A.IoD. Proiect No. 497-0252
I ,OJFC:T GRANT AGREEMENT
Dated: August 31 , 1978 Be tween GOVERNMENT OF INDONESIA
And THE UNITED STATES OF AMERICA, acting through the Age ncy for International Dcv"' lopment ("A. I.D. "). Article 1: The Agreement
The purpose of this Agreement is to set out.the understandings of the parties named above ("Parties'1
)
with respect to the undertaking by the Gr ttee of the Project desc ·ibed below, and with respect to the financ-ing of the Project by the PcL ties.
Article 2: The Project
SECTION 2.1 . Definition of Pro iec t . The Project, which is further described j 1 Am;.2x 1, will consist of
financ ; ng the foreign exchange and local currency costs rf
consultant ｳ･ ｾ ｶｩ｣･ｳ＠ and training for Grantee's simple irri-gation program. Such servic 0 s ' re designed to assist the Grantee in planning and implementing Sederhana (Simple) irrigation systems including both the physical systems and the social infrastructure which are essential for adequate ope ration and maintenance of the systems.
2
limits of Lhe above definiti n of the Project, elements of the amplified descriptio stated in Annex 1 may be changed by written agreement of the authorized representat 1es of
the Parties named in section 8.3, without formal amendment of this agreement.
Article 3: ·Financing
SECTION 3.1. The Grant. To assist the Grantee to meet the costs (consultant services and training) of
carry-ing out the Project, A.ID., pursuant to the Foreign Assist-ance Act of 1961, as amended, agrees to grant the Grantee lnder the terms of this Agreement not to exceed four million five hundred thousand United States ("U.S") dollar5
($4,500,000) ("Grant").
The Grant m y be used to finance foreign exchange and local currency costs, as defined in sections 6.1 and 6.2 of services ｲ･ｱｾｾｲ･､＠ for the Project.
3
(b) The resources provided by Grantee for the Project will be not less than the equivalent of twelve million two hundr d thousand United States dollars ($12,200,000) includ-ing osts borne on an "in-kind" basis.
SECTION 3.3. Project ａｾｳｩｳｴ｡ｮ｣･＠ Completion Date
(a) The "Project Assistance Completion Date" (PACO), which is August 31, 1983 or such other date as the Parties
,
may agree to in writing, is the date by which the Parties estimate that all services financed under the Grant will have been performed and all goods financed under the Grant will have been furnished for the Project ｡ｾ＠ contemplated in this Agreement.
(b) Except as A. I.D. may otherwise agree in writing , A.I.D. will not issue or approve documentation which would authorize disbursement of the Gran ... for services performed suL J equent to the ｐｾｃｄ＠ or for goods furnis1ed for the Pro-ject, as contemplated in this Agreement, subsequent to the
PACu.
(c) Requests for ､ｩｾ｢ｵｲｳ･ｭ･ｮｴＬ＠ accompanied by neces-sary supporting documentation prescribed in Project Imple-mentation Letters are to be received by A. I. D. or any bank
de ｾｲｩ｢･､＠ in section 7.1 no 1ater than nine (9) months
following the PACD, or such other pe lod as A.I.D. agrees to in writing. After such period, A.I . • , giving notice
.
_,....__ _
·-4
in writing to the Grantee, may at any time or times reduce the amount of the Grant by all or any part thereof for which requests for disbursement, accompanie d by necessary support-ing documentation prescribed in Project ｉｭｰ ｬｾ ｲｮ･ｮｴ｡ｴｩｯｮ＠ Letters, were not received before the expiration of said period.
Article 4: Conditions Pre cedent to Disburs ement
SECTION 4 .1. First Disbursement. Prior to ,the first di sbursement under the Grant, or to the issuance by A.I.D. o f documentation pursuant to which disbursement will be made,
the Grantee will, except as the Parties may otherwise agree in writing, furnish to A. I.D. in form and substance satis-factory to A.I.D.:
(a) A statement of the name of the person holding or acting in the offices of the ｇｲ｡ｮ ｌｾ ･＠ specified in section 8.2, and of any additional represe ntatives, together with a specimen signature of each person sp ified in such state-ment.
(b) A time schedule for the evaluation program refer-red to in section 5.1.
SECTION 4.2. Disbursement fJ r Trainin g. Prior to disbursement under the Grant or to the issuance by A.I.D. of documentat ion pursuant to which disbursement will be made f or training costs, the Borrower will, e xcept as the
5
Parties may otherwise agree in writing, furnish to A.I.D ., in form and substance sati sfactory to A.I.D.:
(a) A plan which sets forth the purpose, scope and curricula for the proposed training; and
(b) A cost estimate for the training.
SECTION 4.3. Nctification. When A.I.D. has determined that the conditions precedent specified in sections 4.1 and
,
4.2 have been met, it will promptly notify the Graatee. SECTION 4.4. Terminal Dates for Conditions Pree tent If the conditions specified in section 4.1 have not been met within 90 days from the date of this Agreement or
such later date or dates as A.I.D. may agree to in writing, A.I.D.,at its option, may termin nte this Agreement by
written notice to Grantee. Article 5: Special Covenants
SECTION 5.1. Project Evaluation. The Parties agree to establish an evaluation program as part of the Project. ,.. ·{cept as the Parties otherwise agree in writing, the pro-gram will include, during the implementation of the Pro ect at one or more points thereafter:
(a) Evaluation of progress toward attainment of the objectives ot the Project;
6
(u) Identification and evaluation of
r
oblem areas or constraints which may inhibit such attainr nt;(c) \ssessment of how such i >rrnation may be used to help overcome such problems; and
(< .) Evaluation, to the degree feasible, of the
over-all development ir.'pact of the Project.
SECTIQ1'1 5. 2. Training . The Grantee covenants that all training carried out under the Grant will con'form ·pith the ·raining plan submitted '·y the Grantee pursuant t o the
ovisions of section
4.2.
Article 6: Procurement Source
SECT J. ; 6.1. Foreign Exc .• ange Cos r s. ｄｩ ｾﾷ｢ ｵｲｳ･ｭ･ｮｴｳ＠
pursu lt to section 7.1 will be used exclusively to finance the costs of goods and ervices required for the Project having their source and origin in the United States e 2ept as A.I.D. may otherwise agree in writing, and except as provided in thr-> Project Grant Standard ｲｾｯｶｩｳｩｯｮｳ＠ Annex, ｳ･ｾｾ ｩｯｮ＠ C.l(b) with respect to ｾ｡ ｲｩｮ･＠ insurance .
SECTION 6 . 2. Local Currency ｃｯｾｴｳＮ＠ Disbursement pursuant to section
7.2
will be used exclusively to ｦｩｮｾｮ｣･＠the costs of goods and services required for the Project
7
AYticle 7: Disbursement
ｓｅｃｔｉｃｾ＠ 7.1. Disbursement for Foreign Exchange Costs
(a) After satisfaction of the conditions precedent, the Grantee may obtain disbursement of funds under the Grant for the Foreign Exchange Costs of goods or services required for the Project j_n accordance with the terms of this Agreement, by such of the following methods as may be mutually agreed
upon: (1) by submitting to A.I.D., with necessary' supp rting documentation as prescribed in nroject Implementation Letters,
(A) requests for ｲ･ｩｮｾｵｲｳ･ｭ･ｮｴ＠ for such go ods or services, er, (B) requests for A.I.D. to procure commodities or services in Grantee's behalf for the Project; or, (2) by requesting A.I.D.
to issue Letters of Commitment for specified amounts (A) to one or more U.S. banks, ｳ｡ｴｩｳｦ ｾ｣ ｴｯｲｹ＠ t o A.I.D., conunit t ng A.I .D. to reimburse such bank or banks for payments made by
them to contractors or suppliers, under Letters of Credi or otherwise, cor such goods or services, or (B) directly to one or more contr3ctors or suppliers, cormnitting A.I.D. to pay such contractors or suppliers for such goods or services.
8
also be financed under the Grant.
SECTION 7.2. Disburscnent for Local Currency Costs (a) After satisfaction of the Conditions Precedent, the Grantee may obtain disbursements of funds under the Grant for Local Currency Costs required f or the Project in accordance with the terms of this Agreement, by submitting to A.I.D., with necessary supporting documentation as pres-cribed in Project Implementation Letters, requests to fi-nance such costs.
(b) Thes<' disbursements may be n1 de by A. I. D. at A.I.D.'s option in local currency acquired by A.I.D. by purchase or fron ocal currency already owned by the U.S. Government.
SECTION 7.3. Other Forms of Disbursement. Disburse-ments of the Grant may also be made through such other means
as the Parties may agree to in writing.
9
-Article 8: Miscellaneous
SECTION 8 .1. Commu•· i cations. Any notice, request,
docu-ment, or ｯ ｴｾ ･ｲ＠ communication submitted LJ either Party to the
other under this Agreement will be in writing or by telegram or cable, and will be deemed duly given or sent when ､ ｾ ｬｩｶ･ｲ･､＠
to such party at the following addresses: Grantee:
A.I.D.:
Director General, Water Resources Development, Ministry of Public Works .. _
Jalan Pattimura 20 Kebayoran Baru Jakarta, Indonesia
Director General of Food Crops, Ministry of Agriculture
Pasar Minggu
Jakarta, Indonesia
Mr. Thomas C. Niblock, Director
U.S. Agency for International Development American Embassy
Jl. Medan Merdeka SQlatan No. 5 Jakarta, Indonesia
SECTION 8.2. Representatives. For a l purposes relevant to this Agreement, the Grantee will be represented by the indi-viduals holding or acting in the offices of Director General of Water R ources ｾ･ｶ･ｬｯｰｭ･ｮｴＬ＠ Ministry of Pnblic Works and Di-rector General of Food Crops, Ministry of Agriculture, and ａＮ ｾ ＮｄＮ＠ will be repr(' Sented by the individual holding or acting in the
office of Mission Director, USAID ｾﾷ Ｇｳｳｩｯｮ＠ to Indonesia , each of whom, by written notice, iay ､ｾｱ ｩｧｮ｡ｴ･＠ additional representatives
- 10 ｾ＠
for all purposes other than exerc]sing the power under Section 2.1 to revise elements of the amplified description in AI 1ex 1. The names of the representatives of the Grantee, with specimen signatures, will be provided to A.I.D., i-•li.ich may accept as duly
｡ｵｴｨｯｲｩｾ･､＠ any instruments signed by such representatives in
implementation of this Agreement, until receipt of written notice of revocation of their authority.
SECTION 8 . 3. Standard Provisions Annex. A "froject Grant Standard Provisions Annex" (Ailnex 2) is attached to and forms part of this Agreement.
IN WITNESS WHEREOF, the Grantee and the United States of
America, each acting through its duly authorized representative(s), have caused this Agreement to be signed in their names and de
-livered as of the day and year first above written. REPUBLIC OF INDONESIA
Signed
ｂｹＺｾＭＭＭＭＭＭＭＭＭＬＭＭＭＭＭＭＭＭＭＭＭＭＭＭＭＭＭＭＭＭＭＭＭＭＭＭＭＭＭＭＭＭＭ M. Panggabean
Minis t er for Foreign Affairs, ad interim
UNITED STATES OF AMERICA
Signed
By:
=Tli::oo--o-rn_a_s_c=--. ＢＢＢＢｎｾｩＧＢＢ｢Ｍ］ＭＱＢＢＢＰ］Ｍ｣ＮＮＬＮＮｫ＠ __ __..__.r='"-"'"i.-Director, USAID/Indonesia
Amplified Description of the Project (Same for Loan and Grant Agreement)
ANNEX 1
1. Purpose: To assist the Goverrunent of Indonesia (GOI) in planning, implementing, and operating and maintaining Sederhana irrigation schemes; in increasing Indonesia's food crops production, particularly rice production; and in increasing the income and employment opportunities in the rural areas of Indonesia.
2. Financing: The Project will be financed from funds provided both by A.I.D. and the Government of Indonesia. A.I.D. will provide in US FY 1978 up to $14,700,000 in
loan funds under A.I.D. Loan No.497-T-054 and up to
$4,500,000 in grant funds under A.I.D. Grant No. 497-0252. These funds will assist the GOI in carrying out its Seder-hana Program for fiscal years 1978/79 and 1979/80. In consideration of A.I.D.'s providing $19,200,000 in FY 1978 and FY 1979, the GOI agrees to provide not less than
$12,200,000 making total funds available of $31,400,000 for the Project as described in the detailed Financial Plan
(Table I page 8 ) . This plan sets forth the estimated ex-penditures for the various components of the Project and the estimated implementation targets.
2
$10,300,000 of loan funds will be made available in US FY1979 by amendment to this Agreement (still within the GOI FY78/79). This would increase the loan amount to $25,000,000 and the grant amount remain the same at $4,500,000, thus making a total A.l.D. contribution of $29,500,000. At such time the GOI would provide an additional amount of not less than $8,500,000 for the Project making a total GOI contribution of $20,700,000. In such event the total contributions of A.l.D . and the GOI for the Project would be $50,200,000. This is detailed in Table II , page 9.
Subject to the availability of funds and the Agreement of the Parties, the Loan amount furnished by A.I.D. may be
increased in subsequent years by $91,200,000 up to a total of $116,200,000 and the Grant amount may be increased by $8,700,000 up to a total of $13,200,000. This proposed additional funding of $99,900,000 is intended to assist the GOI in the design and construction of approximately 120,000 ha. of major works and 110,000 ha. of the comple-mentary tertiary program for Sederhana subprojects during
GOI FY 79/80 and 80/81, together with other Sederhana ac-tivities. In event of this additional funding by A.I.D., the GOI would provide additional funding of $75,600,000 making a total GOI contribution for the Project of not
3
and the GOI for the Project would then be $225,700,000 as is detailed in Table III, page 10.
Changes up to 30% may be made to line item amounts shown in the Financial Plans (Tables I and II) for this phase without formal amendment of this Agreement provided that A.I.D. approves any such changes in writing, and that the total A.I.D. contribution is not increased or the
Borrower's agreed contribution for this phase is not de-creased below that shown on the applicable plan .
3. Project Duration: Funds from the A.I.D. loan and grant will be available from August 1978 through August 1983 in
accordance with Section 3.3 of the Loan Agreement and Section 3.3 of the Grant Agreement. It is anticipated
that funds provided in these Agreements will assist in the financing of the Sederhana Program activities in GOI FY 1978/ 79 and part of GOI FY 1979/80.
4. Targets: The consulting services and training components of the Project will assist in strengthening the capability of the GOI agencies concerned and the local private consulting and construction sectors to design and construct Sederhana irrigation facilities. The consulting services will be aimed primarily at on-the-job training for Indonesian government and
4
construction of Sederhana irrigation works. These consulting services are anticipated to be funded from the A.I.D. grant as shown in the Financial Plans. Assistance also will be provided to assist in upgrading GOI training facilities as
to curriculum, equipment, training materials dnd training facilities . The consultants, who will assist the GOI in reviewing and reconunending improvements i n their training programs as well as the training for technicians from the local private sector, may be funded from the A.I.D. Grant. Local private sector training shall be administered by the DGFC and DGWRD. In-country training as well as any training equipment, facilities and/or training materials are expected to be funded in part from the A.I.D. Loan.
Although the GOI had planned to construct irrigation facilities for 60,000 ha. under its Sederhana Program in GOI FY 79/80 with the assistance of funds provided by the A.I.D. 4-?an, the Loan funds if increased to $25,000,000 as set forth in Table II, are considered sufficient for con-struction of irrigation facilities for only 30,000 ha. The Sederhana irrigation facilities to be financed in part by A.I.D. Loan funds may include new irrigation sys tems,
5
Loan funds will also assist in the design and con-struction of tertiary canals included in the Complementary Tertiary Program. Loan funding if increased to $25,000,000 as set forth in Table II, is provided for approximately 35,000 ha. of the 110,000 ha. within Sederhana subprojects for which tertiary canals are presently needed and which are not included in the GOI's Special Tertiary Program.
Loan and grant funds will be provided to assist the small farmers in the formation of water user associations, for the operation and maintenance (O&M) of tertiary systems, and for training of members and employees of water user
associations in O&M. Training in O&M may also be provided to central and local government employees associated with O&M of Sederhana systems. In addition, A.I.D. loan funds may be used to finance clearing, leveling and draining land
6
approximately a third of which is comprised of Sederhana subprojects.
5. Complementary Activities: The funds being provided by this Loan Agreement and companion Grant Agreement will contribute to meeting the targets described in paragraph 2 above and as shown in the attached Financial Plans. In
addition to these activities, the Borrower, with funds other than those being provided by this Loan Agreement and com-panion Grant Agreement, will carry out the following acti-vities which are an integral part of the Borrower's FY 78/
79 Sederhana Program: (a) construct the ma.j or works for new Sederhana irrigation systems covering an estimated 30,000 hectares; and (b) upgrade Sederhana irrigation systems
serving approximately 90,000 hectares. In addition the Borrower during the next three or four years will construct tertiary irrigation and drainage systems for an estimated 360,000 hectares within existing irrigation systems (Special Tertiary Program). Approximately a third of this 360,000 hectares is within previously constructed Sederhana irri-gation systems.
7
the Project to another GOI agency. The design and construct-ion of irrigatconstruct-ion and drainage facilities down to the tertiary level shall be administered by the Directorate General of
Water Resources Development (DGWRD) through the provincial public works, except that the Complementary Tertiary Program may be administered by the DGFC. The agricultural components
of on-farm works and land clearing and preparation shall be administered by the DGFC through the provincial agricultural services. Both the DGWRD and DGFC shall coordinate their training programs with their respective training offices. The assistance to water user associations shall be
adminis-tered by the DGFC who shall coordinate all assistance in this area with Departemen Dalam Negeri (Ministry of Home Affairs) and local government officials. Consulting
servi-ces shall be provided under the grant and shall be adminis-tered by the Department having the primary responsibility for the services contracted. However, if a single contract is used to provide consulting services for both the DGFC and DGWRD, the DGWRD shall be the administrator of such a contract and shall be responsible for coordinating contract-ual matters with the DGFC.
I. Construction of Major Works
(Est. 18,000 ha) II. Complementary
Tertiary Program (Est. 21,000 ha) III. Water user
Associations (Est. 200 P3A) IV. Land Clearing
&
Preparations (Est. 10,000 ha) V. Consulting Services
and Evaluation A. DGWRD
B. DOA VI. Training
A. DGWRD B. DOA VII. Equipment
TOTALS
TABLE I
FY 1978/79 Sederhana II Project Financial Plan with A.I.D. funding of US$ 19.2 million
(millions of US.$)
AID Funding
Grant Loan
I
Total GOIjFx
I
I
LCI
FX LC' I
lo
I
o
I 0 7.0 I 7.0 7.0I
I
.
I; o
I 0 : 0 3.6 3.6 1. 2I
I I I
I
I
i O
0 0 0.7 0.7 0.7r o
0 \ 0 2.9 2.9 2.91. 7 0.8 0 0 2.5 0
1.1 0.5 0 0 1. 6 0
0.1 0.1 0 0.1 0.3 0.2
0.1 0.1 0 0.1 0.3 0.2
0 0 0.3 0 0.3 0
3.0 1. 5 0.3 14.4 19.2 12.2
Total 14.0
4.8
1.4 00
5.8 2.5 1. 6 0.5 0.5 0.3 31.4
A.I.D. Grant $ 4.5 million Notes: FX - Foreign Exchange
A. I. D. Loan $ 14.7 million Costs
TOTAL $ 19.2 million LC - Local Currency
[image:18.1012.233.980.49.579.2]TABLE II
FY 1978/79 Sederhana II Project Financial Plan with A.I.D. funding of US$ 29.5 million
(millions of US.$)
I AID Funding
Grant
FX
LC I. Construction ofIrrigation Works
(Est. 30,000 ha) 0 0 II. Complementary
Tertiary Program (Est. 35,000 ha)
I
I
I
0
i
0I
III. Water User Associations
I
I
I (Est. 400 P3A) 0 0 IV. Land Clearing
and Preparation
!
(Est. 20,000 ha) 0 0
V. Consulting Services and Evaluation
A. DGWRD 1. 7
l
0. 8B. DOA 1.1 .5
VI. Training
A. DGWRD 0.1 0.1
B. DOA 0.1 0.1
VII. Equipment 0 0
TOTALS 3.0 1.5
A.I.D. Grant $ 4.5 million A.I. D. Loan $ 25.0 million Total
$
29.5 millionLoan FX LC
0 11. 9
0 6.2
I
o
I
1. 2I
I\
0 4.9
I
II I
I
!
00
l
0I
o
I I I
I
! 0 0.2
I 0 l 0.2
I
o.4
I
!o
0.4 24 . 6
;
Total GOI Total
11. 9 11. 9
I
I
I 23.8I
6.2 2.1 I i
I 8.3
L2 1. 2 i 2.4
I
4 . 9 4.9 9.8
l
i
I'
2.5 I 0
I
2.51. 6
I
I 0 I 1. 6I
I II
0.4 I 0.3 i 0.7
0.4 I 0.3 0.7
I
I
0.4 0 0.4
29.5 20.7 50.2
Notes: FX - Foreign Exchange Costs
LC - Local Currency Costs
[image:19.1010.239.984.56.569.2]TABLE III
FY 1978/79, 79/80 and 80/81 Sederhana II Project Financial Plan (millions of US.$)
I. Construction of Irrigation Works
(Est. 120,000 ha) II. Complementary
Tertiary Program (Est. 110,000 ha) III. Water User
Associations (Est. 950 P3A) IV. Land Clearing
&
Preparing
(est. 100,000 ha) V. Consulting Service
and Evaluation A. DGWRD
B. DOA VI. Training
A. DGWRD B. DOA VII. Equipment
Inflation and Contingency
TOTALS
AID Funding
Grant Loan
FX LC FX LC
0 0 0 43.4
0 0 0 23.7
I
I
lo
I0 0 2.8
I
'I
I
0 0 0 20.9
' '
4.9 2. 3 : 0 0 2.2 1.0 I 0 0
I
!
0.2 0.1 0 1.1
0.2 0.1 0 1.1
0 0 I 0.4 0
1. 5 0. 7 ' 0.1 22.7 9.0 4.2 0.5 115.7
Total GOI Total
43.4 43.4 86.8
23.7 8.0 31. 7
!
2.8 2.7 5.5
20.9 20.9 l 41.8
i
j
i
lj
7.2 0
I
7.23.2 0 3.2
1.4 1.1 2.5
1.4 ! ' 1.1 2.5
0.4 0
I
I0.4 25.0 19.1
I
44 .1 129.4I
96.3 j 225.7 [image:20.1009.231.999.43.575.2]Table III (cont'd)
A.I .D. Grant $ 13,200,000 A.I.D. Loan
$
116,200,000 Total $ 129,400 ,000Notes: FX - Foreign Exchange Costs LC - Local Currency Costs
t-'
0
[image:21.1009.240.979.57.582.2]Table of Contents
Project Grant Standard Provisions Annex 2
Article A: Project Implementation Letters Article B: General Covenants
SECTION B .1.
SECTION B.2. SECTION B.3. SECTION B.4. SECTION B.5. SECTION B.6. SECTION B.7. SECTION B.8.
Consultation
Execution of Project
Utilization of Goods and Services Taxation
Reports, Records, Inspections, Audit Completeness of Information
Other Payments
Information and Marking Article C: Procurement Provisions
SECTION C.l. SECTION C.2. SECTION C.3. SECTION C.4. SECTION C.S. SECTION C.6. SECTION C.7. SECTION C.8.
Special Rules Eligibility Date
Plans, Specifications, and Contracts Reasonable Price
Notification to Potential Suppliers Shipping
Insurance
U.S. Government-Owned Excess Property Article D: Termination; Remedies
SECTION D.l , SECTION D.2. SECTION D.3. SECTION D.4.
Termination Refunds
ANNEX 2 Project Grant Standard Provisions Annex
Definitions: As used in this Annex, the "Agreement" refers to the Project Grant 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 Grantee 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 Project Implementa-tion Letters to confirm and record their mutual understanding on aspects of the implementation of this Agreement. Project Implementation Letters will not be used to amend the text 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 description of the Project in Annex 1.
Article B: General Covenants
SECTION B.l. Consultation. The Pa i Lies will cooperate to assure that the purpose of this Agreement \J ill be accomplished. To this end, the Parties, at the request of either, will exchange views on the progress of the Project, the performance vf obliga-tions under this Agreement, the performance of any co11 :,ultants, contractors, or suppliers engaged on the Project , and other matters relating to the Project .
SECTION B.2 . Execution of Project. The Grantee 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 with those documents, plans, specifications, contracts, schedules or other arrangements, and with any modifications therein, approved by A.I . D. pursuant to this Agreement; and
(b) provide qualified and experience management lllr,
2
-SECTION B.3. Utilization of Goods and Services
(a) Any resources financed under the Grant will, unless otherwise agreed in writing by A.I.D., be devoted to the Project until the completion of the Project, and thereafter will be used so as to further the objectives sought in
carrying out the Project.
(b) Goods or services financed under the Grant, except as A.I.D. may otherwise agree in writing, will not b e used to promote or assist a foreign aid project or activit
associated with or financed by a country not in cluded in Code 935 of the A.I.D. Geographic Code Book as in effect at the time of such use.
SECTION B.4. Taxation
(a) This Agreement and the Grant will be free from any taxation or fees imposed under laws in effect in the ter-ritory of the Grantee.
(b) To the extent that (1) any contractor, including any consulting firm, any personnel of such contractor finance:lunder the Grant, and any property or transaction r elating to such contracts and (2) any commodity procure-ment transaction financed under the Grant, are not exempt
from identifiable taxes, tariffs, duties or other levie s
imposed under laws in effect in the territory of the Gran t ee, the Grantee will, as and to the extent provided in and
pursuant to Project Implementation Letters, pay or reimburse the same with funds other than those provided under the
Grant.
SECTION B.5. Reports, Records, Inspections, Audit. The Grantee will:
(a) furnish A.I.D. such information and reports relating to the Project and to this Agreement as A.I.D. may reason-ably request;
(b) maintain or cause to be maintained, in accoLJance with generally accepted accounting principles and practices
consistently applied, books and records relating to the Project and to this Agreement, adequate to show, without limitation, the receipt and use of goods and services acquired under the Grant. Such books and records will be
3
-SECTION B.5 . (b)
the date of last disbursement by A. I . D. ; such b ook s and records will also be adequate to show the n at ure and
extent of solicitations of prospective supp l ie r s of goods and services acquired, the basis of award of contract s and orders, and the overall progress of the Project toward completion; and
(c) afford authorized representatives of a Party t he opportunity at all reasonable time s to inspect the Pro j ect, the utilization of goods and services financed by such
Party, and books, records, and other document s relating to the Project and the Grant.
SECTION B.6. Completeness of Information. The Grantee confirms:
(a) that the facts and circumstances of wh ich it has informed A.I . D., or cause A.I.D . to be inform2d, in t he course of reaching agreement with A.I.D. on t he Grant, are accurate and complete, and include all facts and circum-stances that might materially affect the Proj ec t and t he discharge of responsibilities under t his Agreement;
(b) that it will inform A.I.D. in timely fas h ion of any subsequent facts and circumstances that mi ght material -ly affect, or that it is reasonable t o b eliev e might so affect, the Project or the discharge 01 responsibili t i es
under this Agreement.
SECTION B.7. Other Payments. Gran t ee affirms that no payments have been or will be rec e i ve d by any official of the Grantee in connection with the procurement of goo ds o r services financed under the Grant, except fees, t a xes, o r similar payments legally established in the country of the Grantee.
SECTION B.8. Information and Marking . The Gr antee will give appropriate publicity to the Grant and the Pro ject as a program to which the United State s has c on t ribu te d,
identify the Project site, and mark goods finance d by A l. D.,
4
-Article C: Procurement Provisions
SECTION C.l. ｾ･｣ｩ｡ｬ＠ Rules.
(a) The source and origin of ocean and air shipping will be deemed to be the ocean vessel's or aircraft's country of registry at the time of shipment.
(b) Premiums for marine insurance placed in the territory of the Grantee will be deemed an eligible Foreign Exchange Cost, if otherwise eligible under Section C.7(a).
(c) Any motor vehicles financed under the Grant will be of United States manufacture, except as A.I.D. may other-wise agree in writing.
(d) Transportation by air, financed under the Grant, of property or persons, will be on carriers holding Unit e d States certification, to the extent service by such
car-riers is available. Details on this requirement will be
described in a Project Implementation Letter.
SECTION C.2. Eligibility Date.
be financed under the Grant which are or contracts firmly placed or entered this Agreement, except as the Parties writing.
No goods or services may procured pursuant to orders
into prior to the date of
may otherwise ｡ｾｲ ･･＠ in
SECTION C.3. Plans, Specifications, and Contracts. In
order for there to be mutual agreement on the following matters, and except as the Parties may otherwise agree in writing:
(a) The Grantee will furnish to A.I.D. upon preparation,
(1) any plans, specifications, procurement or construction schedules, contracts, or other documentation relating to goods or services to be financed under the Grant, including documentation relating to the prequali-fication and selection of contractors and to the
solicita-tion of bids and proposals. Material modifications in
such documentation will likewise be furnished A.I.D. on preparation;
(2) such documentation will also be furnished to A.I.D., upon preparation, relating to any goods or services, which, though not financed under the Grant, are deemed by
A.I.D. to be of major importance to the Project. Aspects
. '
5
-SECTION C.3.
(b) Documents related to the prequalification of
contractors, and to the solicitation of bids or proposals for goods and services financed under the Grant will be approved by A.I.D. in writing prior to their issuance, and their terms will include United States ｳｴ｡ｮ､ｾｲ､ｳ＠ and measurements;
(c) Contracts and contractors financed under the Grant for engineering and other ｰｲｮｦ･ｳｳｩｮｮｾｬ＠ servires. for con-struction services, and for such other services, equipment or materials as may be specified iu Pruject ImpleU1entation Letters, will be approved by A.I.D. in writing prior to execution of the contract. Material modifications in such contracts will also be approved in writing by A.I.D. prior to execution; and
(d) Consulting firms used by the GranteL for the Project but not financed under the Grant, the scope of
their services and such of their personnel assigned to the Project as A.I.D. may specify, and construction contractors
used by the Grantee for the Project but not financed under the Grant, 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 who le or in part, under the Grant. Such items will be procured on a fair and, to the maximum extent practicable, on a competitive basis.
SECTION C.5. Notification to Potential Su liers. To
permit all United States irms to ave t e opportunity to partici-pate in furnishing goods and services to be financed under the Grant, the Grantee will furnish A.I.D. such information with regard thereto, and at such times, as A.I.D. may request in Project Implementation Letters.
SECTION C.6. Shipping.
(a) Goods which are to be transported to Lhe territory of the Grantee may not be financed under the Grant if
6
-SECTION C.6.
(b) Costs of ocean or air transpor Lation (o f goo ds or persons) and related delivery services may not be financed under the Grant, 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 Ex-change Costs," without prior written A.I.D. approval; or
(2) on an ocean vessel which A.I.D., by written notice to the Grantee, has designated as ineligible; or (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 ｡ｲｾ＠ not avai-lable at fair and reasonable rates for such vessels, (1) at least fifty percent (50%) of the gross tonnage of a ll goods (computed separately for dry bulk carriers, dry cargo liners and tankers) financed by A.I.D. which may be transported on ocean vessels will be transported on
privately owned United States-flag commercial vessels, and (2) at least fifty percent (50%) of the gross freight revenue generated by all shipments financed by A.I.D. and transported to the territory of the Grantee on dry cargo liners shall be paid to or for the benefi t of privately owned United States-flag commercial ｶ･ｳｳ･ｬ ｾＮ＠ Compliance with the requirements of (1) and (2) of thJs subsection must be achieved with respect to both any cargo transported from U.S. ports and any cargo transported from non-U.S . ports, computed separately .
SECTION C.7. Insurance .
(a) Marine insurance on goods financed by A.I .D. which are to be transported to the t erritory of the Grantee may be financed as a Foreign Exchange Cost under this Agreement provided (1) such insurance is placed at the lowest ava i-lable competitive rate, and (2) claims thereunder are payable in the currency in which such goods were financed or in any freely convertible currency. If the Grantee
(or government of Grantee), by statute, decree, rule, regulation, or practice discriminates with respect to A.I . D.-financed procurement against any marine insurance company authorized to do business in any State of the United States, then all goods shipped to the territory of the Grantee financed by A. I.D. hereunder will be insured against marine risks and such insurance will be placed
7 -SECTION C. 7.
(b) Except as A.I.D. may otherwise agree in writing, the Grantee will insure, or cause to be insured, goods financed under the Grant imported for the Project against risks incident to their transit to the point of their use in the Project; such insurances will be issued on terms and conditions consistent with sound commercial practice and will insure the full value of the goods. Any indem-nification received by the Grantee under such insurance will be used to replace or repair any material damage or
any loss of the goods insured or will be used to reimburse the Grantee for the replacement or repair of such goods. Any such replacements 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 may agree in writing, will be otherwise subject to the provi-sions of the Agreement.
SECTION C.8. U.S. Government-Owned Excess Property. The Grantee agrees that wherever practicable, United States Govern-ment-owned excess personal property, in lieu of new items
financed under the Grant, should be utilized. Funds under the Grant may be used to finance the costs of obtaining such property for the Project.
Article D: Termination; Remedies.
SECTION D.l. Termination. Either Party may terminate this Agreement by giving the other Party 30 days written notice.
Termination of this Agreement will terminate any obligations of the Parties to provide financial or other resources to the Pro-ject pursuant to this Agreement, except for payment which they are connnitted to make pursuant to noncancellable connnitments entered into with third parties prior to the termination of this Agreement. In addition, upon such termination A.I.D. may, at A.I.D . 's expense, direct that title to goods financed under the Grant be transferred to A.I.D. if the goods are from a source outside Grantee's country, are in a deliverable state and have not been offloaded in ports of entry of Grantee's country.
SECTION D.2. Refunds.
8
-SECTION D.2.
notwithstanding the availability or exercise of any ot he r remedies under this Agreement, may require the Grante e Lo refund the amount of such disbursement in U. S. Dollars to A.I.D. within sixty (60) days after receipt of a reque s t
therefor.
(b) If the failure of Grantee to comply with any of its obligations under this Agreement has the result that goods or services financed under the Grant are not used effectively in accordance with this Agreement, A.I.D. may require the Grantee to refund all or any part of the amount of the disbursements under this Agreement for such goods or services in U.S. Dollars to A.I.D. within sixty days after receipt of a request therefor.
(c) The right under subsection (a) or (b) to require a refund of a disbursement will continue, notwithstanding any other provision of this Agreement, for three years
from the date of the last disbursement under this Agreement. (d) (1) Any refund under subsection (a) or (b), or (2) any refund to A.I.D. from a contractor, supplier, bank or other third party with respect to goods or services financed under the Grant, which refund relates to an unreasonable price for or erroneous invoicing of goods or services, or to goods that did not conform to ｳｰｾ｣ｩｦｩ｣｡ｴｩｯｮｳＬ＠ or to services that were inadequate, will (A) be made available first for the cost of goods and services required for the Project, to the extent justified, and (B) the remainder, if any, will be applied to reduce the amount of the Grant.
(e) Any interest or other earnings on Grant funds disbursed by A.I.D. to the Grantee under this Agreement prior to the authori z ed use of such funds for the Project will be returned to A.I.D . in U.S. Dollars by the Grantee. SECTION D.3. Nonwaiver of Remedies . No delay in exercising any right or remedy accruing to a Party in connection with its financing under this Agreement will be construed as a waiver of such right or remedy.
