cost to the Loan Account,

Canada, its employees, agents or servants, Canadian firms and

Canadian personnel from any liability resulting from the

performance of their functions in Indonesia in connection with

the Loan. This provision will not relieve any person from

liability for any fraudulent or criminal act .

3.0 With respect to materials, equipment and related services provided

from Canada, Indonesia through the Consultant will:

3.1 Arrange for inspection and testing as necessary. All foreign

exchange costs pertaining to inspection and testing of materials

and equipment procured in Canada for projects funded under this

Loan will be reimbursable under this Agreement, where these

costs are not already reimbursable under existing financing

arrangements for the project concerned.

3.2 Be responsible for arrangement of adequate insurance for

incomplete shipments, losses or damage to the equipment and

materials during shipment and in transit. If any part of the

lost or damaged equipment and materials is pref inanced for

replacement out of the Loan Fund pending settlement of

insurance claims, on settlement of such claims the amounts will

be deposited to the account of the Loan Fund and will be paid

4

-3.3 Be responsible for the preparation and submission of claims

to Canadian suppliers for incomplete shipments, and for the

preparation and submission for insurance claims in the event

of losses or damage to commodities while in transit.

3.4 Pay for demurrage charges resulting from failure to provide

proper berthing facilities. Such charges may be considered

I

-ANNEX "D"

Table I below provides a summary of the project budget by main project

activity for both Canada and Indonesia.

Canada

A) LOAN

1. Services

(a) Canadian Consulting Services 1,450 (b) Counterpart Services

(c) Other Services 584

Sub-Total - Services 2,034

2. Construction

(a) Canadian Component 6,204

(b) Indonesian Component

3. Purchases (a) Equipment (b) Materials

4. Other Indonesian Local Costs (a) Off ice and Housing

(b) Land acquisitions

5. Contingency

6. Taxes and Administration

Total - Loan

Say

1,217 582

2,509

12,546

12,600

Table I

(Canadian Dollars)

Indonesia

169 195

364

2,068

340 185

999

1,822

5,778

5,800

Total

1,450 169

779

2,398

6,204 2,068

1,217 582

340 185

3,508

1,822

18,324

18,400

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