-ＭｾＭ
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MEMORANDUM OF UNDERSTANDING
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE
GOVERNMENT OF CANADA
I
I
MEMORANDUM OF UNDERSTANDING
BETWEEN THE GO'VERNMENT
·o·p
THE RE'PUBLIC OF INDONESIA
AND THE' GOVERNMENT
OF CANADA
Ombilin Coal
Mines Project
The Government of the Republic of Indonesia and
the Government of Canada, desiring to record an understanding
concerning the provision of technical assistance in the form of
experts, equipment, and training awards for assistance in the
rehabilitation and development of Ombilin Coal Mine in West
Sumatra, Indonesia, have agreed as follows :
Article I
The project shall be known as the Ombilin Coal Mine
Project and is being undertaken in Indonesia by a team of
Canadian experts with counterpart assistance organized by the
Ministry of Mines and by P.N. Tambang Batu-bara - a State Coal
Mining Enterprise of the Government of the Republic of Indonesia.
The project shall consist of the provision of experts, equipment,
and training awards, as outlined in Annex ''A'' attached hereto,
for the purpose of assisting in the continued rehabilitation
and development of Ombilin Coal Mine and to increase the numbers
of trained Indonesian coal mining personnel.
Article II
As part of its contribution under its cooperative
assistance program with Indonesia
the Government of Canada,
through the Canadian International Development Agency (CIDA),
shall provide an amount not to exceed
$
900,000 (Candian) to
pay for :
(a)
the services of a team of Canadian experts who will
I
l
--
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-undertake to assist in the rehabilitation and
development of the Ombilin Coal Mine;
(b)
training awards for Indonesian personnel involved
in the mining sector; and
(c)
equipment to be provided for the Ombilin Mining School
as listed in Annex ''B''.
Article III
As detailed in Section
4
of the Annex ''A'' attached
hereto, the Government of the Republic of Indonesia shall provide
adequate numbers and suitably qualified counterpart personnel and
bear the cost of all administrative assistance and local support
other than that referred to in Section
3
of Annex ''A'' as the
responsibility of the Government of Canada.
Article IV
The implementation of the project shall be in accordance
with Annex
''A''
attached hereto. It is estimated that the project
will require approximately four years to complete.
Article V
This document does not constitute an international
treaty. It is intended only to set out administrative
responsibili-ties of the two governments in relation to Canadian technical
assistance made available to the Government of the Republic of
Indonesia within the framework of the program of technical
cooperation between the two countries. This document may be amended
at any time with the mutual consent of the two parties.
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ｓｾｾｾＱ･､＠
and Executed in duplicate at Jakarta
the 2 5
day of
/fl4'r4-91·<:::>
ON
B
ｈｾｆ＠
OF THE GOVERNMENT
THE RE\rUBLIC OF INDONESIA
Signed
OF
ON BEHALF OF THE GOVERNMENT
OF CANADA
Signed
.
ANNEX "A" TO THE MEMORANDUM OF UNDERSTANDING OMBILIN COAL MINES PROJECT
1.0 Description of the Project
The project shall cons ist of: (a) the provision of Canadian experts as required to assist in the rehabilitation and development of Ombilin Coal Mine; (b) the provision of training awards for Indonesian mining personnel; and (c) the provision of equipment for the Ombilin Mining School as listed in Annex "B".
2.0. Project Terms of Reference
The Terms of Reference for the Canadian experts are as follows:
2.1. Canadian Project Coordinator
The Canadian Project Coordinator will advise Indonesian officials and Ombilin Coal Mine administrators in the rehabilitation and development of the mine and in the setting up of the mining school and will:
2.1.1 Assist CIDA and Indonesia in identifying and selecting Canadian technical expertise for positions as experts to Ombilin Coal Mines. 2.1.2 Assist CIDA and Indonesia in the preparation,
implementation and coordination of training programs in Canada. This will include close coordination with Canadian institutions and
companies who might be involved in supplying such programs.
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-2.1.4 Assist CIDA and Indonesia by identifying and preparing of specifications for equipment to be provided to the Ombilin Mining School. The above duties will involve close liaison between CIDA and Canadian institutions. From time to time, travel between the
contractor's place of residence, CIDA headquarters, Canadian coal mining operations, Canadian educational institutions and the coal mining operations in Indonesia will be necessary and subject to the prior approval of CIDA.
2.2 Canadian Experts
Under general direction of the Canadian Project Coordinator the Canadian experts shall :
2.2.1 Provide assistance in the person of a senior coal geologist who will assist Indonesian officials in assessing the coal potential of the mine and make recommendations regarding present and future exploration programmes. 2.2.2 Provide assistance in the person of a senior
mining engineer who will in conjunction with the coal geologist evaluate the production potential of the coal deposits and based upon
such assessments make recommendations as to the mining techniques and procedures to be followed in the extraction of coal.
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-2.2.4 Draw up detailed course outlines for the programmes in each area of expertise .
2.2.5 Coordinate the receiving and installing of training equipment and materials.
2.2 . 6 Cooperate with Indonesian officials in the
development of printed and visual training aids
2. 2. 7 Assist in the training and development of
Indonesian instructors to their full potential. 2.2.8 Provide such advice and assistance deemed
appropriate and necessary to augment the production and production capacity of the Ombilin Coal Mine.
2.2.9 Prepar e a long term plan which shall include recommendations on coal extraction, mine
maintenance, safety, training, transportation, marketing and other areas which may in the view of the experts b e relevant, to be used as a basis for the long term development of the Ombilin Coal Mine.
3.0 Contribution of the Government of Canada
The Government of Canada shall provide an amount which is estimated at $900,000(Canadian) and which shall include: 3.1 Provision of the services of a team consisting of a
Project Coordinator and up to three (3) Canadian experts to undertake the project as outlined in se ction 2 above.
3 . 2 Provision of training awards for I ndon e sian minin g personn e l. These awards will be grant e d for trainin g in Canada or in a d es ignat e d third countr y wh e r e su c h
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-training may be available. Nominations of trainees by the Government of the Republic of Indonesia would be made in the normal manner and subject to the approval of the Government of Canada.
3.3 Provision of the equipment described in Annex "B" to assist in the reopening of the Ombilin Mining School. 3.4 Provision of costs of travel between Canada and project
headquarters in Indonesia, including hotel and living expenses for three weeks in Indonesia or until located in permanent accommodation, whichever is the lesser, for Canadian team members and their dependents.
3.5 Provision of periodic narrative reports on the progress of the project to the Government of the Republic of Indonesia.
3.6 Participation in an annual project review at which time the Canadian Project Coordinator and Indonesian Project Leader shall present a joint report reviewing and assessing the project and providing guidelines for the future development and management of the project, including recommendations about budgetary and other matters for at least one year in advance of the
requirements of the Government of Canada and the Govern-ment of the Republic of Indonesia.
4.0 Contribution of the Government of the Republic of Indonesia The Contribution of the Government of the Republic of
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-4.1 Provision of adequate qualified Indonesian counterpart personnel for all me mbers of the Canadian team of experts and such other support staff as is required to success-fully implement the project.
4.2 Provision of adequate buildings and facilities, to house the proposed Omb i lin Mining School, including a fully serviced site with adequate utilities and access. 4.3 Provision of accommodation and transportation for the
team of Canadian experts assigned to the project, as follows:
4.3.1 Free housing up to normal standards for
expatriates working in Indonesia under a program of technical cooperation.
4.3.2 Regulation Government of the Republic of Indonesia allowances for the team member, but not his
dependents, while travelling on duties in Indonesi arising out of his assignment.
4.3.3 Transportation with drivers for all team members on official project business as well as for
personal use . All maintenance and operating costs to be included.
4.3 . 4 Provide and bear the cost of transportation for the professional equipment and household effects of the team member and his dependents between
points of entry and departure and the duty station 4.4 Appointment of an Indonesian Project Leader who shall
-6-4.5. Nomination of Indonesian personn e l for training
programs who will, on their return to I n donesia,become involved in the operation of the Ombilin Coal Mine. 4.6. Provision of suitable office accommodation and
services including, as appropriate, suitable air-conditioned office space and furnishing (including typewrites and electric calculators), clerical staff, typists, domestic telephone and postal services and other facilities necessary in order that the team of Canadian experts may implement the project effectively . 4 . 7 . Establishment of a Rupiah counterpart fund to cover
costs of the team of Canadian experts incurred in the execution of the project. Payments from this fund
will be made subject to the approval of the Government of the Republic of Indonesia .
4.8. Provision of exemption from import, customs and other duties in taxes in accordance with regulations of th e Government of the Republic of Indonesia in effect at that time on :
4.8.1. All professional and technical equipment required for the use of each Canadian expert for his assignment throughout the p e riod of the project.
4.8.2. Personal and household effects of the Canadian expert and his accompanying dependents.
-7-4.10. Releasing the team of Canadian experts and their accompanying dependents who do not have permanent residence in Indonesia from payment of all resident and local taxes for the duration of this project. 4.11. Informing the team of Canadian experts and
accompanying dependents of all local laws and regulations which may affect their work.
4.12. Indemnification without cost to the Government of Canada, and saving harmless the Canadian team from and against, all claims, losses, damages, costs, actions and other proceedings made, sustained, brought or prosecuted in any manner based upon, occasioned by or attributed to any injury,
infringement, damage or death arising from any act occuring during the performance or the pur p orted performance of their function pursuant to any agreement between the Canadian team and the Government of Canada . This provision shall not relieve any person from liability for any criminal or fraudulent act.
4.13. Provision, as promptly as possible, of :
4.13.1. All permits. licences and other documents necessary to enable the Canadian team to carry out their respective responsibilities in Indonesia.
4.13.2. All export and exit permits required for the return to Canada of any of the materials equipment, effects (including personal
5 . 0 .
-8-4.14. Provision of reasonable access to those parts of Indonesia required to enable the team of Canadian experts to carry out their responsibilities, in accordance with regulations and laws of the Government of the Republic of Indonesia.
4.15. Participation in an annual project review at which time the Canadian Project Coordinator and Indonesian
Project Leader shall present a report reviewin g and assessing the project and providing guidelines for the future development and management of the project, including recommendations about budgetary and other
matters for at least one year in advance of the requirements of the Government of Canada and the Government of the Republic of Indonesia.
Project Implementation
5. 1.
5 . 2 .
5. 3.
The project will follow generally the procedures laid out in the report, "A Plan To Increase The Annual Output Of The Ombilin Coal Mines", ｾｳ＠ submitted to the Government of the Republic of I ndonesia in February 1975.
The project will start with the mission of the Canadian Project Coordinator to Indonesia. This
initial assignment will be to confer with Indonesian officials in preparing the plans for the project. During this initial period, the selection of
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-5.4 Equipment lists for the Ombilin Mining School will be drawn up during this period and the required equipment will be ordered and shipped to the project site.
5.5 The Canadian experts will be added to the project
staff as facilities are available at which time, under the direction of the Canadian Project Coordinator and
Indonesian Project Leader, they will commence their duties.
5.6. An annual project review each year will be held at which time Canadian Team Leader and Indonesian Project Leader will present a report reviewing and assessing the project and making proposals for the future
ANNEX "B" TO THE MEMORANDUM OF UNDERSTANDING OMBILIN COAL MINE PROJECT
Equipment to be provided for Ombilin Mining School 1. Library books
2. Surveying equipment - Land and Mine 3. Mechanical Engineering equipment 4. Ventilation of mine equipment 5 . Geological laboratory equipment
6 . Minerals ore dressing laboratory equipment 7. Mining Engineering equipment
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-Government of Canada Contribution
1. Experts CDN $ 470,000 2 . Training CDN $ 230,000
3. Equipment CON $ 80,000 4 . Contigencies CDN $ 120,000 TOTAL CANADIAN CONTRIBUTION CD N $ 900,000
ANNEX "C" TO THE MEMORANDUM OF UNDERSTANDING OMBILIN COAL MINE PROJECT
PROJECT BUDGET Government of Indonesia Contribution A. Budget 1975/1976
1. Exploration, mapping and design for
openpit mining (surface mining)
u. s.
$2. Drilling equipment and land surveying U.S. $
685,000 190,000 3. Equipment for exploitation and
development working
a. Underground Westfalia chain conveyor
b. Openpit c. Spares
TOTAL BUDGET 1975/1976 B. Budget 1976/1977
Surface Equipment Coal haulers
Off highway dump trucks Bulldozers
Miscellaneous
Underground Equipment Heading Machine
Chain and belt conveyors Miscellaneous
C. Experts
(Accommodation, transportation, offices, miscellaneous)
TOTAL BUDGET 1976/1977
U.S. $ 724,000 U.S. $ 1,650,000 U.S. $ 431,000 U.S. $ 3,680,000
U.S. $
U.S. $
u. s.
$u. s.
$