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MEMORANDUM OF UNDERSTANDINGS BETWEEN

THE GOVERNMENT OF THE REPUBLIC OF INDONESIA AND

THE GOVERNMENT OF AUSTRALIA CONCERNING

THE EXTENSION OF THE KALBAR INDONESIAN AUSTRALIAN ROADS PROJECT (K. I. A. R. P.)

GENERAL 1.

AUTHORITIES 2.

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MEMORANDUl-1 OF UNDERSTANDING

This Memorandum expresses the understandings and intentions of the Governments of the Re-public of Indonesia and Australia concerning the responsibilities and contributions res-pectively of the two Governments in regard to the extension of the Kalimantan Barat Indo-nesian Australian Roads Project (K.I . A.R.P . ), hereinafter referred to as the Project, as recommended in the Final Report of the Evalu-ation Review of the Project (February 1978). The Project is located in the Province of Ka-limantan Barat and is intended to assist the development of the Province through road con

-struction and rehabilitation as detailed in Annex B.

The executing Authorities for this Project will be

For the Australian Government, the Australian Development Assistance Bureau of the Departmen1 of Foreign Affairs, which nominates the Snowy Mountains Engineering Corporation (S.M . P. .C.) as its executing agent.

DURATION 3 . The original Memorandum of Understanding

between the Government of the Republic of

Indonesia and the Government of Australia

concerning the implementation of the Project in the Province of West Kalimantan expires on 1 January 1980. This Memorandum covering

the extension of the Project will take

effect from that date . The Project will be extended by three years from 1 January 1980 to 1 January 1983 . The Australian contribu-tion to the Project and all undertakings given herein will cease on 1 January 1983 or

on such other date as may subsequently be

arranged between the two Governments (as

stipulated in paragraph 7 of this Memorandum).

RESPONSIBILITY 4 . Responsibility for development and direction

of the Project will be vested in a Project Co- ordinating Board, whose chairman will be appointed by the Indonesian Government . This Board will include both the Indonesian and

Australian Project Managers. Membership of

the Board will also include representatives of the Indonesian Government Ministry refer-red to in paragraph 2 above, or nominated at the discretion of the Indonesian GovernmAnt,

as well as a nominee designated by the

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-Australian Embassy in Indonesia. The Board

will meet monthly or as often as business requires but not less than four times a year . Functions of the Board will include :

(a) co- ordinating policy for the project, (b) Co-ordinating operation of the Project

team;

(c) Co-ordinating the disposition of the

project personnel;

(d) Reviewing and reporting on progress to the two Governments; and

(e) Recommending to the two Governments changes i n programme , budget and future development .

5. Overall responsibility for this project shall

rest with the Indonesian Government . The final authority for decisions on the imple-mentation of the agreed works programme shall rest with the Directorate General of Highways, after considering the consultations between the Indonesian and Australian Project Managers.

CONTRIBUTIONS 6. _{The contributions of the Indonesian and}

Australian Governments are detailed in Annex A and in addition to the contribution allocated

in the original of Memorandum of Understanding are estimated to value Rp. 8,000,000,000 and

EVALUATION 7 .

PERSONNEL 8.

Approximate parity wi ll be maintained in the annual budget allocations to the Project by the Indonesian and Australian Governments . Di sbursement of the Indonesian and Austra l ian Government ' s contributions will be subject to

the normal annual ｰ｡ｲｬｩｾｭ･ｮｴ｡ｲｹ＠ approval of

appropriations.

A second Review of the Project will be under -taken in 1981 to recommend upon the future of the Project after l January 1983 . Thi s evalu-ation wi ll be undertaken by a joint i nvestiga-tion t eam appointed by the two Governments and independent of staff involved in the Project. The terms of reference of the Review will be drawn up by the Indonesian and Australian Government at a time which is mutually con-venient and which will enable the review to be held in 1981 .

For the purposes of this Project, the Indone-sian Government will, in accordance with the exi sting laws and regulations , facilitate the employment by the Australian Government or its agent of personnel as required for the

Project and established between the two

Governments by

SUPPLIES 9.

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-(a) Granting exempt ion from income or other taxes on Project salaries and allow-ances;

(b) Granting exemption from import and other duties on personal and household effects, subject to re-exportation after the com-pletion of their assignment;

(c) Granting exemption from import duties on one commercial motor vehicle per expert on condition thet i t be re- exported or duty paid on its assessed value at the time of sale within Indonesia, or grant-ing exemption from taxes and duties on one motor vehicle per expert for locally assembled vehicles;

ＨｾＩ＠ Granting to Aus tralian Project personnel all rights and entitlements accorded to the aid personnel of any other donor country; and

(e) F.xpediting the issue all documentation tion required for the entry of and per-formance of work by Project personnel including work permits and drivers licenses.

(a) ｾｨ･＠ Indonesian Government will, in

accordance with the existing laws and

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regulations, exempt from import duties and other taxes (or pay such duties thereon) all goods supplied by Austra-lia for the established purposes of the Project as set out in Annex A. The Project Manager appointed by the Aus-tralian Government shall prepare quar-terly shipping schedules of all goods supplied by Australia and shall present such schedules to the Project Manager

appointed by the Indonesian

Govern-ment;

(b) The Indonesian Government will facili-tate movement of Project supplies by providing appropriate customs and wharfage f acilities in the port closest to the project site and will be r esponsible for expeditious trans-port of such supplies to the site; and (c) Project supplies provided by Australia shall be available for the unrestricted

use of the Project and shall not be

withdrawn from such use without the consent of the Project Manager appoint-ed by the Australian Government. The

Australian Project Manager shall

exercise administrative control over such supplies for the duration of the

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LIABILITY

SECURITY

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Project or for such other time as Austra -lia agrees they may be released from the Project.

10. The Indonesian Government shall be responsible

for dealing with any claims which may be

brought by third parties against Australia and its experts, agents or Australian personnel and shall hold harmless Australia and its ex-perts, agents and personnel in case of any claims or liabilities resulting from operations

under this Memorandum . This provision shall

not relieve any person from liability for any criminal, grossly negligent or fraudulent act.

11. The Indonesian Government will arrange for the

protection deemed necessary to ensure the

safety of Australian project equipment and personnel at the Project location, in transit

and on any other official representational

activity in Indonesia. The Australian

Govern-ment will take reasonable precautions to ensure that Australian personnel have due regard to the local traditions and customs.

SF.TTLF.MENT OF 12 . Any ｴＱｩｳｰｵｴｾｾ＠ between the two Government arising

DIFFERENCIES out of the interpretation or implementation of

this Memorandum shall be settled amicably by consultation or negotiation.

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AMENDMENTS

13 .

Amendments to this Memorandum may be made

at any time by an exchange of Letters

bet-ween the two Governments .

ANNEXES A

and

B

to this Memorandum form an integral part of it.

SIGNED

at

Jakarta

in duplicate,

this third

day of

January , 1980

For the Government of Indonesia

Signed

POERNOMOSID: HADJISAROSA

Minister of Public Works

For the Government of

Australia,

Signed

T . K. CRITCHLEY

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ANNEX A

DIVISION OF RESPONSIBILITIES AND CONTRIBUTIONS

1. Australia

(a) The Australian contribution to the Project will be approximately $A 14,320,000 spread over the Austra-lian financial years 1979-80 to 1982-83.

(b) Within the limits of its contribution Australia will provide, on the recommendation of the Autralian Pro

-ject Manager, the following items for the purposes of the agreed construction programme

(i) the professional and technical staff on a long term basis as listed in Annex A-1 including the payment of their salaries, allowances and tra-vel between Australia and Indonesia, and short-term specialist staff as required;

(ii) survey instruments and equipment in Indonesia

and road design facilities at Cooma in Austra-lia;

(iii) laboratory testing equipment for testing soils and construction materials and for bridge sub-soil investigation;

(iv) construction plant, equipment and vehicles as listed in Annex A-III and spare parts therefor as required;

(v) technical reference books, films and equipment for training purposes;

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for key Indonesian staff associated with the Project;

(vii) major household appliances (refrigerators,

deep freeze units, air conditioners, electric stoves, water filtration units) for the accommo-dation provided by the Austral ian Government for Australian personnel. These items will be

trans-ferred to the Indonesian Government at the end of the Project, if requested;

(viii) workshop buildings framework and cladding; and (ix) imported spare parts for the Indonesian supplied

plant, vehicles and equipment.

2. Major modifications to the list of plant, equipment and

vehicles at Annexes A- III may be made after consultation with the Indonesian authorities and the Australian

Deve-lopment Assistance Bureau.

3. Indonesia

(a) The Indonesian contribution to the Project will be

Rp . 8,000,000,000 spread over the Indonesian

financial years 1979-80 to 1982-83 .

(b) The Director General of Highways will appoint an

officer as Executive Project Director in Jakarta through whom all communications with the Ministry of Public Works will be directed .

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-( i) staff as listed in Annex A-II on a full - time basis toaether with the reauisite sub- orofes-sional. skilled and semi-skilled labour.

coun-teroart staff to assist with economic and

traffic studies and staff for survev and loca-tion teams as reauired: includina oavment of all salaries and allowances:

(ii) camoina facilities oroaressivelv alona the

route for the location and survey teams;

(iii) an amount of Rp . 60,000 for each Australian team member will be paid monthly to the Austra-lian Project Manager to cover :

(i) handling charges associated with the

per-sonal effects and foodstuff, and

(ii) the supply, maintenance and where necess-ary, replacement, of all furniture (exclu-ing those items listed in paragraph l(b)

(vii)) required for the accommodation of Australian personnel during the life of

the Project ;

(iv) all maintenance and replacement (including

furniture and equipment) as necessary during

the life of the Project, for all buildings in the work Centre, and labour and materials fer the erection of the houses and other ｡｣｣ｯｾｾｯ､｡ ﾭ

tion provided by Australia with all necessary services;

(v) field accommodation, workshop and offices to

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progressively throughout the life of the Project, and maintenance and replacement therefor as necess-ary during the life of the Project;

(vi) plant and vehicles as listed in Appendix A- III or suitable equivalents to mutually aqreed specifi-cations;

(vii) adequate water and electrical reticulation to re -asonable standards within the Norks Centre;

(viii) road, drainage , sewerage and other services within the Works Centre ;

(ix) all fuels and lubricants to mutually agreed

specifications, road tankers, bulk storage faci

-lities, bowsers at the Works Centre , moveable

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storage tanks for fuel at field depots to mutually agreed specifications and the adequate maintenance of supplies;

(x) all plant and vehicles tyres in the sizes manufac -tured in Indonesia;

(xi) adequate security arrangements for the Works

Centre , accommodation sites and construction

sites, and for movement of personnel, equipment and materials to and from the latter;

(xii) facilities for medical treatment for Indonesian

personnel at the Works Centre and sites;

(xiii) all construction materials required for the Pro-ject;

(xiv) payment for ｾＱＱ＠ work on the Project ｵｮ､｣ｲｴｾｫ｣ｮ＠

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-(xv) all other requisite materials, services and facilities required for the execution of the Project, estimated annual requirement to be agreed between the Australian Project Manager

and the Indonesian Project Manager prior to

the beginning of each Indonesian financial

year ;

(xvi) a diesel-powered barge as required to

trans-port fuel and equipment from Pontianak to Sanggau or Singkawang;

(xvii) all handling, clearing and transportation costs

at and from the port of entry to the Project,

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of imported materials, equipment, vehicles,

machinery, furniture and fittings and other

goods supplied to the Project by Australia; and (xviii) exemption from or reimbursement of all duty and tax paid in Indonesia by ｾｵｳｴｲ｡ｬｩ｡＠ in purchasing vehicles , spare- parts and materials for the

Pro-ject.

4. The Australian Project Manager in consultation with the

Australian Ambassador in Indonesia or his delegate shall nevertheless have final jurisdiction in respect of

(a) duties, discipline, leave and all other

adrninistra-I

tive issues concerning Australian personnel; and

ANNEX A-I

AUSTRALIAN PERSONNEL

Project Manager Engineers

Superintendent of Workshops Training Officers/Teachers

Workshop Supervisors/Technicians Surveyors

Construction Supervisors/Technicians Road Designer

Administrative/Finance Officer Workshop/Stores/Finance Clecks Cost Accounting Officer/Engineer

1

6

1

2

12 2

10 1 1

4

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NOT :I!: Composition of the Australian team

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A.."lliF.X A - II

INDONESIAN PERSONNEL

Project Manager Engineers

Supervisors

Technical Staff

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Administration Foremen

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Technicians

Designers

Soil Laboratory Staff Survey Teams

Pl ant Operators Drivers

Mechanics, Fitters, Welders, Electricians Carpenters

Prestresed Plant Pi pe Plant

Bridge Construction Culvert

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Headwall Quarry

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Crusher Sealing Crews Maintenance Cr ews

- Temporary Bridges - Road

- Telephone resetting - Work Centre

Barge Crews

Watchmen

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Security Office Staff

Others 1 13

19

63 71 17 12

so

180 233 230 15 45 15 140 24 50 20 15 40 5 10 9 50 30 53

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as an order of magnitude only and that therefore it may be necessary as a result of future experience on the Project to allow upward or downward movements

Annex A - III

ANNEX A - III

AUSTRALIAN SUPPLIED PLANT EQUIPMENT AND VEHICLES

FOR KIARP EXTENSION

*

Tractor LGP 60 KW Tractor tracked 60 KW Tractor pneumatic tyred Hydraulic Excavator F ront end loader wheeled Motor grader 90 KW

Vibrating roller S.P.

Pneumatic tyred roller 15 T

Tandem steel wheel S . P . roller 10 - 12 T Double drum vib roller 60 em

Single drum pedestrian roller Trucks tipping 7 T

Utility 4 x 4 Utility 4 X 2

Station sedan 4 x 4

Sedan

4

X

2

Front end loader backhoe combination Outboard motors 130 KW

Bitumen heating equipment

120 - 150 T.P.H. rock crushing and screening plant

Diesel generating set 300 KW Box spreaders

Laboratory equipment

be necessary to vary from this list in the light of

new requirements as they are revealed during the

course of future construction.

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ANNEX B

K.I.A . R.P . ROAD CONSTRUCTION PROGRAMME

The Governments of the Republic of Indonesia and Australia agree that the Project should pursue the following priority road construction and rehabilitation programme as for as re-sources will allow :

LINK

Ngabang-Sanggau (a)

Sanggau-Sintang (b) Sanggau-Sintang (a)

(b) Tanjung-:Cntikong (a)

(b) Sidas-Darit (a)

Kembayan- Balai (a) Sebut

SCOPE OF WORK

P.arth works and

Gravelling Betterment Base Course and Sealing Earthworks and

Gravelling Betterment Base Course and Sealing P.arthworks and

Gravelling New Cons-truction Class III Base Course and Sealing Earthworks and

Gravelling "!\Jew Cons-truction Class III r:arthworks and Gravelling New Cons-truction Class III

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with the Government of Indonesian policy on highway de-velopment during Pelita III by an exchange of letters between the two Governments; whereas amendments on technical matters can be done by a simple exchange of letters wi t h the Project .