... Project No .: 497-0325
PROJE CT
ｌｏａＮｾ＠ AGREE ... fENT
.SE TWEEN
REPU.3LIC OF ｉ ｎｄＰｾＲ ｓ ｉａ＠
UNITED SI ATES Or Ｎｾ｜ｦｅｾｉｃａ＠
FG!\
COnPREHENSI\G H2ALTE ＺＲＱ＿ＳＮＰｩＮ ＺＺ ｾ ｾ ｾ ＺＧ＠ ＿ｾｏｇ ｒａＩｦ ﾭ ｐｒｏｖｉｾｃｅ＠ S?ECI? =c
Project Loan Agreement
Article 1: The Agreerc.e nt Article 2: The Project
SECTION 2.1. Definition of Project
SECTION 2.2 . Incremental Na ture of Project Article 3: Financing
SECTION 3 .1.
SECTION 3. 2 .
SECTION 3.3 .
The Loan
Borrower ｐｾｳｯｵｲ｣･ｳ＠ for the Project Pro ject Assistance Comple tion Date Article
4:
l oan TermsSECTIO N 4.1.
SECTION 4 . 2 .
SECTION 4.3 . SECTION 4.4.
ｓｅｃ ｔｉｏｾ＠ 4 .5.
SECTION 4. 6 .
Inte rest
Borrower Resources for the Project
ａｰ ｰ ｬｩ ｣｡ｴｩｯｾＬ＠ a.irrency, ｡ｾｾ＠ Placeof Payment Prepay:nent
Renegotiation of Ter:!ls
Ten::.ir..atio:i o: ?ul2. ?c.:-:!::::t
Article 5: Conditions Precedent to Ｚ［Ｚｳ｢ｵ］ｳ･ｾ･ｮｴ＠ SECTION
SECTION 5.3.
ｾ＠ '·
...,,
.
-·
Concitions ｐｲ･｣･､･ｾＺ＠ ｲｾ＠ J:.sbursement Ac'.di=ional ｾｩｳ｢ｵ］ｳ･Ａ･］ ］＠
ｾｯｴＺＮｅｩ｣｡ｴｩｯｮ＠
Te:-;:i.:.::.:. l :::C:es Precedent
Article 7: ｐｲｯ｣ｵｲ･ｾ･ｮ｣＠ Source SC:CTION 7 .1.
SECTION 7. 2.
.t\::"ticle 8:
ｓｅｃｔｉｏｾｩ＠ 8 .1.
SECTION 8.2.
SECTION 8.3.
SECTION 8 . 4 . SECTION 8. 5.
Fore:g-n :Xd:ar-.g2 Cos ts Loca.!. Ct::-::-ency Cos=s
ｄｩｳｾｵＺＺＭｳ･］･ｮｴ＠ for ?o::-e:g:: Exchange Costs D:.sbu::-se=e3: foe ｌｯ｣ｾｬ＠ 0J::-rency Costs Other ?o!"::ls 0i Disbu::-se2ent
SECTION 9 . 1.
ｓｅｃｔｉｏｾ＠ 9.2 . SECTIOK 9 . 3 .
Cor.ununicat i ons
Re presenta ti ve s
Project Loan Agr eement
Dated : ·S ep t ernb e r 30 ' 1981
Between
Re public of Indonesia ( "Borrower " )
And
Yne United Sta tes of America , acting trough the Age nc y for Int ernat:.o:lal ｄ･ｶ･ｬｯｰｾ･ｮｴ＠ ( " A. I.D . ") .
Art icle 1: The Ag r eement
The purpose of this ａｧｲ･･ｾ･ｾＺ＠ is ｾｾ＠ Ｓｾｾ＠ out t he
understandings of t he part ies ne.o.ed 2":>0-.-e ("Parties ") wi th respect to the undertaking by the Ｓｾｾｲｯｷｾｲ＠ o: the Pr o j ect
､･ｳ｣ｲｩｾ･､＠ below , a nd with r espect t o :he ＺＺＮｾ｡ｮ｣ｩｮｧ＠ of the Project by the Parties .
Article 2 : The Pro:ect
SECTION 2. 1. ｄ･ｦｩ｡ｩｲｩｯｾ＠ of ｐＺＺｯｾ･｣ｴＮ＠ D:e Project , which is further described in ｾＮＺｩｮ･ｸ＠ l, will assist : he Government of
personne l serving in these province s and by i mproving the capabilities of provinci al healt h officials to target, manage and evaluate specific health and nutrition activities. Annex 1, attached, amplifies the abo-.-e de finition of the Project •
.
Within the limits of t he above definition of the Project, elements of the amplified description stated in Annex 1 may be changed by written agreement o f the authorized representatives of the Parties named in Section 9.2, without formal amendment of this Agreement.
SECTION 2.2 Incremental ｾ｡ｴｵｲ･＠ of t he Project
(a) A.I.D . 's contri bution to the Project will be provided in i ncrements, the initi a l one being made available in
accordance with SECTION 3.1 of this ｡ｧｲ ･･ｯ･ ｾｴＮ＠ Subsequent increments will be sub jecc tc availabili:y ｾ］＠ funds to A. I.D. for this purpose, and to mutual ｡ｧｲ･･ｾ･ｾＺ＠ ｾ］＠ the Parties , at the time of a subsequent increment, tc proceed.
(b) Within the overall ＿ｲｯｪ･ｾ｣＠ ｾｾｳｾｳｴｾ］Ｚ＠ Conpleti on Cate stated ｩｾ＠ this Agreement, A.: . D., ｢｡ｳ･ｾｾ＿ｾ］＠ consultation with the ｃＰｯｰ･ｲ｡ｴｩｾｧ＠ Country, ｾ｣ｙ＠ specify iJ ?:-ojecc Implementation Letters appropriate tioe ?eriods ｾｯｲ＠ :n: utilization of
provided by A.I. D. uncer an indivicucl ｩｾｾｲ･ｩｬｬ･ｮ ｴＮ＠
Article 3: Financing
to Nine Million United States ("U.S.") Dollars ($9,000,000) in increments, to support the Project. As an initial ｩｮ｣ｲ･ｾ･ｮｴＬ＠
A.I.D. agrees ｾｯ＠ lend the Borrower under the terms of this Agreement not exceed Six Million United States ("U . S . ") dollars
($6,000,000) ("Loan"). The aggregate amount of disbursements under the Loan is referred to as "Principal".
The Loan may be used t o finance foreign exchange costs, as defined in ｓｅｃｔｉｏｾ＠ 7 . 1, ｡ｾ､＠ local currency costs, as defined in SECTION 7.2, of goods and services required for the Project.
SECTION 3.2 . Borrower Resources for the Project . (a) The Borrower agrees to provide or cause to be provided for the Project all funds, in addition to the Loan, and all other resources required to carry out the Project effectively and in a ｾｩｾ ･ ｬｹ＠ ｣｡ｾｮ･ｲＮ＠ (b) The resources provided by Borrower for the Project will be not less than the equivalent of U. S. S9,000, 000, i:-icluC::ir:.g costs borne on a :: "in-kind" basis.
ｓｅｃｔｉｏｾ＠ 3.3. Project Assistance CoLoletion Date.
(a) The "Project Assistance Completion Date" (PACD), which is September 30, 1986, or such other date as the Parties may agree to in w""riting, is the date by which the Parties estimate
that all services financed under the Loac will have been
performed and all goods ｦｩｮ｡ｾ｣･､＠ ｵｮ､ ･ ｾ＠ the Loan will have been furnished for the Pr oject as contemplated in this Agreement.
authorize disbursement o f the Loan for services performed
sub s equent to the PACD or for goods furnishe d f or the Project,
as contemplated in this Agreeme nt, subseque nt to the PACD.
(c) Re que s ts f or ､ ｩ ｳ｢ｵｾｳ･ｮ･ｮｴ Ｌ＠ accompa nied by nece s sa ry
supporting documentaio n pres c ribed in Project Impmementation
Letters, are to be re cei vec by A.I.D. or any bank described in
Section 8.1 no later t han nine (9) months following the PACD,
or such other period as A. I . D. agre es to i n writing. After
su ch period, A.I.D., g iving no t ice in writi ng to the Borrower,
may at any time or times ｲ･ｾｵ｣･＠ t he a8ount of t he Loan by all
or any part the reo f for which requests fo r dis b urseme nt,
accompanied by ne cessar y ｳｵＱｾｰＰｲｴｩｮｧ＠ docuCTenta tion pres cri be d in
Proj e ct Impleme ntation Le tters, were P-ot rece i ve d be f o r e t he
expirati on of sai d period.
Article 4 : Loan Terms
SEC:ION 4. 1. In:eres t. The 3orrowe::- will pay to A. I . D.
interest whicn w-:_11 ｡｣｣ｲｾ･＠ at rhe ｾ｡ｾ･＠ of tvo percent (2%) per
a7<nt.:2 ｦｯｾ＠ te'Ll (lO) yea::-s fol low::.ng : he Jate of the first
ｾＭＭＭＮＴＭＮＮｬ＠ ....
-､ｃＮｌｃＺｗＮｕＭｃｾ＠
per annum thereafter on tne outstanding ｾ｡ｬ｡ｮ｣･＠ of Pri ncipal
and on any due anc unpaici interest. Intere3t on t he
outstanding balance will ｡｣ｲｾ･＠ fr0n th2 Qate (as defi ned in
Section 8 . 5) of each ｲ･ｳｾ･｣ｴｩＷ･＠ ､ｩｳ｢ｵｲｳ･ｾ･ｮｌ Ｌ＠ an d will be
payable semia::lnually. The ::i::-st payment 0£ interest will be
payable no later than six (6) months afLer the f i rst
SECTION 4.2. Repayment. The Borrower will repay to A.I.D. the Principal within forty (40) years from the date of the first disbursement of the Loan in sixty-one (61) approximately equal semiannual install2ents of Principal and interest. The first installment of Principal will be payable nine and
one-half (9-1/2) years after the date on which the first
interest payment is due in accordance with Section 4.1. A.I.D. will provide the Borrower with an amortization schedule in accordance with this ｓ･｣ｴｩｯｾ＠ after the final disbursement under the Loan.
SECTION 4.3. Application, Currency, and Place of Payuent. All payments of interest a nd Principal hereunder will be made in U.S. Dollars and will be a?plied first to the payment of interest due and then to t he repayment of Principal. Except as A.I.D. may otherwise specify in writing, payments will be made to the Controller, Office of Financial Management, Agency for Internatioaal ｄ･ｶ･ｬｯｰｾ･ｮｴＬ＠ Washington,
D.c.
20523, U.S.A., and '1il l be deemed oade when received by the Office of Financial Manageoent .ｓｾｃｔｉｇｎ＠ 4.4. Prepayment. upon payment of all intere st and any refunds then due, the Borrower may prepay, without penalty, all or any part of the Principal. Unless A.I.D. otherwise a grees in writing, any such prepayment ｷｾｬｬ＠ be applied to the installments of Principal in the inverse ｯ ｾＲ･ｲ＠ of their
maturity.
the event that there is any si gnificant and continuing
improvement in the internal and external economic and financial position and prospects of Re public of Indonesia, which enable
the Borrower to ｾ･ｰ｡ｹ＠ t he ｾ ｯ ｡ ｾ＠ o n a shorter schedule. (b) Any requese by either Party to the other to so
negotiate will be made pursuant to Section 9.2, and will give the name and address of the person or persons who will
represent ther requesting Pa:-ty in such negotiations.
(c) Within thirty (3 0) da ys after delivery of a request to negotiate, the requested Fa:-t y -,.rill co!!llllunicate to the other, pursuant to Section 9.2, t he ｮ｡ｾ ･＠ and address of the person or persons who will represent i:he r eq ue s te d Pa:-ty in such
negotiations.
(d) The represe nta ti ves of t he ｐ｡ ｾ ｴｩ･ｳ＠ will meet t o c a r r y on negoti a t i ons no ｬ ｡ ｾ ･ ｲ＠ t han ｴｨｩＺＭｾｹ＠ (3 0) days after delive ry of the reques t e d Pa rt y 's ｣ｯｩＡｄｵｮｩ｣｡ｴｩｯＱｾ＠ unce r subsection (c). TQe ｾ･ｧｯ ｣ ｩ｡ ｴｩ ｯｮｳ＠ will take place a: a ｬｯ ｣｡ ｾ ｩｯｮ＠ outually agree d upon by the ｲ ･ｰ ＺＭ ･ｳ･ｮｴ｡ｾｩ ｶ ･ｳ＠ ｯｾ＠ ｾ ｨ･＠ ＿ｾ ｾＺ ｩ･ｳＬ＠ pr ovide d tha t, i n the absence of ｭｵ ｾ ｵ｡ｬ＠ agr ee=ent, :he ｮ･ ｾ ｯ ｴ ｩ｡ ｴ ｩｯ ｮｳ＠ will t ake place a t the office of Ｓｯ ｲ ｲｯｾ･ｲ Ｑ ｳ＠ Ｈ ｾｾｮｩ ｳ ｴ ｲ ｹ＠ oi Fi nance) l n
Re public o f Ind onesia .
Article 5: Conditions Precedent to Disbursement
SECTION 5.1. First Disbursement . Prior to the first disbursement under the Loan, or to the issuance by A.I.D. of documentation pursuant to ｾｨｩ｣ｨ＠ disbursement will be made, the Borrower will, except as the Parties may otherwise agree in writing, furnish to A.I.D. in form and substance satisfactory to A.I.D.:
(a) An opinion of counsel acceptable to A.I.D. that this Agreement has been duly authorized and/or ratified by, and executed on behalf of, the Borrower, and that it constitutes a valid and legally binding obligation of the Borrower in
accordance with all of its terms;
(b) A statement of the name of the person holding or acting in the office of the Bo rrower specified in Section 9.2, and of any additional representatives, together with a specimen signature of each person specified in such statement;
ｓｅｃｔｉｏｾ＠ 5 . 2. Notification . \.Then A.I.D . has determined that the conditions precedent specified in Section 5.1 have been ｾ ･ｴＬ＠ it will pronptly notify the Borrower.
Arti cl e 6: Special Covenants
SECTION 6.1. Projec t Evaluation. The Parties agree to establish an eva lua tio n ｰｲＰｾ ｲ ｡Ｎｷ＠ a s part of the Project. Except as the Parties othe r wise a6ree i n writing , the program will include, during the 1 mpleme n tation of the Project and at one or more points thereafter: (a) e valuation of progress toward attainment of the obj ectives of the Proje ct; (b)
identification and eva l uation o f pro blem areas or constraints which may inhibit such at ta.2.n::ien t; (c) assessment of how such
inf orma tion may be used t o help ove rc ome such problems; and (d) evaluation, to the degree feasible , o f the overa ll development i mpact of t he Pr oject.
Artic l e 7: Pr oc urement Sou rce
SECTION 7. 1 . Foreign Sxchange Costs . Disburseme n ts
pursuant to Section 8 . 1 ｷｾ ｬ ｬ＠ be usec exclusively to finance the ｣ｯｳｾｳ＠ of goods and services required fo r the Pro jec t havi ng their sour ce ｡ｾ､＠ origin iJ countries ｩｮ｣ｬｾ｣･､＠ i n Code 9 41 of the A. I . D. C-eogra?hic Code 3ook as ｩｾ＠ ei=ect at t he t i me o rders a r e placed or contracts entered ｩｾＺｯ＠ :or such goods and
services (" Fo r eign Exchange ｃｯｳｴｳ Ｂ Ｉｾ＠ except as A.I. D. may
SECTION 7.2. Local Currency Costs. Disbursements pursuant to Section 8.2 will be used exclusively to finance the costs of goods and services ｲ･ｱｵｾｲ･ ､＠ for the Project having their source and, except as A.I.D. ｾ｡ ｹ＠ otherwise agree in writing, their origin in Republic Qf Indonesia ("Local Currency Costs"). To
the extent provided for under this Agreement, "Local Currency Costs" may also include the provision of local currency
resources required for the Project.
Article 8: Disbursements
SECTION 8 . 1. Disbursement for Foreign Exchange Costs. (a) After satisfaction of conditions precedent, the Borrower may obtain disbursements of funds under the Loan for
the Foreign Exchange Costs o f goods or services required for the Project in accordance with the terms of this Agreement, by such of the following methods as may be mutally agreed upon:
(1) by suboitting to A.I.D., witn necessary s upp orting docunentation as prescribed ｩｾ＠ Project
L:npl2mentation Letters, (A) requests for reimbursement for such good$ or s=rvices, or (B) request s for A.I. D. to ｰｲｯ｣ｾｲ･＠
collll!lodities or services in Borrower's behalf for the Project; or
(2) by requesting A.I.D. to iss ue Letters of
or services, or (B) directly to one or more contractors or suppliers, committing A. I.D. to pay such contractors or suppliers for such gocds 0r services.
(b) Banking charges incurred by Borrower in connection with Letters of Com.ttment and Letters of Credit will be
financed under the Loan unless the Borrower instructs A.I.D. to the contrary. Such other charges as the Parties may agree to may also be financed under the Loan .
SECTION 8 . 2. Disburseoe nt for Local Currency costs. After satisfaction of conditions precedent, the Borrower may obtain disbursements of ｦｾｮ､ｳ＠ under the Loan for Local
Currency Costs required for the Project in accordance with the terms of this Agreement, by ｳｾｾｭｩｴｴｩｲＮｧ＠ to A.I.D., with
necessary supporting ､ｯ｣ｵｭ･ｮｴ｡ｴｩｯｾ＠ as prescribed in Project Implementation Letters, requests :o ﾣ ｩｮ｡ｾ｣･＠ such costs. These disbursements may be made by A.I.D.: (1) In U.S. Dollars equivalent to the local currency costs , o:- (2) In local currency acquirej by Ｌｾ｟ ｉ ｪＩ＠ b:,.- pu:-chas e or f :-;::c local currency already owned by the
u.S.
ｃＭＰ ｶ･ ｲｾｮ･ ｮ ｾＮ＠of the Loan may also be wade through such o:her means as the Parties may agree to in wr iting.
ｓｅｃｔｉｏｾ＠ 8.4. Rate of ｴＺＮＮＮｾ｣ｨ｡｡ｧ･Ｎ＠ ｅｸ｣･ｰｾ＠ as may be more specifically ｰｲｯｶｾ､･､＠ ｵｾ､･ ｲ＠ Section 8 .2, if funds provided under the Loan are introduced into Republic of Indonesia by A.I.D. or any public or privace agency for purposes of carrying
r
such arrangements as may be necessa ry so that such funds may be converted into currency of Republic of Indonesia at the highest rate of exchange which, at the time of conversion is made, is not unlawful in Republic 0£ Indonesia .
SECTION 8.5. Date of Disbursement . Disbursements by A.I.D. will be deemed to occur (a) on the date on which A.r.n. makes a disbursement to the Borrower or its designee, or to a
bank, contractor or supplier pursuant to a Letter of
C.Ommitment, contract, or purchase order; (b) on the date on which A.I.D. disburses to tne Borrower or its designee local currency acquired in accordance ｷｾｴｨ＠ Section 8.2(b)(l); or (c) if local currency is obtained in accordance with Section 8.2.
Article 9: Miscellaneous
SECTION 9.1. Communications. Any notice , request,
document, or other communication submitted by 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 delivered to such party a t the following address:
7o t he Borrower:
Mail Address: Departemen Luar Negeri Jalan Pejambon No . 6 Jakarta Pusat
Indonesia
To A.I.D.:
Mail Address: United States Agency for International Development Jaka rta
Indonesi a
Alternate Address for telegrams: USAID AMEMB JAKARTA
All such comminications will be in English, unless the Parties otherwise agree in writing . Other addresses may be substituted for the above upon the giving of notice. The Borrower, in addition, will provide the USAiD Mission with a copy of each communication sent to A.I.D.
SECTION 9.2. Representati ves. For all purposes relevant to this Agreement, the Borrower will be represente d by the individual holding or acting in the o=fi ce of Chairman or Vice Chairman, National Development ｐｬｾｮｾｮ ｧ＠ Agency (BAPPENAS) and A.I.D. •.vill be ｲ･ｰｲ･ｳ･ｾｴ･､＠ by the ｾｮ､ｩｶｩ､ｵ｡ｬ＠ holding or acting in the office of Missior. Director, ｄｓｾｉｄ＠ ｾｾｳｳｩｯｮ＠ to Indonesia, each of whom, by written notice, ｾ｡ ｹ＠ ､･ｳｩｧｾ｡ｴ･＠ additi onal ｲ･ｰｲ･ｾ･ｮｴ｡ｴｩｶ･Ｕ＠ ｦｶｾ＠ a.--4
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,
,
ＭＭＭＭＭＭｾ＠}"'U.• rv..:>"-J ....SECTION 9.3. Standard P:-ovisions Annex. A "Project Loan Standard Provisions Annex" (A.<nex 2) is attached to and forms part of this Agreement.
IN WITNESS WHEREOF, the Republic of Indonesia and the United States of America, each acting through its duly authorized representative, have caused this Agreement to be signed in their names and delivered as of the day and year first above written.
REPUBLIC OF INDONESIA
Signed
M. Sj afei
Director for Investment and Financial Cooperation
tn·rITED STATES OF AMERICA
Signed
DETAILED PROJECT DESCRIPTION
1. Goal and Purpo se
The Project will consist of intensive work over five years in ' health development through a primary health care approach and
the provincial health s ystem in three outer island provinces: Nusa Tenggara Timur, Sumatera Barat, and Daerah Istimewa Aceh. The Project will work towa rd the broadly defined goal of
improving the general heal th and nutrition status of the rural populations in the se provinces . In quantitative terms the Parties anticipate t hat the Projec t will assist these three provinces reach the following standards by 1990: (a) decrease the infant mortality r ate to at leas t 75 per 1000 live births; and (b) at leas t double the numbe r of rural women and children rece iving effective health ｡ｾ､＠ nutrition services. The project is considered as part of the National Heal th Development in the three mentioned provinces.
Progress toward these goals will require a broad spectrum of project acti vi ties, speci f:i_cally quanti ta ti ve manpower
development, qualitative manpower develo;:iuent and sectoral systems development. Addressing these needs , the purpose of the Project is to accelerate and intensify the upgrading of the health sec tor servi ce s delivery systeos of these provinces in order:
- that there wi ll be a significantly ｩｾ｣ｲ･｡ｳ･､＠ number o f pro fessional rural health ｷｯｲｫ･ｾｳ＠ and that the ir training will be appropriate ｦｯｾ＠ t he co2WuU:.:=ies in which they will work;
- that the provincial health ｳｹｳｾ･ｩｬｬ＠ will be better abl e technically, ｡ｾ｡ｬｹｴｩ｣｡ｬｬｹ＠ and ｮ｡ｮ｡ｧ･ ｾｾ｡ ｬｬｹ＠ to carry out programs for which they are responsible;
- ＺＺｲＬＮ｡Ｎｾ＠ ｾ ｾ｣Ｎ＠ ｾ｣｡ｬ＠ ｾｨＯＺＺｾ＠ t ri tier: i::t:ey-..re!!-; c!! programs vil l he bet t er adapted to the often urique cLrcumstances in these provinces; and
2. Project Outputs - Summarize d for all Provinces a. Manpower Develop:::ient
1) Primary Health Nurse (Perawat Kesehatan)
All three provinces will expand the numbers and capabilities of ｴｨｾ＠ primary health nurse (PK) working in the
Puskesmas. It is anticipated that by 1986 the following additional personnel will have been trained:
480 in the 3 year course
520 in the 12 month supplemental course
Quality of performance w"i.11 be further enhanced through: a) on-the-job training received as part of their participation in studies, surveys and intervention trials, b) expanded community participation training, and c) in some cases short-courses for upgrading technical, analytical or managerial skills.
2) Nursing Teachers
Additional teacher will be re qui red to staff adequately the nursing schools ｾｨ･ｲ･＠ the nurses will be trained. A total of approximately 125 teachers are expecte d to be trained in the 3 provinces by the end of t he project.
3) Rural Sanitarians
ａｰｰｲｯｸｩｾ｡ｴ･ｬｹ＠ 85 new sanitarians will be trained for D. I. Aceh and NTT.
4) Laboratory Technicians
Ill D.I. Aceh approximately eight y sanitarians or other Puskesmas paramedical staff will be given a 3-month course at the provincial laboratory technicians training school (Sekolah Analis) in basic laboratory techniques and return to their posts.
5) Laboratory Technician Teachers
6) Community Volunteers
Villagers (es pecially women) will receive training in community diagnosis, cas e findi ng, simple treatments, case
follow-up, illness prevention and health/nutrition/family planning 'education. Supervisors will receive training in supervisory,
·motivational and' manageri al skills. 7) Medical School Faculty
Faculty involved with the community medicine programs of the medical school being developed in D.I. Aceh and the one
operating in Sumatera Barat will receive training in community medicine approaches directly from consultants and through short
course s , obs ervational tours and perhaps degree training courses. 8) Medical Students
Medical student s will r eceive inst ruction, including extensive field work, in c om:o.unity medicine . They will also
recei ve t echnical and managerial ｴｲ｡ｩｮｩｾｧ＠ intended to help them desig n and manage health sector programs as Heal th Center
doctors/managers .
9) Health Center Physicians ｡ｾ､＠ othe r staff
Some Puskesmas physicians atld staff will participa t e in surveys , s pe ci a l studies and inte rvention t r ials. Various staff meobers wil l take part in observation tours a 4 d short course s.
10) ｾｯｶｩｮ｣ｩ｡ｬ＠ and 1<2.bu?ateJ ｅ･ＮＺｴｬｴｾＯｾｵｴ ｲｩｴｩｯｮ＠ officials Many of these officials T,.;ill receive training and
improve or upgr ade their okills by ､ｩ ｲＲｾｴ＠ ｰ｡ ｾｴｩｾｩｰ｡ｴｩ｣ｾ＠ Ｔ ｾ＠
surveys, s tudies, intervention trials and evaluations,
observati onal t ours and short courses and some long-t erm academic degree progr ams i n public health and management, mos tl y in
Indonesia .
b. Sectora l Systems Developnent 1) Epidemiological Sur vey
Various surveys will be carri ed out in each Province a t different l eve ls including, among ｯｴｾ･ｲｳ Ｌ＠ pro tein-calorie
2) Vital and Health Center Statistics
A simple vital statistics gathering system will be initiated in pilot areas in one or two kabupatens per province.
Health Center statistics which were developed in early 1981 will ,further be strengthenec in the three provinces.
3) Diarrheal Disease Control Program
In one kabupaten in D.I. Aceh the epidemiology and patterns of epidemic and endemic diarrheal diseases will be studied, alternative instructions analyzed and a kabupaten-wide control program undertaken.
4) Tuberculosis Control
In D.I. Aceh a province-wide strategy for tuberculosis control will be developed on the basis of surveys and intervention trials.
5) Nutrition Intervention Programs
Province-wide nutrition intervention programs will be developed (or revised) based on analyses of results of nutritional status surveys, food and consumption studies and intervention trials.
6) Role of Women
Opportunities to strengthen the role played by village women volunteers in health/nutrition/family planning improvement
program will be studied. 7) Other studies
Some other specialized studies to be carried out include the following:
a) strengthening the school health system (NTT, Sumbar) b) upgrading the services of traditional birth attendants
(all provinces)
c) maximizing coverage of pregnant women with tetanus immunization (all provinces)
d) improving cold chain maintenance for immunization program (Sumbar)
e) rabies control (D.I. Aceh)
5
-8) Role of PKK in Health Sector Delivery System
The funct ion of the PKK village welfare movement and its relationship to the Pu s<esmas will be analyzed in pilot project areas and findings incorporated in design of community-level 'programs supported by t he P::"ojec t. (NTT, possibly Sumbar and D.I.
·Ac eh)
9) Cormnunity Medicine/Health Services Delivery
In one kabupaten in Sumatera Barat the community medicine program at Andalas Univers ity and the provincial and kabupaten health servi ces will collabo rate to: a) provide practical training to t he medi cal students and b) provide
intensified health services in collaboration with the corrnnunity.
3. Project Administration
The Projec t will be administered for the GOI by the Department of Health. A Project ｉｭｰｬ･ｾ･ｮｴ｡ｴｩ｣ｮ＠ Unit ( PIU) will be established at t he central level and a ce nt r al level Pro ject Coordinat or will
be designated to carry ou t specif ic respo41si bilities: (a) to keep all app ro priate sections o f the Department inf ormed of project activities in the ir areas of r esponsibi:ity ; (b ) to coordinate the annual central project r eview and ft:4lding approval process ; (c) to mai n tain financ i al ｡｣｣ｯｵｮｴｩｲｾ＠ on ac:ivities in all three
provinces; (d) to expedite contracting and procur ement services for all three p=ovinces; and ( e) to arrange national-level technical assistance and support fo= the Proje ct when needed.
A sub PIU wil l be established in each pr ovince, led by t he Head of the Provincial Health Services ＨｎＺＮｾｮｗＧｩｬＩ＠ as Project
Coordinator . The provincial PI U will be tech:ri cally and
arm;n.istrati ve l y re sponsible for the Project with inputs f r on the BAPPEDA. The Kakanwil of ｓｵｭ｡ｾ･ｲ｡＠ 3arat anc
u.L.
Aceh will ｨ｡ｾ｣＠overall r esponsibility for aduin.istering funds used for the Community Medicine project activities as C:Oordinat ors of their r espective PIUs .
USAID staff f r oo the Office of E=alth ｡ｾ､＠ ｾｵｴ ｲｩ ｴｩｯｮ＠ will make regul a r inputs to Project ｾｯ＿ｬ･ｮ･ｮｴ｡ｴＮｩｯＳ＠ acd management . One ful l - time , long- ten ｴ･｣ｨｾ｣｡ｬ＠ acviso::- i:i. each province i s
expected to pr ovide ｾ｡ｪｯ ｲ＠ techni cal a3d ｡｣ｾｩｮｩｳ ｴｲ｡ｴｩｶ･＠ assistance. Indonesian and foreign ｳｾｯ ｾｴＭｴ ･ｲｭ＠ consulcant s will be utilized as neede d. The Government ｷｾｬｬ＠ facilitate acce ss to the three Project provinces for USAID Office of Health and Nu trition staff and the long a nd short-term .:oreign consultants assigned to the Project.
Some of the activiti es to be carried out under this project are multisectoral and, although coordinated by Ministry of Health, will require coordi na t ion with programs at the provincial level of BKKBN and Ministries of Education and Culture> Agriculture, Home Affairs and ｒ･ｬｩｧｩ ｯｾ Ｎ＠
4. Implementation Plans and Financial Procedures
For each year of the Project each provincial PIU will prepare an implementation plan and budgets to be submitted to Depkes in Jakarta as part of t heir regular annual budgeting process. This is begun in September when DUPs are prepared for activities to begin at the start of the next fiscal year in April. Following review
and approval in Jakarta by Depkes and BAPPENAS, DIPs are established providing funds in the Depkes budget for Project
implementation. ｕｓｾｉｄ＠ will review and approve the province's annual implementation plans for the Project. USAID's approval and confirmation that loan funds will be available according to the plans' budgets will be communicated to the Government in Project Implementation Letters (PIL). A separate PIL will be prepared referring to each province progra:n. specifically. The PILs will specify what costs 'Will be eligible for r eimbursement by Loan funds.
The Government will provide a minimum of 15 vehicles per province for Project management> supervision and implementation, of which one vehicle will be ma de available for the full time u se of the l ong-term consultant, i.e. in Banda Aceh, in Kupang> a nd in Padang. The Govern::ient 'Will finance the costs of operating and maintaining vehicles for the Project. A delivery plan or schedule
for the vehi cles w-:. 11 be prepared f or each province and agreed upon by the Govern::ient and USAID as part of the first year Project implementation ｰｬ｡ｾｳ＠ for each province.
\
j
l \
Attachment 1 to Annex 1 FINANCIAL PLAN
In ord e r to ｣｡ｾｲｹ＠ out t he project the Government of Indonesia will utilize the AID l oa n fu nds and its counterpart fund s
according to the budget SUJI!!jlarized below, based on the Project Paper.
MANPOWER DEVELOPMENT OTHER TRAINING
FIELD STUDIES & TRIALS TECHNICAL ASSISTANCE ｃｏｾｦｍｕｎ ｉ ｔｙ＠ ME DI CI NE VEHICLES
EVALUATION
ｃｏｩ｜Ｍｲｉｎｇｅｾｃｙ＠
T 0 T A L
FI KANCIAL SUMMARY
( $ 000)
LOAN
com."TERP
ART $ 2 , 135 $ 1,950750 750
3 , 000 3, 990
2 , 200 3 90
220 420
750
300 30 0
395 4 50
$
9, ooo*
$
9 , 000TOTAL
$
4,0851,500 6,99 0 2,590 6 40 7 50 600 845
$
18 ,000Cost of commodities , equip8ent , travel and trai ni ng procu red in code 941 countries will be financ ed us ing AI D l oan f unds ; procurement in Indonesia w'"ill be f ina nced by e i t her Government counterpart or AID ｬ･｡ｾ＠ funds. Any
requirements f or new ｣ｯｾｳｴｲｵ｣ｴｩｯｮＬ＠ ｲ･ｨ｡ｾｩｬｩｴ｡ｴ ｩｯｮ＠ or renta l for the training facilities ｦｯｾ＠ ｾ｡ＺＮｰｯｷ･ｲ＠ deve l opment will be provided by t he ｇｯｶ･ ｲ ｾｩｬｬ･ｮｴ Ｎ＠ Co::nnodities handling cost s
wi t hin I ndones i a will be cover-ec! by the Governmen t .
*AI D wi l l provi de
$
6 million from FY 81 funds ; a dd iti onal fu nds will be provided subject to their a vai labil i ty a nd the mutual agr eement of the ?arties ｾｯ＠ pro ceed.'
( I tl
I ! Ii
I
(i
ｾ＠
I
lJ
Loan funds will not be use d to pay salaries of regular Governme nt employees assigned to the Project. The Government of Indonesia will contribute considerable time of its Health Department staff from ce nt r a l, provincial and local levels who s e regular salaries are not included in the Project ' budge t. Specific technical contributions may also be
provided by the 'Directo rate of Nutrition, the Directorate of Communicable Diseases Cont rol, the Directorate of Food and Drugs, the Directorate of Community Health, and the Bureau of Planning.
One million five hund red thousand dollars ($1,500,000) of AID loan funds budgeted for technical assistance is intended to cover the costs of three long-term technical advisors to be based in Banda Aceh , Ku?ang a nd Padang for approximately four years each. Seven hundre d thousand dollars ($700,000) of AID loan funds is intended to cover the costs of
short-term consultants as needed , utilizing Indonesian and foreign expertise as appropLlate .
The line item amount s ｳｨｯｾＭｮ＠ in t he Financ ial Summary may be adjusted up to 20 percent (20%) of any line item by mutual agreement of the additional r epresentatives
designated by the repre sentatives mentioned in Section 9.2, provide d that the total AID contribution is not increased or the total Borrower ' s agreed contribution is not decreased.
Upgraded projections of expenditures by year will be develope d by the parties . It is anticipated that the expendi tures by year will be as follows :
Year
I I I
III IV +1/2
TOTAL
Project
$
PROJECTION OF EXPENDITURES 3Y YEAR
($000)
Loan Counterpart Total
1,725 1, 717 3,442
2,560 2,07 8 4, 638
2 , 460 2, 357 4,817 2 , 255 2 , 8L8 5,103
9,ooo*
9 , 000 18 ,000---
- ---
======
Duration: Until Septe:nber 30, 1986
Pro j ect Loan Standard Provisions
Annex 2
Article A:
Project Implementation Le tters
Article B:
General Covenants
SECTION B.l.
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.
1.SECTION C.2.
SECTION C.3.
SECTION C.4.
SECTION C.5 .
SECTION C.6.
SECTION C.
7 .
SECTION C.8.
Special Rules
Eligibility Date
Plans, Specifications, and Contracts
Reasonable Price
Notification to Potenti al Suppliers
Shipping
Insurance
U.S. Government-Owned Excess Property
Article
D:Termination; Remedies
SECTION D.
1.SECTION D.2.
SECTION D.3.
SECTION D.4.
SECTION D.S.
SECTION D.6.
SECTION D.7.
Cancellation by Borrower
Events of Default; Accelera t ion
Suspension
Cancellation by A.I.D.
Continued Effectiveness of Agreement
Refunds
Nonwaiver of Remedies
Page
1 1 1 12
2
2 , 3
3
3
3
3
3, 4
4
4 5
5
5' 6 6' 77
7
7
7' 8
8
8
9
9
Project Loan Standard Provisions Annex
Definitions: As used in this Annex, the "Agreement" refers to the Project Loan Agreement to which this Annex is attach eJ and of which this Annex forms a part. Terms used in this Annex h ave the same meaning or reference as in the Agreement.
Article A: Project Implementation Letters. To assist Borrower in the implementation of the Project, A.I . D., from time to time, wi ll issue Project Implementation Letters that will furnish additional information about matters stated in this Agreement. The parties may also use jointly agreed-upon Project Implementation Letters to confirm and record their mutual understanding on aspects of the implementation of this Agreement . Project Impl e mentation 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 Parties will cooperate to assure that the purpose of this Agreement will be accomplished. To this end, the Parties, at the request of either, will exchange views on the progress of the Project, the performance of
obliga-tions under this Agreement, the performance of any consultants, contractors, or suppliers engaged on the Project, and other mat-ters relating to the Project.
SECTION B.2 . Execution of Project. The Borrower will: (a) carry out the Project or cause it to be carried out with due diligence and efficienty .. 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
SECTION B.3.
Utilization of Goods and Services.
(a) Any resources financed under the Loan will, unless
otherwise agreed in writing by A.I.D . , be devot ed 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 Loan, except
as A.I.D. may otherwise agree in writing, will not be used
to promote or assist a foreign aid project or activity
associated with or financed by a country not included 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 Loan will be fr eE! from, and
the Principal and interest will be paid fre e irom, any
taxation or fees imposed under laws in effect in the
terri-tory of the Borrower.
(b) To the extent that (1) any contractor, including
any consulting firm, any personnel of such contractor
fi-nanced under the Loan, and any property or transactions
relating to such contracts and (2) any commodity procurement
transaction financed under the Loan are not exempt from
identifiable taxes, tariffs, duties, or other levies imposed
under laws in effect in the territory of the Borrower, the
Borrower 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 Loan .
SECTION B.S. Reports, Records, Inspections, Audit.
The Borrower will:
(a) furnish A.I.D. such information and reports relating
to the Project and to this Agreement as A.I.D. may reasonabl y
request;
SECTION B.5. (b)
last disbursement by A.I.D.; such books and records will also
be adequate to show the nature and extent of solicitations
of prospective suppliers of goods and services acquired, the
basis of award of contracts and orders, and che overall
progress of the Project toward completion; and
(c)
｡ｾｦｯｲ､＠authorized representatives of a Party the
opportunity at all reasonable times to inspect the Project,
the utilization of goods and services financed by such
Party, and books, records, and other documents relating to
the Project and the Loan.
SECTION B.6.
Completeness of Information.
The Borrower
confirms:
(a) that the facts and circumstances of which it has
informed A.I.D., or caused A.I.D. to be informed, in the
course of reaching agreement with A.I.D. on the Loan, are
accurate and complete, and include all facts and
circum-stances that might materially affect the Project and the
discharge of responsibilities under this Agreement;
(b) that it will inform A.I.D. in timely fashion of
any subsequent facts and circumstances that might materially
affect, or that it is reasonable to believe might so affect,
the Project or the discharge of responsibilities under this
Agreement .
SECTION B. 7.
Other Payments.
Borrower affirms that no
pay-ments have been or will be received by any official of the Borrower
in connection with the procurement of goods or services financed
under the Loan except fees, taxes, or similar payments legally
established in the country of the Borrower .
SECTION B. 8.
Information and
ｍ｡ｲｫｩｮｧｾ＠The Borrower will
give appropriate publicity to the Loan and the Project as a
pro-gram to which the United States has contributed, identify the
Project site, and mark goods financed by A.I.D., as described in
Project Implementation Letters.
Article C:
Procurement Provisions
SECTION C.1.
Special Rules.
SECTION C.l.
(b) Premiums for marine insurance placed in the territory
of the Borrower will be deemed an eligible Foreign Exchange
Cost, if otherwise eligible under Section C. 7(a)
(c) Any motor vehicles financed under the Loan will be
of United States manufacture, except as A.I.D. may
other-wise agree in writing.
SECTION C.2.
Eligibility Date.
No goods or services may b e
financed under the Loan which are procured pursuant to orders or
contracts firmly placed or entered into prior to the date of this
Agreement, except as the Parties may otherwise agree in writing .
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 Borrower will furnish to A.I.D. upon preparation:
(1) any plans, specifications, procurement of
con-struction schedules, contracts, or other documentation
relating to goods or services to be financed under the
Loan, including documentation relating to the
prequali-fication and selection of contractors and to the
solici-tation 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 Loan, are deemed by A. I.D.
to be of major importance to the Project.
Aspects of the
Project involving matters under ·this subsection (a) (2)
will be identified in Project Implementation Letters;
(b) Documents related to the prequalification of
con-tractors, and to the solicitation of bids or proposals for
goods and services financed under the Loan will be approved
by A.I . D. in writing prior to their issuance, and their terms
will include United States standards and measurements;
SECTION C.3.
(d) Consulting firms used by the Borrower for the Project but not financed under the Loan, the scop e of their se rvices and such of their personnel assigned to the Project as A.I.D . may specify, and construction contractors used by the Bor-rower for the Project but not financed under the Loan shall be acceptable to A.I.D.
SECTION C.4. Reasonable Price. No more tha n reasonabl e prices will be paid for any goods or services financed, in whole or in part, under the Loan. Such items will be procured on a fair and, to the maximum extent practicable, on a competitive basis.
SECTION C.S. Notification to Potential Suppliers . To permit all United States firms to have the opportunity to participate in furnishing goods and services to be financed under the Loan, the Borrower will furnish A.I.D. such information with regard thereto, and at such times, as A.I.D. may request in Project Implementation Letter.
SECTION C.6. Shipping.
(a) Goods which are to be transported to the territory of the Borrower may not be financed under the Loan if
transported either:
(1) on an ocean vessel or aircraft under the flag of a country which is not included in A.I.D. Geographic Code 935 as in effect at the time of shipment; or
(2) on an ocean vessel which A.I.D., by written notice to the Borrower has designated as ineligible; or
(3) under an ocean or air charter which has not received prior A.I . D. approval .
(b) Costs of ocean or air transportation (of goods or persons) and related delivery services may not be financed under the Loan, 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 Exchange Costs," without prior written A.I.D. approval; or
SECTION C.6.
(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 are not available aL
fair and reasonable rates for such vessels,
(1) at least fifty percent (50%) of the gross
ton-nage of all 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
corrnnercial 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 Borrower
on dry cargo liners shall be paid to or for the benefit
of privately owned United States-flag commercial vessels .
Compliance with the requirements of (1) and (2) of this
subsection must be achieved with respect to any cargo
transported from U.S. ports and also any cargo
trans-ported from non-U.S. ports, computed separately.
SECTION C. 7.
Insurance.
(a) Marine insurance on goods financed by A.I.D. whi ch
are to be transported to the territory of the Borrower may
be financed as a Foreign Exchange Cost under this Agreement
provided,
(1) such insurance is placed at the lowest available
competitive rate, and
(2) claims thereunder are payable in the currency
in which such goods were financed or in any freely
con-vertible currency.
If the Borrower (or government of
Borrower), 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
Borrower financed by A.I.D. hereunder will be insured
against marine risks and such insurance will be placed
in the United States with a company o r companies
SECTION C.7.
(b) Except as A. I.D. may otherwise agree in writing, t h e
Borrower will insure, or cause to
ｾ･＠ ｩｮｳｵｲｾ､Ｌ＠goods financed
under the Loan imported for the Project against risks
inci-dent to their transit to the point of their use in the
Pro-ject; such insurance will be issued on terms and conditions
consistent with sound commercial practice and will insure
the full value of the goods.
Any indenmification received
by the Borrower under such insurance will be used to replac e
or repair any material damage or any loss of the goods
in-sured or will be used to reimburse the Borrower for the
replacement or repair of such goods.
Any such replacemen t
will be of source and origin of countries listed in A.I.D.
Geographic Code 935 as in effect at the time of replacemen t ,
and, except as the Parties may agree in writing, will be
otherwise subject to the provisions of the Agreement .
SECTION . C.8.
U.S . Government-Owned Excess Property.
The
Borrower agrees that wherever practicable United States
Government-owned excess personal property, in lieu of new items financed under
the Loan, should be utilized.
Funds under the Loan may be use d
to finance the costs of obtaining such property for the Projec t,
Article D:
Termination; Remedies.
SECTION D.l .
Cancellation by Borrower .
The Borrower may,
by giving A.I.D. 30 days written notice, cancel any part of th e
Loan which has not been disbursed or committed for disbursement
t o third parties.
SECTION D.2 .
Events of Default; Acceleration.
It will b e
an "Event of Default" if Borrower shall have failed:
(a) to pay when due any interest or installment of
Principal required under this Agreement, or
(b) to comply with any other provision of this
Agreement, or
(c) to pay when due any interest or installment of
Principal or other payment required under any other loa n,
guaranty or other agreement between the Borrower or any of
i t s agencies and A.I.D. or any of its predecessor agencies.
If an Event of Default shall have occurred, then A.I . D. may
give the Borrower notice that all or any part of the unrep ai d
Principal will be due and payable sixty (60) days thereaf ter ,
and, unless such Event of Default is cured within that time:
SECTION D.2.
(2) the amount of any further disbursements made
pursuant to thenoutstanding conunitments to third
parties or otherwise will become due and payable as
soon as made.
SECTION D.3.
Suspension.
If at any time:
(a) An Event of Default has occurred; or
(b)
An
event occurs that A.I.D. determines to be an
extraordinary situation that makes it improbable either
that the purpose of the Loan will be attained or that the
Borrower will be able to perform its obligations. under
this Agreement; or
(c) Any disbursement by A.I.D. would be in violation
of the .legislation governing A.I.D.; or
(d) The Borrower shall have failed to pay when due any
interest, installment of principal or other payment required
under any other loan, guaranty, or other agreement between
the Borrower or any of its agencies and the Government of
the United States or any of its agencies;
Then A.I.D. may:
(1) suspend or cancel outstanding commitment
docu-ments to the extent they have not been utilized through
irrevocable commitments to third parties or otherwise ,
giving prompt notice thereof to the Borrower;
(2) decline to issue additional commitment documents
or to make disbursements other than under existing ones;
and
(3) at A. I.D. 's expense, direct that title to goods
financed under the Loan be transferred to A.I.D. if the
goods are from a source outside Borrower's country, are
in a deliverable state and have not been offloaded in
ports of entry of Borrower's country.
Any disbursement
made under the Loan with respect to such transferred
goo ds will be deducted from Principal.
'
SECTION D.5.
Continued Effectiveness of A reement.
Not-withstanding any cance lation, suspension o
is ursements, or
acceleration of repayment, the provisions of this Agreement will
continue in effect until the payment in full of all Principal
and accrued interest hereunder.
· SECTION D.6 .
Refunds
(a) In .the case of any disbursement which is not
sup-ported by valid documentation in accordance with this
Agreement, or which is not made or used in accordance with
this Agreement, or which was for goods or services not used
in accordance with this Agreement, A.I.D., notwithstanding
the availability or exercise of any other remedies provided
for under this Agreement, may require the Borrower to refund
the amount of such disbursement in United States Dollars to
A.I.D. within sixty (60) days after receipt of a request
therefor.
The right to require such a refund of a
disburse-ment will continue, notwithstanding any other provision of
this Agreement, for three (3) years from the date of the
last disbursement under this Agreement.
(b)
(1) any refund under the preceding subsection, 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 Loan, which refund relates
to an unreasonable price for or erroneous invoicing of
goods or services, or to goods that did not conform to
specifications, 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 the
installments of Principal in the inverse order of their
maturity and the amount of the Loan reduced by the
amount of such remainder.
