Selanjutnya
THIS AGREEMENT MADE IN DUPLICATE THE
19th
DAY OF
A p r i
1
1973
- Between THE GOVERNMENT OF INDONESIA
(Hereinafter referred to as "Indo nesia"),
- And THE GOVERNMENT OF CANADA
(acting through the Canadian International
Development Agency hereinafter ref erred
to as "Canada").
WHEREAS Indonesia wishes to secure a development loan for use as
described in Annex "A" of this Agreement.
AND WHEREAS Canada is willing to make a development loan available
on the terms and conditions hereinafter set out.
NOW THEREFORE the Parties hereto agree as follows:
ARTICLE I
The
Loan
Sect ion 1. 01
Canada shall make available to Indonesia on the terms and conditions
hereinafter set forth a Loan in an amount not to exceed seven million
two hundred thousand Canadian dollars ($7,200,000.00).
Section 1. 02
Canada shall open on its books a Loan Account in the name 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 from time to time in the manner and subject to the rights of
cancellation and suspension set forth in this Agreement.
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Section 1. 03
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 ninety thousand (90,000)
Canadian Dollars each, due and payable on March 31 and September 30
in each year commencing on September 30, 1983 and ending on
March 31, 2023.
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 amount
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 or repayments shall be made by Indonesia in Canadian
dollars to the Receiver General of Canada, and shall be deemed to
have been paid when received by the Receiver General of Canada.
Section 1.07
The principal of the Loan shall be paid without any deductions
whatsoever and more particularly shall be free from any taxes,
charges or other restrictions imposed under the Laws of Indonesia
and those in effect in its territories or administrative, political
or judicial divisions or subdivisions.
Section 1.08
Indonesia agrees that it will negotiate, at the request of Canada,
concerning acceleration of payments to the Receiver General of
Canada required to be made under this Ag reement at any time after
six (6) months before the first payment of principal becomes due
and payable. Indonesia and Canada shall mutually determine wh e ther
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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
proceeds of the Loan shall be used by Indonesia exclusively for the
purchase of materials, equipment and services required to carry out
the Project as described in Annex "A" of this Agreement, and
procedures for their procurement and payment shall be those set
forth in Annex "B", both Annexes being subject to such modification
as may be agreed upon between Canada and Indonesia.
Section 2.02
The materials, equipment and services to be financed from the
proceeds of the Loan shall be used exclusively to carry out the
Project and shall have an overall Canadian content of not less than
sixty-six and two-thirds (66 2/3) percent unless otherwise agreed
to by Canada.
Section 2.03
Material, equipment and services contracted for prior to the
effective date of this Agreement may not be financed out of the
proceeds of the Loan unless as may otherwise be agreed to by Canada.
Section 2.04
Proceeds from the Loan shall not be used by Indonesia to meet the
costs of any taxes, fees or customs duties imposed directly or
indirectly by Indonesia on any materials, equipment or services
required for the Project.
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Withdrawal 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 of banking institution in respect of goods and
services supplied under this Agreement.
Section 3.02
Subject to the conditions and limitation set forth herein,
Indonesia shall be entitled to advances and withdrawals from the
Loan Account in such amounts as are required to meet the costs of
the goods and services which are eligible for financing as the
costs become due and payable in accordance with Annex "B".
Section 3.03
Withdrawals from the Loan Account may be made in favour of such
persons or agencies as may be designated by Indonesia and agreed
to by Canada.
Section 3.04
Indonesia or its designated agent shall furnish, or cause to be
furnished to Canada such documents and other evidence in support of
its Application for withdrawals as Canada may reasonably request.
ARTICLE IV
Cancellation and Suspension
Section 4.01
Indonesia may by sixty (60) days Notice to Canada cancel all or any
part of the Loan not withdrawn by Indon e sia prior to the g iving of
such Notice and not required to me et outstandin g financial
obli g ations to suppliers or firms incurred under the Loan.
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Section 4.02
If any of the following events occur, Canada may, by sixty (60)
days Notice to Indonesia, suspend in whole or in part the right of
Indonesia to obtain withdrawals from the Loan Account.
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
o! any undertakings under this Agreement;
c) any extraordinary situation which renders it impossible
for Indonesia to perform its obligations under this
Agreement.
If suspension occurs and continues for thirty (30) days, Canada
may, by sixty (60) days Notice to Indonesia cancel that part of the
Loan not withdrawn prior to the giving of such Notice and not
required to meet outstanding financial obligations to suppliers or
firms incurred under the Loan.
Section 4.03
If the full amount of the Loan is not committed by Indonesia 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.
ARTICLE V
General Undertakings
Section 5.01
Indonesia shall ensure that the Project is carried out with due
dilligence and efficiency and in conformity with sound
administrative and financial practices and in accordance with the
responsibilities set out in Annex "C 11 of this Agreement.
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- 6 Section 5.02
Canada and Indonesia shall cooperate fully to ensure that the
Project will be accomplished and Indonesia shall forward to Canada
quarterly progress reperts on services being rendered by the
Canadian Engineering Consultant. Indonesia shall promptly inform
Canada of any condition or contingency which interferes with or
threatens to interfere with the accomplishment of the Project 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 purposes related to the Project and this Loan
Agreement.
Section 5.04
This Agreement and any Annex hereto 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 judicial divisions or subdivisions in connection with
the execution, issue and delivery and registration thereof.
Section 5.05
Indonesia shall provide or cause to be provided as needed all other
monies, resources, and forms of support which may be required to
carry out the Project.
Section 5.06
For the purpose of this Agreement and Annexes hereto, Indonesia
shall include any Agent or Agents authorized by and on behalf of
Indonesia with regard to its rights, duties and obligations herein .
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ARTICLE VI
Communications
Section 6.01
Any communication or document 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 Indonesia
Department of Foreign Affairs
Mail Address
Sing amangaraja 97,
JAKARTA, Indonesia.
Cable Address
DEPLU JAKARTA
For Canada
Mail Address
The President
Canadian International Development
122 Bank Street
Ottawa, Ontario
KlA OG4
CANADA
Cable Address
CIDA
OTTAWA
Section 6.02
Any one of the parties hereto may, by 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 s ubmitted to Canada, shall be
either in the English or the French language, and all technical
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specifications therein shall be in terms of standards acceptable
to Canada.
Section 6.04
This Agreement is being simultaneously executed in duplicate, both
copies so executed being deemed to be an original, and both copies
together constituting one and the same Agreement.
IN WITNESS WHEREOF the Parties hereto have caused to be subscribed
the signatures of their authorized representatives at the City of
Jakarta the day and year first above written.
FOR THE GOVERNMENT OF INDONESIA
Signed
Minister for Foreign Affairs a.i.
FOR THE GOVERNMENT OF CANADA
Signed
Ambassador
ANNEX "A"
SOUTH SULAWESI BRIDGES RE-CONSTRUCTION LOAN
1. Description of the Project
For the purpose of this Agreement the Project is described as
the financing of the re-construction or replacement of thirtyeight bridges in the province of South Sulawesi more
specifically identified as follows
Name of Bridge
i) Maras
KM.From
Ujung
Pandang
Highway Link Name
29.1
Ujung Pandang-Pare Pare
46.5
Ujung Pandang-Pare Pare
iii) Pangkajene
51.6
Ujung Pandang-Pare Pare
iv) Limbangan
62.9
Ujung Pandang-Pare Pare
88.1
Ujung Pandang-Pare Pare
102.1
Ujung Pandang-Pare Pare
vii) Wiringtasi
121. 2
Ujung Pandang-Pare Pare
viii) Batu Putih
129.1
Ujung Pandang-Pare Pare
139.8
Ujung Pandang-Pare Pare
152.0
Ujung Pandang-Pare Pare
161.2
Ujung Pandang-Pinrang
218.5
Rappang-Enrekang
xiii) Kabero
219.5
Rappang-Enrekang
xiv) Buru
224.1
Rappang-Enrekang
232.6
Rappang-Enrekang
355.2
Palopo-Siwa-Sengkang
321. 6
Palopo-Siwa-Sengkang
304.1
Palopo-Siwa-Sengkang
284.8
Palopo-Siwa-Sengkang
Temboe
282.5
Palopo-Siwa-Sengkang
xxi) Bulete
266.3
Palopo-Siwa-Sengkang
226.1
Palopo-Siwa-Sengkang
221. 0
Sengkang-Watampone
ii) Maleleng
v) Bungi
vi) Jempue
ix) Ku pa
x) Sumpangbinangae
xi) Kalacinge
xii) Karrang
xv) Leorang
xvi) Bua
xvii) Pareman
xviii) Suli
xix) Sampano
xx)
xx ii) Tarumpakae
xxiii) Opo
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Name of Bridge
xxiv) Unyi
KM.From
Ujung
Pandang
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Highway Link Name
203.2
Sengkang-Watampone
188.3
Sengkang-Watampone
xxvi) Cabalu
177.1
Sengkang-Watampone
xxvii) Palakka
167.5
Watampone-Maros
xxviii) Libureng
126.0
Watampone-Maros
xxix) Lepangeng
(New Site)
120.0
Watampone-Maros
xxx) Kalempang
142.5
Watampone-Maros
109.0
Watampone-Maros
xxxii) Luppereng
279.5
Watampone-Sinjai
xxxiii) Bulu-Bulu
251. 6
Watampone-Sinjai
140.4
Sinjai-Bantaeng-Ujung Pandang
107.4
Sinjai-Bantaeng-Ujung Pandang
45.9
Sinjai-Bantaeng-Ujung Pandang
28.9
Sinjai-Bantaeng-Ujung Pandang
11.6
Sinjai-Bantaeng-Ujung Pandang
xxv) Padaelo
xxxi) Sampie
xxxiv) Lawiloe
xxxv) Taroang 111
xxxvi) Lengkese 1
xxxvii) Palleko
xxxviii) Sungguminasa
2. Purpose of the Loan
a) Without limiting the generality of the Agreement, Canada shall
provide a Loan of seven million two hundred thousand Canadian
dollars ($7,200,000.00) for the purchases of materials,
equipment and construction services required to carry out the
construction of the bridges described in section 1 above
b) The Loan shall be used for the payment of ocean/air freight
and marine/air insurance for materials and equipment purchased
under this Agreement.
c) The Loan shall be used for the payment of the services of a
Canadian general contractor to act under the supervision of
the Canadian Engineering Consultant on behalf of Indonesia.
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- 3 Services of this Consultant are dealt with in a Me morandum
of Understandin g between Indonesia and Canada dated
September 14, 1971.
d) The responsibilities of the Canadian En g ineering Consultant
in respect to this project are defined in Annex
11
D 11 of the
Loan Agreement.
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ANNEX "B"
PROCUREMENT AND PAYMENT PROCEDURES
1. Procurement Procedures
a) Indonesia with the assistance of a Canadian Engineering
Consultant shall select a Canadian contractor to be
responsible for the reconstruction and replacement of the
bridges referred to in Annex "A".
b) Canada shall provide a list of capable and bonafide Canadian
contractors. Indonesia with the assistance of the Canadian
Engineering Consultant shall prequalify above mentioned list
of contractors.
c) The list of qualified Canadian contractors to be invited to
tender, together with a copy of the invitation to tender and
tender documents shall be forwarded to Canada for their
concurrence.
d) On the basis of the tendering and contract documents drawn
up by Indonesia, with the assistance of the Canadian
Engineering Consultant, tenders shall be invited by Indonesia
from the list of qualified contractors for the provision of
all services and resources required for the construction.
e) Tenders will be called on the basis of supply, delivery to
site, and complete re-construction or replacement of the
structures noted in Annex "A". Tenderers shall be instructed
to bid on the total job content. Preference as to disposition
of the construction equipment at the termination of the
project shall be the prerogative of the contractor as part of
this tender.
f) The tenderer shall be advised in the tender documents of that
portion payable by Indonesia in Indonesian funds to cover
local costs such as wages and the purchase of local materials.
g) The Canadian contractors invited to tender shall be
instructed to
i)
forward a sealed copy of their tender to Canada at the
same time as it is forwarded to Indonesia. The copies of
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the dates previously established in the tender call by
Indonesia for their formal opening, taking note of any
extension of time that may be allowed;
ii) include with the copy of tender sent to Canada, a
statement of the estimated Canadian content, showing in
full the Canadian content of equipment, materials and
construction services to be utilized in the contract.
h) Unless otherwise agreed to by Canada, where a contract is
to be awarded to the contractor, that contractor shall be
the lowest responsive Canadian tenderer who meets the
specifications and Canadian content criteria.
i) The Construction and installation of the facilities covered
by this Agreement, shall be carried out by a Canadian
contractor supervised by the Canadian Engineering Consultant.
j) The construction contract for the work, shall be negotiated
by Indonesia with the assistance of the Canadian Engineering
Consultant and referred to Canada for their concurrence.
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k) The contractor shall be responsible for the employment of
local labour and the procurement of such Canadian and local
goods and services as are required for the implementation of
his contract.
2. Pavement Procedures
a) Costs of the contract shall be apportioned on the basis of
eighty (80) percent from the proceeds of the loan and
twenty (20) percent from the Indonesian contribution.
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b) Payment will be based on a Letter of Credit opened on behalf
of Bina Marga by the Bank of Indonesia on a desi gnated
Canadian Bank in Ottawa Canada for eight y ( 80) percent of
the contracted amount. Such Letter of Credit shall be valid
up till one year after completion of t h e project.
c) An advance mobilization p ayment which shall be not more than
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twenty (20) percent of the contracted amount, shall be made to
the construction contractor by Indonesia, such advance to be
certified by the Canadian Engineering Consultant and approved
by Indonesia against a proper Bank guarantee.
d) Progress Claims :
i) The Canadian Contractor shall submit Progress Claims to
Indonesia or its designated agent.
ii) Indonesia or its designated agent> shall submit such
Progress Claims to the desi gnated Canadian Bank. These
claims shall have been certified by the Canadian
Consultant and approved by Indonesia and shall be
supported by documentation.
e) Payment of the contractor's Progress Claims shall be made in
the following manner :
i) Indonesia or its desi gnated a g ent based on the monthly
Progress Claims will provide a Statement of Performance.
ii) The payment to the Contractor based on the monthly
Statement of Performance shall be paid ninety (90)
percent of the amount claimed. The remaining ten (10)
percent up to a maximum of equivalent (375.000) three
hundred and seventy-five thousand Canadian Dollars shall
be retained as a holdback.
iii) Canada will make reimbursement to the designated Canadian
Bank on the basis of Progress Claims submitted by
Indonesia.
ANNEX "C"
RESPONSIBILITIES OF THE GOVERNMENT OF INDONESIA
Indonesia will
1. Arrange with Indonesian Customs officials to promptly clear
through Indonesian Customs, free of import, customs and other
duties and taxes, equipment and materials required to support
the provision of the services, including bona fide personal
and household effects of the personnel of the Canadians
providing the services and their dependents, provided :
a) these effects are brought into Indonesia within six (6)
months of the individual's arrival in Indonesia.
b) these effects, other than those entitled to free entry
under the ordinary baggage rules, are liable to duties and
taxes if sold or otherwise disposed of in Indonesia.
2. Relieve the Canadian personnel who do not have permanent
residence in Indonesia, from paying resident, local and
incomes taxes and from the necessity of filing income tax
returns on payments made out of the Canadian contribution to
the Project and income earned outside Indonesia.
3. Provide and pay for the operating costs of transport vehicles
and drivers required by Indonesia and the designated Agents
to carry out the Project. Where the private transport vehicles
of the Canadian personnel are used for official purposes, a
mileage allowance at the appropriate rate will be paid.
4. Provide and pay the cost of :
a) all permits, licences and other such documents required to
enable Canadian personnel to carry out their respective
responsibilities in Indonesia and in Canada; and
b) all export and exit permits required for the return of any
of the materials, equipment or effects (including personal
effects) which are the property of or are provided by
Canada, the firm or ind ividual Canadians employed on the
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provision of services under this Agreement.
S. Provide access to those parts of Indonesia required to enable
Canadian personnel to carry out their responsibilities in
Indonesia.
6. Indemnify and save harmless, at no cost to the Loan Account,
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Canada or its personnel engaged in the performance of duties
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in connection with the Loan, from any civil liability arising
from any claims resulting from
a) injury or death of any such personnel during the
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performance of his duties relative to the Loan;
b) injury or death of any person arising from the work of the
project; and
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c) property damage arising from the work of the Project.
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This provision shall not relieve any such personnel of Canada
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from liability for any fraudulent or criminal act.
7. Indonesia shall finance twenty (20) percent of the project
costs as specified in the contract documents exclusive of land
acquisition and administrative costs by providing suitable
budget provisions in the Development Budget for the Project up
to 2.6 million Canadian Dollars equivalent.
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8. Be responsible for all demurrage arising from delays occasioned
by Indonesia .
9. a) provide the general contractor ready access to information
on the various laws and regulations that must be observed,
including those relatin g to visas, permits, taxes, local
employment and accident insurance, loading limitations on
transports, etc.
b) be responsible to provide the right o f access to site, to
necessary areas f or camps, workshops, etc ., and to areas
where sand, g ravel and borrow may be extracted.
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adequate supply of domestically produced cement at a firm
unit price.
10. Abs o r b all costs associated with land acquisition and right of
way required for the construction of the bridges, approach
roads and temporary diversion roads in the vicinity of the
respective sites.
11. Provide assistance to those contracting firms intending to
submit tenders who may make site visits to Indonesia. Such
assistance would include a suitable qualified English-speaking
en g ineer in South Sulawesi throughout the period as specified
in tender documents and the provision of vehicles, drivers and
fuel, and arrangements for accommodation to enable contractors
to make a tour of the bridge sites. All transport cost excluding
those in Sulawesi and accommodation expenses will be borne by
the contractors.
12. Provide and pay for the cost of graduate Indonesian eng ineers
as required, to assist the Canadian Engineering Consultant in
carrying out the duties related to the supervision of
construction together with clerical assistance suitably
qualified to assist in the preparation of contract accounting
documents.
13, Take responsibility for the relocation or replacement of all
services which may be required to be moved during the course of
the construction. Such services would include power lines,
telephone lines, graves, etc.
14. Agree to the use of certain non-Canadian non-Indonesian
personnel during the course of Contract executions where their
use would reduce cost and increase efficiency. Such use would
be subject to joint approval by Indonesia and Canada.
ANNEX "D"
RESPONSIBILITIES OF THE CANADIAN ENGINEERING
CONSULTANT FOR SUPERVISION OF CONSTRUCTION
The consultant shall carry out full supervision of construction of
the project bridges in accordance with the following and under
such other instructions as may be given from time to time by the
Indonesian Directorate General of Highways (Bina Marga)
1. Check, evaluate and agree with the contractors their work
plans and progress schedules for the most effective and
expeditious method of carrying out the work.
2. Provide the contractors with the necessary datum points and
bench-marks for setting out the work and subsequently check
and accept the detailed setting out.
3. Issue all necessary instructions to the contractors, on behalf
of Bina Marga and check and control the work overall to ensure
that it is carried out according to contract documents.
4. Provide general guidance to the contractors as may be necessary
to ensure that the works are carried out expeditiously
according to schedule and within the terms of the contracts.
5. Check and approve all arrangements made during the
construction for ensuring adequate traffic flow arrangements
along the existing alignment.
6. Carry out, during the execution of the works, inspections of
all working areas and installations including accommodation,
canteens, medical dispensaries or clinics, construction
equipment and laboratories to see that all these conform to
agreed specifications and proposals.
7. Carry out the required testing of soils, materials and
operations required to ensure that the work complies with the
specifications.
8. Check and approve the contractors working proposals defining
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the locations of his work sites and his working program for all
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quarries and borrow pits and ensure that the characteristics of
the materials to be extracted from them meet specifications.
9. Check and approve all shop and working drawings prepared by the
contractors.
10. Check and agree with the contractors their measurement and
payment claims and certify these to Bina Marga as being correct
and within the terms of their contracts.
11. Record all the results of the measurements carried out for the
quantities to be paid for the provisional and final accounting,
on the proper forms normally in use in Indonesia or previously
agreed upon with Bina Marga.
12. Prepare and submit to Bina Marga for approval any contract
change orders, related specifications and drawings which may
from time to time be necessary.
13. Assist Bina Marga in negotiations with contractors on any price
or rate changes for which the need may arise and make
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recommendations on these as may be necessary.
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14. Evaluate all claims for additional payments or extension of
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time submitted by contractors and make recommendations on these
to Bina Marga.
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15. Alert Bina Marga to any problems which arise or might arise in
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connections with the contracts and make recommendations for
overcoming them.
16. Assist Bina Marga in any dispute that may arise with the
contractors and give a firm opinion on any claim the contractors
may put forward, drawing up a report giving all the elements on
which the opinion is based.
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17. Submit to Bina Marga monthly reports on progress with updated
cost estimate.
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18. When the works have been completed, carry out an inspection and
make recommendations to Bina Marga on their acceptance and on
the date of commencement of the maintenance period if any.
19. Submit to Bina Marga a final report including an-built drawing s
and appropriate maintenance manuals.
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19th
DAY OF
A p r i
1
1973
- Between THE GOVERNMENT OF INDONESIA
(Hereinafter referred to as "Indo nesia"),
- And THE GOVERNMENT OF CANADA
(acting through the Canadian International
Development Agency hereinafter ref erred
to as "Canada").
WHEREAS Indonesia wishes to secure a development loan for use as
described in Annex "A" of this Agreement.
AND WHEREAS Canada is willing to make a development loan available
on the terms and conditions hereinafter set out.
NOW THEREFORE the Parties hereto agree as follows:
ARTICLE I
The
Loan
Sect ion 1. 01
Canada shall make available to Indonesia on the terms and conditions
hereinafter set forth a Loan in an amount not to exceed seven million
two hundred thousand Canadian dollars ($7,200,000.00).
Section 1. 02
Canada shall open on its books a Loan Account in the name 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 from time to time in the manner and subject to the rights of
cancellation and suspension set forth in this Agreement.
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Section 1. 03
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 ninety thousand (90,000)
Canadian Dollars each, due and payable on March 31 and September 30
in each year commencing on September 30, 1983 and ending on
March 31, 2023.
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 amount
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 or repayments shall be made by Indonesia in Canadian
dollars to the Receiver General of Canada, and shall be deemed to
have been paid when received by the Receiver General of Canada.
Section 1.07
The principal of the Loan shall be paid without any deductions
whatsoever and more particularly shall be free from any taxes,
charges or other restrictions imposed under the Laws of Indonesia
and those in effect in its territories or administrative, political
or judicial divisions or subdivisions.
Section 1.08
Indonesia agrees that it will negotiate, at the request of Canada,
concerning acceleration of payments to the Receiver General of
Canada required to be made under this Ag reement at any time after
six (6) months before the first payment of principal becomes due
and payable. Indonesia and Canada shall mutually determine wh e ther
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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
proceeds of the Loan shall be used by Indonesia exclusively for the
purchase of materials, equipment and services required to carry out
the Project as described in Annex "A" of this Agreement, and
procedures for their procurement and payment shall be those set
forth in Annex "B", both Annexes being subject to such modification
as may be agreed upon between Canada and Indonesia.
Section 2.02
The materials, equipment and services to be financed from the
proceeds of the Loan shall be used exclusively to carry out the
Project and shall have an overall Canadian content of not less than
sixty-six and two-thirds (66 2/3) percent unless otherwise agreed
to by Canada.
Section 2.03
Material, equipment and services contracted for prior to the
effective date of this Agreement may not be financed out of the
proceeds of the Loan unless as may otherwise be agreed to by Canada.
Section 2.04
Proceeds from the Loan shall not be used by Indonesia to meet the
costs of any taxes, fees or customs duties imposed directly or
indirectly by Indonesia on any materials, equipment or services
required for the Project.
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Withdrawal 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 of banking institution in respect of goods and
services supplied under this Agreement.
Section 3.02
Subject to the conditions and limitation set forth herein,
Indonesia shall be entitled to advances and withdrawals from the
Loan Account in such amounts as are required to meet the costs of
the goods and services which are eligible for financing as the
costs become due and payable in accordance with Annex "B".
Section 3.03
Withdrawals from the Loan Account may be made in favour of such
persons or agencies as may be designated by Indonesia and agreed
to by Canada.
Section 3.04
Indonesia or its designated agent shall furnish, or cause to be
furnished to Canada such documents and other evidence in support of
its Application for withdrawals as Canada may reasonably request.
ARTICLE IV
Cancellation and Suspension
Section 4.01
Indonesia may by sixty (60) days Notice to Canada cancel all or any
part of the Loan not withdrawn by Indon e sia prior to the g iving of
such Notice and not required to me et outstandin g financial
obli g ations to suppliers or firms incurred under the Loan.
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Section 4.02
If any of the following events occur, Canada may, by sixty (60)
days Notice to Indonesia, suspend in whole or in part the right of
Indonesia to obtain withdrawals from the Loan Account.
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
o! any undertakings under this Agreement;
c) any extraordinary situation which renders it impossible
for Indonesia to perform its obligations under this
Agreement.
If suspension occurs and continues for thirty (30) days, Canada
may, by sixty (60) days Notice to Indonesia cancel that part of the
Loan not withdrawn prior to the giving of such Notice and not
required to meet outstanding financial obligations to suppliers or
firms incurred under the Loan.
Section 4.03
If the full amount of the Loan is not committed by Indonesia 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.
ARTICLE V
General Undertakings
Section 5.01
Indonesia shall ensure that the Project is carried out with due
dilligence and efficiency and in conformity with sound
administrative and financial practices and in accordance with the
responsibilities set out in Annex "C 11 of this Agreement.
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Canada and Indonesia shall cooperate fully to ensure that the
Project will be accomplished and Indonesia shall forward to Canada
quarterly progress reperts on services being rendered by the
Canadian Engineering Consultant. Indonesia shall promptly inform
Canada of any condition or contingency which interferes with or
threatens to interfere with the accomplishment of the Project 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 purposes related to the Project and this Loan
Agreement.
Section 5.04
This Agreement and any Annex hereto 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 judicial divisions or subdivisions in connection with
the execution, issue and delivery and registration thereof.
Section 5.05
Indonesia shall provide or cause to be provided as needed all other
monies, resources, and forms of support which may be required to
carry out the Project.
Section 5.06
For the purpose of this Agreement and Annexes hereto, Indonesia
shall include any Agent or Agents authorized by and on behalf of
Indonesia with regard to its rights, duties and obligations herein .
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ARTICLE VI
Communications
Section 6.01
Any communication or document 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 Indonesia
Department of Foreign Affairs
Mail Address
Sing amangaraja 97,
JAKARTA, Indonesia.
Cable Address
DEPLU JAKARTA
For Canada
Mail Address
The President
Canadian International Development
122 Bank Street
Ottawa, Ontario
KlA OG4
CANADA
Cable Address
CIDA
OTTAWA
Section 6.02
Any one of the parties hereto may, by 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 s ubmitted to Canada, shall be
either in the English or the French language, and all technical
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specifications therein shall be in terms of standards acceptable
to Canada.
Section 6.04
This Agreement is being simultaneously executed in duplicate, both
copies so executed being deemed to be an original, and both copies
together constituting one and the same Agreement.
IN WITNESS WHEREOF the Parties hereto have caused to be subscribed
the signatures of their authorized representatives at the City of
Jakarta the day and year first above written.
FOR THE GOVERNMENT OF INDONESIA
Signed
Minister for Foreign Affairs a.i.
FOR THE GOVERNMENT OF CANADA
Signed
Ambassador
ANNEX "A"
SOUTH SULAWESI BRIDGES RE-CONSTRUCTION LOAN
1. Description of the Project
For the purpose of this Agreement the Project is described as
the financing of the re-construction or replacement of thirtyeight bridges in the province of South Sulawesi more
specifically identified as follows
Name of Bridge
i) Maras
KM.From
Ujung
Pandang
Highway Link Name
29.1
Ujung Pandang-Pare Pare
46.5
Ujung Pandang-Pare Pare
iii) Pangkajene
51.6
Ujung Pandang-Pare Pare
iv) Limbangan
62.9
Ujung Pandang-Pare Pare
88.1
Ujung Pandang-Pare Pare
102.1
Ujung Pandang-Pare Pare
vii) Wiringtasi
121. 2
Ujung Pandang-Pare Pare
viii) Batu Putih
129.1
Ujung Pandang-Pare Pare
139.8
Ujung Pandang-Pare Pare
152.0
Ujung Pandang-Pare Pare
161.2
Ujung Pandang-Pinrang
218.5
Rappang-Enrekang
xiii) Kabero
219.5
Rappang-Enrekang
xiv) Buru
224.1
Rappang-Enrekang
232.6
Rappang-Enrekang
355.2
Palopo-Siwa-Sengkang
321. 6
Palopo-Siwa-Sengkang
304.1
Palopo-Siwa-Sengkang
284.8
Palopo-Siwa-Sengkang
Temboe
282.5
Palopo-Siwa-Sengkang
xxi) Bulete
266.3
Palopo-Siwa-Sengkang
226.1
Palopo-Siwa-Sengkang
221. 0
Sengkang-Watampone
ii) Maleleng
v) Bungi
vi) Jempue
ix) Ku pa
x) Sumpangbinangae
xi) Kalacinge
xii) Karrang
xv) Leorang
xvi) Bua
xvii) Pareman
xviii) Suli
xix) Sampano
xx)
xx ii) Tarumpakae
xxiii) Opo
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Name of Bridge
xxiv) Unyi
KM.From
Ujung
Pandang
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Highway Link Name
203.2
Sengkang-Watampone
188.3
Sengkang-Watampone
xxvi) Cabalu
177.1
Sengkang-Watampone
xxvii) Palakka
167.5
Watampone-Maros
xxviii) Libureng
126.0
Watampone-Maros
xxix) Lepangeng
(New Site)
120.0
Watampone-Maros
xxx) Kalempang
142.5
Watampone-Maros
109.0
Watampone-Maros
xxxii) Luppereng
279.5
Watampone-Sinjai
xxxiii) Bulu-Bulu
251. 6
Watampone-Sinjai
140.4
Sinjai-Bantaeng-Ujung Pandang
107.4
Sinjai-Bantaeng-Ujung Pandang
45.9
Sinjai-Bantaeng-Ujung Pandang
28.9
Sinjai-Bantaeng-Ujung Pandang
11.6
Sinjai-Bantaeng-Ujung Pandang
xxv) Padaelo
xxxi) Sampie
xxxiv) Lawiloe
xxxv) Taroang 111
xxxvi) Lengkese 1
xxxvii) Palleko
xxxviii) Sungguminasa
2. Purpose of the Loan
a) Without limiting the generality of the Agreement, Canada shall
provide a Loan of seven million two hundred thousand Canadian
dollars ($7,200,000.00) for the purchases of materials,
equipment and construction services required to carry out the
construction of the bridges described in section 1 above
b) The Loan shall be used for the payment of ocean/air freight
and marine/air insurance for materials and equipment purchased
under this Agreement.
c) The Loan shall be used for the payment of the services of a
Canadian general contractor to act under the supervision of
the Canadian Engineering Consultant on behalf of Indonesia.
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of Understandin g between Indonesia and Canada dated
September 14, 1971.
d) The responsibilities of the Canadian En g ineering Consultant
in respect to this project are defined in Annex
11
D 11 of the
Loan Agreement.
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ANNEX "B"
PROCUREMENT AND PAYMENT PROCEDURES
1. Procurement Procedures
a) Indonesia with the assistance of a Canadian Engineering
Consultant shall select a Canadian contractor to be
responsible for the reconstruction and replacement of the
bridges referred to in Annex "A".
b) Canada shall provide a list of capable and bonafide Canadian
contractors. Indonesia with the assistance of the Canadian
Engineering Consultant shall prequalify above mentioned list
of contractors.
c) The list of qualified Canadian contractors to be invited to
tender, together with a copy of the invitation to tender and
tender documents shall be forwarded to Canada for their
concurrence.
d) On the basis of the tendering and contract documents drawn
up by Indonesia, with the assistance of the Canadian
Engineering Consultant, tenders shall be invited by Indonesia
from the list of qualified contractors for the provision of
all services and resources required for the construction.
e) Tenders will be called on the basis of supply, delivery to
site, and complete re-construction or replacement of the
structures noted in Annex "A". Tenderers shall be instructed
to bid on the total job content. Preference as to disposition
of the construction equipment at the termination of the
project shall be the prerogative of the contractor as part of
this tender.
f) The tenderer shall be advised in the tender documents of that
portion payable by Indonesia in Indonesian funds to cover
local costs such as wages and the purchase of local materials.
g) The Canadian contractors invited to tender shall be
instructed to
i)
forward a sealed copy of their tender to Canada at the
same time as it is forwarded to Indonesia. The copies of
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the dates previously established in the tender call by
Indonesia for their formal opening, taking note of any
extension of time that may be allowed;
ii) include with the copy of tender sent to Canada, a
statement of the estimated Canadian content, showing in
full the Canadian content of equipment, materials and
construction services to be utilized in the contract.
h) Unless otherwise agreed to by Canada, where a contract is
to be awarded to the contractor, that contractor shall be
the lowest responsive Canadian tenderer who meets the
specifications and Canadian content criteria.
i) The Construction and installation of the facilities covered
by this Agreement, shall be carried out by a Canadian
contractor supervised by the Canadian Engineering Consultant.
j) The construction contract for the work, shall be negotiated
by Indonesia with the assistance of the Canadian Engineering
Consultant and referred to Canada for their concurrence.
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k) The contractor shall be responsible for the employment of
local labour and the procurement of such Canadian and local
goods and services as are required for the implementation of
his contract.
2. Pavement Procedures
a) Costs of the contract shall be apportioned on the basis of
eighty (80) percent from the proceeds of the loan and
twenty (20) percent from the Indonesian contribution.
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b) Payment will be based on a Letter of Credit opened on behalf
of Bina Marga by the Bank of Indonesia on a desi gnated
Canadian Bank in Ottawa Canada for eight y ( 80) percent of
the contracted amount. Such Letter of Credit shall be valid
up till one year after completion of t h e project.
c) An advance mobilization p ayment which shall be not more than
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twenty (20) percent of the contracted amount, shall be made to
the construction contractor by Indonesia, such advance to be
certified by the Canadian Engineering Consultant and approved
by Indonesia against a proper Bank guarantee.
d) Progress Claims :
i) The Canadian Contractor shall submit Progress Claims to
Indonesia or its designated agent.
ii) Indonesia or its designated agent> shall submit such
Progress Claims to the desi gnated Canadian Bank. These
claims shall have been certified by the Canadian
Consultant and approved by Indonesia and shall be
supported by documentation.
e) Payment of the contractor's Progress Claims shall be made in
the following manner :
i) Indonesia or its desi gnated a g ent based on the monthly
Progress Claims will provide a Statement of Performance.
ii) The payment to the Contractor based on the monthly
Statement of Performance shall be paid ninety (90)
percent of the amount claimed. The remaining ten (10)
percent up to a maximum of equivalent (375.000) three
hundred and seventy-five thousand Canadian Dollars shall
be retained as a holdback.
iii) Canada will make reimbursement to the designated Canadian
Bank on the basis of Progress Claims submitted by
Indonesia.
ANNEX "C"
RESPONSIBILITIES OF THE GOVERNMENT OF INDONESIA
Indonesia will
1. Arrange with Indonesian Customs officials to promptly clear
through Indonesian Customs, free of import, customs and other
duties and taxes, equipment and materials required to support
the provision of the services, including bona fide personal
and household effects of the personnel of the Canadians
providing the services and their dependents, provided :
a) these effects are brought into Indonesia within six (6)
months of the individual's arrival in Indonesia.
b) these effects, other than those entitled to free entry
under the ordinary baggage rules, are liable to duties and
taxes if sold or otherwise disposed of in Indonesia.
2. Relieve the Canadian personnel who do not have permanent
residence in Indonesia, from paying resident, local and
incomes taxes and from the necessity of filing income tax
returns on payments made out of the Canadian contribution to
the Project and income earned outside Indonesia.
3. Provide and pay for the operating costs of transport vehicles
and drivers required by Indonesia and the designated Agents
to carry out the Project. Where the private transport vehicles
of the Canadian personnel are used for official purposes, a
mileage allowance at the appropriate rate will be paid.
4. Provide and pay the cost of :
a) all permits, licences and other such documents required to
enable Canadian personnel to carry out their respective
responsibilities in Indonesia and in Canada; and
b) all export and exit permits required for the return of any
of the materials, equipment or effects (including personal
effects) which are the property of or are provided by
Canada, the firm or ind ividual Canadians employed on the
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provision of services under this Agreement.
S. Provide access to those parts of Indonesia required to enable
Canadian personnel to carry out their responsibilities in
Indonesia.
6. Indemnify and save harmless, at no cost to the Loan Account,
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Canada or its personnel engaged in the performance of duties
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in connection with the Loan, from any civil liability arising
from any claims resulting from
a) injury or death of any such personnel during the
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performance of his duties relative to the Loan;
b) injury or death of any person arising from the work of the
project; and
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c) property damage arising from the work of the Project.
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This provision shall not relieve any such personnel of Canada
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from liability for any fraudulent or criminal act.
7. Indonesia shall finance twenty (20) percent of the project
costs as specified in the contract documents exclusive of land
acquisition and administrative costs by providing suitable
budget provisions in the Development Budget for the Project up
to 2.6 million Canadian Dollars equivalent.
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8. Be responsible for all demurrage arising from delays occasioned
by Indonesia .
9. a) provide the general contractor ready access to information
on the various laws and regulations that must be observed,
including those relatin g to visas, permits, taxes, local
employment and accident insurance, loading limitations on
transports, etc.
b) be responsible to provide the right o f access to site, to
necessary areas f or camps, workshops, etc ., and to areas
where sand, g ravel and borrow may be extracted.
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adequate supply of domestically produced cement at a firm
unit price.
10. Abs o r b all costs associated with land acquisition and right of
way required for the construction of the bridges, approach
roads and temporary diversion roads in the vicinity of the
respective sites.
11. Provide assistance to those contracting firms intending to
submit tenders who may make site visits to Indonesia. Such
assistance would include a suitable qualified English-speaking
en g ineer in South Sulawesi throughout the period as specified
in tender documents and the provision of vehicles, drivers and
fuel, and arrangements for accommodation to enable contractors
to make a tour of the bridge sites. All transport cost excluding
those in Sulawesi and accommodation expenses will be borne by
the contractors.
12. Provide and pay for the cost of graduate Indonesian eng ineers
as required, to assist the Canadian Engineering Consultant in
carrying out the duties related to the supervision of
construction together with clerical assistance suitably
qualified to assist in the preparation of contract accounting
documents.
13, Take responsibility for the relocation or replacement of all
services which may be required to be moved during the course of
the construction. Such services would include power lines,
telephone lines, graves, etc.
14. Agree to the use of certain non-Canadian non-Indonesian
personnel during the course of Contract executions where their
use would reduce cost and increase efficiency. Such use would
be subject to joint approval by Indonesia and Canada.
ANNEX "D"
RESPONSIBILITIES OF THE CANADIAN ENGINEERING
CONSULTANT FOR SUPERVISION OF CONSTRUCTION
The consultant shall carry out full supervision of construction of
the project bridges in accordance with the following and under
such other instructions as may be given from time to time by the
Indonesian Directorate General of Highways (Bina Marga)
1. Check, evaluate and agree with the contractors their work
plans and progress schedules for the most effective and
expeditious method of carrying out the work.
2. Provide the contractors with the necessary datum points and
bench-marks for setting out the work and subsequently check
and accept the detailed setting out.
3. Issue all necessary instructions to the contractors, on behalf
of Bina Marga and check and control the work overall to ensure
that it is carried out according to contract documents.
4. Provide general guidance to the contractors as may be necessary
to ensure that the works are carried out expeditiously
according to schedule and within the terms of the contracts.
5. Check and approve all arrangements made during the
construction for ensuring adequate traffic flow arrangements
along the existing alignment.
6. Carry out, during the execution of the works, inspections of
all working areas and installations including accommodation,
canteens, medical dispensaries or clinics, construction
equipment and laboratories to see that all these conform to
agreed specifications and proposals.
7. Carry out the required testing of soils, materials and
operations required to ensure that the work complies with the
specifications.
8. Check and approve the contractors working proposals defining
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the locations of his work sites and his working program for all
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quarries and borrow pits and ensure that the characteristics of
the materials to be extracted from them meet specifications.
9. Check and approve all shop and working drawings prepared by the
contractors.
10. Check and agree with the contractors their measurement and
payment claims and certify these to Bina Marga as being correct
and within the terms of their contracts.
11. Record all the results of the measurements carried out for the
quantities to be paid for the provisional and final accounting,
on the proper forms normally in use in Indonesia or previously
agreed upon with Bina Marga.
12. Prepare and submit to Bina Marga for approval any contract
change orders, related specifications and drawings which may
from time to time be necessary.
13. Assist Bina Marga in negotiations with contractors on any price
or rate changes for which the need may arise and make
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14. Evaluate all claims for additional payments or extension of
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time submitted by contractors and make recommendations on these
to Bina Marga.
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15. Alert Bina Marga to any problems which arise or might arise in
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connections with the contracts and make recommendations for
overcoming them.
16. Assist Bina Marga in any dispute that may arise with the
contractors and give a firm opinion on any claim the contractors
may put forward, drawing up a report giving all the elements on
which the opinion is based.
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17. Submit to Bina Marga monthly reports on progress with updated
cost estimate.
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18. When the works have been completed, carry out an inspection and
make recommendations to Bina Marga on their acceptance and on
the date of commencement of the maintenance period if any.
19. Submit to Bina Marga a final report including an-built drawing s
and appropriate maintenance manuals.
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