Selanjutnya

Memorandum of Understanding

between

The Government of the Repuhlic of France

and

The Government of the Republic of Indonesia

concernmg

Bandung Urban Railway Transport Development, E lectrification Padalarang

-Cicalengka Line

'

-e

The Government of the Republic of Indonesia

and

The Government of the Republic of France,

Whereas the Joint Declaration on Strategic Partnership Between Indonesia and France, adopted in

Jakarta on I July 2011

and the Declaration of Intent between the Government of Indonesia and the

Government of the Republic of France on Bandung Urban Railways Transport Development,

Electrification Padalarang-Cicalengka, express commitment to strengthen the cooperation in the

field of transportation ;

Whereas the Government of the Republic of Indonesia and the Government of the Republic of

France, with an eye to strengthening their technical and financial cooperative efforts, wish to form

partnerships around several strategic projects;

Whereas Bandung, Indonesia's third-largest city, must carry out a wide-ranging reorganisation of

its transport systems to cope with increased passenger movement and worsening traffic problems,

which hinder economic development and is a source of ecological imbalance for the city;

Whereas modernisation of the Bandung rail corridor - backbone of a comprehensive multimochd

network - is a crucial step in this reorganization process, which is why the Indoner.ian authorities

listed this project in the 2011 -2014 Blue Book (ref. BBPI

02208 04 072009

I

060257);

Whereas

France has significant experience in the areas of planning and urban transport,

particularly due to the many projects involving dedicated transpo11 corridors that it has launched in

recent years, and the expertise of French companies operating in this sector is internationally

recognised;

Whereas this project is pa11 of an on-going cooperative effort between Indonesia and France, as

reflected by the financing of a master transport plan for Bandung, by a

€670,000

grant from the

Private-Sector Research and Assist:rnce Fund

(Fonds d'Etudes et d'Aide au Secteur

Prive

·-F ASEP-Etudes );

Whereas Indonesia and France wish that Indonesian and French companies would be involved in

the project and could develop long term partnerships;

The French and Indonesian authorities confirm their intention to work together to modernize th1:.

Bandung rail corridor. In line with the

ｲ･｣ｯｭｭｾｮ､｡ｴｩｯｮｳ＠

of the expe11s commissioned by the

French Party, the authorities agree on the following conditions:

I. Under the terms of a FASEP-Etudes grant for a maximum amount of

700

K€ (seven hundred

thousand euros). France will finance project preparation assistance to be

｣ｯｮ､ｵ ｾ ｴ･､＠

in a

maximum period of 3 months to precisely de:fine the various components of the rail project,

according to the terms of reference set fo11h in the technical appendix, which should be

approved in writing by both parties within

15

days of the signing of the present agreement.

2. Once the project preparation assistance is comp leted, the Government of the Republic of France agrees to make every effort to provide

a

financial assistance which amount and terms shall be specified at a later date. but which cou ld take the fo llowing form:

A concessional loan of approximately€

80

million from the

Reserve Pays Emergents

(RPE, or Emerging Country Reserve Fund) for the electrification and improvement of signal! ing work on the whole line Padalarang - Cicalengka, and for partial double tracking, the detailed defi nition of these works pending the conclusions of the project preparation assistance. These works would be carried out by French firms, in line with the RPE's norma l procedures and in accordance w ith the Indonesian laws and regulations.

A loan of approximately €65 111 i II ion from the French Development Agency (A FD) for

creating a viaduct over the roadways in the centre of the c ity . These works would be carried out according to AFD standard proc.::dures which entail s open bidding procurement process. These works w ill complement other pub lic transport projects within the Bandung master transport plan. pend ing approval of the project financ ing by the AFD's Board of Directors and by the Indonesian Ministry of Finance

3. France's financ ial assistance shal l be dependent on Indonesia's commitment to ensure the availabi lity of electri cal rolling stock

for

the corridor, in a timing that is compatible with the planned electrification works. T he Indonesian Party w ill also be responsible for any land acquisition and relocations that the project may entail.

4. The French financial offer wi ll remain effective provided that the financial protocols and conventions are signed before the end of 20 I I .

5. A Steering Comm ittee for the project w ill be launched and w ill include. for the Indonesian Party, representatives from the Municipal ity of Bandung, the Mini stry of Transportation (Directorate Genera l of Rail ways and Directorate Genera l of Land Transportation). !he National Deve lopment Plann ing Agency (Bappenas), the rai lway operator PT KAI , and, for the French Party. representatives from the Econom ic Department of the French Embassy in Jakarta and from the French Development Agency. This bilateral Steering Committee, chaired by the head of the Directorate General of Rai I ways, sha ll be responsilb le for overseeing and ensuring the smooth fun ction ing of the study and proj ect phases. Where necessary, it shall va lidate the choices made by both Parties.

This Memorandum of Understanding

_ _ ｾ ｟ ｃｴｴ･Ｚ ｟＠ Q.-t,Q _ __ , in English.

For the Government of the Republic of Indones ia

BAMBA NG SUSANTONO Vice M inister

For T ransportation

was signed on

For the Government of the Repub lic of France

ｴＮｾ＠

PI ERRE LELLOUCHE Minister of State in charge of Foreign Trade