Selanjutnya
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF AUSTRALIA
RELATING TO THE FEASIBILITY STUDY OF THE BATAM ISLAND
COAL
GENERAL
1.
CENTRE IN INDONESIA
THIS MEMORANDUM expresses the understanding
of the Gov ernment of the Republic of Indone
sia (hereinafter referred to as the Indonesian Government) and the Government
of
Australia (hereinafter ref erred
as
to
the Australian Government) concerning the
responsibilities and contributions respectively of the two Governments in regard to
the Feasibility Study of the proposed Batara
Island Coal Centre (hereinafter referred to
as the Project) located on Batara Island and
other locations which is intended to determine
the suitability of Batara Island and other
locations for the development of a coal centre
as further described and detailed in Annex 1
to this Memorandum.
AUTHORITIES
2.
The Executing Authorities for this Project
will be:
For the Indonesian Government: The Ministry
of State for Research and Technology.
For the Australian Government: The Australian
Development Assistance Bureau of the Department
of Foreign Affairs.
)
The Australian Development Assistance Bureau
may nominate suitably qualified agents to
undertake any part of its functions on its
behalf.
. .. I I . ..
-
DURATION
3.
2
-
This Memorandum will take effect from the
date of its signature and the Project will
be deemed to have commenced from that date.
The Australian contribution to the Project
and all undertakings given herein will
cease one year after the date of signature
of this Memorandum or on such other date as
may subsequently be arranged between the
two Governments.
PROJECT
4.
Responsibility for development and direction
of the Project will be vested in a Project
ORGANISATION
Co-ordinating Board, whose chairman will be
appointed by the Indonesian Government.
Membership of the Board will include the
Australian Team Leader, who is to be
appointed by the Australian Government in
consultation with the Indonesian Government.
Membership of the Project Co-ordinating
Board will also include representatives of
the Indonesian Government Ministry ref erre d
to in Clause 2 above, or nominated at the
discretion of the Indonesian Government, as
well as a nomine e designated by the Australian
Embassy, Jakarta. The Board will meet at times
mutually agreed upon.
5.
Functions of the Project Co-ordinating Board
will include:
(a)
co-ordinating policy for the Project;
(b)
revi e wing and reporting on progress to
the two Gov ernments; and
(c )
r e comme nding to t h e t wo Gove rnme nt s
c hanges in program, budge t and futur e
d e v e lopment.
. .. / / ...
-
RESPONSIBILITY
6.
3
Overall responsibility for this Project will
rest with the Indonesian Government. The
final authority for decisions on implementation of the agreed works program will rest
with the Ministry of State for Research and
Technology after considering consultations
between the Indonesian Project Manager and
the Australian Team Leader.
CONTRIBUTIONS
7.
The contributions of the Indonesian and
Australian Governments are detailed in
Annex III and are
Rp.240,450,000
and
estimated
to value
$A.750,000 respectively.
Disbursement of the Indonesian a n d Australian
Governments' contributions will be subject
to the normal parliamentary approval of
annual appropriations.
PERSONNEL
8.
For the purposes of this Project, the
Indonesian Government will, in accordance
with prevailing laws and regulations,
facilitate the employment by the Australian
Government or its agent of personnel as
required for the Project and established
between the two Governments by:
(a)
granting exemption from income or
other taxes on Project salaries and
allowances;
(b)
granting exemption from import and other
duties on personal and household effects;
(c)
granting exemption from taxes and duties
on the purchase in Indonesia of a locally
assembled motor vehicle per expert on
condition that it either be re-exported,
... I I . ..
-
4
-
sold to a person who has the same
privileges, or duty paid on its assessed
value at time of sale within Indonesia.
The expert's assignment should be on a
long term basis of at least twelve (12)
consecutive months period;
(d)
granting to Australian Project personnel
all rights and entitlements accorded to
the aid personnel of any other donor
country; and
(e)
expediting
the issue of all documenta-
tion required for the entry of, and
performance of work by, Project personnel
including work permits or certificates
for eligible persons.
SUPPLIES
9.
(.a)
The Indonesian Government will, in
accordance with prevailing laws and
regulations either exempt from import
duties
and
other taxes or
duties on all goods supplied
pay such
by
the
Australian Government for the Project;
(b)
The Indonesian Government will facilitate
movement of Project equipment and supplies
by providing appropriate customs
and
wharfage facilities in the port of entry
and will be responsible for the expeditious transport of such equipment and
supplies to the site;
(c)
and
Project equipment and supplies provided
by Australia will be available for the
unrestricted use of the Project and will
not be withdrawn from such use without
the consent of the Australian Team leader .
. . . I I . ..
,,
-
5
-
The Australian Team Leader in consultation with the Indonesian Project
Manager will exercise administrative
control
over such supplies for the
duration of the Project.
LIABILITY
10.
The Indonesian Government will be responsible
for dealing with any claims
which
may be
brought by third parties against Australia
and its experts, agents or Australian personnel
and will hold
harmless Australia and
its
experts, agents and personnel in case of any
claims or liabilities resulting from operations
under this memorandum.
This provision will not relieve any person
from liability for any criminal,
grossly
negligent or fraudulent act.
SECURITY
11.
The Indonesian Government will arrange for
any protection deemed necessary to ensure
the safety . of Australian personnel, Project
and personnel equipment both at the Project
location, in transit in Indonesia and on any
other official representational activity in
Indonesia.
The Australian Government will take reasonable
precautions to ensure that Australian i;ersonnel
have due regard for local traditions and
customs.
SETTLEMENT OF
12.
DIFFERENCES
Any disputes arising out of the interpretation
or implementation of the Memorandum
will be
settled amicably by consultation or negotiation between the two Governments.
AMENDMENTS
13.
Amendments to this Memorandum may be made
at any time by an Exchange of Letters between
the two Governments.
. .. // ...
6
ANNEXURES to this Memorandum form an integral part of it .
SIGNED at
October
Jakarta , in duplicate, this
1982.
first
day of
FOR THE GOVERNMENT OF
FOR THE GOVERNMENT OF
THE REPUBLIC OF INDONESIA
AUSTRALIA
Signed
PROF. DR. ING. B.J. HABIBIE
Minister of State for Research
and Technology of the Republic
of Indonesia I Chairman of the
Board of the Industrial Batam
Islanq Development Authority
Signed
FREDERICK R.DALRYMPLE
Ambassador
ANNEX
1
THE FEASIBILITY STUDY OF THE BATAM ISLAND
COAL CENTRE PROJECT
BACKGROUND
Towards the end of 1981, the Indonesian and Australian
Governments undertook a Pre-Feasibility Study of a proposal to
establish a Coal Centre on Batam Island.
The Pre-Feasibility
Study report recommended that Site 'A' south of Kabil on Batam
Island, be preferred to Site 'B' and Site 'C' on Tanjung Sau.
The report further recommended that a full feasibility study be
undertaken as a joint exercise by the Indonesian and Australian
Governments.
It was also recommended that the potential for
development of deep water ports near Tarahan, Suralaya, Paiton
and Dumai for direct shipment and handling of coal, and the
possible extension of such facilities to include a transhipment
capability, should also be investigated.
GENERAL OBJECTIVE
The objective is to conduct feasibility studies of the
proposed Batam Island Coal Centre in sufficient detail to enable
investment decisions to be made preparatory to immediate start
on detailed design and tendering.
Concurrent with the Batam
Island feasibility studies, exploratory studies will be made to
test the economic and technical viability of transhipment coal
centres at Tarahan, Suralaya, Paiton and Dumai.
Depending on the
results of these exploratory studies, full feasibility studies may
be undertaken of one or more of these locations to compare their
viability to that of Batam Island.
Decision on whether the
Project will proceed with such full feasibility studies will be
made jointly by the two governments.
The full feasiblity study will include topographical survey,
geological investigation, collection and analysis of environmental,
hydrographic and meteorological data, market survey, financial
modelling, port simulation studies , financial and funding ana l ysis ,
... I I . ..
2
facility layout considerations, cost estimates, a preliminary
engineering report and an environmental impact study.
Detailed Terms of Reference are in Annex 2.
Exploratory studies will commence with desk reviews of
available data, site visits and discussions with
organisations.
interested
Should this exploratory work indicate that
further analysis is justified, further steps will be undertaken
to identify possible sites and estimate capital costs and rates
of return.
ANNEX
II
THE FEASIBILITY STUDY OF THE BATAM ISLAND
COAL CENTRE PROJECT
TERMS OF REFERENCE
1.
BACKGROUND
1.1.
Batam Island, in Riau Province, lies on the south side
of Singapore Strait, about 20 kilometres from Singapore.
President Suharto's decision in 1973 to implement the
1.2.
issue of Decree No. 41 setting up the Batam industrial project,
was primarily instigated by this strategic location of Batam
Island.
Its location makes it a logical choice for the site
of a major industrial processing and commodity distribution
centre catering to the needs of Indonesia and its neighbours.
1.3.
In 1976 the Indonesian Government determined that the
development of Batam Island was a project of central importance
to the development goals of the Republic and in 1978 there
followed two further Presidential Decrees declaring the whole of
Batam Island, including the island of Tanjung Sau to be a bonded
area, facilitating the
1.4.
ｳｾ･｡ｭｬｩｮｧ＠
of import and export procedures.
The Government's program of energy diversification calls
for the identification and exploitation of cost effective energy
resources.
The proposal to develop the coal resources of Indonesia
forms a central part of this program.
1.5.
The importance of readily available coal supplies is
recognised by the Indonesian Government and it has accorded
development priorities to a number of coal related projects.
1.6.
The Government is pursuing the use of coal for power
generation and other industries such as cement production and
recognises the need for a reliable, stable source of coal supply.
Indonesian coal reserves are therefore expected to play an increasingly important role in the country's future economic growth.
As it will be some time before the production of Indonesian coal
will meet the demands of Indonesian industry, it will initially
be necessary to import the balance.
. .. // ...
1.7.
2
-
It is expected that most coal production and consumpbion
centres will lack infrastructure such as harbour facilities
capable of handling large coal transport ships.
The economics
of importing and exporting coal make it essential to utilise
the cost effectiveness of large vessels.
This generates the need
for a coal distribution centre.
1.8.
Such a centre will make it possible to import coal in
large vessels and, if necessary, blend coals from different
sources and of different qualities prior to transhipment by
small ships or barges to various consumption centres throughout
Indonesia and possibly to neighbouring countries. As Indonesian
coal production increases, coal can be brought from production
areas in small ships and barges to the coal centre where blending
can take place prior to exporting the coal in large vessels.
1.9.
Batam Island, with its strategic location and its ready
access to Indonesian and other regional markets, is a logical
consideration for the location of such a coal centre.
1.10.
The Indonesian Government recognises Australia's great
expe rtise and experience in coal.
Australia's highly developed
coal industry, its role as a major coal exporter, its experience
in handling a range of coals, its previous involvement in similar
projects in the region and its proximity to Indonesia make it
ideally suited to contribute to such a project.
1.11.
In March 1981 the Indonesian Government requested that
a study of a coal centre on Batam Island be undertaken and that
assistance be sought from the Australian Government.
1.12.
Following discussions between the Minister of State for
Research and Technology, Professor Dr Ing Habibie and the Au s tralian Amba s s a dor in Jakarta, the Australian Gove rnment agreed to
assist in und e rtaking a pre-fe asibility study for the Batam Island.
Coa l Ce ntre Proj ect.
. .. // ...
3
1.13.
'!'he Australian Government, through the Australian
Development Assistance Bureau (ADAB), selected the Central
Engineering Division of The Broken Hill Proprietary Co. Ltd.
(BHP) to undertake the study.
1.14.
The Batam Island Coal Centre Pre-Feasibility Study
report
(December 1981) forms the basis of these Terms of Reference for
the Feasibility Study.
2.
OBJECTIVE
2.1.
The objective of this Feasibility Study will be to make
recommendations on the location and type of on-shore and offshore structures, equipment and other works including manpower
requirements to establish and operate a facility to unload,
stockpile, blend and load both local and imported coals for use
both within Indonesia and for export to neighbouring countries.
3.
STUDY PLAN
3.1.
3.1.1
Part - I
After the conclusion of the Pre-Feasibility Study which
centred on Batam Island, other possible locations were indentified
for consideration.
The Joint Study Team (JST) comprising Team
Batam Coal Centre (TBCC) and BHP Engineering will undertake the
following Activities:
(a)
immediately upon commencement of the detailed Feasibility
Study, the JST will undertake a brief review of locations
which could be considered to be alternative sites.
Such
locations would include Tarahan, Suralaya, Paiton and Dumai;
(b)
should one or more locations appear as possible alternatives
then the JST will undertake a brief pre-feasibility study to
produce indicative capital cost estimates for developing
such a location.
Subsequent preliminary financial viability
calculations could be compared to the results of the Batam
Island Pre-Feasibility Study Report;
... I I . ..
4
(c)
should one of the alternatives still appear worthy of
further consideration then a detailed incremental
feasibility study may need to be undertaken to identify
the preferred site.
3.2.
3.2.l
Part II
Either consecutively or concurrently with Part I the
JST shall research and prepare projections on the future supply
and demand in the region.
3.2.2
This assessment shall include projections for a twenty
year period after commissioning of the coal port and indicate
probable trends beyond this point.
Attention will also need to
be given to the Indonesian Government's oil pricing policy and
directives to industry to convert to coal or other power sources.
3.2.3
(a)
This aspect of the study shall include:
Origin of Supply and Port Characteristics
JST will determine alternatives for the origin of coal
supply for the development.
These will detail the port
availability of the various alternatives including typical
and maximum vessel size that can be accommodated.
Also
required are physical properties of coal from each option
including ash and moisture content, particle sizing and any
other relevant data.
JST will investigate all domestic coal sources for possible
supply during the twenty year period from commissioning of
the project, and will indicate probable trends beyond
this.
This will include detailed studies of the various mine outputs, local demand projections and maximum vessel sizes that
can be accommodated at the loadout ports.
(b)
Consumption Demands
An accurate assessment of the future consumption is to be
carried out. This is to include domestic demand from
existing and proposed industries such as cement plants ,
alumina refineries, aluminium smelters, steelworks, power
stations and any other relevant consumers .
. .. I I . ..
-
5
-
Also to be included is an estimate of the likely demand of
overseas users of coal.
(c)
Contract Lead Time
An accurate assessment by the JST is required on the probable
lead time to finalise contracts with the coal suppliers and
users to allow coal supply and demand projections and
financial assessment to be carried out.
(d)
Price Considerations
The JST is to assess the market and provide estimates of
coal pricing trends.
(e)
Size of Ships
Concurrent to the studies being carried out the JST is to
investigate the types and sizes of vessels that will be
employed in the shipment of coal to and from the port.
This will involve an investigation into all receival ports
including offloading facilities and maximum ship sizes that
can be accommodated.
The JST should inspect existing
facilities and confer with relevant shipping companies.
3.3.
3.3.1
Part
III
The findings of Part I and II will be presented by the
JST to the Indonesian and Australian governments together with
recommendations and supporting evidence for the preferred site
for the coal port.
In the event that no site is clearly preferred,
the sumbmission to the two governments shall describe the course
of action that should be followed to identify the preferred site.
3.3.2
It is envisaged that the selection procedure to
differentiate between the sites will generally follow the feasibility study activities, while focussing on the more sensitive
parameters, for example, government policies or harbour works.
3.4.
3.4.1
Part
IV
This part generally encompasses the balance of the fea-
sibility study studies, whether they be addressed to one, or more
than one site.
. .. I I . ..
6
3.4.2
The JST will engage
Indonesia-based consultants who
under the direction of the members of JST, will carry out tasks
as set out below.
3.4.3
Survey
The survey shall include aerial photography with
appropriate ground control points and hydrographic survey in
possible berthing areas and approach channels.
All points of
geotechnical investigation must be shown and appropriate ground
survey would be required to cover this work.
Contour
drawings
of scale 1 : 2000 with contour intervals of 1 M are required
over the site.
3.4.4
Tide and Wave Considerations
The velocity and direction of tidal flows and tidal
variations at proposed jetty, wharf and causeway sites are
required and the use of wave rider bouys and tidal gauge stations
is recommended.
The consultant will assess maximum wave height
and direction and recommend design criteria for wharf structures
including foreshore protection.
The consultant will also inves-
tigate salinity, water · temperature and sediment transport.
3.4.5
Geotechnical Investigations
The investigations shall include both on-shore and off-
shore work covering drilling and recovery of core samples, test
pits, costains etc, to produce detailed logs and interpretation
of geological conditions.
The consultant will assess foundation
conditions and recommended design criteria in the areas of wharf
structures, conveyors, stockpile areas, areas of cut-.a nd fill and
building structures.
3.4.6
The study will also include investigation of potential
sources of concrete aggregates to determine availability and
suitability for use in construction works.
3.4.7
Water Resources Studies
The investigation will determine the availability,
suitability and long term yield of groundwater resources .
. . . I I . ..
-
7
-
Chemical analyses of groundwater samples are to be carried out.
The consultant will assess the charateristics of the aquifer
and recommend design criteria for bore pump stations, rising
mains, storage tanks, water treatment and water reticulation for
both industrial and domestic needs.
3.4.8
Environment Studies
The JST will engage
Indonesia-based consultants to
undertake the following studies based on scope of services
prepared by the JST:
-
Landforms - basic geology, slope analysis, soils, subsoils and underlying strata.
Expected information sources - aerial photographs,
contour plans, geotechnical study by civil engineering.
-
Land Use - flora and fauna and ecosystems : zones of
agriculture, forestry, industry, housing, recreation,
water collection and storage.
Expected information sources - aerial photographs,
Indonesian Government Departments, Universities and
site visits.
-
Climate - meteorological data, available and specially
collected.
Expected information source - Singapore Meteorological
Bureau reports.
Hydrology - surface and sub-surface water regimes, runoff, inflow extraction from aquifers, present potable
water supply and potential for development.
Expected information source - Civil engineering study,
Indonesian Government Departments.
-
Marine Ecology - Marine biology significance to fishing
industry of areas to be disturbed.
Expected inf orrnation source - Indonesian Government
Departments, Univ.ersities, Institutes and site study
including scuba diving and sampling.
. .. // ...
8
Sociology - Archaeology and anthropology; population,
demography, employment, migration;
housing and
ownership; health and health services;
land
education and
education services; transportation services.
Expected information source - Site visit and study,
Indonesian Government census, health studies, etc.
3.5.
Part
3.5.1
V
Following the completion of the data gathering stage
the JST will assess the result of the market survey and recommend an initial annual tonnage throughput of the Coal Centre
and the requirements for a staged expansion.
Engineering studies to be undertaken by the JST will result in
cost estimates and analysis of the financial viability of the
project.
3.5.2
The scope of these studies will be as follows:
Port Considerations
The JST will be required to prepare a computer program
which will project a port simulation study covering all possible
variations of ship movements and loading configurations for all
projected stages of development of the Coal Centre.
3.5.3
Additional studies are to be made of all relevant ports
expected to either supply coal to, or receive
selected coal port site.
coal
from the
Such studies are expected to provide
information of ship size, loading/unloading capacities possible
delay times, and other considerations.
3.5.4
The JST is to assess the effect that possible improvement
to these ports may have on the viability of the Coal Centre.
3.5.5
An assessment will be required of short and long term
availability of chartered vessels including charter costs and
the effect of future variation in fuel prices.
3.5.6
Engineering
Following receipt of data obtained from the various data
collection studies discussed previously,
the JST
will
develop
layouts of facilities. At an early stage JST will recommend both
water supply and waste water treatment quantity and quality design
... I I . ..
criteria.
9
-
A necessary adjunct to the development of site layout
is the assessment and investigation of alternative design for
the major civil, structural and material handling facilities of
the plant.
Items 3.5.7 to 3.5.12 outline the engineering work
required for the feasibility investigation to produce
capital
estimates.
3.5.7
Civil Engineering
An assessment of cut and fill is required with regard
to facility layout at each site.
Conceptual design
of major
structures both on-shore and off-shore will be prepared.
3.5.8
Mechanical Engineering
JST shall investigate and review possible options of
coal handling
equipment
with
particular emphasis
on
the
requirements of types, capasities and numbers. All aspects of
operation such as unloading of ocean
carrier, transportation,
stockpiling, direct ship to ship transhipment reclaiming from
stockpile and barge loading shall be reviewed and recommended
plant layout shall be establishe
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF AUSTRALIA
RELATING TO THE FEASIBILITY STUDY OF THE BATAM ISLAND
COAL
GENERAL
1.
CENTRE IN INDONESIA
THIS MEMORANDUM expresses the understanding
of the Gov ernment of the Republic of Indone
sia (hereinafter referred to as the Indonesian Government) and the Government
of
Australia (hereinafter ref erred
as
to
the Australian Government) concerning the
responsibilities and contributions respectively of the two Governments in regard to
the Feasibility Study of the proposed Batara
Island Coal Centre (hereinafter referred to
as the Project) located on Batara Island and
other locations which is intended to determine
the suitability of Batara Island and other
locations for the development of a coal centre
as further described and detailed in Annex 1
to this Memorandum.
AUTHORITIES
2.
The Executing Authorities for this Project
will be:
For the Indonesian Government: The Ministry
of State for Research and Technology.
For the Australian Government: The Australian
Development Assistance Bureau of the Department
of Foreign Affairs.
)
The Australian Development Assistance Bureau
may nominate suitably qualified agents to
undertake any part of its functions on its
behalf.
. .. I I . ..
-
DURATION
3.
2
-
This Memorandum will take effect from the
date of its signature and the Project will
be deemed to have commenced from that date.
The Australian contribution to the Project
and all undertakings given herein will
cease one year after the date of signature
of this Memorandum or on such other date as
may subsequently be arranged between the
two Governments.
PROJECT
4.
Responsibility for development and direction
of the Project will be vested in a Project
ORGANISATION
Co-ordinating Board, whose chairman will be
appointed by the Indonesian Government.
Membership of the Board will include the
Australian Team Leader, who is to be
appointed by the Australian Government in
consultation with the Indonesian Government.
Membership of the Project Co-ordinating
Board will also include representatives of
the Indonesian Government Ministry ref erre d
to in Clause 2 above, or nominated at the
discretion of the Indonesian Government, as
well as a nomine e designated by the Australian
Embassy, Jakarta. The Board will meet at times
mutually agreed upon.
5.
Functions of the Project Co-ordinating Board
will include:
(a)
co-ordinating policy for the Project;
(b)
revi e wing and reporting on progress to
the two Gov ernments; and
(c )
r e comme nding to t h e t wo Gove rnme nt s
c hanges in program, budge t and futur e
d e v e lopment.
. .. / / ...
-
RESPONSIBILITY
6.
3
Overall responsibility for this Project will
rest with the Indonesian Government. The
final authority for decisions on implementation of the agreed works program will rest
with the Ministry of State for Research and
Technology after considering consultations
between the Indonesian Project Manager and
the Australian Team Leader.
CONTRIBUTIONS
7.
The contributions of the Indonesian and
Australian Governments are detailed in
Annex III and are
Rp.240,450,000
and
estimated
to value
$A.750,000 respectively.
Disbursement of the Indonesian a n d Australian
Governments' contributions will be subject
to the normal parliamentary approval of
annual appropriations.
PERSONNEL
8.
For the purposes of this Project, the
Indonesian Government will, in accordance
with prevailing laws and regulations,
facilitate the employment by the Australian
Government or its agent of personnel as
required for the Project and established
between the two Governments by:
(a)
granting exemption from income or
other taxes on Project salaries and
allowances;
(b)
granting exemption from import and other
duties on personal and household effects;
(c)
granting exemption from taxes and duties
on the purchase in Indonesia of a locally
assembled motor vehicle per expert on
condition that it either be re-exported,
... I I . ..
-
4
-
sold to a person who has the same
privileges, or duty paid on its assessed
value at time of sale within Indonesia.
The expert's assignment should be on a
long term basis of at least twelve (12)
consecutive months period;
(d)
granting to Australian Project personnel
all rights and entitlements accorded to
the aid personnel of any other donor
country; and
(e)
expediting
the issue of all documenta-
tion required for the entry of, and
performance of work by, Project personnel
including work permits or certificates
for eligible persons.
SUPPLIES
9.
(.a)
The Indonesian Government will, in
accordance with prevailing laws and
regulations either exempt from import
duties
and
other taxes or
duties on all goods supplied
pay such
by
the
Australian Government for the Project;
(b)
The Indonesian Government will facilitate
movement of Project equipment and supplies
by providing appropriate customs
and
wharfage facilities in the port of entry
and will be responsible for the expeditious transport of such equipment and
supplies to the site;
(c)
and
Project equipment and supplies provided
by Australia will be available for the
unrestricted use of the Project and will
not be withdrawn from such use without
the consent of the Australian Team leader .
. . . I I . ..
,,
-
5
-
The Australian Team Leader in consultation with the Indonesian Project
Manager will exercise administrative
control
over such supplies for the
duration of the Project.
LIABILITY
10.
The Indonesian Government will be responsible
for dealing with any claims
which
may be
brought by third parties against Australia
and its experts, agents or Australian personnel
and will hold
harmless Australia and
its
experts, agents and personnel in case of any
claims or liabilities resulting from operations
under this memorandum.
This provision will not relieve any person
from liability for any criminal,
grossly
negligent or fraudulent act.
SECURITY
11.
The Indonesian Government will arrange for
any protection deemed necessary to ensure
the safety . of Australian personnel, Project
and personnel equipment both at the Project
location, in transit in Indonesia and on any
other official representational activity in
Indonesia.
The Australian Government will take reasonable
precautions to ensure that Australian i;ersonnel
have due regard for local traditions and
customs.
SETTLEMENT OF
12.
DIFFERENCES
Any disputes arising out of the interpretation
or implementation of the Memorandum
will be
settled amicably by consultation or negotiation between the two Governments.
AMENDMENTS
13.
Amendments to this Memorandum may be made
at any time by an Exchange of Letters between
the two Governments.
. .. // ...
6
ANNEXURES to this Memorandum form an integral part of it .
SIGNED at
October
Jakarta , in duplicate, this
1982.
first
day of
FOR THE GOVERNMENT OF
FOR THE GOVERNMENT OF
THE REPUBLIC OF INDONESIA
AUSTRALIA
Signed
PROF. DR. ING. B.J. HABIBIE
Minister of State for Research
and Technology of the Republic
of Indonesia I Chairman of the
Board of the Industrial Batam
Islanq Development Authority
Signed
FREDERICK R.DALRYMPLE
Ambassador
ANNEX
1
THE FEASIBILITY STUDY OF THE BATAM ISLAND
COAL CENTRE PROJECT
BACKGROUND
Towards the end of 1981, the Indonesian and Australian
Governments undertook a Pre-Feasibility Study of a proposal to
establish a Coal Centre on Batam Island.
The Pre-Feasibility
Study report recommended that Site 'A' south of Kabil on Batam
Island, be preferred to Site 'B' and Site 'C' on Tanjung Sau.
The report further recommended that a full feasibility study be
undertaken as a joint exercise by the Indonesian and Australian
Governments.
It was also recommended that the potential for
development of deep water ports near Tarahan, Suralaya, Paiton
and Dumai for direct shipment and handling of coal, and the
possible extension of such facilities to include a transhipment
capability, should also be investigated.
GENERAL OBJECTIVE
The objective is to conduct feasibility studies of the
proposed Batam Island Coal Centre in sufficient detail to enable
investment decisions to be made preparatory to immediate start
on detailed design and tendering.
Concurrent with the Batam
Island feasibility studies, exploratory studies will be made to
test the economic and technical viability of transhipment coal
centres at Tarahan, Suralaya, Paiton and Dumai.
Depending on the
results of these exploratory studies, full feasibility studies may
be undertaken of one or more of these locations to compare their
viability to that of Batam Island.
Decision on whether the
Project will proceed with such full feasibility studies will be
made jointly by the two governments.
The full feasiblity study will include topographical survey,
geological investigation, collection and analysis of environmental,
hydrographic and meteorological data, market survey, financial
modelling, port simulation studies , financial and funding ana l ysis ,
... I I . ..
2
facility layout considerations, cost estimates, a preliminary
engineering report and an environmental impact study.
Detailed Terms of Reference are in Annex 2.
Exploratory studies will commence with desk reviews of
available data, site visits and discussions with
organisations.
interested
Should this exploratory work indicate that
further analysis is justified, further steps will be undertaken
to identify possible sites and estimate capital costs and rates
of return.
ANNEX
II
THE FEASIBILITY STUDY OF THE BATAM ISLAND
COAL CENTRE PROJECT
TERMS OF REFERENCE
1.
BACKGROUND
1.1.
Batam Island, in Riau Province, lies on the south side
of Singapore Strait, about 20 kilometres from Singapore.
President Suharto's decision in 1973 to implement the
1.2.
issue of Decree No. 41 setting up the Batam industrial project,
was primarily instigated by this strategic location of Batam
Island.
Its location makes it a logical choice for the site
of a major industrial processing and commodity distribution
centre catering to the needs of Indonesia and its neighbours.
1.3.
In 1976 the Indonesian Government determined that the
development of Batam Island was a project of central importance
to the development goals of the Republic and in 1978 there
followed two further Presidential Decrees declaring the whole of
Batam Island, including the island of Tanjung Sau to be a bonded
area, facilitating the
1.4.
ｳｾ･｡ｭｬｩｮｧ＠
of import and export procedures.
The Government's program of energy diversification calls
for the identification and exploitation of cost effective energy
resources.
The proposal to develop the coal resources of Indonesia
forms a central part of this program.
1.5.
The importance of readily available coal supplies is
recognised by the Indonesian Government and it has accorded
development priorities to a number of coal related projects.
1.6.
The Government is pursuing the use of coal for power
generation and other industries such as cement production and
recognises the need for a reliable, stable source of coal supply.
Indonesian coal reserves are therefore expected to play an increasingly important role in the country's future economic growth.
As it will be some time before the production of Indonesian coal
will meet the demands of Indonesian industry, it will initially
be necessary to import the balance.
. .. // ...
1.7.
2
-
It is expected that most coal production and consumpbion
centres will lack infrastructure such as harbour facilities
capable of handling large coal transport ships.
The economics
of importing and exporting coal make it essential to utilise
the cost effectiveness of large vessels.
This generates the need
for a coal distribution centre.
1.8.
Such a centre will make it possible to import coal in
large vessels and, if necessary, blend coals from different
sources and of different qualities prior to transhipment by
small ships or barges to various consumption centres throughout
Indonesia and possibly to neighbouring countries. As Indonesian
coal production increases, coal can be brought from production
areas in small ships and barges to the coal centre where blending
can take place prior to exporting the coal in large vessels.
1.9.
Batam Island, with its strategic location and its ready
access to Indonesian and other regional markets, is a logical
consideration for the location of such a coal centre.
1.10.
The Indonesian Government recognises Australia's great
expe rtise and experience in coal.
Australia's highly developed
coal industry, its role as a major coal exporter, its experience
in handling a range of coals, its previous involvement in similar
projects in the region and its proximity to Indonesia make it
ideally suited to contribute to such a project.
1.11.
In March 1981 the Indonesian Government requested that
a study of a coal centre on Batam Island be undertaken and that
assistance be sought from the Australian Government.
1.12.
Following discussions between the Minister of State for
Research and Technology, Professor Dr Ing Habibie and the Au s tralian Amba s s a dor in Jakarta, the Australian Gove rnment agreed to
assist in und e rtaking a pre-fe asibility study for the Batam Island.
Coa l Ce ntre Proj ect.
. .. // ...
3
1.13.
'!'he Australian Government, through the Australian
Development Assistance Bureau (ADAB), selected the Central
Engineering Division of The Broken Hill Proprietary Co. Ltd.
(BHP) to undertake the study.
1.14.
The Batam Island Coal Centre Pre-Feasibility Study
report
(December 1981) forms the basis of these Terms of Reference for
the Feasibility Study.
2.
OBJECTIVE
2.1.
The objective of this Feasibility Study will be to make
recommendations on the location and type of on-shore and offshore structures, equipment and other works including manpower
requirements to establish and operate a facility to unload,
stockpile, blend and load both local and imported coals for use
both within Indonesia and for export to neighbouring countries.
3.
STUDY PLAN
3.1.
3.1.1
Part - I
After the conclusion of the Pre-Feasibility Study which
centred on Batam Island, other possible locations were indentified
for consideration.
The Joint Study Team (JST) comprising Team
Batam Coal Centre (TBCC) and BHP Engineering will undertake the
following Activities:
(a)
immediately upon commencement of the detailed Feasibility
Study, the JST will undertake a brief review of locations
which could be considered to be alternative sites.
Such
locations would include Tarahan, Suralaya, Paiton and Dumai;
(b)
should one or more locations appear as possible alternatives
then the JST will undertake a brief pre-feasibility study to
produce indicative capital cost estimates for developing
such a location.
Subsequent preliminary financial viability
calculations could be compared to the results of the Batam
Island Pre-Feasibility Study Report;
... I I . ..
4
(c)
should one of the alternatives still appear worthy of
further consideration then a detailed incremental
feasibility study may need to be undertaken to identify
the preferred site.
3.2.
3.2.l
Part II
Either consecutively or concurrently with Part I the
JST shall research and prepare projections on the future supply
and demand in the region.
3.2.2
This assessment shall include projections for a twenty
year period after commissioning of the coal port and indicate
probable trends beyond this point.
Attention will also need to
be given to the Indonesian Government's oil pricing policy and
directives to industry to convert to coal or other power sources.
3.2.3
(a)
This aspect of the study shall include:
Origin of Supply and Port Characteristics
JST will determine alternatives for the origin of coal
supply for the development.
These will detail the port
availability of the various alternatives including typical
and maximum vessel size that can be accommodated.
Also
required are physical properties of coal from each option
including ash and moisture content, particle sizing and any
other relevant data.
JST will investigate all domestic coal sources for possible
supply during the twenty year period from commissioning of
the project, and will indicate probable trends beyond
this.
This will include detailed studies of the various mine outputs, local demand projections and maximum vessel sizes that
can be accommodated at the loadout ports.
(b)
Consumption Demands
An accurate assessment of the future consumption is to be
carried out. This is to include domestic demand from
existing and proposed industries such as cement plants ,
alumina refineries, aluminium smelters, steelworks, power
stations and any other relevant consumers .
. .. I I . ..
-
5
-
Also to be included is an estimate of the likely demand of
overseas users of coal.
(c)
Contract Lead Time
An accurate assessment by the JST is required on the probable
lead time to finalise contracts with the coal suppliers and
users to allow coal supply and demand projections and
financial assessment to be carried out.
(d)
Price Considerations
The JST is to assess the market and provide estimates of
coal pricing trends.
(e)
Size of Ships
Concurrent to the studies being carried out the JST is to
investigate the types and sizes of vessels that will be
employed in the shipment of coal to and from the port.
This will involve an investigation into all receival ports
including offloading facilities and maximum ship sizes that
can be accommodated.
The JST should inspect existing
facilities and confer with relevant shipping companies.
3.3.
3.3.1
Part
III
The findings of Part I and II will be presented by the
JST to the Indonesian and Australian governments together with
recommendations and supporting evidence for the preferred site
for the coal port.
In the event that no site is clearly preferred,
the sumbmission to the two governments shall describe the course
of action that should be followed to identify the preferred site.
3.3.2
It is envisaged that the selection procedure to
differentiate between the sites will generally follow the feasibility study activities, while focussing on the more sensitive
parameters, for example, government policies or harbour works.
3.4.
3.4.1
Part
IV
This part generally encompasses the balance of the fea-
sibility study studies, whether they be addressed to one, or more
than one site.
. .. I I . ..
6
3.4.2
The JST will engage
Indonesia-based consultants who
under the direction of the members of JST, will carry out tasks
as set out below.
3.4.3
Survey
The survey shall include aerial photography with
appropriate ground control points and hydrographic survey in
possible berthing areas and approach channels.
All points of
geotechnical investigation must be shown and appropriate ground
survey would be required to cover this work.
Contour
drawings
of scale 1 : 2000 with contour intervals of 1 M are required
over the site.
3.4.4
Tide and Wave Considerations
The velocity and direction of tidal flows and tidal
variations at proposed jetty, wharf and causeway sites are
required and the use of wave rider bouys and tidal gauge stations
is recommended.
The consultant will assess maximum wave height
and direction and recommend design criteria for wharf structures
including foreshore protection.
The consultant will also inves-
tigate salinity, water · temperature and sediment transport.
3.4.5
Geotechnical Investigations
The investigations shall include both on-shore and off-
shore work covering drilling and recovery of core samples, test
pits, costains etc, to produce detailed logs and interpretation
of geological conditions.
The consultant will assess foundation
conditions and recommended design criteria in the areas of wharf
structures, conveyors, stockpile areas, areas of cut-.a nd fill and
building structures.
3.4.6
The study will also include investigation of potential
sources of concrete aggregates to determine availability and
suitability for use in construction works.
3.4.7
Water Resources Studies
The investigation will determine the availability,
suitability and long term yield of groundwater resources .
. . . I I . ..
-
7
-
Chemical analyses of groundwater samples are to be carried out.
The consultant will assess the charateristics of the aquifer
and recommend design criteria for bore pump stations, rising
mains, storage tanks, water treatment and water reticulation for
both industrial and domestic needs.
3.4.8
Environment Studies
The JST will engage
Indonesia-based consultants to
undertake the following studies based on scope of services
prepared by the JST:
-
Landforms - basic geology, slope analysis, soils, subsoils and underlying strata.
Expected information sources - aerial photographs,
contour plans, geotechnical study by civil engineering.
-
Land Use - flora and fauna and ecosystems : zones of
agriculture, forestry, industry, housing, recreation,
water collection and storage.
Expected information sources - aerial photographs,
Indonesian Government Departments, Universities and
site visits.
-
Climate - meteorological data, available and specially
collected.
Expected information source - Singapore Meteorological
Bureau reports.
Hydrology - surface and sub-surface water regimes, runoff, inflow extraction from aquifers, present potable
water supply and potential for development.
Expected information source - Civil engineering study,
Indonesian Government Departments.
-
Marine Ecology - Marine biology significance to fishing
industry of areas to be disturbed.
Expected inf orrnation source - Indonesian Government
Departments, Univ.ersities, Institutes and site study
including scuba diving and sampling.
. .. // ...
8
Sociology - Archaeology and anthropology; population,
demography, employment, migration;
housing and
ownership; health and health services;
land
education and
education services; transportation services.
Expected information source - Site visit and study,
Indonesian Government census, health studies, etc.
3.5.
Part
3.5.1
V
Following the completion of the data gathering stage
the JST will assess the result of the market survey and recommend an initial annual tonnage throughput of the Coal Centre
and the requirements for a staged expansion.
Engineering studies to be undertaken by the JST will result in
cost estimates and analysis of the financial viability of the
project.
3.5.2
The scope of these studies will be as follows:
Port Considerations
The JST will be required to prepare a computer program
which will project a port simulation study covering all possible
variations of ship movements and loading configurations for all
projected stages of development of the Coal Centre.
3.5.3
Additional studies are to be made of all relevant ports
expected to either supply coal to, or receive
selected coal port site.
coal
from the
Such studies are expected to provide
information of ship size, loading/unloading capacities possible
delay times, and other considerations.
3.5.4
The JST is to assess the effect that possible improvement
to these ports may have on the viability of the Coal Centre.
3.5.5
An assessment will be required of short and long term
availability of chartered vessels including charter costs and
the effect of future variation in fuel prices.
3.5.6
Engineering
Following receipt of data obtained from the various data
collection studies discussed previously,
the JST
will
develop
layouts of facilities. At an early stage JST will recommend both
water supply and waste water treatment quantity and quality design
... I I . ..
criteria.
9
-
A necessary adjunct to the development of site layout
is the assessment and investigation of alternative design for
the major civil, structural and material handling facilities of
the plant.
Items 3.5.7 to 3.5.12 outline the engineering work
required for the feasibility investigation to produce
capital
estimates.
3.5.7
Civil Engineering
An assessment of cut and fill is required with regard
to facility layout at each site.
Conceptual design
of major
structures both on-shore and off-shore will be prepared.
3.5.8
Mechanical Engineering
JST shall investigate and review possible options of
coal handling
equipment
with
particular emphasis
on
the
requirements of types, capasities and numbers. All aspects of
operation such as unloading of ocean
carrier, transportation,
stockpiling, direct ship to ship transhipment reclaiming from
stockpile and barge loading shall be reviewed and recommended
plant layout shall be establishe