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A.I.D. PROJECT NO. 497-0347 A.I.D. LOAN NO. 497-T-092 A.I.D. LOAN NO. 497-T-092A A.I.D. LOAN NO. 497-T-092B A.I.D. LOAN NO. 497-T-092C

AMENDMENT NO. 2 TO

PROJECT LOAN AGREEMENT

BETWEEN THE

REPUBLIC OF INDONESIA

AND THE

UNITED STATES OF AMERICA

FOR

SMALL SCALE IRRIGATION MANAGEMENT

Dated: August 28, 1986

This AMENDMENT NO. 2, is entered into between the REPUBLIC OF INDONESIA ("Borrower") and the UNITED STATES OF AMERICA, .q,cting through the AGENCY FOR INTERNATIONAL DEVELOPMENT ("A.I.D.").

WHEREAS, the Borrower and A.I.D. entered into a Small Scale Irrigation Management Project Loan Agreement designated as A.I.D. Loan No. 497-T-092 on August 28, 1985 which was amended on May 30, 1986 ("Loan Agreement"), 'vhereby A. I.D. agreed to lend to the

Borrower up to Thirty Million Sixty Thousand United States ("U.S.'') Dollars ($30,060,000) (''Loan'');

WHEREAS, the Borrower and A.I.D. desire to amend the Loan Agreement to add an additional Four Million One Hundred Thousand United States Dollars ($4,100,000);

NOW THEREFORE, the Borrower and A.I.D. hereby agree as follows: 1. A new Section 2.2. Incremental Nature of Project, is added as follows:

"Section 2.2. Incremental Nature of Project.

(a) A.I.D. 's further contributions to the Project will be provided in increments, the first one being made available in accordance with Section 3.1 of the Agreement. Subsequent

increment(s) will be subject to the availability of funds to A.I.D . for this purpose, and to the mutual agreement of the parties, at the time of a subsequent increment, to proceed.

2

-time periods for the utilization of funds loaned by A.I.D. under an individual increment of assistance. It is anticipated, subject to the conditions set forth in paragraph (a) of this Section 2.2, that A.I.D's total loan contribution to the Project will be not less than $43,000,000;

2. The first paragraph of Section 3.1. of the Loan Agreement is revised to read as follows:

"Section 3.1. The Loan. To assist the Borrower to meet the costs of carrying out the Project, A.I.D., pursuant to the Foreign Assistance Act of 1961, as amended, agrees to lend to the Borrower under the terms of this Agreement not to exceed Thirty Four Million One Hundred Sixty Thousand United States ("U.S.") Dollars

($34,160,000) ("Loan").

3. Section 3.2 (b) Borrower Resources for the Project is revised to read as follows:

"(b) The resources provided by the Borrower for the Project will not be less than the equivalent of Thirty Two Million Six Hundred Seventy Thousand United States ("U.S.") Dollars

($32,670,000), including costs borne on an 'in-kind' basis.

4. A revised financial plan is attached to this Amendment as Annex I.

- 3

-IN WITNESS WHEREOF, the Borrower and the United States of America, each acting through its respective duly authorized

representative, have caused this Amendment No. 2 to he signed in

their names and delivered as of the day and year first above written.

REPUBLIC OF INDONESIA

Signed

din Joeda

irector General

o eign Economic Relations ment of Foreign Affairs

UNITED STATES OF AMERICA

Signed

ｐｾｵｬ＠ Wolfowi

tf

Ambassador

,

>

C A T E G 0 R Y

l. Construction, Surface Water

2. Construction, Ground-water

3. Equipment and Commodities

4. Training

5. Special Studies/Pilot Activities

6. Technical Assistance

7 . Contingency

T 0 T A L S

I

I

I

I

I

i

SMALL SCALE IRRIGATION MANAGEMENT PROJECT 497-0347

SUMMARY COST ESTIMATES (U.S. $000)

A.I.D.

OBLIGATION

I

OBLIGATIONS FUTURE YEARS

THROUGH FY85

I

FY86 OBLIGATION

GRANT

I

LOAN

I

GRANT

I

LOAN ANTICIPATED*

-I

9 ,000

I

-

11 , 862*** 2,003

I

I

I

I

-

I

2,ooo

I

-

I

2,ooo 1,550

I

I

I

I

I

I

I

-

I

2,ooo

I

-

I

1,333

I

-I

I

I

I

-

I

40o

I

-

I

500

I

500

400 I 200 I 555 I 200 I 1,100

i

i

i

i

I

3,1oo

I

8oo

I

2 , 945

I

1,983****1 1,617

I

I

I

I

-

I

715

I

-

1,167

I

2,070

I

I

I

I

I

I

I

15.115

l

).500

I

I

I ?.5oo I 19,045

I

8,840

I

I

I

I

I

I

A.I.D. TOTAL GRANT

I

LOAN

-

22,865

I

-

I

I

5,550

I

-

I

3,333

1,400

955 1,500

6,045 4,400

3,952

7,000 43,000

ANNEX I

GO! TOTAL

28,536**

I

10,650**

I

I

I

228

272 39,686

I

I

I

I

I

PROJECT TOTAL 51 ,401 16,200 3,561 1,672 2,455 10,445 3,952 89,686

*

Future obligations are subject to the availability of funds and the mutual agreement of the parties to proceed . **

***

GOI Total includes land compensation costs, staff salaries, O&M costs and pre-project design fees which go beyond the 50% GOI-USAID sharing of conventional design-construction costs .