BRITISH EMBASSY JAKARTA
12 November 1984 UNITED KINGDOM/INDONESIA AUSTRALIA-INDONESIA-SINGAPORE
SUBMARINE CABLE SYSTEM PROJECT GRANT
1984-Your Excellency
I have the honour to inform you that it is the intention of the Government of the United Kingdom of Great Britain and Northern Ireland to make available to the Government of the
Republic of Indonesia certain sums by way of a grant (hereinafter referred to as "the grant") consisting of contributions towards the cost of the purchase of certain goods wholly produced in and supplied from the United Kingdom (hereinafter referred to as "UK goods") '.1.Ild certain services performed by persons normully resident in the United Kingdom (hereinafter referred to as
"UK services"). The grant may also be used to defray the cost of certain chGrges and commissions payable to the Crown Agents for Oversea Governments and Administrations (hereinafter referred to as "the Crown Agents").
2. Whereas PT (Persero) Indonesian Satellite Corporation of Indonesia, Overseas Telecommunications Commission (Australia),
His Excellency
Prof. Dr. Mochtar Kusumaatmadja SH LLM Minister of Foreign Affairs
Cable and Wireless (Hong Kong) Limited and Telecommunication Authority of Singapore have entered into a contract dated 20 July 1984 (hereinafter referred to as "the Contract") with Standard Telephones and Cables Plc of 190 Strand, London WC2 1DU, a company registered in the United Kingdom (hereinafter referred to as "the Contractor"), for the supply of a submarine telephone cable system between Australia, Indonesia and Singapore to be known as the A - I - S system (hereinafter ref erred to as
"the project") and whereas the said contract provides for PT (Persero) Indonesian Satellite Corporation of Indonesia
(hereinafter referred to as "the Purchaser") to make separate payments for parts of the project in accordance with the terms
of Article 3 of STC Terms and Conditions of Contract, the UK goods and UK services ref erred to in paragraph 1 of this Note are to be provided for the said parts of the project .
3. The amount of the grant will not exceed whichever is the less of the
following:-a. £3,093,000 (three million and ninety three thousand pounds sterling) or
b. the sum of
i. 25.1 per cent of that portion of the total contract price which the purchaser is liable to pay in accordance with Article 24 a (V) of the contract to be applied to the payment of UK goods and UK services supplied in accordance with the contract a."1d
ii . the charges and commissions of the Crown Agents which are payable in accordance with this Note.
4. The Contract is also to be financed in accordance with an agreement (hereinafter referred to as "the Loan Agreement")
5.
The <...pproved text of the Contract and the Loan Agreement will not be amended 1 ·i thout the prior approve. 1 of myGovernment ' s Overseas Development Administration .
6 . The ｃｯｮｴｲｾｾ｣ｴ＠ provides for the appointment of A G Stuart a s the A - I - S System M·uwger ( hereinafter referred to 2.s
11the Consul tcmt 11
) to certify thc:i.t ｰｾ＠ yments clc.. imed by the
Contructor are properly due on the b<· sis of expenses necess: rily incurred by the Contractor in connection \ ·i th the Contract .
7 .
Save to the extent to •:.:hich my Government notifies your Government other1d se in \.ri ting , dro.\.ings from the gr· . .vt will be me: d"' i n accordance v.i th the folloi;ing par<:.graphs on this Note . 8 . Subject to the tot 1 limit specified in p s r c graph3
of this Note :.1.Ild subject to ｰ ｲ ｲ ｾ ｧｲ ｡ ｰｨｳ＠ 15 , 16 ｾｮ､＠ 17 of this Note ,drm.ings from the grrmt to a total not exceeding
£3 ,
087 , 000 i:ill be c.pplied to certain p:.yments , LS specified ｢･ｬｯ ｾ Ｚ＠i . Oil the coming into operc: ti on of the ｡ｲｲｾ ｣ Ｎｮｧ･ｭ･ｮｴｳ＠ set out in this Note or \,hen the conditions in Articles 4-3 of the ｣ｯｮｴｲｾ｣ｴ＠ ｾ ｮ､＠ 1:..rti cles 4- of the Lo an Agreement h &ve been fulfilled Ｈｾｰ＼ＮＮｲｴ＠ from any requirement therein that this pc...yment ｳｮ ｾ ｬｬ＠ h <..ve been made) , Hhichever is the l atest , an a mount corresponding to 15 per cent of the contra ct price £1 , 4-30 , 161 .
ii . on delivery of goods a nd on performcnce of services in a ccord:Jnce '1i th Article ｾ ＴＭｈ＠ of the Contra ct a sum not
exceeding ｾＱ Ｌ ＶＵＶ Ｌ ＸＳＹ＠ or 10 . 1 per cent of the contra ct price , whichever is the l ess .
10. Goods will be shipped and insured in accordance with normal commercial competitive arrangements.
11. In order that drawings may be made from the grant, your
Government will as soon as possible after the coming into operation of the arrangements set out in this Note send the Crown Agents a request, in the form set out in Appendix A to this Note, to open a special account (hereinafter referred to as "the Account11
) which
will be operated solely for the purposes of the grant and in accordance with the instructions contained in the said request. 12. Your Government will, as soon as the Account is opened, and before taking any other step required by this Note for obtaining any part of any allocation from the grant, provide my Government with a copy of the instructions to the Crown Agents in accordance with paragraph 11 above. The Crown Agents will, at the same time, and as often as any change is made therein, separately notify our two Governments of the names of the officers of the Crown Agents who are duly authorised to sign on their behalf the Requests for Drawing ref erred to in Appendix A to this Note and will furnish a specimen signature in duplicate of each such officer.
13. To the extent that the Crown Agents, acting on behalf of my Government, accept
a. a request from the contractor for a payment in accordance with paragraphs 8 and 16 of this Note or
b. that payment is to be made of charges incurred by your Government under paragraph 17 of this Note
my Government will on receipt of a request, in the form set out
in paragraph
3
of Appendix A to this Note, from the Crown Agents acting on behalf of your Government, make payments in sterling into the Account and each such payment will constitute a drawing on the grant.14. Unless my Government notifies your Goverrunent otherwise in writing, the last date for payment into the Account opened in accordance with paragraph 11 of this Note will be
31 March 1985.
15. Unless my Government notifies your Government otherwise in writing, drawings from the grant will be used as provided in paragraph 8 of this Note only and according to the procedures set out in paragraphs 16 and 17 below.
16. As soon as possible, and in any event not later than 14 days before the due date of the first payment due to be made under the Contract, your Government will provide the Crown Agents with
copies of the signed Contract and Loan Agreement. For those payments to be made under the Contract by the Purchaserwhich may be met from the grant, withdrawal from the Account will be made on receipt by the Crown Agents
of:-i. a Payment Certificate from the Contractor in the form set out in Appendix B to this Note and the documents referred to therein as appropriate;
ii. any other documentation which is required by the Contract in support of a payment request;
iii. a banker's guarantee in a form set out in Appendix C to this Note (to be construed in accordance with English law), unconditionally and irrevocably guaranteeing payment to the Crown Agents (for crediting to the Account) the equivalent of such sums as have been advanced for goods and services not provided in accordance with the Contract;
iv. such other relev<..nt documentation as ｭｾｙ＠ ｲ･ＸＮｳｯｮｾ｢ｬｹ＠ be requested by the Cro··n Agents.
17 For pt.yment of sterling ch:::.rges prylble in the United Kingdom to the Crown Agents in respect of their services on beh<"lf of your Government in cor .... ri.ection 1.i th the grcnt , the Ci. ｯｾＮｔＮ＠ Agents \·ill debit the Account fo:::- these pc;.yments rmd will inform your
Government of the amounts so debi ted .
18 . Your Government \.ill ensure thut <, r>um in sterling eguivc: lent to any sum paid out of the Accoun.t wid refunded by the Contrpctor or f' gu::: rF.ntor , \·:hether to your Government or not , is repaid to
the Crown Agents for credi ting to the Account .
19 . I1y Government hes the rie;ht to recover ｾｮｹ＠ sums remrining in the Acc0Ul1t for a period of' six months or more . The Crown Agents will remit to my Government c,.:rry- sum remaining in the Account six months after the d£te in pc:rPgrc.ph 16 of this Note .
20 . I n the event of vny goods und services to be provided under the Contrnct not bei ng so provided , my Government has the right to recover ｦｯｲｴｨｾＮｩ＠ th from your Government C:Jny sums paid from the grc-nt in respect of such goods end services not so provided .
ｾＱ Ｎ＠ My Government ｨｾ Ｑ ｳ＠ the r_ight to recover from your Government any sum p:.;.i d out of the gr<Jnt in excess of 25 . 1 per cent of that portion of the tot:. 1 Contrc.ct price hich the Purcheser is l it'ble to pay in uccord&nce with Article 24 < ( V) of the ｃｯｮｴｲｾ｣ｴ＠ or 26.3 per cent
of the tot£.l value of UK goods wid UK services provi ded in
accordance with the Contract c..nd the charges and commissions pPyc.ble to the Crown Agents in connection therewi th . Your Government will ensure that the Contractor , not l::..ter th£,n 31 May 1987 provides my
Government with c statement listing ｾＱＱ＠ goods ｾｮ､＠ services provided under the Contr[..ct and their cost ,
indicating those which are not UK goods or UK Services.
22. Your Government will ensure that all goods and all services for which payment has been financed from the grant will be employed for the purposes for which and by the user for whom they were
supplied, for as long as their being so employed remains feasible. In the event of such goods not being, or ceasing to be, so employed my Government will have the right to recover forthwith from your Government the equivalent of the amount drawn from the grant for their purchase.
23. Your Government will ensure that my Government's authorised personnel and agents are permitted to examine on arrival any goods purchased from the grant and to visit any site on which work funded
from the grant is to be or is being done and will enable such
personnel and agents to be furnished with such information as regards the Contract and the progress of work and its financing as they
require, including periodic progress reports from the Contractor. 24. Your Government will ensure the provision of such finance
additional to the grant as may be required to complete the purchases to be made under the Contract.
25. If the arrangements set out above are acceptable to your Government I have the honour to suggest that this Note, and your reply to that effect, will ｰｬ｡ｾ･＠ on record the understanding of our two Governments in this matter which will come into operation on the date of your reply and will be referred to as "the United
Kingdom/Indonesia A - I - S Submarine Cable System Project Grant 1984" . I avail myself of this opportunity to renew to your Excellency
APPENDIX A
From the Government of
• • • • • • • • • • • • • • • • • • • • • • to the Crown Agents
Dear Sirs
UNITED KINGDOM/INDONESIA A-I-S SUBMARINE CABLE SYSTEM PROJECT GRANT 1984
1. I confirm your appointment as agents of the Government of Indonesia in connection with the management in the United Kingdom of the above-mentioned Grant which is for a sum not exceeding
£3,093,000 (three million and ninety three thousand pounds sterling) and is constituted by an Exchange of Notes dated ••••••••••••••••••• 19 ••• between the Government of the United Kingdom and the
Government of Indonesia (hereinafter referred to as "the Government").
2. I have to ask you on behalf of the Government to open a
Special Account in the name of the Government to be described as the United Kingdom/Indonesia A - I - S Submarine Cable System Project Grant 1984 Account (hereinafter called "the Account").
3.
Payments into the Account will be made from time to time by the Government of the United Kingdom on receipt of Requests for-Drawing in the following form which you are authorised to present on behalf of the Government, to the Finance Department of the Overseas Development Administration of the Government of the United
Kingdom:-"Dear Sirs, Please pay the sum of£ ••••••••••••• to the United Kingdom/Indonesia A - I - S Submarine Cable System Project Grant 1984 Account. The sum shall, on payment into
the Account, constitute a drawing on the Grant. The balance in hand
is£ ••••••••••••••••••••.••
(signed) •••••••••••••••••••••••••• for the Crown Agents on behalf of the Government of Indonesia".
The amount of the Grant to be drawn on any one occasion will be sufficient, together with any balance which may be available in
the Account, to cover the payment properly due from the Grant in
accordance with the Exchange of Notes. It is possible that as a result of refunds referred to in the Exchange of Notes, payments into the Account will also be made from other sources.
4. Payments from the Account are to be made only in respect of the amounts falling due under the provisions of and in the manner and subject to the conditions described in the Exchange of Notes.
5.
You are to send to the Government at the end of each month a detailed statement showing all debits and credits to the Account. 6. You are to send to the Government of the United Kingdomspecimen signatures of the Officers of the Crown Agents authorised
to sign Requests for Drawing on behalf of the Government.
7.
Your charges and commissions for acting as our agents in connection with the grant shall be chargeable to the Account.8. A copy of this letter has been addressed to the Government of the United Kingdom.
Yours faithfully
APPENDIX B
REF NO •••••••••••••••••••••••••
PAYMENT CERTIFICATE: UNITED KmGDOM/INDONESIA A-I-S SUBMARINE
CABLE SYST:E?i PROJECT GRANT 1984
I hereby certify that
i.
The payment referred to in the invoices listed below, which
(or copies of which) accompany this certificate, is due to be made
in respect of Article
24of the Contract dated •••••••••••••••••••
between this Company and •••••••••••••••••••••••••••••••••••••••••
in respect of
UK
goods and
UK
services as defined in the above
Grant.
A. Invoice No.
B.Value of (A)
C. Amount of (B)
due under the
Grant
D. Short
description of
goods, works
and/or
-ii.
The following documents are, where applicable, also enclosed:
a. b. c. d.
e.
f. g.
Bills of Lading
Freight Accounts
Insurance Certificates
Inspection Certificates
Bank Guarantee/Company Undertaking
Price escalation calculations
Purchaser's acceptance certificate
• ••••••••••••••••••••••••• • •••••••••••••••••••••••••
• •••••••••••••••••••••••••
• ••••••••••••••••••••••••• • •••••••••••••••••••••••••
• •••••••••••••••••••••••••
• •••••••••••••••••••••••••
iii. I have the authority to sign this certificate on behalf of
•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••
Signed ••••••••••••••••••••• Position held ••••••••••••••••••••••••
For and on behalf of ••••••••••••••••••••••••••••••••••••••••••••••
Consultant's Certificate
This is to certify that the above claim is correct and accords with
Article •••• of the Contract and that the sum requested is properly
due on the basis of work carried out, materials bought in, and
ｾ＠other expenses necessarily incurred in connection with the Contract.
Signed ••••••••••••••••••••• for and on behalf of •••••••••••••••••
r
APPENDIX C
DRAFT OF A BANK GUARANTEE TO BE PROVIDED FOR THE PURPOSF.s OF
PARAGRAPH 16 iii OF THE UNITED KINGDOM/INDONFSIA A-I-S SUBMARINE
CABLE PROJECT GRANT 1984 BY A BANK INCORPORATED IN THE UNITED
KINGDOM.
In consideration of the Crown Agents for Oversea Governments and
Administrations (hereinafter referred to as "The Crown Agents")
acting in their capacity as paying agents for the Government of
Indonesia, making a payment of pounds stg
•••••••••••••••••••••( ••••••••••••••••••••••• pounds sterling) (hereinafter referred
to as "The Advance Payment") to •••••••••••••••••••••••••••••••
(hereinafter referred to as "The Contractor") under clause(s)
••••••••••••••••••••••••••••••• of the conditions of a contract
dated ••••••••••••••••••••• concluded between •••••••••••••••••
and the contractor, we (name of bank) hereby unconditionally
and irrevocably guarantee on receipt from the Crown Agents of
their certificate of the contractor's inability or failure to
fulfil all or part of the contract, the repayment to the Crown
Agents on demand of such proportion of the advance payment as
is attributable to work to be performed or goods and services
to be provided under the contract which the Crown Agents shall
certify as not having been so performed or
soprovided.
2.
This guarantee shall become effective on the date of receipt
by the contractor of the said advance
ｰｾ･ｮｴ＠of pounds
stg •••••••••••••• ( •••••••••••••••••••• pounds sterling) and
shall remain valid until three months beyond the anticipated
last date for the delivery of all goods and the performance of
all services under the contract (ie •••••••••••••••• 19 ••• ) or,
if earlier, the actual last date for the delivery of all goods
and the performance of all services under the contract, provided
that if the goods have not all been delivered, or the services
have not all been performed, under the contract by •••••••••••••
19 •••
+.This guarantee shall be extended, upon the prior demand
of the Crown Agents, for progressive periods of three months until
three months after such time as all the goods under the contract
have been delivered and all services under the contract have been
performed.
3.
The value of this guarantee shall be reduced by ••••••••• per
cent
*
of the value of goods delivered and services performed under
the contract, as evidenced by a certificate from the Crown Agents
or other consultants to be appointed under the contract. For the
purposes of this clause amounts in the said certificate
inrespect
of escalation shall be disregarded.
4.
This guarantee shall be construed in accordance with English
law.
+
Three months beyond the anticipated last delivery date for goods
under the contract.
*
The amount of the advance payment expressed as a percentage of
