Selanjutnya

DATED: July 26 , 1985

PROJECT

LOAN AGREEMENT

BETWEEN

THE REPUBLIC OF INDONESIA

AND THE

UNITED STATES OF AMERICA

FOR

I

Table of Contents

Article 1 The Agreement Art)c le 2 The Project

SECT ION 2 . 1. Definition of Project Art)cle 3 : Financing

SECT ION 3 . 1.

SECTION 3 . 2 . SECTION 3. 3. Artkle 4 :

SECTION SECTION SECTION SECTION SECTION SECTION Loan 4.1. 4. 2. 4.3. 4.4. 4.5. 4 . 6.

The Loan

Borrower Resources for the Project Project Assistance Completion Date Terms

Interest Repayment

Application, Currency and Place of Payment Prepayment

Renegotiation of Terms Termination on Full Payment Article 5 : Conditions Precedent to D)sbursement

SECTION 5 .1. SECTION 5.2.

SECTION 5. 3 . SECTION 5 .4. SEC'riON 5.5. SECTION 5.6 . SEC'riON 5 . 7.

First Disbursement

Condition Precedent to Disbursement for Project Activities Other than Technical Assistance

Condition Precedent to Disbursement for Training Act)vit)es after March 1986 Condition Precedent to Disbursement for

Research

Condition Precedent to Disbursement for Computer Equipment or Teaching Equipment Notification

Terminal Date for Conditions Precedent Art)cle 6 : Special Covenants

SECTION 6.1 SECTION 6. 2.

Project Evaluation

Additional Spec)al Covenants Article 7 : Procurement Source

SECTION 7 .1. SECTION 7.2.

Foreign Exchange Costs Local Currency Costs Article 8: Disbursements

SECTION 8 .1. SECTION 8.2 . SECTION 8.3. SECTION 8 .4. SECTION 8.5 .

Disbursement for Foreign Exchange Costs Disbursement for Local Currency Costs Other Forms of Disbursement

Rate of Exchange Date of D)sbursement

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Article 9: Miscellaneous SECTION 9 . 1.

SECTION 9.2. SECTION 9.3 .

Communications Representatives

Standard Provisions Annex

Amplified Description of the Project Project Loan Standard Pr.ovjsjons

11 11 12 12

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A . I.O . PROJECT N0.497-0348

PROJECT LOAN AGREEMENT

Dated : July 26, 1985

Between

and

The Republic of Indonesia ("Borrower")

The United States of America, acting through the Agency for. Inter.national Development ("A . I . O. ").

Article l . The Agreement

The purpose of this Agreement is to set out the understandings of the parties named above ("Parties") with respect to the

undertaking by the Borrower of the Project described below, and with respect to the financing of the Project by the Parties.

Article 2 . The Project .

SECTION 2 . 1 . Definition of Project . The Project, which is further. described in Annex I, is designed to assist the Borrower to expand and regionalize public health education and research by strengthening public health training programs in selected

universities . Annex I, attached, amplifies the above definition of the Project.

Within the limits of the above definition of the Project, elements of the amplified description stated in Annex I may be changed by written agreement of the authorized representatives of

Artie le 3. Financing .

SECTION 3.1 . The Loan . To dSsist the Borrower to meet the costs of carrying out the Project, A.I.D. pursuant to the Foreign Assistance Act of 1961, as amended, agrees to lend the Borrower under the terms of this Agreement not to exceed Five Million United States ("U . S . ") Dollars ($5,000,000) to support the Project . The aggregate amount of disbursements under the Loan is referred to as

" P r i nc i pal " •

The Loan may be used to finance foreign exchange costs, as defined in Section 7.1. and local currency costs, as defined in

Section 7.2., of goods and services required for the Project. SECTION 3.2. Borrower Resources for the Project .

(a) The Borrower agrees to provide or cause to be provjded for the Project all funds, in addition to the Loan, and all other

resources required to carry out the Project effectively and in a timely manner .

(b) The resources provided by the Borrower for the Project will be not less than the equivalent of U.S . $9,000,000, including costs bor.ne on an " in-kind" basis .

SECTION 3 . 3 . Project Assistance Completion Date.

(a) The "Project Assistance Complebon Date" (PACD), which is June 30, 1992, or such other date as the Parties may agree to in writing, is the date by which the Parties estimate that all services financed under the Loan will have been performed and all goods

financed under the Loan will have been furnished for the Project as contemplated in this Agreement.

PACD or for goous furnjshed for the Project, as contemplated in this Agreement, subsequent to the PACD.

(c) Requests for disbursement, accompanied by necessary supporting documentation prescribed in Project Implementation Letters, are to be received by A.I.D. or any bank described in Section 8 . 1 no later than nine (9) months following the PACD, or such other period as A.I . D. agrees to in writing. After such

period, A . I . D., giving notice in writing to the Borrower, may at any time or times reduce the amount of ｾｨ･＠ Loan by all or any part

thereof for which requests for disbursement, accompanied by necessary supporting documentation prescribed in Project

Implementation Letters, were not rece)ved before the expiration of said period .

Article 4. Loan Terms .

SECTION 4 . 1. Interest . The borrower will pay to A.I.D.

interest which will accrue at the rate of two percent (2%) per annum for ten (10) years following the date of the first disbursement hereunder and at the rate of three percent (3%) per annum thereafter

on the outstanding balance of Principal and on any due and unpaid interest . Interest on the outstanding balance will accrue from the date (as defined in Section 8.5.) of each respective disbursement, and will be payable semiannually. The first payment of interest will be payable no later than six (6) months after the first disbursement hereunder, on a date to be specified by A. I.D .

SECTION 4.2. Repayment. The Borrower will repay to A.I.D. the Principal within forty (40) years from the date of the first

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installment of Principal will be payable nine and one-half (9-1/2} years after the date on which the first interest payment is due in accordance with Section 4.1 . A . I . D. will provide the Borrower with an amortization schedule in accordance with this Section after the final disbursement under the Loan.

SECTION 4.3. Application, Currency , and Place of Payment . All payments of interest and Principal hereunder will be made in U. S . Dollars and will be appl ied first to the payment of interest due and then to the repayment of Principal . Except as A. I . D. may otherwise specify in writing , payments will be made to the

Controller, Office of Financial Management, Agency for International Development, Washington , D. C. 20523, U. S.A . , and will be deemed made when received by the Office of Financial Management .

SECTION 4 . 4. Prepayment. Upon payment of all interest and any refunds then due, the Borrower may prepay, without penalty, all or any part of the Principal . Unless A. I . D. otherwise agrees in

writing, any such prepayment will be applied to the installments of Principal in the inverse order of their maturity .

SECTION 4 . 5 . Renegotiation of Terms . (a) The Borrower and A.I . D. agree to negotiate , at such time or times as either may request , an acceleration of the repayment of the Loan in the event that there is any significant and continuing improvement in the internal and external economic and financial position and prospects of the Republic of Indonesia, which enable the Borrower to repay the Loan on a shorter schedule .

(b) Any request by either Party to the other to so negotiate will be made pursuant to Section 9 . 2, and will give the name and address of the person or persons who will represent the requesting Party in such negotiations .

pursuant to Section 9 . 2 , the name and address of the person or

persons who will represent the requested Party in such negotiations. (d) The representatives of the Parties will meet to carry on negotiations no later than thirty (30) days after delivery of the requested Party 1

s communication under subsection (c). The

negotiations will take place at a location mutually agreed upon by the representatives of the Parties, provided that, in the absence of mutual agreement, the negotiations will take place at the office of the Borrower 1

s Minister of Finane e in the Republic of Indonesia. SECTION 4.6 . Termination on Full Payment . Upon payment in full of the Principal and any accrued interest, this Agreement and all obligations of the Borrower and A. I. D. under it will cease.

Article 5. Conditions Precedent to Disbursement .

SECTION 5.1. First Disbursement . Prior to the first disbursement under the Loan, or to the issuance by A.I.D . of documentation pursuant to which disbursement will be made, the

Borrower will, except as the Parties may otherwise agree in writing, furnish to A.I.D . in form and substance satisfactory to A. I . D.:

(a) An opinion of the Minister of Justice of the Borrower that this Agreement has been duly authorized and/or ratified by, and executed on behalf of, the Borrower , and that i t constitutes a valid and legally binding obligation of the Borrower in accordance with all of its terms; and

(b) A statement of the name of the person holding or acting in the Office of the Borrower specified in Section 9.2 ; and of any additional representatives , together with a specimen signature of each person specified in such statement.

to which disbursement will be made for project activities other than technical assistance, the Borrower shall, except as A.I.D . may

otherwise agree in writing, furnish in form and substance

satisfactory to A.I.D., evidence that a Project Management Unit has been formally established, including a description of the Unit's positions, the names of persons assigned full -time to those positions, a first year's workplan and an outline of the general responsibilities of the Unit with regard to each major component of the project .

SECTION 5 . 3 . Condition Precedent to Disbursement for Training Activities after March 1986. Prior to the disbursement of funds under the Loan, or to issuance by A.I.D. of documentation pursuant to which disbursement will be made for training activities after Indonesian Fiscal Year 1985/86, i.e. March 1986, the Borrower shall, except as A. I.D. may otherwise agree in writing, furnish in form and substance satisfactory to A.I . D. an annual training plan acceptable to A.I.D. for that project year . The first annual plan to include long term training overseas shall lay out the mechanisms to

undertake this training, including any necessary contractual arrangements with the National Family Planning Coordinating Board

(BKKBN).

SECTION 5 .4. Condition Precedent to Disbursement for Research. Prior to the disbursement of funds under the Loan, or to issuance by A . I . D. of documentation pursuant to which disbursement will be made for research, the Borrower shall, except as A.I . D. may otherwise agree in writing, submit a research plan acceptable to A.I.D. which,

for the succeeding twelve month period of the project, lists the criteria used to select project-funded research studies, explains the relationship of each proposed research study to project

SECTION 5 . 5 . Condition Precedent to Disbursement for Computer Equipment or Teaching Equipment . Prior to disbursement of funds under the Loan or to issuance of AID documentation pursuant to which disbursement will be made for computer equipment or for teaching equipment for the Project Management Un i t , or for project-assisted FKMs , the Borrower shall, except as A . I . D. may otherwise agree in writing, submit an assessment of equipment needs, a list of

equipment specifications and a plan for procurement acceptable to A. I.D.

SECTION 5 . 6 . Notification . When A. I . D. has determined that the conditions precedent specified in Section 5 . 1, 5 . 2, 5 . 3, 5.4 and 5.5 have been met , it will prompt l y notify the Borrower .

SECTION 5.7 . Terminal Date for Conditions Precedent . If all of the conditions specified in Section 5.1 _{have not been met within 90} days from the ､､ｴｾ＠ uf this Agreement , or such later date as A. I . D. may agree to in writing, A . I . D., at its option may terminate this Agreement by written notice to Borrower .

Article 6 . Special Covenants .

SECTION 6 . 1 . Project Evaluation . The Parties agree to

establish an evaluation program as part of the Project. Except as the Parties otherwise agree in writing, the program will include , during the i mplementation of the Project and at one o r more points

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SECTION 6 . 2. Additional Special Covenants .

Except as A. I.D. may otherwise agree in writing, the Parties agree to the following additional Special Covenants :

(a) the Borrower agrees to provide sufficient funds to maintain and provide supplies for equipment furnished under the Project.

(b) the Borrower agrees to take all necessary steps to ensure that participant trainees return to positions which fulfill the purpose of their training and of project objectives .

(c) the Borrower agrees that loan funds may be used to finance the costs of in- country and off-shore short term training, or. in special cases, training of less than 90 days duration .

Article 7 : Procurement Source .

SECTION 7 . 1. Foreign Exchange Costs . Disbursements pursuant to Section 8 . 1 will be used exclusively to finance the costs of goods and services required for the Project having with respect to goods, their source and origin and with respect to services, their

nationality in countries included in Code 941 of the A. I . D.

Geographic Code Book as in effect at the time orders are placed or contracts entered into for such goods and services ("Foreign

Exchange Costs") , except as A. I . D. may otherwise agree in writing, and except as provided in the Project Loan Standar.d Provisions Annex , Section C.l (b) with respect to marine insurance . ocean transportation costs will be financed under the Loan only on vessels under flag registry of the United States, or Indonesia, or Code 941 countries as long as chartered or operated by Indonesian shipping companies, except as A . I.D . may otherwise agree in writing.

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except as A.I.D. may otherwise agree in writ)ng, their origin in the Republic of Indonesia ("Local Currency Costs"). To the extent

provided for under this Agreement, "Local Currency Costs" may also include the pr.ov)sion of local currency resources required for the Project.

Article 8. Disbursements .

SECTION 8.1. Disbursement for Foreign Exchange Costs .

(a) After satisfaction of Conditions Precedent, the Borrower may obtain disbursements of funds under the Loan for the Foreign Exchange Costs of goods or services required for the Project in accordance with the terms of this Agreement, by such of the following methods as may be mutually agreed upon:

(1) by submitting to A.I.D . with necessary supporting documentation as prescribed in Project Implementation Letters,

(A) requests for reimbursement for such goods or services, or (B) requests for A.I.D. to procure commodities or services in Borrower's behalf for the Project; or

(2) by requesting A.I.D. to issue Letters of Commitment for specified amounts (A) to one or more U. S. banks, satisfactory to A.I.D., committing A.I.D . to reimburse such bank or banks for

payments made by them to contractors or suppliers, under Letters of Credit or otherwise, for such goods or services, or (B) directly to one or more contractors or suppliers, committing A. I.D. to pay such contractors or suppliers for such goods and services.

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SECTION 8.2. Disbursement for Local Curr.ency Costs

(a) After satisfaction of Conditions Precedent, the Borrower may obtain disbursements of funds under the Loan for Local currency Costs required for the Project in accordance with the terms of this Agreement, by submitting to A . I.D ., with necessary supporting

documentation as prescribed in Project Implementation Letters , requests to finance such costs .

(b) The local currency needed for such disbursement may be obtained : (1) In local currency acquired by A. I.D. by purchase or from local currency already owned by the U. S . Government or (2) by A.I . D. requesting the Borrower to make available the loca l currency

for such costs, and thereafter reimbursing an amount of U. S . dollars equal to the amount of local currency made available by the

Borrower . The

u.s.

dollar. equivalent of the local currency made available hereunder will be the amount of U. S. dollars required by A . I . D. to obtain the local currency .

SECTION 8 . 3 . Other. Forms of Disbursement. Disbursements of the Loan may also be made through such other means as the Parties may agree to in writing .

SECTION 8 . 4 . Rate of Exchange . Except as may more specifically be provided under Section 8 . 2, if funds provided under the Loan are

introduced into Indonesia by A. I. D. or any public or private agency for. purposes of carrying out obligations of A . I . D. hereunder, the Borrower will make such arrangements as may be necessary so that such funds may be converted into currency of the Republic of Indonesia at the highest rate of exchange which, at the time the conversion is made , is not unlawful in Indonesia .

contrdctor or suppljer pursuant to a Letter of Commjtment, contract, or purchase order; (b) on the date on which A.I.D. disburses to the Borrower or _{its designee local currency acquired in accordance with} Section 8 . 2.

Article 9 . Miscellaneous

SECTION 9 . 1 . Communications. Any notice, request, document, or _{other communication submitted by either Party to the other under} this Agreement will be in writing or _{by telegram or cable, and will} be deemed duly given or sent when delivered to such party at the following addresses:

To the Borrower:

Mail Address : Departemen Luar Negeri Jalan Pejambon No. 6 Jakarta Pusat

Indonesia

Alternate address for telegrdms : DEPLU JAKARTA

To A.I.D.:

Mail Address : U . S. Agency for International Development American Embassy

Jl . Medan Merdeka Selatan 5 Jakarta, Indonesia

All such communications will be in Engljsh, unless t.he Par.ties otherwise agree )n writing . Other addresses may be substituted for the above upon the giving of notice .

SECTION 9.2. Representatives . For all purposes relevant to this Agreement, the Borrower will be represented by the individual holding

or

_{acting in the office of the Chairman or Vice Chairman,} National Development Planning Agency (BAPPENAS) and A . I.D . will be represented by the individual holding

or

_{acting in the office of} Mission Director, USAID Mission to Indonesia, each of whom, by written notice, may designate additional representatives for all purposes other than exercising the power under Section 2.1 to revise elements of the amplified description in Annex I. The names of the representatives of the Borrower, with specimen signatures, will be provided to A.I . D., which may accept as duly authorized any

instrument signed by such representatives in implementat)on of this Agreement, until receipt of written notice of revocat)on of their authority .

SECTION 9.3. Standard Provisions Annex. A "Project Loan Standard Provisions Annex" (Annex 2) is attached to and forms part of this Agreement .

IN WITNESS WHEREOF, the Republic of Indonesia and the United States of America, each acting through its duly authorized

representative, have caused this Agreement to be signed )n their names and delivered as of the day and year first above written.

REPUBLIC OF INDONESIA

Signed

Atmono Suryo Director General

for Foreign Economic Relations Department of Fore)gn Affairs

UNITED STATES OF AMERICA

Signed

ｾｮ＠ H . Holdridge bassador

Embassy of the United of America/Indonesia

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AMPLIFIED PROJECT DESCRIPTION FACULTIES OF PUBLIC HEALTH

The purpose of the Faculties of Public Health project is to assist the Government of Indonesia to expand and regionalize public health education and

research by strengthening public health training programs in selected regional universities to supply manpower, conduct research, and provide technical assistance to the Ministry of Health, the National Family Planning Agency

(BKKBN), and other public and private sector agencies involved in health and family planning sec vice deli very .

Under the project the Ministry of Education and Culture (MEC) will establish regional Faculties of Public Health (FKL1) at:

a . Airlangga University, surabaya (UNAIR) b. Diponegoro University, Semarang (UNDIP) c . University of North Sumatera, Medan (USU)

and will strengthen and upgrade the new Faculty of Public Health at Hasanuddin University ( UNHAS).

At the end of the project each Faculty will have a m1n1mum of 30 full-time

Faculty members, consolidated two-year and four-year 51 degree programs in Public Heal th producing 60 Sl graduates annually, comprehensive research and public servi ce programs, and expanded library and information resources . FKM- UNAIR will also have an 52 program producing 10 graduates annually .

I. Project Strategy

To achieve its purpose the proJect will employ the following strategy : A. Strengthen the public health training, research, and community service

capacities of the Public Health Department of the Medical Faculties at UNAIR, UNDIP, and usu to enable them to meet MEC accreditation requirements for becoming Faculties of Public Health by 1990. It is expected th1s will be done in three phases:

Phase I establish by September 1985 a program of study offering the two-year Sl degree in Public Health within the Public Health Department of Medical Faculties at USU and UNDIP and a program of study for the four-year 51 degree in Public Health at UNAIR . Phase II : establish by August 1987, a program of study at UNHAS, UNDIP, and

usu to permit each to offer the four - year Sl degree in Public Health.

Phase III : fulfill MEC accreditation requirements to achieve Faculty status at USU, UNDIP , and UNAIR by 1990.

B. Strengthen Public Health training, research, and community service capacity at FKM- UNHAS to keep pace with institutional development at the three other emerging reg1ona1 Facu1t1es ot Pub!1c Health.

c. BY building on the considerable administrative and technical skills of

I

D. In all aspects of the project's implementation, actively encourage cooperation between the FKMs and regional health and family planning implementing agencies. Cooperation will not only expose students to the problems and decisions they will encounter professionally, but will also

involve the E'KMs directly in assisting to solve local health problems . II . Project Administration and Management

The Director General for Higher Education in the Ministry of Education and Culture, through his Directorate for Academic Infrastructure Development, will have overall responsibility for the pro)ect. A Project Steering Committee will establish policy and oversee the project. It will be chaired by the Director General or his representative with its members representing the consortium of Health Sciences (CHS), Ministry of Health, BKKBN, USAID, FKM-UI and BAPPENAS. The Steering Committee will be assisted by a Project Management Unit (PMU) to coordinate project activities and supervise project inputs on a routine basis. It is anticipated that the PMU will be staffed by a Director , two Assistant Directors, and an Administrative Assistant . A long term consultant will assist the Director of the PMU in all aspects of project implementation and monitoring.

Local Management Units (LMO) will be established at each project assisted FKM to plan and coordinate project activities at the respective inst1tutions . The LMUs will serve on a part time, as needed, basis and will be the liaison between central project management and the regional FKMs . It is expected that each LMU will consist of two FKM faculty members, part-time, and a seconded part-time secretary . The LMUs will, as needed, consult with local Advisory Boards

consisting of representatives from the local government (PEMDA), local planning boards (BAPPEDA), MOH, and BKKBN . These consultations will be for the purpose of setting local project policy guidelines and will assist to link the development of the FKMs to the public health interests of local government.

In its advisory capacity to the Director General for Higher Education on the development of Public Health Education, the CHS will periodically assess progress made by each Faculty in fulfilling teaching, research, and community service requirements. A representative of the CHS will sit on the Project Steer1ng committee to assure that project inputs coordinated by the PMU are directed toward meeting accreditation requirements . The CHS will make recommendations to the Director General for Higher Education regarding approval for conferring Faculty status.

Project activities will be planned and budgeted on an annual cycle coinciding with the GOI DUP/DIP cycle to facilitate coordination of AID and GOI funding, and to make project implementaton responsive to the evolving needs of the concerned PKMs. The anticipated schedule is as follows: yearly policy guidelines for project activities will be issued by the Pro)ect Steering Committee each April, one year prior to the beginning of the Indonesian fiscal - year (IPY) in which the activities will take place . The PMU will translate these guidelines into

operational strategies for the regional FKMs . The regional FKMs in turn, will adapt the strategies to meet their individual needs during local planning

meetings held in May, and will produce operational workplans and draft DUPs for the upcoming fiscal year. A national planning meeting will be held in July to review and approve each workplan, The PMU will compile workplans from each FKM into a comprehensive project workplan for the upcoming fiscal year for submission to AID and GOI by September 1. commitment of AID project funds and GOI

｣ｯｵｮｴｾｌｾ､ｴｴ＠ ｢ｵｵｾｾｴｾ＠ would be expected by the rollowing APril, the t1rst month ot the Indonesian fiscal year .

III . Project Activities

be provided to existing staff by the project to upgrade academic

qualifications to levels required by the MEC for teaching at the Sl, 52, or 53 level, as appropriate to the degree programs planned for each

institution . Technical qualifications of Faculty members will be further improved through a variety of short term training programs and teaching externships both in Indonesia and abroad .

s. Research: Research funds available through the project will allow Faculty members to obtain research experience, refine analytic and methodologic research skills, and develop the Faculties' abilities to independently attract research funds from other sources. Collaborative research projects with FKM-UI will give researchers from the regional FKI1s first hand guidance in designing and conducting research studies. Technical assistance from domestic and external sources will be available to assist Faculties to

develop comprehensive research and community service programs . Project funds may be utilized to train a limited number of Ph . D. 's at each of the regional FKMs, whose presence will promote higher quality research . Finally, loan funds will be available to disseminate research findings within the professional Public Health community, and to analyze their policy implications.

c . Academic Program Development: Project resources will be available to review and revise existing Sl curricula with a view toward incorporating a greater

variety of instructional materials and educational technologies. Each faculty will have flexibility to establish an instructional resource unit to develop teaching materials and support the use of more innovative

participatory teaching methodologies in their academic programs . Loan funds will be ｵｳｾｵ＠ to ｰｵｲＨ［ｨ･ｾｳ･＠ hardware to help equip these units, to fund the initial training needed of staff within these units and to provide technical assistance (grant funded) to develop educational software. Equipment and technical assistance to improve administration at regional FKMs will also be supported by the project.

D. Expanded Information Resources: Library books will be procured to complement and support the Sl, S2, and S3 teaching programs being developed at the FKMs. Microfiche readers, printers, and microfiche journal subscriptions will be provided to each FKM. Loan funds will also be available for other appropriate means of providing or disseminating information . These may

include as research journals, a technical report series or translations of standard texts.

E. Strengthening FKM-UI as Pembina Fakultas: With project support FKM-UI will develop a formal 53 program which will accept its first annual intake of students by 1987. Graduates will strengthen S2 and S3 teaching programs and Faculty research capacities at the regional FK11s, It is anticipated that there will be 10 S3 graduates by 1992 and 36 graduates by 1999. The S2

program at FKM-UI will be expanded from 25 to 50 graduates annually to accommodate Ministry of Health manpower needs and the increased need for Faculty members with 52 level education at the regional FKMS .

It is anticipated that FKM-UI, with project assistance, will also support development of the regional FKM's by:

1. providing short term in-service training;

2. conducting research in cooperation with the regional FKMs; 3. maintaining a centralized public health information data base; 4. disseminating research findings from regional FKMs;

5 . providing technical assistance to regional FKMs in technical and managerial areas;

1. _{reviewing all project funded research proposals; and}

a.

serving as a teaching externship site for faculty members from regional FKMs.

IV. Project Inputs

International loan funded procurement of goods and services under the project will be solicited from firms or individuals in Code 941 countries, Indonesia and the United States. International grant funded procurement of goods and services will be solicited from firms or individuals in Indonesia and the United States . Goods and services funded by the project budget will be procured on a competitive basis, advertised in Indonesia as well as abroad for international procurement . Indonesian firms will be eligible to bid for all local and international procurement .

A. Training

The training input will be aimed at achieving qualitative improvements in the academic and technical qualifications of teaching staff . There will be three types of training:

1 . Degree training in Indonesia and abroad : The project will support up to 40 persons in Masters degree programs in Indonesia and approximately 30 persons in the

u.s.

or other eligible countries as appropriate . Up to 10 persons will be placed in Ph . D. programs in Indonesia and 10 persons in the

u.s.

Overseas long term training candidates will attend intensive English language training in Indonesia prior to departure, and additional pre-academic orientation and English language training in the

u.s .

immediately prior to commencing their academic programs. Support for

in-country Ph.D. training will contain a component to allow candidates to attend up to two semesters at a

u.s .

university as part of a •sandwich" Ph.D. program where the degree is granted by the Indonesian university but portions of the academic or dissertation requirements are fulfilled abroad . All participants enrolled in graduate programs both overseas and in-country will attend specilized training of trainers courses of 1-2 months duration .

Degree trainees will be drawn from existing full-time public health teaching staff at the regional FKMs and FKM-UI . A limited number of part-time teaching staff will also be eligible for degree training if this would significantly enhance public health teaching at the PKM

concerned . Selection of all degree candidates will be made in accordance with the specific areas of expertise required at each FKM , and will be phased to assure sufficient core staff remain at each institution to carry out teaching, research, and public service programs .

GOI funds will support all salaries while in train1ng, international and domestic airfares , exit fees, and any other costs associated with

departure from Indonesia . Admission fees for domestic long term training participants will also be provided by the GOI. AID funds will support all tuition related fees, and maintenance allowances during training . 2. Short courses and teaching externships abroad: This training will

primar1ly upgrade technical skills of senior faculty members . Up to 25 persons will attend short courses . Up to 10 persons will attend teaching externships ot _{approximately six months duration. The GOI will finance} all domestic air fares , exit fees, and salaries while in training for these participants . AID loan funds will support all international airfares, tuition, fees , and maintenance allowances.

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include three short courses, on Research Methodology and Data Analysis, curriculum Development, and FKM Auministration, in the first year of project implementation. Topics for subsequent courses will be determined at annual project planning and review meetings. Short course funds may also be used to enroll participants ln appropriate existing courses being conducted in

Indonesia, or to support a limited number of in-country faculty externships at FKM-UI . AID funds will support curriculum development costs, instructor related costs, materials, and supplies for short courses. The GOI will support all per diem and travel costs for trainees and organizing

committees. Appropriate sharing of costs for training in existing courses at Indonesian universities and for in-country faculty externships will be agreed to by the GOI and AID before these activities take place .

B. Infrastructure aperations

The GOI will finance recurrent operating costs of the project assisted institutions, including the costs of additional teaching staff . To

accommodate the increased teaching and research workload required to achieve Faculty status, the following minimum number of new permanent teaching positions will oe added and filled over the life of the project:

usu 19 additional staff

ON HAS 25 additional staff

UNDIP 17 additional staff

UN AIR 45 additional staff

UI 25 additional staff

All costs for additional staff will be assumed by the GOI.

c.

Commodities

The project will provide a limited amount of equipment for improving academic quality, research capacities, and Faculty administration .

Commodities financed by the project may include:

1. Library and Information Dissemination Materials: Op to ｾＱＵＬＰＰＰ＠ of loan funds will be used to procure public health books for each of the five FKM's to supplement existing libraries. Loan funds will be used to procure microfiche readers, printers, duplicators, and microfiche

journal subcriptions for FKM-UI and each regional Faculty as well as

ｩｮｾｴｩ｡ｬ＠ training costs . The GOI will support all in-country shipment

costs, recurrent maintenance costs, supplies for microfiche reader/printers, and following the initial two years, subsequent microfiche subscription costs . Project funds may be used to translate English language texts into Indonesian, to initiate the production of a Public Health Technical Report Series, or a public health journal . FKM-UI will be the leading agency for any translation or publication activities . costs for translations and publications will be shared between the GOI and AID and will be agreed upon in writing before the activity takes place.

2. Teaching equipment packages : Up to $45,000 in loan funds per FKM will be provided to procure audio-visual, replay, and media production equipment for instructional resourr.PR and publicationc , A feasibiliLy ｡ｾｳ･ｳｳｭ･ｮｴ＠

will be conducted to ascertain each Faculty ' s actual equipment needs prior to procurement. Initial training required for any teaching equipment will be provided through the AID funds set aside for

procurement . Maintenance and supplies costs will be paid by the GOI. 3. Micro-computers: The project will provide up to two micro-computers to

I

analysis . An assessment of micro-computer requirements at all Faculties will be conducted prior to procurement. AID loan funds for the

micro-computers will include provisions for software and initial

training, with recurrent maintenance and supply costs the responsibility of the GOI.

4. Administrative Equipment: Project loan funds will be utilized to procure selected administrative equipment for the PMU and the FKMs such as

photocopy machines, typewriters, a micro-computer and mimeograph machines. AID loan funds will be used to purchase all equipment and to support initial training . The GOI will pay for routine maintenance and supplies.

D. Research

E.

This component of the proJect will assist to satisfy the research and

community ｳ･ｲｾｩ｣･＠ accreditation requirements for new Faculties and to support the new academic programs being developed. Research findings will also expand the regional epidemiologic data base necessary for region specific planning of health and family planning programs. Combined AID and GOI funding of $1,825,000 over the life of the project will finance research programs at each of the Faculties . An AID contribution of $850,000 will assist to initiate research programs during the first five years of the project. By 1991/92 research will be completely GOI funded. GOI

contributions of $975,000 for research will include a special allocation of $250,000 from the MEC outside of its normal Research and Development Budget for the exclusive use of the FKMs. It is anticipated that the experience and skills obtained while conducting research with these funds will enable the new Faculties to develop the expertise, credibility, and reputation as research institutions to attract the balance of the GOI contribution from the Ministry of Health, BKKBN, and other sources sufficient to maintain annual research funding levels of approximately $75,000/Faculty/year upon cessation of the project funding.

Additional AID funds will also be available to disseminate research findings through Research Policy Seminars . These seminars will provide a forum for FKM staff, health and family planning policy makers to link project research findings to policy analysis and formulation on a national level. All seminar expenses through the GOI FY 1987/88 will be AID funded. For the following two years, costs will be split, with the GOI supporting all travel and per diem and AID supporting all other expenses . In the final two years, all seminar costs will be borne by the GOI.

Technical Assistance

Foreign and Indonesian expertise will be utilized to upgrade the teaching, technical, administrative, and research capacities of the FKMs. The project will provide up to 100 person months of short term domestic technical

assistance, up to 65 person months of short term international technical assistance, and up to 60 person months of the services of a long term advisor to the Project Management unit. For the long term advisor, AID funds will support salary, benefits, housing and utilities, international travel and a partial per diem for domestic travel . GOI funds will finance the advisor ' s domestic travel, per diem within GO! rates for domestic travel and any

F. Planning and Review Meetings

Annual national project planning and review meetings, one per year beginning in year 2, will review progress, set project policy guidelines, and develop annual project workplans. Local pro)ect planning and review meetings (one per year at each Faculty beginning in year 2) will be held to translate national project policy guidelines into local annual workplans appropriate to each FKM. All planning meetings through GOI FY 1987/88 will be AID funded . For planning meetings in the subsequent two years, travel and per diem costs will be GOI funded, with all other expenses financed by AID. All meeting costs ｾｮ＠ the final two years of project implementation will be entirely GOI funded.

G. Project Adml nistration/Coordination

The responslbilities and composition of the Project Steering committee, PMU, LMUs, and local Advisory Boards are described in Section II . As an exception to normal A:D procedures, supplemental salaries for the PMU staff will be AID funded . Honoraria for the Project Stee r ing Committee , utilities,

communications, telephone , supplies, travel and per diem costs for the PMU will be GOI funded. All costs for the LMUs and local Advisory Boards will be the responsibility of the GOI.

v. Monitoring and Evaluation

Responsibility for monitoring project implementation will rest primarily with the Project Management Unit . Monitoring repo rts will be submitted semi-annually to the Director General for Higher Education.

A mid-term evaluation will be conducted with project funds after the third year of proJect implementation to review progress, assess the appropriateness of project inputs, and recommend any necessary changes in project targets ,

administrative aechanisms or planning systems. It is expected that a four person team of domestic and external consultants will be used for this purpose .

A final evaluation will be carried out during the last year of pro)ect implementation. Prior to the evaluation each PKM will conduct an internal assessment of its progress toward goals specified in its Five Yea r Development plan . External consultants will be appointed to review routine monitoring data and the individual Faculty internal assessments , and conduct the final project evaluation .

VI . Illustrative Financial Plan:

•

Training

Commodities

Technical Assistance

Research

Planning Meetings

.Infrastructure Operations

Project Management

.

Evaluation/Audit

Inflation/Contingency

T 0 T A L

FACULTIES OF PUBLIC HEALTH 497-0348

BUDGET SUMMARY (OS$ ｾＰＰＰＩ＠

ArD FY 85 TOTAL LIFE OF PROJECT

ｃｏｍｍｉＧｬｬｾｅｎｔ＠ A. I . D. HOST COUNTRY

LOAN GRANT LOAN GRANT*

3,542 0 3,542 0 1,240

660 0 660 0 1,167

0 1,700 0 2,244 110

0 0 0 879 1,071

82 0 82 0 107

0 0 0 0 5,013

0 170 0 340 ₂₉₂

0 0 0 94 0

716 130 716 443 0

$5,000 42,000 ｾＵＬＰＰＰ＠ ｾＴＬＰＰＰ＠ $9,000

TOTAL

I

4,782

1,827

2,354

1,950

189

5,013

632

94

1,159

*18,000

Future obligations are subject to the availability of funds and the mutual agreement of the parties to proceed.

Project Loan Scandard Provisions

Annex 2

Article A:

Project. Implementation Le t te1:-s

Article

B:

General Covenants

SECTION

B. 1.

SECTION B.2.

SECTION

B.3.

SECTION

B 4.

SECTION

B.S.

SECTION B.6.

SECTION

B. 7.

SECTION

B. S.

Consultation

Execution of Project

Utilization of

ｇｯｯ､ｾ＠

and Services

Taxation

Reports, Records, InspecLiona, Audit

Completeness of Informa tion

Other Payments

Information and Harking

Article C:

Procurement Provisions

SECTION C.l.

ｓｅｃｾｉｏｎ＠

C.2.

SECTION C.3.

SECTION

C. 4.

SF.CTION C.S.

ｓｅｃｔｉｏ ｾ ｬ＠

C.

6.

SECTION

C. 7. ｓｅｃｔＱＰｾｾ＠

C. 8.

Special Rules

Eligibility Date

Plans, Specifications, and Contracts

Reasonable Price

Notification to Potential Suppliers

Shipping

Insurance

U.S.

Government-Owned Excess Property

Article D:

Termination; Remedies

SECTION D. 1.

SECTION 0.2.

SECTION D. 3.

SECTION D. 4.

SECTION D. 5 .

SECTION 0.6.

SECTION 0.7.

Cancellation by Borrower

Events of Default; Acceleration

Suspension

Cancellation by A.I.D.

Continued Effectiveness of Agreement

Refunds

Nonwaiver of Remedies

Page

1

1 l l 2 2 2, 3 3 3

:1

3

3,

4

4

4

5 5 5, 6

6,

7

7

7

7

7'

8

Project Loan Standard Provisions Annex

Def i nitions: As used in this

ａｮｮｾｸＮ＠

the "Agreement" refers to the

Project Loan Agreement to which this Annex is attached and of which

this Annex forms a part. Terms used in this Annex have the same

meaning or reference as in the Agreement.

Article A: Project Implementation Letters

To assist Borrower in

the

ｩｾｰｬ･ｭ･ｮｴ｡ｴｩｯｮ＠

of the

ｾｲｯｪ･｣ｴＬ＠

A.l.O., from time to time, will

issue Project Implementation Let t ers that will furnish additional

information about matters stated in this Agreement.

The parties

may also use jointly agreed-upon Project Implementation Letters to

confirm artd record their mucual understanding on aspects of the

implementation of this Agreement.

Project Implementation Letters

will not be used to

｡ｭ･ｾ､＠

the text of the Agreement, but can be

used to record revisions or exceptions which are permitted by the

Agreement, includi ng the rc"ision of elements of the amplified

description of the Project in Anne x 1.

Article B:

General Covenants

SECTION B.l.

ｃｯｾｳｵｬｴ｡ｴｩｯｮＮ＠

The Parties will cooperate to

assure that the purpose of this Agreement will be accomplished.

To t:h.is end, the Parties, at the request of either, •·1ill exchange

views on the progress of the Project, the performance of

obliga-tions under this Agreement, the performance of any consultants,

contractors, or suppliers engaged on the Project, and other

mat-ters relating to the Project.

SECTION B.2. Execution of Project. The Borrower will:

(a) carry out the Project or cause it to be carried

out with due diligence and efficienty, in conformity with

sound technical, financial, and management practices, and

in conformity with those documents, plans, specifications,

contracts, schedules, or other arrangements, and with any

modifications therein, approved by A.I.D. pursuant to this

Agreement; and

SECTION B.3.

Utilization of Goods and Services.

(a)

Any resources financed under the Loan will, unless

otherwise agreed in wri t ing by A.I.D., be devoted to the

Project until the completion of the Project, and thereafter

will be used so as to further the obje c t ives sought in

carrying out the Project.

(b)

Goods or services financed under the Loan, except

as

A.I.D.

may otherwise agree

in

writing, will not be used

to promote or assist a foreign aid project or activity

associated with or financed by a country not included in

Code

935

of the A.l.D. Geographic Code Book as in effec t

at t he time of such use.

SECTION B.4. Taxation.

(a)

This Agreement and che Loan will be free from, and

the Principal and interest will be paid free from, any

taxation or fees imposed under laws in effect in the

terri-tory of the Borrower.

(b) To the extent that (1) any contractor, including

any consulting firm, any personnel of such contractor

fi-nanced

ｵｮ､ｾｲ＠

the Loan, and any property or transactions

relat ing to such contracts and (2) any commodity procurement

transactLon financed under the Loan are not exempt from

identifiable taxes, tariffs, duties, or other levies imposed

under laws in effect in the territory of the Borrower, the

Borrcwer. will, as and to the extent provided in and pursuant

to Project Implementation Letters, pay or reimburse the same

with funds other than chose provided under the Loan.

SECTION B.S. Reports, Records, Inspections, Audit.

The Borrower will:

(a) furnish A.I.D . such information and reports relating

to the Project and to this Agreement as A.I.D. may reasonably

request;

SECTION B. S. (b)

last disbursement bv A.

I.

D. ; such bookg ctnd records

Ｇｯｾｩｬｬ＠

also

be adequate to show· the nature and

e xLe nt

of solicitations

of prospective

ｾｵｰｰｬｩ･ｲｳ＠

of goods an d services acquired, the

bas i s of award o f contracts and

ｯｲ､ ･ｴ ｾＮ＠

and the overall

p-cogress of the Project

ｴｯｾＱ｡ｲ､＠

complecion; and

(c) afford authorized representatives of a Party the

opportunity at all reasonable times to inspect the Proj e c t ,

the utilization of goods and services financed by such

Party, and books, records, and other documents relating to

the Project and the Loan.

SECTION B.6.

Completeness of Information. The Borrower

confirms:

(a) that the facts and circumstances of which it has

inforoced A.l.D., or caused A. I . D. to be informed, in the

course of reaching agreement wi th A.I D. on the Loan, are

accurate and complete, and include all facts and

ci=cum-stances that might materially affect the Project and the

discharge of responsibilities under this Agreement;

(b) that it will inform A.I.D. in timely fashion of

any subsequent facts and circumstances that

ｲｲｾｧｨｴ＠

materially

affect, or that it is reasonable to believe might so affect,

the Project or the discharge of responsibilities under this

Agreement.

SECTION B.7. Other Payments.

Borrower affirm5 that no

pay-ments have been or

will

be received by any official of the Borro\.,.er

in connection with the procurement of goods or services financed

under the Loan except fees, taxes, or similar payments legally

established in the country of the Borrower.

SECTION B.S.

Information and

ｍ｡ｲｫｩｮｾＮ＠

The Borrower will

give appropriate publicity to the Loan an the Project as a

pro-gram to which the United States has contributed, identify the

Project site, and mark goods financed by A.l.D., as described in

Project Implementation Letters.

Article C:

Procurement Provisions

SECTION C.l. Special Rules.

SECTION C.l.

(b) Premiums for marl.ne insurance placed in the territory

of the Borrower will be deemed an eligible Foreign Exchange

Cost, if otherwise eligible under

ｓ･｣ｴｩｯｾ＠

C 7(a)

(c)

Any motor. vehicles financed

ｵｮ､ｾｲ＠

the Loan will be

of United States manufacture, except as A.I.D. may

other-ｷｩｳｾ＠

agree in writing.

SECTION C.2.

ｾｬｩｧｩ｢ｩｬｩｴｹ＠

:a:e.

No goods or services may be

financed under the Loan which are procured pursuant to orders or

contracts firmly placed or entered into prior to the date of this

Agreement, except as the Parties may othenvise agree in writin g.

SECT!ON C.3.

Plans, Specifications, and Contracts.

In order

for there to be mutu<>l

｣ｧｲ･ｾｭｾｮｴ＠

on the followin& matters, and

except as the Parties may otherwise

｡ｧｲｾ･＠

in writing:

(a) The Borrower will furnish to A.I.D upon preparation:

(1) any plans, specliicaclons, procurement of

con-struction schedules, contracts, or other

､ｯ｣ｵｭ･ｮｴ｡ｾｩｯｮ＠

ｲ･ｬ｡ｴｩｮｾ＠

to goods or services to be financed under the

Loan, including documentation relating to the

prequali-fication and selectjon o- contractors and

to

the

solici-tation of bids and proposals. Material modifications in

such documentation will likewise be furnished A. I.D. on

preparation;

(2) such documentation

v1ill

also be furnished to A.

I.

D. ,

upon preparation,

ｲ･ｬ｡ｴｾｮｧ＠

to any goods or services which,

though not financed under the Loan , are deemed by A.I.D.

to be of major importance to the Project. Aspects of the

Project involving matters under this subsection (a) (2)

will be identified in Project Implementation Letters;

(b) Documents related to the prequalification of

con-tractors, and to the solicitation of bids or proposals for

goods and services financed under the Loan will be approved

by

A.

I.

D. in writing prior to their issuance, and their terms

will include United States standards and measurements;

(c) Contracts and contractors financed under the Loan for

engineering and other professional services, for construction

services, and for such other services, equipment, or materials

as may be specified in Project Implementation Letters, will be

approved by A.I.D. in writing prior to execution of the

con-tract. Material

ｭｯ､ｾｦｩ｣｡ｴｩｯｮｳ＠

in such contracts

will albu ｢ｾ＠

SECTION C.3.

(d) Consulting firms used by the Borrower for the Project

but not financed under Lhe Loan, the scope of their services

and such of their personnel assigned Lo the Project as A.I.D.

mav specify, and construction contractors used by the

Bor-roNer for the Project but not financed under the Loan shall

be acceptable to A.I.D.

SECTION C.4.

Reasonable Price. No more than reasonable

prices wiJ.l be paidror any goods or services financed, in whole

or in part, under the Loan.

Such items will be procured on a fair

and, to the maximum extent practicable, on a competicive basis

SECTION C.5. Notification to Potential Suppliers.

To permit

all United States firms to have the opportunity to participate in

furnishing goods and services to be fi.nanced under the Loan, the

Borrower will

ｦｵｮｾｩｳｨ＠

A.

I.

D. such information '"ith regard thereto,

and at such times, as A. I.D. may request in Project Implementation

Letter.

SECTION C.6.

Shipping.

(a) Goods whi.ch are to be transported to the terri. tory

of the

ｂｯｲｲｯｶｈｾｲ＠

may not be financed under the Loan

if

transported either:

(1) on an ocean vessel or aircraft under the flag

of

a

country which is not included in A.I.D. Geographic

Code ·935 as in effect at the time of shipment; or

(2) on an ocean vessel which A.l.D. , by written

notice to the Borrower has designated as ineligible; or

(3) under an ocean or air charter which has not

received prior A.I.D approval.

(b) Costs of ocean or air transportation (of goods or

persons) and related delivery services may not be financed

under the Loan, if such goods or persons are carried:

(1) on an ocean vessel under the flag of a country not ,

at the time of shipment, identified under the paragraph

of the Agreement entitled "Procurement Source: Foreign

Exchange Costs," without prior written A.I.D. approval;or

SECTION C.6.

(3) under an ocean vessel or air charter which has

not received prior A.I.D. approval.

(c) Unless A.I.D. determines tha t privately owned United

States-flag commercial ocean vessels are not available at

fair and reasonable rates for such vessels,

(1)

at least fifty percent

(50%)

of

the

gross

ton-nage of all goods (computed separately for dry bulk

carriers, dry cargo liners and tankers) financed by

A.

I. D.

which may be transported on ocean vessels will

be transported on privat ely owned United States-flag

commercial vessels, and

(2)

at least fifty percent

(50%)

of the gross

freight revenue generated by all shipments financed by

A.I.D. and transported

to

the territory of the Borrower

on dry cargo liners shall be paid to or for the benefit

of privately owned United States-flag commercial vessels.

Compliance with the requirements of (1)

and

(2)

of this

subsection must be achieved with respect to any cargo

transported from U.S. ports and also any cargo

trans-ported from non-U.S. ports, computed separately.

SECTION C.7.

Insurance.

(a) Marine insurance on goods financed by A.I.D. which

are to · be transported to the territory of the Borrower may

be financed as a Foreign Exchange Cost under this Agreement

provided,

(1) such insurance is placed at the lowest available

competitive rate, and

(2) claims thereunder are payable in the currency

in which such goods were financed or in any freely

con-vertible currency.

If the Borrower (or government of

Borrower), by statute, decree, rule, regulation, or

practice discriminates with respect to A.I.D.-financed

procurement against any marine insurance company

authorized to do business in any State of the United

States, then all goods shipped to the territory of the

Borrower financed by A.I.D. hereunder will be insured

against marine risks and such insurance will be placed

in the United States with a company or companies

authorized to do a marine insurance business in a State

SECTION C.7.

(b) Except as A.I.D. may othenqise

｡ｧｾ･･＠

in writing, the

Borrm11er will insure, O't" cause to be insured, goods financed

under the Loan impo't"ted for the P"t"oject against risks

inci-dent to their transit to the point of their use in the

P"t"o-ject; such insurance will be issued on terms and conditions

consistent with sound commercial p't"actice and will insure

the full value of the goods.

Any

indemnification received

by the Borrower u.."lder such insurance \vill be used to rerlace

or repair any material damage or any loss of the goods

.:.n-sured or will be used to rei.n:burse the Borrmver for the

replacement or repair of such

ｧｯｯ､ｾＮ＠

Any such replacement

will be of source and origin o.: co .mtries listed in A.

I.

D.

Geographic Code 935 as in effect at the

ｴｾｭ･＠

of replacement,

and, except as the Parties may agree in writing, will be

otherwise subject to the provisions of the Agreement.

SECTION C.8.

U.S. Government-Owned Excess Property. The

Borrower agrees thaL

ｷｨ･ｲ･ｷ ｾ ｲ＠

pract1caole United States

Government-mmed excess rersonal property, in lieu of new items financed under

the Loan, should be utilized. Funds under the Loan may be used

to finance the costs of obtaining such property for the Project.

Article D:

Termination; Remedies.

SECTION D.l.

Cancellation by

ｂｯｲｾｯｷ･ｲＮ＠

The Borrower may,

by giving A.I.D. 30 aays written notice, cancel any part of the

Loan which has not been disbursed or committed for disbursement

to third parties.

SECTION D.2.

Events of Default; Acceleration.

It will be

an "Event of Default" if Borrower shall have failed:

(a) to pay when due any interest or installment of

Principal required under this Agreement, or

(b) to comply with any other provision of this

Agreement, or

(c) to pay when due any interest or installment of

Principal or other payment required under any other loan,

guaranty or other agreement between the Borrower or any of

its agencies and A.I.D. or any of its predecessor agencies.

If an Event of Default shall have occurred, then A.I.D. may

give the Borrower notice that all or any part of the unrepaid

Principal will be due and payable sixty (60) days thereafter ,

and, unless such Event of Default is cured within that time.

SECTION D. 2.

(2)

the amount of any further disbursements made

pursuant to thenoutstanding conmitments to third

parties or otherwise will become due and payable as

soon as made.

SECTION D.3. Suspension.

If

at any time:

(a)

An Event of Default has occurred; or

(b)

An event occurs that A.I.D. determines to be an

extraordinary situation that makes it improbable either

that the purpose of the Loan will be attained or that the

Borrower

will

be able to perform its obligations under

this Agreement; or

(c)

Any

disbursement by A.I.D. would be in violation

of the legislation governing A.l.D.; or

(d)

The Borrower shall have failed to pay when due any

interest, installment of principal or other payment required

under any other loan, guaranty, or other agreement between

the Borrower or any of its agencies and the Government of

the United States or any of its agencies;

Then

A. I.

D. may:

(1)

suspend or cancel outstanding commitment

docu-ments to the extent they have not been utilized through

irrevocable commitments to third parties or otherwise,

giving prompt notice thereof to the Borrower;

(2)

decline to issue additional commitment documents

or to make disbursements other than under existing ones;

and

(3) at A.I.D. 's expense, direct that title to goods

financed under the Loan be transferred to A.I.D. if the

goods are from a source outside Borrower's country, are

in a deliverable state and have not been offloaded in

ports of entry of Borrower's country. Any disbursement

made under the Loan with respect to such transferred

goods will be deducted from Principal.

SECTION D.4. Cancellation b¥ A.I.D.

If, within sixty (60)

days from the date of any suspens1on of disbursements pursuant

to

SECTION D.S.

Continued Effectiveness of Agreement.

Not-withstanding any cancellation, suspension of disbursements, or

acceleration of repayment, the provisions of this Agreement will

continue in effect until the payment in full of all Principal

and accrued interest hereunder.

SECT10N D.6.

Refunds

(a) In the case of any disbursement which is not

sup-ported by valid documenLation in accordance with this

Agreement, or which is not made or used in accordance with

this Agreement, or which was for goods or services not used

in accordance with this

ａｧｲ･･ｾｾｮｴＬ＠

A.I.D.,

ｮｯｾｩｴｨｳｴ｡ｮ､ｩｮｧ＠

the availability or exercise of any

ｯｾｨ･ｲ＠

remedies provided

for under this Agreement, may require the

ｂｯｲｲｯｴｯｾ･ｲ＠

to refund

the

｡ｾｵｮｴ＠

of such disbursement in United States Dollars to

A.I.D. within sixty (60) days after receipt of a request

therefor. The right to require S1.lCh a refund of a

disburse-ment will continue , notwithstanding any other provision of

this Agreement, for three (3) years from the date of the

last disbursement under

ｴｨｩｾ＠

Agreement.

(b)

(1)

any refund under the preceding subsection, or

(2) any refund to A.I.D. from a contractor, supplier,

bank, or other third party with respect to goods or

services financed under the Loan, which refund relates

to an unreasonable price for or erroneous invoicing of

goods or services, or to goods that did not conform to

specifications, or to services that were inadequate, will

A.

be made availa