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MEMORANDUM OF UNDERSTANDING BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF AUSTRALIA
RELATING TO
THE !RIAN J AYA INTEGRATED URBAN INFRASTRUCTURE DEVELOPMENT
PROGRAM
GENERAL
1•
THIS MEMORANDUM
expresses the understandings of
the Government of Australia and the Government of
the
Republic
of
Indonesia
concerning
the
responsibilities and contributions respectively of
the two Governments in regard to the provision of
technical assistance to the Directorate General of
Human Settlements, Ministry of Public Works, by the
Government of Australia under the Irian Jaya
Integrated Urban Infrastructure Development Program.
The Project is intended to assist with the
strengthening of local government capacity in Irian
Jaya
to
undertake
planning,
appraisal
and
preparation of urban 1nfrastructure development
plans, as further described and detailed in Anne x
1 of this Memorandum.
AUTH ORITIES
2.
The Executing Authorities for this Project will be:
Fo r the Government of the Republic of Indonesia:
The Directorate General of Human Settlements (Cipta
Karya), Ministry of Public Works.
For the Government of Austra 1 i a : The Australian
International Development Assistance Bureau (AIDAB)
of the Department of Foreign Affairs and Trade.
The Directorate Genera 1 of Human Settlements may
cooperate with other r·elevant Indonesian Governments
Departments on particular components of the Project
as required through the Coord1nat1on Team For Urban
ｄ･ｶｬｯｰｾｮｴ＠
(TKPP).
The Australian International Development Assistance
Bu re au may nominate su i tab 1 y qualified persons,
organisations or corporations to undertake any part
of its function on its ｢･ｨ｡ｾｦ
Ｎ＠
DURATION
3.
This Memorandum will take effect from the date of
its signature and the Project will be deemed to
have commenced ｯｾ＠
5 June 1989. The Australian
contribution to the Project and all undertakings
given herein will cease on 5 June 1992 or on such
other date as may subsequently be arranged between
the two Governments.
PROJECT ORGANIZATION
4.
The Project organisation provides for two levels
of control. The first of these is at the Government
to Government level and is concerned with Project
performance and review.
Responsibility for this
will be vested in a Project
Coordinating Board
which wi 11 be chaired by the Director General of
Human Settlements and other relevant authorities
nominated by
the Government of
the
Republic
Indonesia .
Members hip of the Board wi 11 also
include representatives nominated by the Australian
Embassy in Jakarta and others nominated at the
discretion of the Government of Australia.
The
Board will meet not less than twice a year over the
life of the Project.
5.
Functions of the Project Coordinating Board will
include:
(a) coordinating policy, funding and operations
for the Project;
(b)
reviewing and reporting on progress to the two
Governments; and
(c)
recommending to the two Govern ments changes in
the Project program and/or budget.
6.
The other
level
of
control
relates
to
the
achievement of Integrated Urban Infrastructure
Development Program (IUIDP) objectives of the
Project at the Nat ional, Regional,
and Local
Government level.
At the National level the
Project will be implemented by the Directorate
General of Human Settlements and monitored through
the Coordination Team for Urban Development (TKPP).
At
the Provincial level the Project will be
implemented and moni tared through the Provincial
IUIDP Steering Cammi ttee.
At the Local level the
Project will be implemented and monito red th ro ugh
the district (Tk II) Technical Team.
These
organisations and their functions are further
described in Annex II.
2
RESPONSIBILITY
Overall responsibility for this Project will rest
7.
with the Government of the Republic of I ndonesia .
The final authority for decisions on i mplementation
of the program of activities jointly decided by the
two Governments will rest with t he Director General
of Human Settlements, after consultati ons with the
Indonesian ｐｲｯｪｾ｣ｴ＠
Manager and the Au stralian Team
Leader. The division of responsibility is further
detailed in Annex II to this Memora ndum.
CONTR I BUT IONS
8.
The contribution of the Australian Government is
detailed in Annex III and is estimated to value $A
3.55 million. The contribution of the Indonesian
Government is detailed in Annex IV and is estimated
to value Rp 415 million.
Disbursement of the Indonesian and Australian
Governments' contributions wi 11 be subject to normal
annual
budget
appropriations.
Annual
budgets,
including
forward
allocations
and
actual
disbursements, will be prepared by both Governments.
The two Governments will notify each other of any
subsequent variations to these annual budgets.
PROJECT MO NI TOR IN G
€IND RE VIEW
9.
The two Governments will jointly monitor progress
of the Project on a regular basis.
Monitoring
reports (specified in Annex V to this Memorandum)
will be prepared by the Australian consultants in
cooperation with their Indonesian counterparts.
The reports will form the basis for moni taring
visits to the field by a monitoring team consisting
of representatives of the Directorate General of
Human Settlements and the Australian Embassy in
Jakarta. Such visits will occur not less than twice
a year.
The monitoring team will report to a
Project Coordinating Board meeting to be held
s hortly after each field visit.
10.
A joint
review of
progress,
performance and
prospects may be undertaken at a time to be mutually
arranged by both Governments to provide guidance on
contributions and directions for the remaining term
of the Project.
3
PERSONNEL
11
(a)
For
the
purposes
of
this
Project,
the
Government of the Republic of Indonesia will,
in
accordance
with
prevailing
laws
and
regulations, facilitate the employment by the
Australian Government of persons, o rgani sa tions
or corporations nominated by it to undertake
its functions on its behalf, and of Australian
project personnel required for the Project by:
(i)
bearing income or other taxes on project
salaries
and
allowances;
Australian
project personnel wi 11 not bear these
taxes;
(ii) granting exemption from import and other
duties on the personal and household
effects of Australian project personnel;
(iii)granting exemption from taxes and duties
on the purchase in Indonesia of one
locally assembled motor vehicle by each
of the Australian project personnel on
condition that it either be sold to a
person who has the same privileges, or to
the Agents authorised by the Government
of the Republic of Indonesia. In order to
qualify for such exemption the Australian
project personnel must be assigned to the
Project on a long term basis of at least
twelve (12) consecutive months;
(iv) granting to Australian project personnel
all rights and entitlements accorded to
the aid personnel of any other donor
country; and
(v)
(b)
expediting the issue of all documentation
required for the entry of, and performance
of work by, Australian project personnel
including work permits or certificates for
eligible persons.
For
the
purposes
of
this
Memorandum,
"Australian project personnel" means persons
who are not nationals or permanent residents
of Indonesia,
who are accredited by the
Government of the Republic of Indonesia to work
in Indonesia in an activity under
this
Memorandum and whose salaries or other costs
are funded from the Australian contribution to
the Project.
4
SUPPLIES
12.
(a)
The Government of the Republic of Indonesia
will, in accordance with prevailing laws and
regulations, grant exemption from import duties
and
other
central,
state
and
regional
government taxes on all supplies purchased by
the Government of Australia for the Project.
( b)
The Government of the Republic of Indonesia
will facilitate movement of project equipment
and supplies by providing appropriate customs
and wharfage facilities in the port of entry
and wi 11 be responsible for the expeditious
transport of such equipment and supplies to
site.
(c)
Project equipment and supplies provided by
the Government of Australia will be available
for the unrestricted use of the Project and
will not be withdrawn from such u se without
the consent of the Project Coordinating Board.
The Aust ralian Team Leader, in consul ta ti on
with
the Indonesian Project Manager, wi 11
exercise administrative control over such
supplies for the duration of the Project or
until such time as the Government of Australia
consents to their release from the Project.
LIABILITY
13 .
The Government of the Republic of Indonesia will be
responsible for dealing with any claims which may
be brought by third parties against the Government
of Australia and its advisers or Australian project
personnel and will hold harmless the Government of
Australia and its advisers or Australian project
personnel, in case of any claims or 1 iabi l i ties
resulting from operations under this Memorandum.
This provision will not relieve any person from
liability where it is mutually determined by the two
Governments that such liability results from any
c riminal, grossly negligent or fraudulent act on the
part of that person.
5
SECURITY
14. The Government of the Repub 11 c of Indonesia w111
arrange for any ｰｲｯｴ･｣ｾｩｮ＠
necessary to ensure the
safety of the person and property of Australian
project personnel and of their dependents, and of
Australian proJect equipment and supolies, either
at the oroject location, in transit 1n Indonesia.
or on any other official representational ｡｣ｾｩｶＱｴｹ＠
in Indonesia. The Australian Government will take
reasonable precautions to ensure that Australian
project personnel
have due regard for
local
traditions and customs.
SETTLEMENT OF DIFFERENCES
1 5.
Any disputes ar1s1ng out of the interpretation or
implementation of this Memorandum will be settled
amicably by ｣ｯｮｳｾｬｴ｡ｩ＠
or negotiation between
the two Governments.
16 .
Amendments to th1 s Memoranaum may be made at any
ti me by an Exchange of Letters between the two
Governments.
17.
Annexes I to V of this Memorandum form an 1ntegra
part of it.
AMENDMENTS
ANNEXES
IN WITNESS
WHEREOF , the undersigned being duly authorised thereto by their
respective Governments, have signed this Memorandum.
SIGNED in Jakarta,
langguage
on
24
May 1989,in two originals in English
FOR AND ON BEHALF OF
THE GOVERNMENT OF AUSTRALIA
FOR AND ON BEHALF OF
THE GOVERNMENT OF
THE REPUBLIC OF INDONESIA
Signed
Signed
RADINAL MOOCHTAR
MINISTER OF PUBLIC WORKS
PHILIP FLOOD
AMBASSADOR
6
ANNEX I
(page 1)
ACTIVITY DESCRIPTION
BACKGROUND
1 . The
Governmen t of the Republic of Indonesia has adopted a
policy emphasising decentralisation and "bottom up" planning
in the area of urban infrastructure development, with greater
responsibility given to local gave rnment in the identi f ica ti on
and management of projects. The Directorate Gener al of Human
Settlements (Cipta Karya) has taken a lead role in the
implementat ion of
this policy and with United Nations
Development Program (UND P ) technical assistance has developed
th e
IUIDP process.
Local
gove rn ments
have
responded
positively to the opportunity to be directly involved in
projec t planning in their regions
The World Bank, Asian
Development Bank (ADB) an d a number of bilateral donors ha ve
supported IUIDPs throughout Indonesia, fu nding Indonesian and
foreign consultancy services to prepare IUIDP plans.
2. The IUIDP process covers water supply, urban flood control
a nd drainage, wastewater and solid waste management, village
(kampung) i mprovement, market area improvement, urban roads
and housing
Its primary focus
is on
institutional
strengthen ing aimed at developing planning and project
preparation capacity at provincial and district (kabupaten)
levels th rough a •hands on' t ra i ning program
Consu 1 tan ts
provide advisory serv i ces to ass i st l oc3 l governments prepare
rolling 5-7 year urban infrastructure investment plans for
inclusion in national 5 year development (Repel1ta) plans. The
IUIDP process also invo lves preparation of a fi nanc i al plan
focusing on a ffo rdability and cost recovery principles and an
i nstitutional development ac tion plan .
3. The
Government of the Repub l ic of Indonesia, through the
Direc torate General of Human Settlements (Cipta Karya) within
the Ministry of Public Works, has
requested Au stralian
assistance with an IUIDP project in the Eastern Islands
province of Irian Jaya.
This proposal fits well within the
overal l Austral tan aid program to Indonesi a, which has for
many years focused on infrastructural activities and which has
more recently developed a geographical focus on the Eastern
Islands.
7
ANNEX I (page 2)
ACTIVITY DESIGN.
4. The precise objectives, scope of work, consultant services,
reporting requirements and scheduling for t he proposed
assistance to the IUIDP process in Irian Jaya are as detailed
in the Project Design Document and Terms of Reference issued
at the Pre-Bid Meeting on 8 November 1988.
If in the course
of the project the Directorate General of Human Settlements
(Cipta Karya) finds it necessary to seek major changes to the
Terms of Reference or other reference documentation essential
to the project, AIDAB approval of a contract variation with
the Australian consultant will be sought.
A s ummary of the
project is set out in paragraphs 5-8 below.
5. The objectives of the proposed assistance to the IUIDP process
in Irian Jaya are to:
(a)
Assist the Local Governments with the preparation of
kabupaten wide 5-7 year
rolling
investment plans
(including annual p l ans) and assist the provincial
Government with the preparation of a Provincial wide
IUIDP for Repelita V.
(b)
Strengthen local government capacity at provincial and
kabupaten level for the planning and preparation of urban
infrastructure plans and associated ins ti tu tional and
financial action plans.
6. In addition, within the constraint of the duration of
Project, the consultant will be required to:
the
Consolidate an integrated IUIDP for the Eastern Indonesia
region in addition to the province of Iria n Jaya, which
will include the provinces of Ma luku, Nusa Tenggara Timur
and Nusa Tenggara Barat;
Package co mp onents of the IUIDP for Eastern Indonesia
for submission by the Government of the Republic of
Indonesia to potential donors.
7. The Project wi ll have four components:
(a)
'
technical assistance involving the provision of 90 person
months of Australian consultancy inputs. This will
include long te rm inp uts in the fields of urban
pl an ning/economics , municipal engineering, municipal
finance and i nstitutional development. It will also cover
19
person
months
s hort
term
i nputs
in
project
preparation, systems analysis, training methods and
drainage, water s upply and sanitation engineering
8
ANN EX I (page 3 )
(b)
local cost funding of up to 180 person months of national
consultancy inputs in a joint venture arrangement with
the Australian consultant. Whilst the national consultant
would provide direct inputs to the project, some transfer
of skills from the Australian to the national consultant
is expected;
(c)
short term training in Australia
(c)
local cost funding for the procurement of equipment
(vehicles, computer/word processors and training aids);
\.
8. The technical assistance wi 11 be focused at kabupa ten and
provincial level, based on a kabupaten-wide approach a nd
nominated towns.
The Project will be based in the office of
the Provincial Government of I rian Jaya but would include
travel to the various districts.
In the initial year of the
Project, assistance will be given to four kabupaten (Jayapura,
Sorong, Biak Numfor and Merauke) and in subsequent years the
remaining five
kabupaten
( Jayawi jay a,
Paniai,
Fak-f ak,
Manokwari and Yapen Waropen) will be assisted.
The duration
of the Project will be three years and project commencement
is planned for mid of May 1989.
JUSTIFICATION AND RISKS
9. Local governments now have the mandate but lack the capability
to take the primary role in project planning.
The IUIDP
project aims to facilitate the decentralisation of the project
planning process by increasing the institutional capacity of
local
governments to
initiate and participate in
the
preparation and implementation of projects. Decentralisation
of planning should facilitate greater community involvement
in the dete rmi nation of priori ties and design of projects;
provide an increased sense of "ownership" of projects; and
enable the integration of urban investments to reflect a level
of service and a spread of services which can be afforded and
sustained.
r
9
ANNEX I (page 4)
10. The Project is directed at training planners at ｰｲｯｶｾｮ｣ｩ｡ｬ＠
and kabupaten level primarily within the relevant offices of
Dinas Cipta Karya and the Regional Planning and Development
Board (Bappeda). These institutions will benefit directly from
strengthened planning capacity from the identification stage
through to appraisal and financing of projects. This should
result in increased efficiency and effectiveness in the
design, implementation and operation and maintenance of urban
infrastructure and services at local government level.
The
ultimate beneficiaries will be the local communities through
the provision of more relevant and sustainable projects on a
priority needs basis.
1 1. Given the training nature of the Project and the nonquantifiable or non-marketable nature of outputs, the Project
is not readily amenable to the calculation of an internal rate
of return.
12. Being an institutional development or training project,
success is very much dependent upon the human factor:
the
ability of the consul tan ts to transfer skills and mo ti va te
targeted staff.
Similarly counterparts must be willing and
responsible
to
the objectives
of
the
project.
All
institutional projects carry high risks that upon withdrawal
of the consultants the capa c ity and capabi l ity of counterparts
to undertake new functions and roles evaporates.
In
particular the problem of staff mobility could quickly
dissipate the ability of the counterpart institutions to
continue.
It is important therefore that ongoing training
continue beyond the project and that the national consultant
involved in the project establish and maintain a permanent
presence in Irian Jaya. Efforts to minimise these risks have
been taken by examining previous experience with the IUIDP in
other Indonesian provinces and careful identification of the
willingness of local government in Irian Jaya to participate
in the project.
10
ANNEX II (page 1)
RESPONSIBILITIES
1.
The central implementing agency for the Project will be the
Department of Public Works through the Directorate General of
Human Settlements.
2.
The Director General of Human Settlements will appoint a
Project Manager from within the Directorate for Program
Development who wi 11 be responsible for coo rdi na ting the
activities of the Central Govern ment and who will provide the
link between Centra l Government and the Provincial Government
of Irian Jaya.
3.
At national level the Project will be conducted within the
existing organizational structure of the Directorate General
of Human Settlements .
I nte rdepa rtmental coo rdi nation and
provision of overall operational guidance will be provided by
the Coordination Team for Urban Development (Tim Koordinasi
Pembangunan Perkotaan) which wa s established by a Decree of
the Minister of the National Development Planning Agency
(Bappenas), no. KEP.016/KET/3/1987 dated April 1, 1987.
4.
The structure of the Coordination Team for Urban Development
(TKPP) c onsists of:
(a)
a Steering Committee
(b)
pe r manent Working Groups for:
Policies and Programmes
Programme Implementation
Financial Resources
Institutional Development.
(c)
5.
a Secretariat.
At the Provincia l level the Governor of I rian Jay a wi 11
establish an IUIDP Steering Committee which will be chaired
by the Head of the Provincial Development Planning Board and
will include amongst others the Head of Public Works Dinas at
provincial level (Tk I), the Head of the Bureau of Physical
Development, and the Head of the Directorate General of
Village Development (Bangdes). This Steering Committee will
be the chief counter part of the Consultant at the provincial
Level.
11
ANNEX II (page 2)
6.
At the kabupaten level the respective District Head (Bupati)
will form IUIDP Technical Teams and will include among others
the Head of Bappeda at district level (Tk II) as chairman, the
Head of Public Works Dinas Tk II, Head of the Finance Section,
Head of the Development Section, and other Level II Dinas
heads or section heads as considered necessary by the
respective Level II Local Government.
7.
In formal terms the Government of Australia will provide
technical assistance for this Project to the Government of
Indonesia,
represented by the Directorate General Human
Settlements.
The Central Government will in turn be
recognised as the agency providing the technical assistance
to the provincial Government of Irian Jaya.
8.
Routine monitoring and evaluation of the outputs of the
Project will be a joint responsibility as specified in
paragraph 9 of the 'Project Monitoring and Review' sectio n in
the main body of this Memorandum.
9.
Guidance and direction on tec hnical aspects of the Project
will be provided through the Directorate General of Human
Settlements . Contractual matters relating to the Project will
be referred to AIDAB Canberra through the Australian Embassy
in Jakarta.
10.
A Consultant will be appointed by the Australian Government
through the Australian Inter national Development Assistance
Bureau to assist the provincial a nd local Governments of Irian
Jaya in accordance with paragraph 4 of Annex I of this
Memorandum.
The Australian consultant wil 1 be responsible
for the selection, performance and payment of national
consulta nts engaged in this Project.
12
ANNEX III (page l)
AUSTRALIAN GOVERNMENT CONTRIBUTION
COSTS
l.
The Government of Australia will make contributions to the
Project totalling an estimated $A 3 55 million over a three
year period. Details of these contributions are set out be l ow;
Australian Consultants
Salaries and allowances
Mobilisation costs
Accommodation
Air travel
$A 1,945,000
National Consultants
Professiona l fees and allowances
Accommodation costs and per diems
Mobil1sat1on costs
Internal air travel
$A
865,000
$A
740,000
Office and other Costs
•
I
i
Refurbishment of Jayapura office
Salaries of wordprocessor operator,
secretary, drivers
Equipment (12 IBM-PC, 1 1 Printers,
l Fax machine, 1 Photocopier,
1 Overhead projector,
1 Plan printer etc)
International communi cations
All telephone bills
Vehicles ( 2 4WD and 1 van, r unnin g costs)
Sundry o ff ice costs (stationery, books, etc.)
Workshops, Training programs i n Indones i a,
Study visit overseas
Report preparation
TOTAL
13
$A 3,550,000
-------- -----------
ANNEX III (page 2)
PERSONNEL
2. Australian Staff.
The Government of Australia wi 11 provide accommodation, travel
costs and remuneration for all Australian personnel assigned
to the project, namely:
ｾｵｩＮ＠
.......ｮＮＬｴＱｵｭｲＺＢＭＧＪｾ｟｡ｬＦｦｑ
Ｌ ｲｮＭＮ
Position
.....o-rnu..,.,_ _
total
(month)
11111111111111111t11ttt11111111111111111111111tu11111u1111111mn111111111111mn111H111u1111111111u1111111111111111w111111111111111111111111nmn1m11111m1m1111m11111111mun111111uuuu1m1nt1111111111111111111111w1nuu1m11MUl*Umu:11ttt11u1un111u11u1111ntm111:n11nniu111111ttm11ftttttn
(a)
(b)
Long term
Team Leader
33
Urban Planning Adviser
12
Municipal Finance Adviser
13
Municipal Engineering Adviser
13
Short Term
19
90
3. Indonesian Staff.
The Government of Australia will provide rental accommodation
costs at the standard Indonesian rate, travel costs and
remuneration for up to 180 person months of Indonesian
professional consultancy personnel who will be working with
the Australian consultants.
14
ANNEX IV
INDONESIAN
1.
GOVERNMENT CONTRIBUTION
The Government o f
the Repub l ic of Indonesia will make
contribu tio ns to t a l 1 ing an es t imated Rupiah 4 15 mi 11 ion to
the Project over three years. The details of the contributions
and estimates are given below.
a. Salaries & wages
b. Travel & perdiems
c. Operational costs
1989-90
1990-9 1
25.50 0.000
49.140.000
63 . 690.000
25 . 500 . 000
49.140.000
63.600.000
1991-92
25.599.000
49 . 140.000
63.880.000
' * ' - - l l l U..Hlmntt1a:1ua-Nlmm!-ntllMlllU1lllttlllNUlltUlllUIUllUllllllUlutUIUllllUIQMllUlllllUll11f\11llllltllllllll\ llMl•UlllUnumm111m1nn.1111u1unm1111111mn11111n
TOTAL
Note :
138.240.000
138.240.000
138.520 . 000
Based on Indonesian Financial Year 1 April to 31 March.
d. Pers onnel
Prov i de counterpart staff t h rough the establishment of
the follo wing:
0
National level
Project Manager (GOI)
0
P r ovincial Level
Steering Committee
0
Municipal Level
Technical Teams Tk II
0
Project
Survey Personnel
e. Offi ce Accommodation
Office space for project staff Jayapura
Office fur n itu re equipment a nd fittings including
telephones and air co nditioning, typewriter, Maps &
Aerial Photos.
f. Equ i pment Supplie s and Servi c e s
- Office Utility (electricity, gas, water)
- Surface travel at kabupaten
- Fiscal for GOI staff to travel to Australia.
15
ANNEX
V
PROJECT MONITORING REPORTS
REPORT
TIME
1.
Annual Plan
One month after commencement.
Annually thereafter.
2.
Implementation Report
Two months after commencement.
3.
Fortnightly Progress
Reports
To be prepared in accordance with
AIDAB activity cycle booklet 25,
section VI,sub-section 2 and IUIDP
guidelines as outlined in Annex 5 of
the Project terms of reference.
To
be
submitted
14
days
after
commencement of the Project and every
fortnight thereafter .
4.
Periodic Progress Report
For first Project Coordinating Board
Meeting in November 1989 (After
identification of first series MultiYear Investment Programs (PJM)).
For second Project Coordinati ng Board
Meeting after draft consolidation
documentation produced.
For third Project Coordinating Board
Meeting
after
identi f ica ti on
of
second series PJM
For subsequent Project Coordinating
Board Meetings held at six month
intervals.
,..
5.
Draft Final Report
Three months before comp l etion of
the Project.
6.
Final Report
One month before completion of the
Project
7.
Completion Report
Within three months of the completion
of the Project
16
MEMORANDUM OF UNDERSTANDING BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF AUSTRALIA
RELATING TO
THE !RIAN J AYA INTEGRATED URBAN INFRASTRUCTURE DEVELOPMENT
PROGRAM
GENERAL
1•
THIS MEMORANDUM
expresses the understandings of
the Government of Australia and the Government of
the
Republic
of
Indonesia
concerning
the
responsibilities and contributions respectively of
the two Governments in regard to the provision of
technical assistance to the Directorate General of
Human Settlements, Ministry of Public Works, by the
Government of Australia under the Irian Jaya
Integrated Urban Infrastructure Development Program.
The Project is intended to assist with the
strengthening of local government capacity in Irian
Jaya
to
undertake
planning,
appraisal
and
preparation of urban 1nfrastructure development
plans, as further described and detailed in Anne x
1 of this Memorandum.
AUTH ORITIES
2.
The Executing Authorities for this Project will be:
Fo r the Government of the Republic of Indonesia:
The Directorate General of Human Settlements (Cipta
Karya), Ministry of Public Works.
For the Government of Austra 1 i a : The Australian
International Development Assistance Bureau (AIDAB)
of the Department of Foreign Affairs and Trade.
The Directorate Genera 1 of Human Settlements may
cooperate with other r·elevant Indonesian Governments
Departments on particular components of the Project
as required through the Coord1nat1on Team For Urban
ｄ･ｶｬｯｰｾｮｴ＠
(TKPP).
The Australian International Development Assistance
Bu re au may nominate su i tab 1 y qualified persons,
organisations or corporations to undertake any part
of its function on its ｢･ｨ｡ｾｦ
Ｎ＠
DURATION
3.
This Memorandum will take effect from the date of
its signature and the Project will be deemed to
have commenced ｯｾ＠
5 June 1989. The Australian
contribution to the Project and all undertakings
given herein will cease on 5 June 1992 or on such
other date as may subsequently be arranged between
the two Governments.
PROJECT ORGANIZATION
4.
The Project organisation provides for two levels
of control. The first of these is at the Government
to Government level and is concerned with Project
performance and review.
Responsibility for this
will be vested in a Project
Coordinating Board
which wi 11 be chaired by the Director General of
Human Settlements and other relevant authorities
nominated by
the Government of
the
Republic
Indonesia .
Members hip of the Board wi 11 also
include representatives nominated by the Australian
Embassy in Jakarta and others nominated at the
discretion of the Government of Australia.
The
Board will meet not less than twice a year over the
life of the Project.
5.
Functions of the Project Coordinating Board will
include:
(a) coordinating policy, funding and operations
for the Project;
(b)
reviewing and reporting on progress to the two
Governments; and
(c)
recommending to the two Govern ments changes in
the Project program and/or budget.
6.
The other
level
of
control
relates
to
the
achievement of Integrated Urban Infrastructure
Development Program (IUIDP) objectives of the
Project at the Nat ional, Regional,
and Local
Government level.
At the National level the
Project will be implemented by the Directorate
General of Human Settlements and monitored through
the Coordination Team for Urban Development (TKPP).
At
the Provincial level the Project will be
implemented and moni tared through the Provincial
IUIDP Steering Cammi ttee.
At the Local level the
Project will be implemented and monito red th ro ugh
the district (Tk II) Technical Team.
These
organisations and their functions are further
described in Annex II.
2
RESPONSIBILITY
Overall responsibility for this Project will rest
7.
with the Government of the Republic of I ndonesia .
The final authority for decisions on i mplementation
of the program of activities jointly decided by the
two Governments will rest with t he Director General
of Human Settlements, after consultati ons with the
Indonesian ｐｲｯｪｾ｣ｴ＠
Manager and the Au stralian Team
Leader. The division of responsibility is further
detailed in Annex II to this Memora ndum.
CONTR I BUT IONS
8.
The contribution of the Australian Government is
detailed in Annex III and is estimated to value $A
3.55 million. The contribution of the Indonesian
Government is detailed in Annex IV and is estimated
to value Rp 415 million.
Disbursement of the Indonesian and Australian
Governments' contributions wi 11 be subject to normal
annual
budget
appropriations.
Annual
budgets,
including
forward
allocations
and
actual
disbursements, will be prepared by both Governments.
The two Governments will notify each other of any
subsequent variations to these annual budgets.
PROJECT MO NI TOR IN G
€IND RE VIEW
9.
The two Governments will jointly monitor progress
of the Project on a regular basis.
Monitoring
reports (specified in Annex V to this Memorandum)
will be prepared by the Australian consultants in
cooperation with their Indonesian counterparts.
The reports will form the basis for moni taring
visits to the field by a monitoring team consisting
of representatives of the Directorate General of
Human Settlements and the Australian Embassy in
Jakarta. Such visits will occur not less than twice
a year.
The monitoring team will report to a
Project Coordinating Board meeting to be held
s hortly after each field visit.
10.
A joint
review of
progress,
performance and
prospects may be undertaken at a time to be mutually
arranged by both Governments to provide guidance on
contributions and directions for the remaining term
of the Project.
3
PERSONNEL
11
(a)
For
the
purposes
of
this
Project,
the
Government of the Republic of Indonesia will,
in
accordance
with
prevailing
laws
and
regulations, facilitate the employment by the
Australian Government of persons, o rgani sa tions
or corporations nominated by it to undertake
its functions on its behalf, and of Australian
project personnel required for the Project by:
(i)
bearing income or other taxes on project
salaries
and
allowances;
Australian
project personnel wi 11 not bear these
taxes;
(ii) granting exemption from import and other
duties on the personal and household
effects of Australian project personnel;
(iii)granting exemption from taxes and duties
on the purchase in Indonesia of one
locally assembled motor vehicle by each
of the Australian project personnel on
condition that it either be sold to a
person who has the same privileges, or to
the Agents authorised by the Government
of the Republic of Indonesia. In order to
qualify for such exemption the Australian
project personnel must be assigned to the
Project on a long term basis of at least
twelve (12) consecutive months;
(iv) granting to Australian project personnel
all rights and entitlements accorded to
the aid personnel of any other donor
country; and
(v)
(b)
expediting the issue of all documentation
required for the entry of, and performance
of work by, Australian project personnel
including work permits or certificates for
eligible persons.
For
the
purposes
of
this
Memorandum,
"Australian project personnel" means persons
who are not nationals or permanent residents
of Indonesia,
who are accredited by the
Government of the Republic of Indonesia to work
in Indonesia in an activity under
this
Memorandum and whose salaries or other costs
are funded from the Australian contribution to
the Project.
4
SUPPLIES
12.
(a)
The Government of the Republic of Indonesia
will, in accordance with prevailing laws and
regulations, grant exemption from import duties
and
other
central,
state
and
regional
government taxes on all supplies purchased by
the Government of Australia for the Project.
( b)
The Government of the Republic of Indonesia
will facilitate movement of project equipment
and supplies by providing appropriate customs
and wharfage facilities in the port of entry
and wi 11 be responsible for the expeditious
transport of such equipment and supplies to
site.
(c)
Project equipment and supplies provided by
the Government of Australia will be available
for the unrestricted use of the Project and
will not be withdrawn from such u se without
the consent of the Project Coordinating Board.
The Aust ralian Team Leader, in consul ta ti on
with
the Indonesian Project Manager, wi 11
exercise administrative control over such
supplies for the duration of the Project or
until such time as the Government of Australia
consents to their release from the Project.
LIABILITY
13 .
The Government of the Republic of Indonesia will be
responsible for dealing with any claims which may
be brought by third parties against the Government
of Australia and its advisers or Australian project
personnel and will hold harmless the Government of
Australia and its advisers or Australian project
personnel, in case of any claims or 1 iabi l i ties
resulting from operations under this Memorandum.
This provision will not relieve any person from
liability where it is mutually determined by the two
Governments that such liability results from any
c riminal, grossly negligent or fraudulent act on the
part of that person.
5
SECURITY
14. The Government of the Repub 11 c of Indonesia w111
arrange for any ｰｲｯｴ･｣ｾｩｮ＠
necessary to ensure the
safety of the person and property of Australian
project personnel and of their dependents, and of
Australian proJect equipment and supolies, either
at the oroject location, in transit 1n Indonesia.
or on any other official representational ｡｣ｾｩｶＱｴｹ＠
in Indonesia. The Australian Government will take
reasonable precautions to ensure that Australian
project personnel
have due regard for
local
traditions and customs.
SETTLEMENT OF DIFFERENCES
1 5.
Any disputes ar1s1ng out of the interpretation or
implementation of this Memorandum will be settled
amicably by ｣ｯｮｳｾｬｴ｡ｩ＠
or negotiation between
the two Governments.
16 .
Amendments to th1 s Memoranaum may be made at any
ti me by an Exchange of Letters between the two
Governments.
17.
Annexes I to V of this Memorandum form an 1ntegra
part of it.
AMENDMENTS
ANNEXES
IN WITNESS
WHEREOF , the undersigned being duly authorised thereto by their
respective Governments, have signed this Memorandum.
SIGNED in Jakarta,
langguage
on
24
May 1989,in two originals in English
FOR AND ON BEHALF OF
THE GOVERNMENT OF AUSTRALIA
FOR AND ON BEHALF OF
THE GOVERNMENT OF
THE REPUBLIC OF INDONESIA
Signed
Signed
RADINAL MOOCHTAR
MINISTER OF PUBLIC WORKS
PHILIP FLOOD
AMBASSADOR
6
ANNEX I
(page 1)
ACTIVITY DESCRIPTION
BACKGROUND
1 . The
Governmen t of the Republic of Indonesia has adopted a
policy emphasising decentralisation and "bottom up" planning
in the area of urban infrastructure development, with greater
responsibility given to local gave rnment in the identi f ica ti on
and management of projects. The Directorate Gener al of Human
Settlements (Cipta Karya) has taken a lead role in the
implementat ion of
this policy and with United Nations
Development Program (UND P ) technical assistance has developed
th e
IUIDP process.
Local
gove rn ments
have
responded
positively to the opportunity to be directly involved in
projec t planning in their regions
The World Bank, Asian
Development Bank (ADB) an d a number of bilateral donors ha ve
supported IUIDPs throughout Indonesia, fu nding Indonesian and
foreign consultancy services to prepare IUIDP plans.
2. The IUIDP process covers water supply, urban flood control
a nd drainage, wastewater and solid waste management, village
(kampung) i mprovement, market area improvement, urban roads
and housing
Its primary focus
is on
institutional
strengthen ing aimed at developing planning and project
preparation capacity at provincial and district (kabupaten)
levels th rough a •hands on' t ra i ning program
Consu 1 tan ts
provide advisory serv i ces to ass i st l oc3 l governments prepare
rolling 5-7 year urban infrastructure investment plans for
inclusion in national 5 year development (Repel1ta) plans. The
IUIDP process also invo lves preparation of a fi nanc i al plan
focusing on a ffo rdability and cost recovery principles and an
i nstitutional development ac tion plan .
3. The
Government of the Repub l ic of Indonesia, through the
Direc torate General of Human Settlements (Cipta Karya) within
the Ministry of Public Works, has
requested Au stralian
assistance with an IUIDP project in the Eastern Islands
province of Irian Jaya.
This proposal fits well within the
overal l Austral tan aid program to Indonesi a, which has for
many years focused on infrastructural activities and which has
more recently developed a geographical focus on the Eastern
Islands.
7
ANNEX I (page 2)
ACTIVITY DESIGN.
4. The precise objectives, scope of work, consultant services,
reporting requirements and scheduling for t he proposed
assistance to the IUIDP process in Irian Jaya are as detailed
in the Project Design Document and Terms of Reference issued
at the Pre-Bid Meeting on 8 November 1988.
If in the course
of the project the Directorate General of Human Settlements
(Cipta Karya) finds it necessary to seek major changes to the
Terms of Reference or other reference documentation essential
to the project, AIDAB approval of a contract variation with
the Australian consultant will be sought.
A s ummary of the
project is set out in paragraphs 5-8 below.
5. The objectives of the proposed assistance to the IUIDP process
in Irian Jaya are to:
(a)
Assist the Local Governments with the preparation of
kabupaten wide 5-7 year
rolling
investment plans
(including annual p l ans) and assist the provincial
Government with the preparation of a Provincial wide
IUIDP for Repelita V.
(b)
Strengthen local government capacity at provincial and
kabupaten level for the planning and preparation of urban
infrastructure plans and associated ins ti tu tional and
financial action plans.
6. In addition, within the constraint of the duration of
Project, the consultant will be required to:
the
Consolidate an integrated IUIDP for the Eastern Indonesia
region in addition to the province of Iria n Jaya, which
will include the provinces of Ma luku, Nusa Tenggara Timur
and Nusa Tenggara Barat;
Package co mp onents of the IUIDP for Eastern Indonesia
for submission by the Government of the Republic of
Indonesia to potential donors.
7. The Project wi ll have four components:
(a)
'
technical assistance involving the provision of 90 person
months of Australian consultancy inputs. This will
include long te rm inp uts in the fields of urban
pl an ning/economics , municipal engineering, municipal
finance and i nstitutional development. It will also cover
19
person
months
s hort
term
i nputs
in
project
preparation, systems analysis, training methods and
drainage, water s upply and sanitation engineering
8
ANN EX I (page 3 )
(b)
local cost funding of up to 180 person months of national
consultancy inputs in a joint venture arrangement with
the Australian consultant. Whilst the national consultant
would provide direct inputs to the project, some transfer
of skills from the Australian to the national consultant
is expected;
(c)
short term training in Australia
(c)
local cost funding for the procurement of equipment
(vehicles, computer/word processors and training aids);
\.
8. The technical assistance wi 11 be focused at kabupa ten and
provincial level, based on a kabupaten-wide approach a nd
nominated towns.
The Project will be based in the office of
the Provincial Government of I rian Jaya but would include
travel to the various districts.
In the initial year of the
Project, assistance will be given to four kabupaten (Jayapura,
Sorong, Biak Numfor and Merauke) and in subsequent years the
remaining five
kabupaten
( Jayawi jay a,
Paniai,
Fak-f ak,
Manokwari and Yapen Waropen) will be assisted.
The duration
of the Project will be three years and project commencement
is planned for mid of May 1989.
JUSTIFICATION AND RISKS
9. Local governments now have the mandate but lack the capability
to take the primary role in project planning.
The IUIDP
project aims to facilitate the decentralisation of the project
planning process by increasing the institutional capacity of
local
governments to
initiate and participate in
the
preparation and implementation of projects. Decentralisation
of planning should facilitate greater community involvement
in the dete rmi nation of priori ties and design of projects;
provide an increased sense of "ownership" of projects; and
enable the integration of urban investments to reflect a level
of service and a spread of services which can be afforded and
sustained.
r
9
ANNEX I (page 4)
10. The Project is directed at training planners at ｰｲｯｶｾｮ｣ｩ｡ｬ＠
and kabupaten level primarily within the relevant offices of
Dinas Cipta Karya and the Regional Planning and Development
Board (Bappeda). These institutions will benefit directly from
strengthened planning capacity from the identification stage
through to appraisal and financing of projects. This should
result in increased efficiency and effectiveness in the
design, implementation and operation and maintenance of urban
infrastructure and services at local government level.
The
ultimate beneficiaries will be the local communities through
the provision of more relevant and sustainable projects on a
priority needs basis.
1 1. Given the training nature of the Project and the nonquantifiable or non-marketable nature of outputs, the Project
is not readily amenable to the calculation of an internal rate
of return.
12. Being an institutional development or training project,
success is very much dependent upon the human factor:
the
ability of the consul tan ts to transfer skills and mo ti va te
targeted staff.
Similarly counterparts must be willing and
responsible
to
the objectives
of
the
project.
All
institutional projects carry high risks that upon withdrawal
of the consultants the capa c ity and capabi l ity of counterparts
to undertake new functions and roles evaporates.
In
particular the problem of staff mobility could quickly
dissipate the ability of the counterpart institutions to
continue.
It is important therefore that ongoing training
continue beyond the project and that the national consultant
involved in the project establish and maintain a permanent
presence in Irian Jaya. Efforts to minimise these risks have
been taken by examining previous experience with the IUIDP in
other Indonesian provinces and careful identification of the
willingness of local government in Irian Jaya to participate
in the project.
10
ANNEX II (page 1)
RESPONSIBILITIES
1.
The central implementing agency for the Project will be the
Department of Public Works through the Directorate General of
Human Settlements.
2.
The Director General of Human Settlements will appoint a
Project Manager from within the Directorate for Program
Development who wi 11 be responsible for coo rdi na ting the
activities of the Central Govern ment and who will provide the
link between Centra l Government and the Provincial Government
of Irian Jaya.
3.
At national level the Project will be conducted within the
existing organizational structure of the Directorate General
of Human Settlements .
I nte rdepa rtmental coo rdi nation and
provision of overall operational guidance will be provided by
the Coordination Team for Urban Development (Tim Koordinasi
Pembangunan Perkotaan) which wa s established by a Decree of
the Minister of the National Development Planning Agency
(Bappenas), no. KEP.016/KET/3/1987 dated April 1, 1987.
4.
The structure of the Coordination Team for Urban Development
(TKPP) c onsists of:
(a)
a Steering Committee
(b)
pe r manent Working Groups for:
Policies and Programmes
Programme Implementation
Financial Resources
Institutional Development.
(c)
5.
a Secretariat.
At the Provincia l level the Governor of I rian Jay a wi 11
establish an IUIDP Steering Committee which will be chaired
by the Head of the Provincial Development Planning Board and
will include amongst others the Head of Public Works Dinas at
provincial level (Tk I), the Head of the Bureau of Physical
Development, and the Head of the Directorate General of
Village Development (Bangdes). This Steering Committee will
be the chief counter part of the Consultant at the provincial
Level.
11
ANNEX II (page 2)
6.
At the kabupaten level the respective District Head (Bupati)
will form IUIDP Technical Teams and will include among others
the Head of Bappeda at district level (Tk II) as chairman, the
Head of Public Works Dinas Tk II, Head of the Finance Section,
Head of the Development Section, and other Level II Dinas
heads or section heads as considered necessary by the
respective Level II Local Government.
7.
In formal terms the Government of Australia will provide
technical assistance for this Project to the Government of
Indonesia,
represented by the Directorate General Human
Settlements.
The Central Government will in turn be
recognised as the agency providing the technical assistance
to the provincial Government of Irian Jaya.
8.
Routine monitoring and evaluation of the outputs of the
Project will be a joint responsibility as specified in
paragraph 9 of the 'Project Monitoring and Review' sectio n in
the main body of this Memorandum.
9.
Guidance and direction on tec hnical aspects of the Project
will be provided through the Directorate General of Human
Settlements . Contractual matters relating to the Project will
be referred to AIDAB Canberra through the Australian Embassy
in Jakarta.
10.
A Consultant will be appointed by the Australian Government
through the Australian Inter national Development Assistance
Bureau to assist the provincial a nd local Governments of Irian
Jaya in accordance with paragraph 4 of Annex I of this
Memorandum.
The Australian consultant wil 1 be responsible
for the selection, performance and payment of national
consulta nts engaged in this Project.
12
ANNEX III (page l)
AUSTRALIAN GOVERNMENT CONTRIBUTION
COSTS
l.
The Government of Australia will make contributions to the
Project totalling an estimated $A 3 55 million over a three
year period. Details of these contributions are set out be l ow;
Australian Consultants
Salaries and allowances
Mobilisation costs
Accommodation
Air travel
$A 1,945,000
National Consultants
Professiona l fees and allowances
Accommodation costs and per diems
Mobil1sat1on costs
Internal air travel
$A
865,000
$A
740,000
Office and other Costs
•
I
i
Refurbishment of Jayapura office
Salaries of wordprocessor operator,
secretary, drivers
Equipment (12 IBM-PC, 1 1 Printers,
l Fax machine, 1 Photocopier,
1 Overhead projector,
1 Plan printer etc)
International communi cations
All telephone bills
Vehicles ( 2 4WD and 1 van, r unnin g costs)
Sundry o ff ice costs (stationery, books, etc.)
Workshops, Training programs i n Indones i a,
Study visit overseas
Report preparation
TOTAL
13
$A 3,550,000
-------- -----------
ANNEX III (page 2)
PERSONNEL
2. Australian Staff.
The Government of Australia wi 11 provide accommodation, travel
costs and remuneration for all Australian personnel assigned
to the project, namely:
ｾｵｩＮ＠
.......ｮＮＬｴＱｵｭｲＺＢＭＧＪｾ｟｡ｬＦｦｑ
Ｌ ｲｮＭＮ
Position
.....o-rnu..,.,_ _
total
(month)
11111111111111111t11ttt11111111111111111111111tu11111u1111111mn111111111111mn111H111u1111111111u1111111111111111w111111111111111111111111nmn1m11111m1m1111m11111111mun111111uuuu1m1nt1111111111111111111111w1nuu1m11MUl*Umu:11ttt11u1un111u11u1111ntm111:n11nniu111111ttm11ftttttn
(a)
(b)
Long term
Team Leader
33
Urban Planning Adviser
12
Municipal Finance Adviser
13
Municipal Engineering Adviser
13
Short Term
19
90
3. Indonesian Staff.
The Government of Australia will provide rental accommodation
costs at the standard Indonesian rate, travel costs and
remuneration for up to 180 person months of Indonesian
professional consultancy personnel who will be working with
the Australian consultants.
14
ANNEX IV
INDONESIAN
1.
GOVERNMENT CONTRIBUTION
The Government o f
the Repub l ic of Indonesia will make
contribu tio ns to t a l 1 ing an es t imated Rupiah 4 15 mi 11 ion to
the Project over three years. The details of the contributions
and estimates are given below.
a. Salaries & wages
b. Travel & perdiems
c. Operational costs
1989-90
1990-9 1
25.50 0.000
49.140.000
63 . 690.000
25 . 500 . 000
49.140.000
63.600.000
1991-92
25.599.000
49 . 140.000
63.880.000
' * ' - - l l l U..Hlmntt1a:1ua-Nlmm!-ntllMlllU1lllttlllNUlltUlllUIUllUllllllUlutUIUllllUIQMllUlllllUll11f\11llllltllllllll\ llMl•UlllUnumm111m1nn.1111u1unm1111111mn11111n
TOTAL
Note :
138.240.000
138.240.000
138.520 . 000
Based on Indonesian Financial Year 1 April to 31 March.
d. Pers onnel
Prov i de counterpart staff t h rough the establishment of
the follo wing:
0
National level
Project Manager (GOI)
0
P r ovincial Level
Steering Committee
0
Municipal Level
Technical Teams Tk II
0
Project
Survey Personnel
e. Offi ce Accommodation
Office space for project staff Jayapura
Office fur n itu re equipment a nd fittings including
telephones and air co nditioning, typewriter, Maps &
Aerial Photos.
f. Equ i pment Supplie s and Servi c e s
- Office Utility (electricity, gas, water)
- Surface travel at kabupaten
- Fiscal for GOI staff to travel to Australia.
15
ANNEX
V
PROJECT MONITORING REPORTS
REPORT
TIME
1.
Annual Plan
One month after commencement.
Annually thereafter.
2.
Implementation Report
Two months after commencement.
3.
Fortnightly Progress
Reports
To be prepared in accordance with
AIDAB activity cycle booklet 25,
section VI,sub-section 2 and IUIDP
guidelines as outlined in Annex 5 of
the Project terms of reference.
To
be
submitted
14
days
after
commencement of the Project and every
fortnight thereafter .
4.
Periodic Progress Report
For first Project Coordinating Board
Meeting in November 1989 (After
identification of first series MultiYear Investment Programs (PJM)).
For second Project Coordinati ng Board
Meeting after draft consolidation
documentation produced.
For third Project Coordinating Board
Meeting
after
identi f ica ti on
of
second series PJM
For subsequent Project Coordinating
Board Meetings held at six month
intervals.
,..
5.
Draft Final Report
Three months before comp l etion of
the Project.
6.
Final Report
One month before completion of the
Project
7.
Completion Report
Within three months of the completion
of the Project
16