Selanjutnya

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LOAIJ AGREEMENT

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WATER RESOURCES SECTORAL LOAN

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A U G U S T 2 5, 1 9 7 6

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THIS AGREEMENT MADE IN DUPLICATE

the 25th day of August 1976

BE'1WEEN: THE GOVERNMENT OF CANADA,

herein represented by the Secretary of State for External Affairs acting through the President of the Canadian International Development Agency (hereinafter referred to as "Canada"),

and

THE GOVERNMENT OF THE REPUBLIC OF INDONESIA (hereinafter referred to as "Indonesia")

WHEREAS Indonesia wishes to secure a development loan for projects in

the Water Resources sector; and

WHEREAS Canada is willing to make a development loan available for

this purpose on the terms and conditions provided herein;

Nmv THEREFORE the Parties hereto agree as follows:

ARTICLE I

The Loan

Section 1. 01

Canada shall ｭｾ＼･＠ available to Indonesia on the terms and conditions

hereinafter set forth a Loan in an amount not to exceed ten million

Canadian dollars ( .$10,000,000.00) .

Section 1.02

Canada shall open on its books a Loan Account in the name of Bank

Indonesia acting for and on behalf of Indonesia; and shall credit to

such Account the full amount of the Loan. Withdrawals, payments and

disbursements may be made from the Loan Account in accordance with

the provisions of this Agreement.

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This Loan shall be free from interest, commitment or service charges.

Section 1.04

Repayment of the principal amount of the Loan shall be made in eighty

(80) semi-annual instalments of one hundred and VNenty-five thousand

Canadian dollars ('Pl25,000 . 00) each, due and payable on June

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and

December 31 in each succe.:>rling year commencing on December 31, 1986 and

ending on June 30, 2026.

Section 1 . 05

Indonesia shall have the right to prepay the principal amount in whole

or in part on any date without Notice to Canada. The ammmt of any

such prepayment shall be applied to the Instalments of the principal

then remaining payable in the reverse order of their maturity.

Section 1 . 06

All payments as set forth herein shall be made by Indonesia in

Canadian dollars to the Receiver General for Canada, and shall be

deemed to have been paid when received by the Receiver General for

Canada.

Section 1.07

The Principal of the Loan shall be paid to Canada without any

deduc-tions whatsoever, and more particularly shall be free from any truces,

charges or other restrictions imposed under the laws of Indonesia and

those in effect in its territories or administrative, political or

juridical divisions or subdivisions .

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-Section 1 . 08

The Parties agree that they will negotiate, at the request of either

Canada or Indonesia, concerning acceleration of payments to the

Receiver General for Canada required to be made under this Agreement

at any time after six (6) months before the first payment of the

principal becomes due and payable. Canada and Indonesia shall mutually

deterrnine whether such an acceleration should take place on the basis

of the capacity of Indonesia to service a more rapid liquidation of

its obligations in the light of its internal and external financial

and economic position.

ARTICLE II

Use of the Loan

Section 2 . 01

Except as may otherwise be specifically agreed to by Canada, the

pro-ceeds of the Loan shall be used by Indonesia exclusively for the

purchase of agreed goods and services as described in Annex " A", and

the procedures for their procurement and payment shall be those set

forth in Annex "B" . Each Annex shall be subject to such subsequent

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modifications as may be agreed upon between Canada and Indonesia.

Section 2.02

Services, materials and equipment to be financed from the proceeds of

the Loan shall be used exclusively to carry out the Projects: the goods

and services procured in Canada and financed from the Loan shall have

an overall Canadian content of not less than sixty- six and two-thirds

percent (66 2/3%) unless otherwise agreed to by Canada.

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Services, material and equipment contracted for prior to the effective

date of this Agreement may not be financed out of the proceeds of the

Loan except as may otherwise be agreed to by Canada.

Section 2.04

Proceeds from the Loan shall not be used by Indonesia to meet the cost

of any taxes, fees or customs duties imposed directly or indirectly by

Indonesia on any services, material or equipment required for the

Project.

ARTICLE III

Withdrawals of Proceeds of Loan

Section 3.01

Withdrawals shall be deemed to occur on the dates on which payments

are made by Canada either directly to Indonesia or its designated agent,

or to a firm or banking institution in respect of goods and services

supplied under this Agreement.

Section 3.02

Subject to the conditions and limitations set forth herein, Indonesia

shall be entitled to withdrawals from the Loan Account in such amounts

as are required to meet the costs of the goods, services and freight

and insurance which are eligible for financing as the costs become

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-Section 3.03

Indonesia or its designated agent shall provide Canada with a copy of

each contract or purchase order for the procurement of services,

materials and equipment in respect of which any withdrawal is to be

made and a copy of each irrevocable Letter of Credit issued under this

Agreement.

Section 3 . 04

Withdrawals from the Loan Account may be in favour of such persons or

agencies as may be designated by Indonesia and agreed to by Canada.

Section

3.05

Indonesia or its designated agent shall furnish or cause to be furnished

to Canada such documents and other evidence in support of the Letter(s)

of Credit as Canada may reasonably request, such evidence to be

sufficient in form and substance to establish that the amounts to be

withdra111111 are properly related to the pur!)Ose of the Project.

ARTICLE IV

Cancellation and Suspension

Section 4. 01

Indonesia may, by sixty ( 60) days • written Notice to Canada, cancel all

or any part of the Loan not withdra\11111 by Indonesia prior to the giving

of such Notice and not required to meet outstanding financial

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If any of the following events occur, Canada may suspend in whole or

in part the right of Indonesia to make withdrawals under the Loan

Agreement or declare the principal outstanding due and payable

immed-iately and cancel that part of the loan not previously withdrawn:

(a) a default by Indonesia in the payment of principal or in any

other payments or repayments required under this Agreement

and the Annexes hereto;

(b) a default on the part of Indonesia in the performance of

any undertakings under this Agreement; and

(c) any extraordinary situation which renders it impossible

for Indonesia to perfonn its obligations under this

Agreement.

Section 4.03

If the full amount of the Loan is not committed by September 30, 1981

the balance will be cancelled by sixty ( 60) days' written Notice from

Canada and the final instalment or instalments of the repayment to be

made shall be reduced accordingly unless otherwise agreed to by

Canada.

ARTICLE V

General Undertakings

Section .5.01

Indonesia shall ensure that the Projects are carried out, operated and

maintained with due diligence and efficiency and in confonnity with

sound engineering, construction and financial practices.

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-Section 5.02

Canada and Indonesia shall cooperate fully to ensure that the purpose

of the Loan will be accomplished, and each shall furnish to the

other all such information as shall reasonably be requested with regard

to the general status of the Loan. Indonesia shall inform Canada as

soon as possible of any condition or contingency which interfere s with,

or threatens to interfere with, the accomplishment of the Projects or

any matter or thing in connection therewith.

Section 5.03

Indonesia shall afford accredited representatives of Canada all

reasonable opportunities to visit any part of the territories of

Indonesia for the purpose related to this Loan Agreement.

Section 5.04

This Agreement and any Annexes thereto shall be free from any taxes,

fees or other charges that may be imposed under the laws of Indonesia

and those in effect in its territories or administrative, political or

juridical divisions or subdivisions in connection with the execution,

issue, delivery and registration thereof.

Section 5. 05

It is understood and agreed by Indonesia and Canada, that the Articles

of this Agreement and Annexes 11_{A11 , "B" and "C" hereto, all form an}

integral part of the present Agreement.

Section 5.06

Indonesia shall provide or cause to be provided as needed, all local

cost financing and resources which may be required to implement the

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For the purposes of this Agreement and Annex.es hereto Indonesia

shall include any agent or agents authorized by and on behalf of

Indonesia with regard to its rights, duties and obligations herein.

ARTICLE VI

Communications

Section 6.01

Any communications or docurnents given, made or sent by either Indonesia

or Canada pursuant to this Agreement or any Annex hereto shall be in

writing and shall be deemed to have been duly given, made or sent to

the party to which it is addressed at the time of its delivery by hand,

mail, telegram, cable or radiogram at its respective address, namely:

For Canada:

Mail Address:

Cable Address:

and/or

Cable Address:

For Indonesia:

Mail Address:

Cable Address:

and/or

Cable Address:

Canadian International Development Agency 122 Bank Street

OTTAWA, Ontario Canada, Kl.A OG4.

CIDA, OTT AWA

Canadian Embassy

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Jalan Budi Kemuliaan Jakarta Pusat, Indonesia

DOMCAN, Jakarta

Department of Foreign Affairs Jalan Pejambon 6

Jakarta , Indonesia

DEPLU JAKARTA

Bank Indonesia

Jalan Kebon Sirih No. 82-84 Jakarta, Indonesia

DELEGASI, JAKARTA

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-Section 6. 02

Any one of the Parties may by written notice to the other Party

hereto, change the address to which any notice or request intended

for the Party so giving such notice shall be addressed .

Section 6. 03

All communications and documents pertaining to t his Agreement shall

be in the English language.

ARTICLE VII

Simultaneous Execution of Agreement

Section 7 . 01

This Agreement inay be simultaneously executed in several counterparts,

each of which so executed shall be deemed to be an original.

Section 7 . 02

This Agreement and Annexes "A", 11_B11 _{and "C" attached hereto , which}

fonn part of this Agreement, may be amended from time to time upon

agreement of the parties concerned. Amendment to the main body of the

Agreement shall be executed by a formal amendment signed by the

authorized representatives. ｈｾｎ･ｶ･ｲＬ＠ amendments to the Annexes may be

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IN WI'INESS 1_{/'IHEREOF the Parties hereto have caused to be subscribed}

the signature of their authorized representative at the City of Jakarta as of the day and the year first above written.

SIGNED ON BEHALF OF THE GOVERNMENT

OF CANADA

Signed

an J. MacEachen Sec ary of State for

E ernal Affairs

SIGNED ON BEHALF OF

\ TIIE _{GOVERNMENT OF THE REPUBLIC}

OF INDONESIA

Signed

H. Adam Malik

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-ftJmEX 11_A11

WATER ｒｅｓｏｕ ｴ ｾｃｅｓ＠ PROJECTS

LOAN AGREEMENT

BETWEEN THE GOVERNMENT OF TEE REPUBLIC OF INDONESIA

and

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THE GOVERJ!MEN T OF

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1. 0 Use of the Loan

1 . 1 The proceeds of the Loan are to be used exclusively to

finance the purchase of certain engineering and consulting

services, equipment, and materials in Canada and f or the

payments of freight and insurance vl/hich are required for

development projects in Indonesia related to the development

of the Water Resources sector . The equipment, materials

and services supplied under the Loan shall not exceed ten

million Canadian dollars ($10,000,000. 00) and shall be approved

through simple exchange of letters between Canada and

Indonesia.

1 . 2 Purchases under the Loan shall have _{an overall Canadian}

con-tent of not less than sixty-six and tl,/1/()-thirds percent (66 2/3%)

and shall be eligible for export under Canadian export

regu-lations and for import under Indonesian import reguregu-lations.

1. 3 Atomic energy materials and equipment, arms, armaments, guns, ammunition, and all other equipment or materials for primarily

military use or for the manufacture thereof are prohibited

for supply under this Loan .

1.4 At Canada's request, substaDtiation may be required from time

to time that the products and services purchased under this

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LO AN AGREEMENT

BE'IWEEN THE GOVERNMENT OF THE REPUBLIC OF JJIDONESIA and

-THE GOVERNMENT OF CANADA

1 . 0 Procurement and Payment Procedures

1.1 Project proposals with definition and justification of the

project along with other supporting documentation (i.e.

equipment, materials and consulting services eligible for

financing under this Loan Agreement) will be supplied by

Indonesia for approval by Canada through simple exchange of

letters .

1.2 Equipment, materials and services eligible for financing

under this Loan Agreement will be procured by the Ministry

of Public Works and Electric Power, Directorate General of

Water Resources Development as the executing agency acting

on behalf of Indonesia.

2.0 Procurement of Consultant Services

2. 1 When consultant services are procured in Canada under this

Agreement, a competitive proposal call shall be made fro:n a

representative number of qualified Canadian finns, unless

otherwise agreed to by Canada. Lists of Canadian flrms may

be obtained from the Canadian Embassy in Jakarta or from

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-2. 2 The list of Canadian firms invited to propose shall be as

approved by Canada unless otherwise agreed to by Canada.

2. 3 The evaluation of the proposals and the selection of the

firm which Indonesia wishes to ernploy shall be made on

basis of:

(a) the qualifications of the firm to undertake the

assignment;

(b) the projects of the same type that the firm has

under-taken in the past;

(c) the size of the staff of the firm;

(d) the volume of V\Qrk now on hand and the extent to which

higher supervisory officials will be available ;

(e) the numbers and qualifications of the firm's personnel

who are to be used on the work, the periods of their use

and the proportion of permanent to temporary staff;

(f) firm's understanding of the project requirements and

approach to undertaking the project.

2. 4 The proposed financial terms and costs will be submitted

concurrently with the technical proposals but in separate and

sealed envelopes to be opened only after the selection of the

consultant invited for contract negotiat:ons.

2.5 The firms shall not be required to tender or bid against

each other for appointments on the basis of fees . They

should compete against each other only on the basis of

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contract. The execution of the negotiated contract is

subject to the prior approval of Canad.a.

J . O Procurement of Equipment and Materials

J . l All procurement of equipment and materials shall be subject

to competitive tender procedures unless prior approval for

waiver is obtained from Canad.a.

3. 2 Before any purchase contracts are entered into, the

pros-pective contracting party shall invite tenders from a

representative number of Canadian suppliers of the required

products unless otherwise agreed to by Canada.

J . 3 A copy of each Invitation to Tender, together with a list

of Canadian suppliers invited to tender , shall be forwarded

by Indonesia to the Canadian Embassy in Jakarta or to Canada.

3.4 Tenders for materials , equipment and related services will be

called on the basis, as may be applicable in the particular

case , of supply, delivery to site, installation and erection,

construction, completion and warranty maintenance thereof .

Where applicable tenders shall be instructed to show separate

costs of supply FOB and insurance and freight, and the cost

of local operation in Indonesia in their bids .

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_{Lists of Canadian suppliers may be obtained from the Canadian}

Embassy in Jakarta or from Canada. The assessment of the

tenders received will be forwarded to Canada. Prior to the

issuance of a purchasing contract, Bank Indonesia will obtain

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-confirmation from Canada to the use of the Loan for each

transaction through Canada which will constitute clearance

for the transaction for Canadian content and tendering

regulations .

3. 6

The Canadian companies invited to tender shall be instructed

to:

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include in their tender a declaration of the Canadian

content of the equipment and materials they are

offering for purchase;

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send copies of all tenders to Canada at the same time

as they are forwarded to the recipient Indonesian

procurement agency; (the copies of tenders received by

Canada will be treated as a closed tender call and not

opened until the dates established by the recipient);

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complete a Canadian Content Form including statement

that the price is fair and reasonable and forward it

to Canada with each copy of tender ; and

3. 6. 4

subnit to Canada, technical specifications complying

with the Canadian quality standards for the equipment

and materials to be supplied.

3. 7

If other than the lowest evaluated tender with acceptable

Canadian content is to be approved, the concurrence of Canada

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waive the requirement for competitive tenders in the

situ-ations specified hereunder:

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when procurement concerns equipment and materials

which are only available from a single source;

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when procurement concerns equipment and materials

which by nature and specification are peculiar to a

specific manufacturing process or end equipment and

materials; and

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when equipment and materials are to be procured under

such other conditions which appear to Canada to merit

a waiver from the tendering procedures.

Applications for waiver, supported by reasons

there-fore, must be forwarded through the Canadian Einbassy,

Jakarta to Canada. No procurement action shall be

initiated until the notification of approval is given

by Canada.

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In these c a ses where competitive tenders waived the

Canadian supplier prior to shipment of equipment and

materials shall be instructed to complete a Canadian

Content Form and forward it along with technical

specifications complying with Canadian quality standards

and all supporting documentation, as specified in the

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The Canadian supplier or the accredited Canadian selling

agent for Indonesia shall be responsible for:

(a) arranging and paying for freight and insurance; and

(b) inspection of the equipment and materials prior to

packing and shipping.

3.10 In those cases where special equipment and materials are

re-quired by the consultant to carry out his tasks as specified

in the contract, Indonesia may request the consultant to act

on its behalf to procure the required equipment and materials

in accordance with the foregoing procurement procedures .

4 . 0 Payment Procedures - Equipment , .Materials and Services

4.1

The Bank Indonesia shall, when a contract is awarded, open

through Canadian Bank letters of credit in favour of Canadian

suppliers.

4 . 2 Canada shall confirm to the Canadian Bank that the Bank will

be reimbursed by Canada from the development loan funds ,

upon receipt of evidence of shipments having been made under

and in conformity with terms of letters of credit opened by

Bank Indonesia.

4. 3 All banking charges incurred by the Bank Indonesia in

connection with the opening of letter of credit through the

Canadian Bank will be reimbursed by Canada from the

develop-ment loan funds . Any interest charges that may be payable

by Bank Indonesia to the Canadian Bank in the event of that

bank advancing funds to meet payments to Canadia..r1 suppliers will also be reimbursed by Canada from the development loan

funds. Statements of disbursements will be prepared by

Canada and forwarded to Bank Indonesia at least on six monthly

RESPONSIBILITIES OF THE GOVERNMENT OF THE REPUBLIC OF INDONESIA

1.0 With respect to equipment and materials, and to consultant

services provided from Canada, Indonesia will be responsible,

subject to the existing rules and regulations, for the following:

1.1 To arrange with Indonesian customs officials to properly clear through Indonesian customs free of imports , customs

and other duties and tax.es all equipment and materials r

e-quired to support and undertake the implementation of the

Project(s). Indonesia will exempt the consultant and its

personnel (other than personnel who are citizens or

perma-nent residents of Indonesia) from, or bear the cost of, any

tax.es, duties, fees, levies, and other irnpositions imposed

under its laws and regulations or the laws and regulations

in effect in its territories or ariy political s ubdiVision.

1.2 To provide at no cost to the loan account, local facilities and services in accordance with local standards, to enable

the consultant to implement the project(s) .

1.3

Details of facilities and services requirements shall be

subject to individual contractual obligation.

To provide :

(a) all Indonesian permits, licences and other sucl1

docu-ments required to enable Canadian personnel to carry out

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-(b) all export and exit permits required for the return

of any of the material, equipment or effects (including

personal effects) which are the p roperty of or are

pro-vided by the Goverrunent of Canada, the firm or individual

Canadian employed on the provision of servic es under

this .\greement; and

(c) access to those parts of Indonesia required to enable

Canadian pers(mnel to carry out their responsibilities

in Indonesia.

1 . 4 To indemnify and save harmless, at no cost to the Loan

Account, Canada or its personnel engaged in the performance of duties in connection with the Loan, from any civil

liabi-lity arising from any claims resulting from:

(a) injury or death of any such personnel during the

per-formance of his duties relative to the Loan;

(b) injury or death of any person arising from the work of

the project; and

(c) property damage arising from the work of tne µr o ject(s).

This provision will not relieve any such personnel of

Canada f:-om liability for any fraudulent or criminal

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provided from Canada:

2. 1 Arrange for inspection and testing, as llecessary. All

foreign exchange costs pertaining to inspection and testing

of materials and equipment procured in Canada for projects

funded under this Loan will be reimbursable under this

Agreement, where these costs are not already reimbursable

under existing financing arrangements for the project(s)

concerned.

2 . 2 Undertake to be responsible for arrangement of adequate

insurance for short shipments, losses or drunage to the

equip-ment and materials during shipequip-ment and in transit . If any

part of the lost or damaged equipment and materials is

pre-financed for replacement out of the Loan Fund pending

settle-ment of insurance claims, on settlernent of such claims the

amounts will be deposited to the account of the Loan Fund

and will be paid in Canadian dollars .

2. 3

Indonesia shall be responsible for the preparation and

sub-mission of cla:iJns to Canadian suppliers for short shipments,

｡ｾ､＠ for the preparation and sul:rnission for insurance cla:iJns

in the event of losses or damage to coITlf'lodities while in

transit .

2. 4

Demurrage resulting from failure to provide proper berthing

shall be to the account of Indonesia or its designated agent