Selanjutnya

0

PRQ.jECT LOAN AGREE:t-1ENT

THE

REPUBL IC

OF

INDONESIA

Jl.ND THE

ｕｩ＾ｉｔｅｾ＠ S1ATES

OF Ai'1ERICA

FGR

EDUCATION ｃｏｈＮＧｦｬｬＩｉｉｃａｔＡｏｾｓ＠ ｄｅｖｅｌｏｐｽＱｅｾＧｔ＠ Project Loan Agreement

TABLE OF ｃｏｾｔｅｎｔｓ＠

Article 1. The Agreement Article 2. The Project

SECTION 2 . 1. Definition of Proj ect

Article 3. Fi nancing SECTION 3 . 1. The Loan

ｓｅｃｔｉｏｾ＠ 3 . 2 . ｂｯｲｲｾｷ･ｲ＠ Resources for the Project SECTION 3 . 3 . Pro j ect ａｳｳｩｳｴ･ｾ｣･＠ Completion Date

Page

1 1 1

2 2 2 2

Article 4 . Loan Terms 3

SECTION 4 . 1 . Interest 3

SECTION 4.2 . Repayment 4

SECTION 4 .3 . Application, Currency and Place of Payment 4

SECTION 4 . 4 . Prepayment 4

SECTION 4 . 5 . Renegot i ati on o£ Terms 5

SECTION ｾ Ｎ Ｖ Ｎ＠ Ter mina t ion on Full Payment 5

Article 5 . Conditions Pr ecedent :: ｾｩｳ｢ｵｲｳ･ｾ･ｮｴ＠ 6

SECTION 5.1. First ｄｩｳ｢ｵｲｳ･ｮｾｮｴ＠ 6

SECTIOX 5.2 . Notification 6

SECTION 5.3. Terminal Dates Ior Conditions Pr ecedent 6

Article 6. ｓｰｾ｣ｩ｡ｬ＠ ｃｯｶ｣ｮ｡ｮｾｳ＠ 7

SECTION 6.1. ｐｲｯｪｾ｣ｴ＠ ｾｶ｡ｨＡＺＡｴｩＺＺＺｾ＠ 7

ｓｅｃｔｉｏｾ＠ 6 . 2 . ｐｬ｡｣･ｾｾｮ］＠ of ｐ･ｲｴｩ｣ｩｾ｡ｮｴｳ＠ 7

Article 7 . Procurement Source 7

SECTION 7 . 1. Forcigr: Exchr.n.gt: Cost:; 7

SECTION 7 . 2 . Local ｃｵｲｲ･ｮｾｹ＠ i.cs=s 8

Article 8. Disbursements 8

SECTION 8 . l. Disbursement '""'" ｾＰｲ･ｩｾ ｮ＠ E}:change Costs 8 SECTION 8 . 2 . DisbursemenL ｦｾｲ＠ Local Currency Costs 9 SECTION 8 . 3. Other Forms of Disbursement 9

SECTION 8 . 4 . Rate of ｅｸ｣ｾｾｮ［ｾ＠ 9

ｓｅｃｔｉｏｾ＠ 8.5 . Date of Disbursement 10

Article 9. Hiscellaneous 10

SECTION 9. 1 . Communications 10

SECTION 9 . 2 . Representat i ves 11

SECTION 9 . 3 . Standard Provisions Annex 11

Amplified Description of Education Comcunications Development

Project Annex 1

[image:2.602.48.547.4.822.2]

PROJECT ｌｏａｩＧｾ＠ ａｇｒｅｊＺｈｅｾｔ＠

Date :

Between THE REPUBLIC OF ｉｎｄｏｾｅｓｌＭ｜＠ ("Borrower" ) and THE UNITED STATES

OF ｾｦｦｩｒｉｃａ Ｌ＠ acting through the AGENCY FOR ｉｎｔｾｾａｔｉｏｎａｌ＠ ｄｅｖｅｌｏｐｾｾｔ＠

("A. I. D. " ).

Article 1. The Agreement

The purpose of t his Ag r eement is to set out t he understandings

of the Parties named above ("Parties") with respect to the undertaking

by the ｂｯｲｲｯｾｯｾ･ｲ＠ of the project desC'ribed below, and with respect to

the ｦｩｮ［ｾｮ｣ｩｮｧ＠ of the Project by the Par::i.;s.

Article 2. The Project

SECTION 2. 1. Definition of Project. The Project , which is

furthe1.· described in Annex 1, is desisned to upgrade the Center .for

Educational Connunication ｔｾ｣ｨｮｯｬｯｧｹ＠ f (rr Education and Culture and

develop the instructional technology ce;>artr:em:s of 4 teacher

training institutions .

Annex 1, attached, which forms a ｰ｡ｲｾ＠ of this Agreement, amplifies

the above definition of the Project. Within the limits of the above

definition of the Project, elenents of the amplif i ed descr ip t ion

stated in Annex 1 may be changed by written agreement of the

author-ized representatives of the Parties naced in Secti on 9 . 2, without

Article 3. Financing

SECTIO:-; 3. 1. The Loan . :o assist the Borro;Jer to meet the costs

of carrying OJt the Project , A.!. D. pursuant to the Foreign Assistance

Act of 1961, as a:Jended , agrees to lend the BorroHer under the terms

of this Agree:':'lent not to exceed four million United States ("U . S.")

dollars ($4,000,000) ("Loan"). The aggregate amount of disbursements

und er the Loan is referr ed to as "Pr i ncipal". The Loan may be used

t o finance forei gn exchange costs, as defined in Section 7. 1, and

local currency costs , as defined in ｓ･ｴｾｩ ｯｮ＠ 7.2, of goods and services

required for t he Project .

ｓｅｃｔｉｏｾ＠ 3. 2. Borrower Resou rces for the Proj ect

(a) Tl:e Borrot•er agrees to provide or cause to be provided for

-2-th'"' Proj e.::r all fl.4.ds, in r.dci:ior ｾｯ＠ the Lear., and ll.ll other r esources

re:quired to carr> out the Proje:cc ;::ffe.::tively and in a timely manner .

(b) ｔｾ･＠ resources provided ｢ｾﾷ＠ !b:--:-o,..er for the total Project

(both Loan and Grant) will be not ｌ･ｾｾ＠ t1an ｴ ｨ ｾ＠ equivalent of U. S.

$5,000, 000 , including costs borne en .;.n ''in-klnci" basis .

ｓｅｃｔｉｏｾ＠ 3. 3. Proj ect Assistance Conp1etion Date

(a) The "Project Assistance Completion Date" ("P,\CD"), \vhich is

December 31 , 1983, or such other date as the Par ties may agree to in

;rriting, is the da t e by which the Parties estimate that all services

financed under the Loan will have been perforned and all goods

financed under the Loan will have been furnished for the Project as

(b) Except as A.I.D . may ｯｴｨ･ｮｾｩｳ･＠ agree in lvriting, A . . I.D. will

not issue or approve documentation l·lhich ｾｾｯｵｬ､＠ authorize disbursement

of the Loan for services performed subsequent to the PACD or for goods

furnished for the Project, as contemplated in this Ag reement, subsequent

to the PACD.

(c) Reques ts for disbursement, acc ompani ed 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 ｦｯｬｬｭｾｩｮｧ＠ 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 ｂｯｲｲｯｾｶ･ｲＬ＠ may at any time or times reduce the amount of the Loan by all or any part thereof for uhich ::eques t:s for disbursement,

accompaniad by necessary supporting documentatlon_prescribed in

ProjecL ｬｭ＿ｬ･ｾ･ｮｴ｡ｴｩｯｮ＠ Letters, were not r eceived before the expiration of said period.

Article 4. Loan Terms

SECTION 4 . 1. Interest. The Bo::-rro\·!er '·!ill pay to A. I. D. interest

which v1ill accrue at the rate of l\<lO percent (27.) per annum for ten

ｾ＠

(10) years follo1ving the date of the first disbursement hereunder and at the rate of three percent (3%) per annum thereafter on the outstanding

- p

balance of Principal and on any due and unpaid interest. Interest on

the outstanding balance ｾｾｩｬｬ＠ accrue from the date (as defined in

Section 8 . 5) of each respective disbursement, and ｜ｾｩｬｬ＠ be payable

-

4-later than six (6) months after the first disburs ement hereunder, on

a date to be specified by A.I.D .

ｓｅｃｔｉｏｴｾ＠ 4.2 . Repayment . The Borrower \vill repay to A.I.D. the Principal t.,.ithin forty (40) years from che date of the first

disbursement of the Loan in sixty-one (61) approximately equal

semiannual installments of Princi pal and interes t . The first

installmen: of Principal tvill be payable nine and one-half (9 1/2)

years after the date on which the firs t interest payment is due in

accordance with Section 4 . 1. A. I .D. ｾｶｩｬｬ＠ provide the Borrmver tvith

an amortization schedule in accordance with this section after fi nal

disbursement under the Loan .

SECTION 4.3 . Application, Currency a !"!o Place of Payment . All

payments o: interest and Pri ncipal hereunde:: · .. dll.be made in U ,S.

dollars and will be applied first to the ｐＢｽｾﾣＺｮｴ＠ of interest due and then to the ］･＿ｵｽｾ｣ｮｴ＠ of Principal . Excep: as A. I . D. may othen•ise specify in \·lriting, payments tvill be nade ::o t.he Controller , Office

of Financial Management, Agency for International Development ,

｜ｾ｡ｳｨ＠ ington, D.C. 20523, U.S .A. . ond uill.

oe

deemed ｾ､･＠ t·lhen

received by the Office of Finane ia 1 i:·lanager:-.en::.

SECTION 4 . 4 . Prepayment . Upon payment of al l interest and any

refunds then due, the Borro1ver may prepay, \oiithouL pc:!nalty , all or

any part of the Principa l. Unless A.I . D. ｯｴｨ･ｮｾｩｳ｣＠ agrees in writing,

any such prepayment will be appl i ed to the installments of Principal

ｓｅｃｔｉｏｾ＠ 4 . 5 . Renegotiation of Terms.

(a) The ｂｯｲｲｯＱｾ･ｲ＠ 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 Indonesia, which enable the ｂｯｲｲｯＱｾ･ｲ＠ to repay the Loan on a shorter schedule.

(b) Any request by either Part y 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 nego tiat ions .

(c) Hithin thirty (30) days after delivery of a request to

ncgoti.:: te, t:he requested Party >li ll communica:c ta the other, pursuant

to Section 9.2, the name and address of the person or persons 1o1ho 1·1ill

represent t he requested Party in such negotiations .

(d) The reprcs,ntatives of the Part:.'"s ..-ill meet to carry on

negotiations no later than thirty !30) ､･ｹｾ＠ ｡ｾｴ｣ｲ＠ delivery or the

requested Party's ｣ｾＺｵｮｩ｣｡ｴｩｯｮ＠ cnc;r subsectio•l (c). The negotiations

ＱｾＱＱＱ＠ take place at the office o[ Borrower's Ni nistry of Finance in

Indonesia except as othen•ise mutually agreec by the representatives

of the Parties .

ｓｅｃｔＡｏｾ＠ 4 . 6 . Termination on Full Payment . Upon payment in full

of the Principa l and any accrued interest, this Agreement and all

-6-,-.

Article 5. Conditions Precedent to Disbursement

J

ｓｅｃｔｉｏｾ＠ 5.1. First Disbursement. Prior to the first

disbursement under the Loan, or to the issuance by A. l.D. of

documentation pursuant to which disbursement will be made, the Borrower

\vill, except as the Parties may othen•ise agree in \Jriting, furnish

to A.I.D. in form and substance satisfactory to A.I . D. :

(a) An opinion of the Ninister of Justice that this Agreement

has been duly authorized and/or ratified by, and executed on behalf

of the Borrower, and that it ｣ｯｮＤｴｾｴｵｴ･ｳ＠ a valid and legally binding obligation of the Borr01-1er in accordance with all of its terms;

(b) A statement of the name

or

tne person holding or acting

in the office of the Borrower specified in Section 9.2, and of any

additional repres enta tives, together with a specimen signature of each

SECTIO:-! 5 . 2. Notificat.io;J . \,'hen A.I.D. has determined that the conditions precedent speci.fh.J ｾｮ＠ Section 5.1, have been met, it Hill

promptly notify the Borro-:-:er.

SECTION 5.3. Terminal Pates for Conditions Precedent

If all o f the conditions specified in Section 5.1 have not been

met \vi thin 90 days from the date oJ: this Agree:nent , or such later

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

othen-1ise agree in writing, the program Hill include, during the

implementation of the program and at one or more points thereafter;

(a) evaluat ion of progress tOt-lard attainment of the objectives of the

Proj ect; (b) identi fication and evaluation of problem areas or

constraints ｾＭＱｨｩ｣ｨ＠ may inhibit such attainment; (c) assessment of how

such information may be used to help overcome such problems; and

(d) evaluation, to the degree feasible, of the overall development

impact of the Project.

SECTION 6. 2. Placement of ?articip.i!•lt,... The Borrower cove nun ts

that each person trained under this Project \vi.ll , ;upon satisfactory

｣ｯｮｰｬｾｴｩｯｮ＠ c £ training, be assigned an ｡ｰｰｾ ｾ＿ ｾｾ･ｴ･＠ position,

co;mnensurate ':·lith his prior experience artd educat ional achievement,

in the institution that nominated him for training.

Article 7 . Procurement Source·

SECTION 7 .1. Foreign Excrilng.:: Costs. Disbursemet'\ts pursuant to

Sec tion 8.1 \ilill be used exclusively to finance the costs of goods and

services required for the Project having ｴｨｾｩｲ＠ source and origin in countries included in Code 941 of the A.I.D. Geographic Code Book as

in effect at the time ｯｾ､･ｾｳ＠ ｡ｾ･＠ placed or contracts entered into for

such goods and services ("Foreign Exchange Costs"), except as A. I. D.

may othenvise agree in writing, and except as provided in the Project

-8-marine insurance. Ocean transportation costs will be financed under the

Loan only on vessels under flag registry of the United States or Indonesia

except as A. I . D. may otherwise agree in writing .

SECTION 7. 2. Local Currency Costs . Disbursements ｰｵｲｳｵｾｮｴ＠ to

Section 8 . 2 will be used exclusively to finance the costs of goods and

services required for the Project having their source and , excep t as A. I .D.

may otherwise agree in writing, their origin in Indones i a ("Local Currency

Costs") . To the extent provided for under this Agr eement , "Local Currency

Costs" may also include the provision of local currency resources required

for the Project .

Article 8 . Disbursements

ｓｅｃｉｉｏｾ＠ 8 . 1. Disbursecent f0r Foreian Exchange Costs

(a) Aft er ｾ｡ｴｩｳｦ｡｣ｴｩｯｮ＠ of conditions precedent , the Borrower may

obtain disoursements of funds ｵｾ､･ｲ＠ t he Loan for the Yoreign Exchange Costs

of goods or services required fur the Project in accordance with the terms

of this Agreement, by such of the follo\dng methods as may be mutually

agreed u?on: (1) by subroitti:lg t;:. .:...I.D . , with necessary supporting

､ｯ｣ｵ］･ｾｴ｡ｴｩｯｮ＠ as prescribed in ＿ｾｵｪｾｾｴ＠ ｾｰｬ｡ｾ･ｮｴ｡ｲｩｯｮ＠ Letters, (A) requests

for reiQburseoent for such goods or services, or (B) requests for A. I . D. to

procure ｣ｯｾｯ､ｩｴｩ･ｳ＠ or servicas in Bcrrower's behalf for the Projecl; 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 ., commit ting

A.I.D. to reioburse such bank or banks for payments made by them to contractors or suppliers , under Letter of Credit or ｯｴｨ･ｲｾｾｳ･Ｌ＠ for such

goods or services, or (B) directly to one or more contractors or suppliers ,

A.I.D. to pay such contractors or suppliers for such goods or

services .

(b) Banking charges incurred by Borrowe r in connection with

Letters of COlllllitment and Letters of Credit ｴｾｩｬｬ＠ be financed under the Loan unless the ｂｯｲｲｯｴｾ･ｲ＠ instructs A.I.D. to the contrary. Such other

charges as the Parties may agree to may also be financed under the Loan .

SECTION 8 . 2. Disbursement for Local Currency Costs . After

satisfaction of conditions precedent, the Borrmiler 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 . , t-lith necessary supporting documentation as

prescribed in Project Implementation Letters, requests to finance such

costs. These disbursements may ｢ｾ＠ made by A.J .D. ,at A.I.D. ' s option:

(l) In U.S. dollars equivalent to the local currency costs, or

(2) In local currency acquired by A.I.D . by purchase or from

local currency already Ot·med by tht: U.S. Government .

ｓｅｃｔｉｏｾ＠ 8.3 . ｏｾｾ･ｲ＠ ｆｯｾｳ＠ of ｾｩｳ｢ｵｲｳ｣ｾ｣ｮｴ Ｎ＠ Disbursements of the

Loan may also be made through such ｾｴｨ･ｲ＠ ｭｾ｡ｮｳ＠ as the Parties may agree

to in writing .

SECTION 8.4 . Rate of Exchange. If funds provided under the Loan

arc 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 ｂｯｲｲｯｴｾ･ ｲ＠ will make such arrangements as may be necessary so that such funds may be converted into currency of Indonesn at the highesL

rate of exchange which, at the time the conversion is made, is not

-

10-SECTION 8. S. Date of Disbursenent. Disbursement by A. I .D. will

be deemed to occur (a) on the date on which A. I . D. makes a disbursement

to the Borrower or its designee , or to a bank, contractor or supplier

pursuant to a Letter of ｃｯｾｩｴｭｾｮｴＬ＠ contract or purchase order ; or

(b) on the date on which A. I . D. disburses to the Borrower or its

designee loca: currency acquired in ac=ordance with Section 8. 2.

Article 9. Niscellaneous

SECTION 9. 1. Communications . .'>t\y notice, request, document, or

other communication submitted by either Party to the other under this

Agreement uill be in 1rriting or by telegram or cable, and 1.till be

deemed duly given or sent when delivered to such Party at the following

address:

To the ｂｯｲｲｯｾｾｲＺ＠

:·ta:!.l Address: :-anistry of forei£n Affairs Jalan Taman ｐ･ｪｾ｢ｯｮ＠ 6 Jakarta Pt:sat

To A. I.D .:

ｾＡ｡ｩｬ＠ Address : United Stat<:5 o.;;.:;;c·• for 1nr-.:?rnac1onal Development

American El!lbassy

Jalan !'-tedan ｾｬ･ｲ､｡ｫｺ＠ ｓ･ｬ｡ｴ｡Ｚｾ＠ 5 Jakarta Pusac.

Alternate Address for Telegram : USAID AMEHB Jakarta .

All such communications will be in English, unless the Parties

otherwise agree in writing. Other addresses may be substicuted for

SECTION 9 . 2. Representatives. For all purposes relevant to

this Agreement, the ｂｯｲｲｭｾ･ｲ＠ will be r epresented by the individual holding or acting in the office of ｃｨ｡ｩｾｾｮ＠ or Vice Chairman, National

Development Planning Agency ("BAPPE:\AS") and A. I . D, will be

represented by the individual holding or acting i n the office of

Director, United States A.I,D. 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 revis e

elements of the amplified description in Annex 1. The names of the

representatives o£ the Borrower, with specimen signatur es, will be

provided to A. I. D., 1-1hich may accept as duly authorized any instrument

signed by such representatives in implementation of this Agreement,

until receipt of written notice of revocation of their authority .

SECTIO:\ 9 . 3 . Standard Pro\·isions Ann..!x. !>- ﾷ ｾＭ＿ｲ･ｪ･｣ｴ＠ Loan

Standard Provis ions Annex" (Annex 2) is a reached to and forms part of

this Agreement.

IN WITNESS lffiEREOF , the Borrc,,er and ｾＧＭＮＮ［Ｎ＠ :.;nll-"c States of America,

each acting rhrough its duly ｾｵ｣ｨｯｲｩｺｾ､＠ ｲｾ＿ｲ｣｣｣ｾ｣｣ｴｩｶ･Ｌ＠ have caused

this Agreement to be signed in t:hi!ir namea ar.d delive red as of the

day and year first above wriLtcn,

REPU13LIC OF INDONESIA

Signed

ｂｹｾ _{Prof. Dr. Hochtar Kusumaatmadja} ｾｾ ＭＭＭＭｾＭＭＭＭＭＭ ＭＭ ＭＭＭＭｾ＠

Minister for Foreign Affairs

ID!ITED STATES OF AHERICA

Signed

ｂｹｾＭＭ _{Ed\vard E . Masters} ｾｾＭＭ ＭＭＭＭＭＭＭＭＭﾭ

c

( '

\..

EDUCATION ｃｏｾｉｎｕｎｉｃａｔｉｏｎｓ＠ DEVELOP}IE!I!T

(Project 497-0296)

Amplified Proicct DescriPtion

ａｬＮｾｋｅｘ＠ 1

This project is concerned with establishins and strengthening the following functions of the Center for Communication Technology for Education and Culture (PTKPK).

Systems Analysis and Planning

The Center will undertake analysis on both a micro and macro level for both formal and non-formal ･､ｵ｣｡ｴｩｾｾ＠ in Indonesia . It will identify problem areas susceptible to application of educational technology and related development communication strctegies, communicating these to the Hinister of Education and Culture and other senior 1-linistry officials.

It will be a major rcsponsibiJiry of the Center to advise senior Hinistry officials on whether interven:ions or material produced by the Center are likely to be sufficient to make a significant difference in

the delivery of educational services to Ａｾ､｣ｮ･ｳｩ｡ｮ＠ target beneficiary groups.

ｾＱ･､ｩ｡＠ Production

Hedia r:-cduction will be simultaneously the ｬ｡ｲＦＮｾｬ＾ｴ＠ and most visible functicn o: ｴｨｾ＠ National Center. The Center will have the profe:sional and ｴ･｣ｨｾｩ｣｡ｬ＠ ｣ｯ］ｰ･ｾ｣ｮｾｾ＠ to produce commercial quality

ｳｯｦｴｾ｡ｲ｣＠ across the full range of. med.:a:::'2d ｩｮｳｾｲｾＮ［｣｣ｩｯｮ｡ｬ＠ resources.

This capacity w'ill include general audio visual production, the development of appropriate print media, i:;.structional and educational

television anc studio production. The Center ｾＬﾷｩｬｬ＠ establish production requirements and schedules for ｾｲ｡ｩｾｩｮｾ＠ resources across the complete range of mediated materials . Central ｲｾ＠ :he PTKPK'5 production opera-tions \Jill be the application of ｬ｣ｵｲｲＺｩＺＭＺｾ＠ princioles and instructional systems design technology.

Diffusion and Implementation

}luch has been learned about the variables that effect change processes in Education and it ,..·ill be the responsibility of the Center to use and build upon this knO\·:ledge to insure optimum utilization of communications technologies by the client groups for which they have been developed. To facilitate compatibility and exchange of materials,

( ...

Tnformatlon }!anagement

It is important that the Center have and maintain an up- to-date collection of information related to technology drawn from Indonesian experience and from experience in ｯｴｨ･ｾ＠ countries. This will be avail-able to those concerned with its own staff and professional constituents (i.e. the educational communication in provincial governments, other government de?artments, and institutions of higher education) . This

information management function consists of:

1. Seeking out publis hed material , including newsletters , reports , journals and books, a nd screening them for inclusion in the Center's collection. A very important part of t his process is to trans lat e

(cognitively and linguistically) por t ions of this material -- or abstracts of it -- so tha t i t is in useful form for those who need it.

2 . Collecting samples of communication materials such as scr ipts , films , television progr ams, text;, etc . which can be studied by

the Center staff .

J. ｾｬ｡ｫｩｮｧ＠ available periodic rerorts for !'ldonesian professionally

involved in educational communication technology, and for those in relatec areas to help ｴｨｾ＠ kee p abreast on new ､ ｾ ｶ･ｬｯｰｭ･ｮｲｳ＠ in Indonesia and elsewhere.

4. ｾＡ｡ｩｮｴ｡ｩｮ＠ liaison with inter:tational org:J.nizations involved

with edu::ational co=urricatio::: ｴ｣｣ｾｮｯｬｯｧｹ＠ and rural development CO:!:lllunication.

Evaluation

The Center will be concerned wit h the design of the evaluation component of its projects and ｾｩｴｨ＠ t he ､･ｶ･ｬｯｰｾ･ｮｴ＠ of appropriate instru-ments and techniques essential to an ettective assessment of the project's success . It \vill be particularly -::oncerned with evaluation methods

suitable to field and small project conditions. Both formative and summative evaluation act i vities ｷｩｬｾ＠ be conducted.

Training

-3-Principal Programs of Lhe PTKPK

As a center with multiple functions and capabilities the PTKPK will serve several priority programs and projects within the DEC. Tilese fall into the general categories of: (1) Development, Implementation and Evaluation or ｾｫＺ､ｬ｡＠ Supported Educational Systems; (2) Diffusion of Educational Technology; and (3) Instructional and Communications System Research.

1 . Media Supported Educational Systems

a . Community Education (Penmas). This program falls under the Directorate General cf. Out-of-School Education. Penmas offers rural training designed to impart practical skills to supplement incomes, improve family health care, create community infrastructure, foster ｡ｾＮｲ｡ｲ･ｮ･ｳｳ＠ of available government services, and create receptivity to development programs.

The PTKPK will support Pcnmas by developing a number of prototype materials i.l a variety cf media which will be adapted and tested by Penmas for its local ｰｲｯｧｲｾｳＮ＠ In addition the Center will develop and produce 20 hours of 20-30 minute TV programs aimed at semi-rural audiences to inform of Penmas ' programs and motivate participation. Twenty-five hours of radio programming for more rural audiences will also be ｰｲｯ､ｵ｣ｾ､Ｎ＠ In addition the ｃ･ｮｴ･ ｾ＠ will develop and mass produce 14 sequences each of tested filmstrips, flip charts and other simple media dealing l·lith selected topics. ·

h. Primary School Teacher Trnining Project

The GOI has set as a priority the upgrading of unqualified primary school teachers.

At present the ｰｲｯＶｲｾ＠ is ｯｰｾｲ｡ｴｩｮｧ＠ in eleven provinces , but a tentative plan calls for e>:pa:1ding ｴ ｲ ｾ＠ ｰｾ｣［ｾＮＺＺＺＺＺ＠ gradually to all 27 provinces by 1982 ••ith an ｡ｵ､ｩ＼ＺｲＮ｣ｾ＠ of 100,000 pri.'llary school teachers .

c . Open Junior ｓ･｣ｯｾ､ ｡ ｲｶ＠ School

The DEC has desisnated PTKPK to undertake a pilot program based around nine junior secondary schools in five provinces to test the provision of their curriculum to out -of- school youth through

radio progrens, modular printed materials and simple audio-visual materials.

Each of nine schools ｾｩｬｬ＠ enroll approximately 300 students or in total of 2,700 - 3,000 students .

Experimentation will run from 1979-1981, with a trial dissemination to other settings in 1981 prior to full - scale material

disse-r-

mination .

Evaluation o! the system \-Till cover operations, production, enrollment , attrition, utilization of local resources, geographic distribution and social origins of students, and acceptance of the system by the local community.

For national dissemination it is anticipated that the PTKPK will turn the project over to the Directorate responsible for secondary education . The Center, however, t-Till maintain responsibility for improving and supervising the pilot schools, producing master courseware, participating in evaluation of student achievement and monitoring in general the system's development.

2. Diffusion of Educational Technology .

This program is focusea on higher education institutions, particularly the IKIP's and aims at both improving instruction at this leve l and preparing graduates to use educational technology concepts at lower levels in the system. Through the Center it is anticipated that more professors and graduate students wlll become involved in ｲ･ｳ･｡ｲｾｨ＠

and development activities situated firmly in Indonesia reality .

In order to realize fu ll implementation of a nation-wide educational corranunications system, several prerequisite conditions must be met. First , there is the prerequisite of skilled manpoHer devel-opment needed to design, develop, and effectively ｯｰ･ｲ｡ ｾ･＠ such a system. Second, there is a need for prerequisite knowledcie ｾ｢ｯｵｴ＠ various societal , institutional, and educational variabl es ｷｾｩ｣ｨ＠ impinge upon the effectiveness and efficier.cy of implemen ting such a system. Third, immediate and urgctt needs require that PTKPK continue to implement the programs described

in ereas (a) through (c) above.

To meet the first tt¥0 prereq•..1isities (capability development and knowledge base) and to enhence r:oe effectiveness of projects (a) through (c), the PTJ:(FK 1-1ill inir:iate a series of action research studies \vhich will; (1) provide inforr..ation useful to continuing projects , (2) provide a ｫｮｯｷｬ･､ｾ･＠ ｢｡ｳｾ＠ necessary for design and devel-opment of natiomvlde educational co= . .mications systems , and (3) provide a training vehicle for in-house capability ､･ｶｾｬｯｰｭ･ｮｴ＠ by Center personnel . Six major studies have been identified.

*

Systems Study of 1-ieeded Instructional Haterials for Inschool Student Use.

*

System Analysis of ｾｾｳｳ＠ Media and Satellite Utilization a Nat ional Communications Net1-1ork for Rural Education.

r

-5-*

Assessmenl of the Effectiveness of Alternative Evaluative Techniques in the ｉｮ､ｯｮ･ｳｩ｡ｾ＠ Setting

*

Study of ｖ｡ｲｩ｡ｾｬ･＠ Affecting Diffusion of Educational Innovation in Indonesia

*

Hanagemcnt oi Educacio:-1al Communications Systems Internal Structure ｡ｾ｣＠ ｓｴ｡ｦｦｩｾ _Ｐ＠

The Director 'vill ove::::see five divisions. Administrative and financial functions will be housed in the Secretariat, to be headed by an Executive Secretary. In practice, the Executive Secretary will serve as the chief deputy of the Director. Functions related to policy and coordination will be housed in iour divisions, each headed by Assistant Directors . The Planning Division will be the forwardlooking unit, housing systems research, development and strategic planning functions . A control Divlslon will be the principal outreach group, concerned ｾｴｨ＠ diffusion of methods ｾｮ､＠ materials, and particuln::::j y liaison with education communi-cation teclmology units at the provincial level and with other agenci es, standardizalion of equipment , and coorcination of technical advisory services . The Evaluation Division will desig n and perform evaluation , in close cooperation with the Control ｡ｾ｣ｩ＠ Planning Divisions and the Prod:;ction Studio. Infornation and dissemination will be housed in a Documentation and Publications Division, ｾｾｨｩ｣ｨ＠ uill also s upport in-house and c·:ternal proiessional and ｴ･｣ｴｾｩ｣｡ｾ＠ staff development activities.

The Policy a:1d Coordi:-.a:ior: Division can be regarded as the "brains" of the Center, while the Production Studio represents the arms. H.:!rc the soft-.oare for radio, '::"!, filr.s, ;>rint and other media '.rill be produced accor ding t o speci:'icatie>"lS dev.::lorE-d hy the Planning Division and the appropriate ｣ｵｲｲｩ｣ｵｬｾ＠ taaws hvv5ed in BP3K and the Directorate General of Basic and Second=.r:: ｅ､ｵ｣｡ ｾＺＮ ｣ｮ Ｎ＠ Feedback data from the provinces will be incorporatec. Tl•is ｾｩＮｶ＠ isi.on t-:ill also supervise

production work contracted to ?rintsno?s. graphicsstudios or to specialized production centers located :.:; n:I?s <::::: c::i•tersities.

Staff

r

of at least 6 Ph.D's, 40 ｾｾｳｴｾｲｳＬ＠ end 50 staff qualified by specialized training. The total ｦｵｬｬ Ｍ ｴｾ･＠ staff of the Center will be 150, supplemented by regular and ad hoc part-time employees and consultants.

At the national level, the Center must relate effectively to the Department of ｉｮｦｯｲｭｾｴｩｯｮ＠ (DI) and Department of Communication (DC), both of which, like the DEC, have Regional Offices in the provinces . Tne national radio system (RRI) end the ｾ｡ｴｩｯｮ｡ｬ＠ TV system (TVRI) arc part of the DI. Relations between the DEC and the DI in the area of radio are governed by two agreements lvhich outline each organization 1 _s responsibilities in the broadcast of educational radio programs . Essentially, the DI has agreed to pLovide production facilities ,

transmission time and maintenance service, without charge, while the DEC has agreed to provide completed programs and to distribute radio sets

to schools and communities . These agreements have generally been effective vehicles for cooperation. In the case of television no formal agreements exist, but TVRI appears to be amenable to broadcasting DEC programs .

The DC controls access to the PALAPA satellite . The satell ite system is run by Perumtel, a ｊｏｖ･ｲｮｲｲｾｮｴ＠ corporation under the DC's jurisdiction. The Center will access satellite transmission through the DI, as it has the transmission ｾﾣｲ･･｣･ｮｴｳ＠ with the DC.

It ｾｳ＠ anticipated that the systems studies to be undertaken by the Center will pr ovide the foundation:: :c:: appropriate mechanism for

collaboration v1ich the DI and DC teleco=unications infrastructure.

Facilities

The operational center for PTKPK 1dll be located in a building complex constructed on a several acr;: site apprcxima tely 30 kilometers from central Jakarta. The PTKPK ｾｵｩｬｾｩｮｧ＠ ｾｩｬｬ＠ consist of three inter-connected units uith a tota l art·" of 2, 946 !-2 . Included are a television studio and two radio studios , as ﾷ Ｂﾷ［［Ｎｬｾ＠ cs space for activities involving photography, scene design, exh1 't-:!.t ｾ］ＺＺＱ＠ se:: ccr,s truction, graphics and visuals production and related ｳ･ｲｶｾ｣ｾｳ Ｎ＠

The television and radio facilities include ancillary space to house control room, maintenance, telecin-::, editing , and engineering operation. The television studio will have about 1000 square feet Ｑｾｨｩ｣ｨ＠ will allm-1 the staff to produce a variety of program formets; ｩｮｴ･ｲｶｩ･ＱｾｳＬ＠ talks, demonstration, panel presentation, dramatizations lvhich do not require elaborate sets, and small musical ensemble groups -- in short, just about 1-1ha tcver uill be called for in its programming comntitments. (Film and

ALL YEARS

Technical Assistance

Local Technicians

Training :

a. In-Country

b . Overseas

I

Commodities

I

Land

&

Construction Other costs

I

l

Contingency

I

I

1 TOTAL

'

Estimated

Projection of Expenditures T.ifc of Project

cuss

000)

A I D

Grant

ｷｾ＠

FX LC FX LC

2,000

50

i

I

_I

•

865

I

2,100

I

-220 225

315

I

j 225

i

GOI 750 860 600 1,600 830 360

2,000 3,500 "i()(l 5,000

t.,OOO -7-I TOTAL 2,000 800 860 865 2, 700 1, 600

I

1 , 275

900 I I

ｐｲｾ＾ｪ｣｣ｴＮ＠

Loan Standard Provis

1 ons

Annex

2

Article A:

Project Implementation iecters

r

'

Article 8:

General Covenants

ｓｅｃｔｉｏｩｾ＠ B. l.

SECTION

B.2 .

SECTION

B.3.

SECTION

B.4.

SECTION

B. 5.

SECTiml B. 6.

SECTION

B. 7.

SECTION

B 8

Consultation

Execution of Project

Utilization of Goods

and

Services

Taxation

Reports, Records. Inspect ion s, Audit

Completeness of Informalion

Other Payments

Informa tion

and

Harking

ａｲｴｩ｣ｬｾ＠

C:

Ｐ _{ｲｯ｣ｾｲ･ｾＺｮｴ＠ｐｲｯｶｩｳｩｯｾｳ＠}

SECTIO:, C. l.

SECTION

C.2. SECTION C. 3. SECTION C.4.

SECTIO:\ C. 5.

sEc.ro:: c.6.

ｓｅｃｔｉｏｾｬ＠ C. 7

Special

Rules

Eiigibility Date

Plans, Specifications, ｡ｾｾ＠

Contracts

Reasonable Price

Notification

to ｐｯｴ･ｮｴｩｾｬ＠ ｓｵｰｰｬｩｾｲｳ＠

Shipping

Insurance

ｓｅｃｔｔｃＧｬＺｾ＠ C. 8.

U.S. Governr::ent-C>;::1cd

ｅＺｾｴＮＮ＼Ｎ［ＮＮ［ｳ＠ Prcp.•rLy

Article U:

ｔｾｲｭｩｮ｡ｾｩｯｮ［＠

Remedies

SECT LON D . 1 .

SECTION D.2.

SECTION

0.3.

SECTION D. 4.

SECTlON

0.5. SECTION 0.6.

SE CTION 0.7.

Cancellation by Borrower

Events

of

Default; Acceleracion

Suspension

Cancellation

by

A.l.D.

Continued Effectiveness

of ａｧｲ･ｾｲｵｬＮＡｮｴ＠

Refunds

Nom.,ai ver of Remedies

Page

l l

1

l 2 2

2, 3

3 3 3

3

3, 4

4

4

5 5

5.

6 6, 7

7

7

7 7' 8

'8 8

ANNEX 2

Project Loan Standard Provisions Annex

Definitions: As used in this Annex, 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 implementation of the Project, A.I.D . . from time to time, will

issue Project Implementation Letters that will furnish additional

information about matters stated in this Agreement.

The parties

may also use jointly agreed-upon Proj ect Implementation Letters to

confirm and record their mutual understanding on aspects of the

implementation of this Agreement.

Project Implementation Letters

will not be use d to amend the te:-.t. of the Agreement, but can be

used to record revisions or exceptions which are permitted by the

Agreement, including the revision of elements of the amplified

､･ｳ｣ｾｩｰｴｩｯｮ＠

of the Project in Annex l.

Article B:

General Covenants

SECTION B. l.

ｃｯｮｳｵｬ｣｡ｾｩｯｮＮ＠

The Parties wil l cooperate to

assure that the purpose of this Agreewent

ｾｩｬｬ＠

be accomplished.

To this end, the Parties, at the request of either, will exchange

views on the progress of the Proj.:cc. the performance of

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

cont r actors, or suppliers enga&ed un the Proj ect, and other

mat-ters relat ing 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 efficiency, in conformity with

sound technical, financial, and management practices, and

in conformity wi th thos e documents. plans, specifications,

contracts, schedules, or other arrangements, and with any

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

Agreement; and

SECTION B.3.

Utilization of Goods and Services.

(a) Any resources financed un der the Loan will, unless

otherwise agreed in writing by A.I.D., be devote J to the

Project until the completion of the Project, and thereafter

will be used so as to further the objectives sought in

carrying

ｯｾｴ＠

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 a id project or activity

associated with or financed by a country not included in

Code 935 of the A.I.D. Geographic Code Book as in effect

at the time of such use.

SECTION B.4.

Taxaticn.

(a) This Agreement and the- Loan will be

freE!

from, and

the Principal and interest will be paid free from, any

taxation or fees imposed under laws in effe ct in the

terri-tory of the Borrower.

(b) To the extent that (l) any contractpr, inc luding

any consulting firm, any

ｰ･ｲｳｯｮｾ･ｬ＠

of

ｳｾ｣ｨ＠

contractor

fi-nanced under che Loan, and .... , :Jrcpert:v or transactions

relating to such contracts and

(2) .

any. commodity procurement

transaction financed under the Loan are not exempt from

identifiable taxes, tariffs, ducies, or other levies imposed

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

Borrower will, as and to the

･ｾ｣｡ｮＺ＠ ｰ］ｯｾｩ､･､＠

in and pursuant

to Project Implementation Lette=s, pay or reimburse the same

with funds other than those prcvided under the Loan.

SECTION B.5. Reports, Reco rds. 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;

(b) maintain or cause to be maintained, in accordance

with generally accepted accounting principles and practices

｣ｯｮｳｩｳｴ･ｮｴｾｹ＠

applied, books and records relating to the

3

-SECTION B.S. (b)

last disbursement by A.I.D.; such books and records will also

be adequate to show the nature and extent of solicitations

of prospective suppliers of goods and services acquired, the

basis of award of contracts and orders, and t he overall

progress of the Project toward completion; and

(c)

｡ｾｦｯｲ､＠

authorized representatives of a Party the

opportunity at all reasonable times to inspect the Project,

the utilization of goods and services financed by such

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

the Project and the Loan.

SECTION 8.6.

Completeness

ｯｾ＠

Information.

The Borrower

confirms:

(a) that the facts and

｣ｾｾ｣ｵｭｳｴ｡ｮ｣･ｳ＠

of which it has

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

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

accurate and complete, and include all facts and

circum-seances that might materially affect the Project and the

､ｩｳ｣ｨｾｲｧ･＠

of responsibilities under this

ａｧｾ｣･ｭ･ｮｴ［＠

(b) that

it

will inform ft.I.D. in timely fashion of

any

ｳｵ｢ｳ･ｾｵ･ｮｴ＠

facts and

｣ｩｲ｣ｾｭｳｴ｡ｮ｣･ｳ＠

that might materially

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

the Project or the discharge cf

ｲ･ｾｰｯｮｳｩ｢ｩｬｩｴｩ･ｳ＠

under this

Agreement.

SECTION B. 7.

Other Pavmenrs.

Borrower affirms that no

pay-ments have been or will be received by any official of the Borrower

in connection with the procurement of goods or services financed

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

established in the country of the Borrower.

SECTION B. 8.

Information and Harking·.

The Borrower \oJill

give appropriate publicity to the Loan and the Project as a·

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

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

Project Implementation Letters.

Article C:

Procurement Provisions

SECTION C.l.

Special Rules.

SECTION C.l.

(b) Premiums for marine insurance placed in the terriLory

of the Borrower will be deemed an eligible Foreign Exchar.gc

Cost, if otherwise eligible under Section C. 7(a)

(c) Any motor vehicles financed under the Loan will be

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

other-wise agree in writing.

SECTION C.2.

Eligibility Date.

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

ｾｾｹ＠

otherwise agree in writing.

SECTION C.3.

Plans,

ｓｰ･｣ｩｦｩ｣｡ｾｩｯｮｳＬ＠

and Contracts.

In order

for there to be mutual agreement on the following matters, and

except as the.Parties may

ｯｴｨ･ｮｾｩｳ･＠

agree in writing:

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

(1) any plans, specifications, procurement of

con-struction schedules, con:raccs, or other documentation

relating

ｾｯ＠

goods or services to be financed under the

Loan, including documentat ion relating to the

prequali-fication and selection of contractors and to the

solici-tation of bids and proposals.

ｾｦ｡ｴ･ ｲｩ｡ｬ＠

modifications in

such

､ｯ｣ｵｾ･ｮｴ｡ｴｩｯｮ＠

will likewise be furnished A.I.D. on

preparation;

(2) such

､ｯ｣ｵｭ･ｾｴ｡Ｚｩ ｯｮ＠

will also be furnished to A.I.D.,

upon preparation,

ｲ･ｬｾ ｴｩｾｾ＠

to

｡ｾｹ＠

goods or services which,

though not financed

ｵｮ､ｾｲ＠

the Loan, are deemed by A. I.D.

to be of major

ｩｭｰｯｲｴｾＰ ｣｡＠

to the Project.

Aspects of the

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

will be identified in Project Inplementation Letters;

(b) Documents related to the prequalification of

con-tractors, and to the solicitation of bids or

ｰｲｯｰｯｳ｡ｬｾ＠

for

goods and services financed under the Loan will be approved

by A.I .D. in writ ing prior to their issuance, and their Lerms

will include United States standards and measurements;

5

-ｓｅｃｔｉｏｾ＠

C.3.

(d) Consul ting firms us ed by the Borrower for the Project

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

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

may specify, and construct ion contractors used by the

Bor-rower 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 will be paid for 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 competitive 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 financed under the Loan, the

Borrower will furnish A.I .D. such information with regard thereto,

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

Letter.

SECTION C.6.

Shipping.

(a) Goods which are to be transported to the territory

of the Borrower may not be financad under the Loan if

transported either:

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

of a country which is not

ｩｾ｣ｬｵ､･､＠

in A.I.D. Geographic

Code 935 as in effccc ac the time of shipment: or

(2) on an ocean vessel which A.I.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

persor.s) 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

.

.

Ｇｾ＠

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 that privately owned United States-flag commercial ocean vessels are not available aL fai r and reasonab l e rates for such vessels ,

( 1) at least fifty percent (50%) of the gross ton-nage of all goods (computed separately for dry bulk carriers , d ry cargo l iners and tankers) financed by A.I.D. which may be transported on ocean vessels will b e trans po r ted on privately owned United States-flag commercial vessels, and

(2) at least f i fty percent (50%) of the gross

ｦｲ･ｩｧｾｲ･ｶ･ｮｵ･＠ 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 co any cargo transported from U.S. ports and also any cargo

trans-ported from non-U.S. ports, ｣ｯｦｦｩ＿･ｾ･､Ｎｳ･ｰ｡ｲ｡ｴ･ｬｹＮ＠

SECTION C. 7. Insurance .

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

are co be transported to the ｾ･ｲｲｩｴｯｲｹ＠ of the Borrower may

be financed as a Foreign Exchange Ccst under this Agreement provided,

(1) such ｩｮｳｵｲ｡ｮ｣ｾ＠ ｾｳ＠ ｰｬ｡ｾｺ､＠ at che lowest ｡ｶ｡ｾｬ｡｢ｬ･＠

competitive rate, and

(2) claims ｣ｨ｣ｲ･ｵｮ､ｾｲ＠ are ?ayable in the currency

in which such goods wer e 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 co do business in any State of the United States, then all goods shipped to the territory of the Borrower financed by A.l . D. hereunder will be insured against marine risks and such insurance ,..;ill be placed in the United Scates with a company ur companies

7

-SECTION C.7.

(b) Except as A.I.D.

may

otherwise agree in writing, the

Borrower will insure, or cause co be insured, goods financed

under the Loan imported for the Project against risks

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

Pro-ject; such insurance will be issued on terms and conditions

consistent with sound commercial practice and will insure

the full value of the goods.

Any indemnification received

by the Borrower under such insurance will be used to replace

or repair any material damage or any loss of the goods

in-sured or will be used to reimburse the Borrower for the

replacement or repair of such goods.

Any such replacement

will be of source and origin of countries listed in A.I.D.

Geographic Code 935 as in effect at the time of replacement,

and, except as the Parties

ｲｲｾｹ＠

agree in writing, will be

otherwise subject to the provisions of the Agreement.

SECTION.C.8.

U.S. Governmenc-Owned

Pro ert .

The

Borrower agrees that wherever

ｰｲｾ｣｣ｩ｣｡＠

e

ｕｮｾｴ･＠

States Government

-owned excess personal 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

ｐｲｯｪ･｣ｾＮ＠

Article D:

ｔ･ｾｮ｡ｴｩｯｮ Ｚ＠

Reffiedias.

SECTION D. 1.

Cancellation by Borrower.

The BorrO\ver may,

by giving A.l.D. 30 days writt en 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 Bo::-::-o•,...c.'!"

ｾｨ｡ｬｬ＠

!.ave failed:

(a) to pay when due any

ｾｮ ｴ･ｲ･ｳｴ＠

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 ocher 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 cf Default is cured within that time:

SECTION D.2.

(2) the amount of ar.y further disbursements ffiade

pursuant to thenoucstanding commitments to third

parties or otherwise Hill become due and payable as

soon as made.

SECTION D.3.

Suspension.

lf 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

ｾｨ｡ｾ＠

makes it improbable either

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

Borrower will be able co perform its obligations under

this Agreement; or

(c) Any disbursement by A.I.D. would be in violation

of the _legislation governing A. I. D.; or

(d) The Borrower shall have failed to pay when due any

interest, installment of pr i n cipal or ocher payment required

under any other loan, guaranc y . or

ｯｾｨ･ｲ＠

agreement between

t h e Borrower or any of its agencies and the Governrr.ent of

the United Scates or any of its

｡ｧ ･ ｮ｣ｩ･ｳｾ ﾷ＠

Then A.I.D. may:

(1) suspend or cance l

ｯｵ｣ｳ｣ ｡ ｮ｡ｾｮｧ＠ ｣ｯｾｾｩｴｭ･ｮ｣＠

docu-ments to the extent the ; h a ve not been utilized through

irrevocable

｣ｯｭｲｲｾｴＷｴ ･ｮｴｳ＠

-o t h i rd pa rties or otherwise,

giving prompt notice

｣ ｾ･ｾ･ ｯｦ＠

to t he Borrower;

(2) decline to issuL additional commitment documents

or to make

､ｩｳ｢ｵｲｳ･ｭ ･ｮｴ ｾ＠

ocher chan 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

｣ｯｵｮ｣ｾｹＮ＠

are

in a deliverable state and have not been offloaded in

ports of entry of Borrower's counLry.

Any disbursement

made under the Loan \-lith respec c to such transferred

goods will be deducted from Principal.

9

-SECTION D.S.

Continued Effectiveness of Agreement.

ｾｯ｣ﾭ

withs t-anding any cancellation. suspension of disbursements .. or

acceleration of repayment, the provisions of this

ａｧｲ･･ｭ･ｮｾ＠

will

continue in effect until the payment in full of all Principal

and accrued interest hereunder.

SECTION 0.6.

Refunds

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

sup-ported by valid documentation 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 Agreement, A.

I.

D., notv7ithstanding

the availability or exercise of any other remedies provided

for under this Agreement, may require the BorrO,-ler to refund

the amount 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 such a refunrl of a disburs

e-ment will continue,

ｮｯｴｾｶｩｴｨｳｴ｡ｮ ､ｩｮｧ＠

any other provision of

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

last disbursement under this Agreement.

(b)

(l) any refund under the ?receding.?ubsection, or

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

bank, or other third party with respect to goods or

services financed under the Loan, which refund relates

to an unreasonable

ｰｲｩ｣ｾ＠

for or erroneous invoicing of

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

specifications, or to

ｳ･ｾ［ｩ｣･ｳ＠

that were inadequate, will

A.

be made availab le first for the cust of goods

and services required for

ｾｨ･＠

Project, to the extent

justified, and

B.

the remainder,

if

any, wi.ll be applied co the

installment s of Principal in the inverse order of

ｴｾ･ｩｲ＠

maturity and the amount of the Loan reduced by che

amount of such remainder.