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AMENDMENT NO. 1 TO
LOAN AGREEMENT
BETWEEN THE
REPUBLIC OF INDONESIA
AND THE
UNITED STATES OF AMERICA
FOR
FACULTIES OF PUBLIC HEALTH
Dated:
October8, 1987
This AMENDMENT NO. 1, is entered into between the REPUBLIC OF
INDONESIA ("Borrower") and the UNITED STATES OF AMERICA, acting
through the AGENCY FOR INTERNATIONAL DEVELOPMENT ("A.I.D.").
WHEREAS, the Borrower and A.I.D. entered into a Faculties of
Public Health Project Loan Agreement on July 26, 1985 ("Loan
Agreement"), whereby A.I.D. agreed to Loan to the Borrower up to
Five Million United States ("U.S.") Dollars ($5,000,000) ("Loan");
WHEREAS, the Borrower and A.I.D. desire to amend the Loan
Agreement to reduce the amount of Borrower contribution to the
Project by Two Million Six Hundred Twenty-Two Thousand U.S. Dollars
($2,622,000) and to revise the Project Amplified Description and
Financial Plan;
NOW THEREFORE, the Borrower and A.I.D. agree as follows:
1.
Paragraph (b) of Section 3.2., Borrower Resources for the
Project, is amended to read as follows:
"(b)
The resources provided by the Borrower for the Project
will be not less than the equivalent of U.S. $6,378,000, including
costs borne on an "in-kind") basis."
2.
A revised Annex 1, Amplified Project Description, with
Attachment 1, Financial Plan, is attached to this Amendment.
3.
Except as expressly amended herein, the Loan Agreement is
ratified, confirmed and continued in full force and effect in
accordance with all its terms.
representative, have caused this Amendment No. 1 to be signed in
their names and delivered as of the day and year first above written.
REPUBLIC OF INDONESIA
Signed
Moeslim Sja'roni
Acting Director General
for Foreign Economic Relations
Department of Foreign Affairs
UNITED STATES OF AMERICA
Signed
/'DaVid N. Merrill
Director
ANNEX I
AMPLIFIED PROJECT DESCRIPTION
FACULTIES OF PUBLIC HEALTH
The purpose of the Faculties of Public Health project is to assist the Government of Indonesia to expand and regionalize public health education and research by strengthening public health training programs in selected regional universities to supply manpower, conduct research, and provide technical assistance to the Ministry of Health, the National Family Planning Agency (BKKBN), and other public and private sector agencies involved in health and family planning service delivery.
Under the project the Ministry of Education and Culture (MEC) will establish regional Faculties of Public Health (FKM) at:
a. Airlangga University, Surabaya (UNAIR) b. Diponegoro University, Semarang (UNDIP) c. University of North Sumatera, Medan (USU)
and will strengthen and upgrade the new Faculty of Public Health at Hasanuddin University (UNHAS).
At the end of the project each Faculty will have a minimum of 30
full-time Faculty members, consolidated two-year and four-year Sl degree programs in Public Health producing 60 Sl graduates annually,
comprehensive research and public service programs, and expanded library and information resources. FKM-UNAIR will also have an S2 program
producing 10 graduates annually.
I. Project Strategy
To achieve its purpose the project will employ the following strategy:
A. Strengthen the public health training, research, and community service capacities of the Public Health Department of the Medical Faculties at UNAIR, UNDIP, and USU to enable them to meet MEC
accreditation requirements for becoming Faculties of Public Health by 1990. It is expected this will be done in three phases:
Phase I : establish by September 1985 a program of study offering the two-year Sl degree in Public Health within the Public Health Department of Medical Faculties at USU and UNDIP and a program of study for the four-year Sl degree in
Public Health at UNAIR.
Phase III: fulfill MEC accreditation requirements to achieve Faculty status at USU, UNDIP, and UNAIR by 1990.
B. Strengthen Public Health training, research, and community service capacity at FKM-UNHAS to keep pace with institutional development at the three other emerging regional Faculties of Public Health.
C. By building on the considerable administrative and technical skills of FKM-UI, assist to develop it as a National Resource Center
(Fakultas Pembina) for supporting the development of the new Faculties of Public Health.
D. In all aspects of the project's implementation, actively encourage cooperation between the FKMs and regional health and family planning implementing agencies. Cooperation will not only expose students to the problems and decisions they will encounter professionally, but will also involve the FKMs directly in assisting to solve local health problems.
II. Project Administration and Management
The Director General for Higher Education in the Ministry of Education and Culture, through his Directorate for Academic
Infrastructure Development, will have overall responsibility for the project. A Project Steering Committee will establish policy and oversee the project. It will be chaired by the Director General or his
representative with its members representing the Consortium of Health Sciences (CHS), Ministry of Health, BKKBN, USAID, FKM-UI and BAPPENAS. The Steering Committee will be assisted by a Project Management Unit
(PMU) to coordinate project activities and supervise project inputs on a routine basis. It is anticipated that the PMU will be staffed by a Director, two Assistant Directors, and an Administrative Assistant. A long term consultant will assist the Director of the PMU in all aspects of project implementation and monitoring.
Local Management Units (LMU) will be established at each project-assisted FKM to plan and coordinate project activities at the respective institutions. The LMUs will serve on a part time, as needed, basis and will be the liaison between central project management and the regional FKMs. It is expected that each LMU will consist of three FKM faculty members, part-time, and a seconded part-time secretary. The LMUs will, as needed, consult with local Advisory Boards consisting of
representatives from the local government (PEMDA), local planning boards (BAPPEDA), MOH, and BKKBN. These consultations will be for the purpose of setting local project policy guidelines and will assist to link the development of the FKMs to the public health interests of local
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-In its advisory capacity to the Director General for Higher Education
on the development of Public Health Education, the CHS will periodically assess progress made by each Faculty in fulfilling teaching, research, and community service requirements. A representative of the CHS will sit on the Project Steering Committee to assure that project inputs
coordinated by the PMU are directed toward meeting accreditation
requirements. The CHS will make recommendations to the Director General for Higher Education regarding approval for conferring Faculty status.
Project activities will be planned and budgeted on an annual cycle coinciding with the GOI DUP/DIP cycle to facilitate coordination of AID and GOI funding, and to make project implementation responsive to the evolving needs of the concerned FKMs. The anticipated schedule is as follows: yearly policy guidelines for project activities will be issued by the Project Steering Committee each April, one year prior to the beginning of the Indonesian fiscal-year (IFY) in which the activities will take place. The PMU will translate these guidelines into
operational strategies for the regional FKMs. The regional FKMs in turn, will adapt the strategies to meet their individual needs during local planning meetings held in May, and will produce operational workplans and draft DUPs for the upcoming fiscal year. A national planning meeting will be held in July to review and approve each workplan. The PMU will compile workplans from each FKM into a comprehensive project workplan for the upcoming fiscal year for submission to AID and GOI by September 1. Commitment of AID project funds and GOI counterpart budgets would be expected by the following April, the first month of the Indonesian fiscal year.
III. Project Activities
A. Faculty Development: Between L7 and 45 new teaching staff will be added to each of the 5 FKMs participating in the project. In
addition graduate training at the masters and doctoral level both in Indonesia and abroad will be provided to existing staff by the
project to upgrade academic qualifications to levels required by the MEC for teaching at the Sl, S2, or S3 level, as appropriate to the degree programs planned for each institution. Technical
B. Research: Research funds available through the project will allow Faculty members to obtain research experience, refine analytic and methodologic research skills, and develop the Faculties' abilities to independently attract research funds from other sources.
Collaborative research projects with FKM-UI will give researchers from the regional FKMs first hand guidance in designing and
conducting research studies. Technical assistance from domestic and external sources will be available to assist Faculties to develop comprehensive research and community service programs. Project funds may be utilized to train a limited number of Ph.D.'s at each of the regional FKMs, whose presence will promote higher quality research. Finally, loan funds will be available to disseminate research findings within the professional Public Health community, and to analyze their policy implications.
C. Academic Program Development: Project resources will be available to review and revise existing Sl curricula with a view toward
incorporating a greater variety of instructional materials and educational technologies. Each faculty will have flexibility to establish an instructional resource unit to develop teaching materials and support the use of more innovative participatory teaching methodologies in their academic programs. Loan funds will be used to purchase hardware to help equip these units, to fund the initial training needed of staff within these units and to provide technical assistance (grant funded) to develop educational software. Equipment and technical assistance to improve administration at regional FKMs will also be supported by the project.
D. Expanded Information Resources: Library books will be procured to complement and support the Sl, 52, and 53 teaching programs being developed at the FKMs. Microfiche readers, printers, and microfiche
journal subscriptions will be provided to each FKM. Loan funds will also be available for other appropriate means of providing or
disseminating information. These may include research journals, a technical report series, or translations of standard texts.
E. Strengthening FKM-UI as Pembina Fakultas: With project support FKM-UI will develop a formal 53 program which will accept its first annual intake of students by 1987. Graduates will strengthen 52 and 53 teaching programs and Faculty research capacities at the regional FKMs. It is anticipated that there will be 10 53 graduates by 1992 and 36 graduates by 1999. The 52 program at FKM-UI will be expanded from 25 to 50 graduates annually to accommodate Ministry of Health manpower needs and the increased need for Faculty members with 52 level education at the regional FKMs.
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-1. providing short term in-service training;
2. conducting research in cooperation with the regional FKMs; 3. maintaining a centralized public health information data base; 4. disseminating research findings from regional FKMs;
5. providing technical assistance to regional FKMs in technical and managerial areas;
6. translating standardized public health texts into Indonesian and publishing a technical report series on specialized areas of Public Health;
7. reviewing all project funded research proposals; and
8. serving as a teaching externship site for faculty members from regional FKMs.
IV. Project Inputs
International loan funded procurement of goods and services under the project will be solicited from firms or individuals in Code 941
countries, Indonesia and the United States. International grant funded procurement of goods and services will be solicited from firms or
individuals in Indonesia and the United States. Goods and services funded by the project budget will be procured on a competitive basis, advertised in Indonesia as well as abroad for international procurement. Indonesian firms will be eligible to bid for all local and international procurement.
A. Training:
The training input will be aimed at achieving qualitative
improvements in the academic and technical qualifications of teaching staff. There will be three types of training:
1. Degree training in Indonesia and abroad: The project will
support up to 40 persons in Masters degree programs in Indonesia and approximately 30 persons in the U.S. or other eligible
Degree trainees will be drawn from existing full-time public health teaching staff at the regional FKMs and FKM-UI. A
limited number of part-time teaching staff will also be eligible for degree training if this would significantly enhance public health teaching at the FKM concerned. Selection of all degree candidates will be made in accordance with the specific areas of expertise required at each FKM, and will be phased to assure that sufficient core staff remain at each institution to carry out teaching, research, and public service programs.
GOI funds will support all salaries while in training, exit fees, and any other costs associated with departure from Indonesia. Admission fees for domestic long term training participants will also be provided by the GOI. AID loan funds will support all tuition related fees, international and
domestic airfares, and maintenance allowances during training.
2. Short courses and teaching externships abroad: This training will primarily upgrade technical skills of senior faculty
members. Up to 25 persons will attend short courses. Up to 10 persons will attend teaching externships of approximately six months duration. The GOI will finance exit fees and salaries while in training for these participants. AID loan funds will support all international and domestic airfares, tuition, fees, and maintenance allowances.
3. Short courses in Indonesia: Up to 12 short courses on public health topics will be conducted during the life of the project. These will include three short courses, on Research Methodology and Data Analysis, Curriculum Development, and FKM
Administration, in the first year of project implementation. Topics for subsequent courses will be determined at annual project planning and review meetings. Short course funds may also be used to enroll participants in appropriate existing courses being conducted in Indonesia, or to support a limited number of in-country faculty externships at FKM-UI. AID funds will support curriculum development costs, instructor related
costs, materials and supplies, travel and per diem costs for trainees and organizing committees, and tuition costs for short courses.
B. Infrastructure Operations
usu
UNHAS
UNDIP UN AIR UI 19 25 17 45 257
-additional staff additional staff additional staff additional staff additional staff
All costs for additional staff will be assumed by the GOI.
c.
CommoditiesThe project will provide a limited amount of equipment for improving academic quality, research capacities, and Faculty administration.
Commodities financed by the project may include:
1. Library and Information Dissemination Materials: Up to $15,000 of loan funds will be used to procure public health books for each of the five FKM's to supplement existing libraries. Loan funds will be used to procure microfiche readers, printers, duplicators, and microfiche journal subcriptions for FKM-UI and each regional Faculty as well as initial training costs. The GO! will support all in-country shipment costs, recurrent
maintenance costs, supplies for microfiche reader/printers, and following the initial three years subsequent microfiche
subscription costs. Project loan funds may be used to translate English language texts into Indonesian, to initiate the
production of a Public Health Technical Report Series, or a public health journal. FKM-UI will be the leading agency for any translation or publication activities. Costs for
translations and publications will be totally funded by AID loan funds through 1989/90. Subsequent yearly costs for translations and publications will be borne by the GO!.
2. Teaching equipment packages: Up to $45,000 in loan funds per FKM will be provided to procure audio--visual, replay, and media production equipment for instructional resources and
publications. A feasibility assessment will be conducted to ascertain each Faculty's actual equipment needs prior to procurement. Initial training required for any teaching
equipment will be provided through the AID loan funds set aside for procurement. Maintenance and supplies costs will be paid by the GO!.
3.
Micro-Computers: The project will provide up to fivemicro-computers to each of the five Faculties for administration and for research data analysis.
An
assessment ofmicro-computer requirements at all Faculties will be conducted prior to procurement. AID loan funds for the micro-computers will include provisions for software and initial training, with
4. Administrative Equipment: AID loan funds will be utilized to procure selected administrative equipment for the PMU and the FKMs such as photocopy machines, typewriters, a micro-computer and mimeograph machines. AID loan funds will be used to
purchase all equipment and to support initial training. The GOI will pay for routine maintenance and supplies.
5. Vehicles: AID loan funds will be utilized to procure a vehicle for each of the regional FKM's and for the PMU. AID loan funds will support initial purchase costs. The GOI will support ensuing maintenance and fuel costs.
D. Research
This component of the project will assist to satisfy the research and community service accreditation requirements for new Faculties and to support the new academic programs being developed. Research findings will also expand the regional epidemiologic data base necessary for region specific planning of health and family planning programs. Combined AID and GOI funding of $1,398,100 over the life of the project will finance research programs at each of the Faculties. An AID contribution of $648,100 will assist to initiate research
programs during the first five years of the project. GOI counterpart funds in the amount of $750,000 will complement the AID
contribution. By 1991/92 research will be completely GOI funded.
It is anticipated that the experience and skills obtained while conducting research with AID funds will enable the new Faculties to develop the expertise, credibility, and reputation as research
institutions to attract the balance of the GOI contribution from the Ministry of Health, BKKBN, and other sources sufficient to maintain annual research funding levels of approximately $75,000/Faculty/year upon cessation of the project funding.
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-E. Technical Assistance
Foreign and Indonesian expertise will be utilized to upgrade the teaching, technical, administrative, and research capacities of the FKMs. The project will provide up to 100 person months of short term domestic technical assistance, up to 65 person months of short term international technical assistance, and up to 60 person months of the services of a long term advisor to the Project Management Unit. For the long term advisor, AID grant funds will support salary, benefits, housing and utilities, international and domestic travel and per diem for domestic travel. GO! funds will finance any Indonesian taxes incurred. All costs of short term international consultants will be funded by AID. Compensation for domestic short term consultants, their travel, per diem, and other direct costs, will be funded by AID within GO! guidelines.
F. Planning and Review Meetings
Annual national project planning and review meetings, one per year beginning in year 2, will review progress, set project policy guidelines, and develop annual project workplans. Local project planning and review meetings (one per year at each Faculty beginning in year 2) will be held to translate national project policy
guidelines into local annual workplans appropriate to each FKM. All planning meetings conducted during the project will be AID funded.
G. Project Administration/Coordination
The responsibilities and composition of the Project Steering Committee, PMU, LMUs, and local Advisory Boards are described in Section II. As an exception to normal AID procedures, supplemental salaries for the PMU staff, honoraria for PMU administrative
V. Monitoring and Evaluation
Responsibility for monitoring project implementation will rest primarily with the Project Management Unit. Monitoring reports will be submitted semi-annually to the Director General for Higher Education.
A mid-term evaluation will be conducted with project funds after the third year of project implementation to review progress, assess the
appropriateness of project inputs, and recommend any necessary changes in project targets, administrative mechanisms or planning systems. It is expected that a four person team of domestic and external consultants will be used for this purpose.
A final evaluation will be carried out during the last year of
project implementation. Prior to the evaluation each FKM will conduct an internal assessment of its progress toward goals specified in its Five Year Development plan. External consultants will be appointed to review routine monitoring data and the individual Faculty internal assessments, and conduct the final project evaluation.
VI. Illustrative Financial Plan:
L 0 A N
FX
I
Training 2,684I
Commodities 145!Technical Assistance 0
I
Research 0!Planning Meetings 0
I
Infrastructure 0!Project Management 0
I
Evaluation 0I
Inflation/Contingency 7165,000
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-BUDGET SUMMARY (US$ $000)
AID
GRANT
LC
FX
LC779.8 0 0
502 0 0
0 1,492 624.1
0 0 748.1
173.2 0 0
0 0 0
0 0 509.7
0 76 18
532.1
4,000
G 0 I
FX
LC T 0 T A L10 677 4,150.8
0 787 1,434
0 0 2,116.1
0 760 1,508.1
0 0 173.2
0 3,894 3,894
0 250 759.7
0 0 94
1,248.1
