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1-ffiMORANDUM OF UNDERSTANDING
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF CANADA
FOR A
NATIONAL CEMENT DISTRIBUTION SYSTEM STUDY
The Government of the Republic of Indonesia and the Government of
Canada, wishing to cooperate in the development of a National Cement
Distribution System Study in Indonesia, have agreed to the following:
ARTICLE I
Responsible Authorities
1.
The Government of the Republic of Indonesia designates the
Directorate General of Basic Chemical Industries (hereinafter referred
to as "DGBCI") as the Agency responsible for the implementation of its
obligations under this Memorandum.
2.
The Government of Canada designates the Canadian International
Development Agency (hereinafter referred to as "CIDA") as the Agency
responsible for the implementation of its obligations under this
Memorandum.
ARTICLE II
The
1.
Project
The two Parties to this Memorandum shall cooperate in the National
Cement Distribution System Study, hereinafter referred to as "the
Project" as described in Annex A of the Memorandum .
- 2 -
Objective of the Project
2.
The objective of the Project is to study and recommend a National
Cement Distribution System which will provide an integrated system
for efficiently distributing cement to the domestic markets in
Indonesia and to viable export markets.
ARTICLE III
Execution of the Project
1.
The Government of the Republic of Indonesia and the Government of
Canada agree to complete the Project within approximately one year of
the commencement of the work as set out in Annexes A, B and C which
constitute an integral part of this Memorandum.
These Annexes shall:
a)
provide a detailed description of the work;
and
b)
state the obligations and responsibilities of the Government
of the Republic of Indonesia and the Government of Canada.
Plan of Operations
2.
ClDA shall submit to DGBCI as soon as possible after the signing of
this Memorandum a document entitled Plan of Operations which shall
include an outline and schedule of the activities required to implement
the Project, an organization chart, a description of the Project and a
- 3 definition of the roles and responsibilities of the Project participants.
This Plan of Operations shall be discussed by CIDA and DGBCI and approved
by both Governments and shall be utilized as a working document throughout the life of the Project .
ARTICLE IV
Financial Contribution of the Government
of the Republic of Indonesia
1.
The Government of the Republic of Indonesia through DGBCI will bear
the cost of providing suitable counterpart personnel and the cost of
the necessary administrative assistance and other local support as
specified in Annex C.
Financial Contribution of the Government of Canada
2.
The Government of Canada, through CIDA, will contribute an amount
not exceeding $450,000.00 (Canadian) to pay the cost of Canadian
consulting services and will provide payment of expenses as detailed in
Annex B.
ARTICLE V
Implementation
The two Governments and their designated agents shall ensure that this
Memorandum is carried out with due diligence and efficiency and each
shall furnish the other all such information as shall be reasonably
requested.
ARTICLE VI
Communications
Any communications or documents given, made or sent by either Government
- 4 or their designated agent pursuant to this Memorandum or Annexes hereto
shall be in writing and shall be deemed to have been duly given, made
or sent to the party to which it is addressed at the time of its
delivery by hand, mail, telex, cable or radiogram at its respective
address, namely:
For Indonesia:
For Canada:
Address:
ｾｩｬｮｧ＠
Director General of Basic Chemical
Industries
Department of Industries
Jl. Kebon Sirih, 31
Jakarta.
Cable Address:
DITJENIKD
Telex Address:
46374 PERKIM JKT
ｾｩｬｮｧ＠
Address:
The President
Canadian International Development
Agency
200, Promenade du Portage
Hull, Quebec
KlA OG4
Cable Address:
CIDA HULL
ARTICLE VII
Evaluation
Periodic evaluations of the Project will be carried out as agreed
upon by both Governments .
ARTICLE VIII
General Provisions
1.
This Memorandum shall become effective on the date of signature
and shall expire upon completion of the Project on any date mutually
agreed upon by the Parties.
It supersedes any previous arrangement
concerning this Project made between the Government ot the Republic
of Indonesia and the Government of Canada.
- 5 2.
This Memorandum does not constitute an international treaty.
It
is intended only to set out the administrative responsibilities of
the two Governments in relation to the implementation of this Project
within the framework of technical cooperation between the two countries .
3.
Any dispute arising out of the interpretation or implementation of
this Memorandum shall be settled amicably by consultation or negotiation
between the two Governments.
4.
This Memorandum may be amended at any time with the mutual consent
of the two Parties by an Exchange of Letters .
IN WITNESS WHEREOF, the undersigned, on behalf of their respective
Governments, have signed this Memorandum .
SIGNED in Jakarta on March
FOR THE GOVERNMENT OF THE
REPUBLIC oA· INDONESIA
Signed
Ir. A.R. SOEHOED
Minister of Industries
IJ , 1980 in duplicate.
FOR THE GOVERNMENT OF CANADA
Signed
W. H. MONTGOMERY
Ambassador
ANNEX A
1.0 Description of the Project
Cement production in Indonesia grew slowly until 1966 when it
reached 400 , 000 tons per year.
By 1975 annual production had
reached one million tons, and the Indonesian Government was
estimating that by 1985 annual production would be near twelve
million tons .
This rapid expansion of production has created
major problems with the traditional distribution and transportation systems.
The Government of the Republic of Indonesia in May 1978, after
reviewing a prefeasibility study prepared under CIDA auspices,
decided that a full study was required to set out the most
feasible and cost effective comprehensive National Cement
Distribution System.
2.0
Scope of the Project
The Project is intended to determine :
the present and predicted
demand for cement by region and by season:
cement down to the village level;
capacity by region .
the end users of
and the future cement production
The scope of the Project will include an
assessment of the most economic market for each cement manufacturer,
a review of existing transportation and distribution systems and
an economic analysis of investing in bulk production, storage and
various transport facilities.
The effect of recommended alternatives on local employment and on
the
ｯｷｮ｣ｾｳｨｩｰ＠
of production, transportation and distribution
systems will be evaluated.
In view of this analysis , a National
·- -
- 2 -
Cement Distribution System will be designed which will provide
supply of cement to all areas, optimize delivery systems,
identify export markets and make recommendations on necessary
regulatory changes required to implement the system.
ANNEX B
3. 0
RESPONSIBILITIES AND OBLIGATIONS OF THE GOVERNMENT OF CANADA
3.1
The Government of Canada shall through CIDA:
1) Provide the services of a Canadian Consultant to carry
out the Scope of Work described in paragraph 2.0 above.
Such services shall include fees , salaries and other
emoluments, travel costs between Canada and the duty
station in Indonesia and other appropriate expenses of
the Canadian Consultant and his personnel not provided
by the Government of the Republic of Indonesia.
2) Provide miscellaneous expenses incurred in relation to
the Project outside Indonesia.
3) Provide the equipment (excluding vehicles), supplies and
materials which will be imported into Indonesia to
implement the Project.
4) Require the Canadian Consultant to prepare and maintain
in both narrative and diagramatic form a Plan of Work
in accordance with the Plan of Operations described in
Article Ill which will indicate the scheduling and
achieved progress for each activity of the Project under
their jurisdiction.
5) Require the Canadian Consultant to submit monthly progress
reports to both DGBCI and CIDA, and take such action as
may be required to ensure the successful completion of
the Project.
ANNEX C
4. 0
RESPONSIBILITIES AND OBLIGATIONS OF THE GOVERNMENT OF
THE REPUBLIC OF INDONESIA
4 .1
The Government of the Republic of Indonesia shall, through
designated authorities/DGBCI, in accordance with the existing
laws and regulations of the Republic of Indonesia:
1) Provide all equipment, material and supplies not
provided under paragraph 3.1 above, together with
local
services and labour required to complete the Project .
2) Provide, at no cost to Canada, qualified Indonesian
counterpart staff as required to successfully implement
the Project.
3) Provide, free of charge, all permanent accommodation as
required in Indonesia for all the Consultant's personnel
assigned to the Project for a period exceeding six months .
4) Provide out-of-station allowances to Canadian Consultant
personnel while travelling on agreed project-related
duties away from permanent accommodation in Indonesia.
5) Bear the cost of local air or surface transportation for
the consultants while travelling within Indonesia on
agreed official project business.
6) Provide, free of charge, transportation and drivers for
Canadian Consultant personnel while on official project
business.
7) Provide, without charge, appropriate air-conditioned office
accommodation for Canadian Consultant personnel together
- 2 -
with necessary furnishings (including typewriters), clerical
staff, typists , domestic telephone and postal services and any
other office facilities required to implement the Project.
B)
Assist the Canadian Consultant personnel in obt aining all
relevant information, from the various Ministries and other
Indonesian Government Institutions, necessary to carry out
the study .
9)
Provide exemption from import , Customs and other duties and
taxes on :
i)
all professional and technical equipment required for
the use of the Consultant personnel for their assignments
throughout the period of the Project;
ii)
and
personal and household effects of the Canadian
Consultant personnel.
Import, Customs and other duties and taxes shall be paid by the
Canadian Consultant personnel in accordance with the laws and
regulations of the Government of the Republic of Indonesia, if
the effects mentioned in (i) and (ii) above are sold in Indonesial
10)
Release the Consultant's personnel who do not have permanent
residence in Indonesia from payment of resident and local taxes
for the duration of the Project.
11)
Inform the Canadian personnel of all laws and regulations which
may effect their work.
12)
Indemnify without cost to the Government of Canada, and save
harmlegs the Canadian engineers from .And .Aeainl'
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF CANADA
FOR A
NATIONAL CEMENT DISTRIBUTION SYSTEM STUDY
The Government of the Republic of Indonesia and the Government of
Canada, wishing to cooperate in the development of a National Cement
Distribution System Study in Indonesia, have agreed to the following:
ARTICLE I
Responsible Authorities
1.
The Government of the Republic of Indonesia designates the
Directorate General of Basic Chemical Industries (hereinafter referred
to as "DGBCI") as the Agency responsible for the implementation of its
obligations under this Memorandum.
2.
The Government of Canada designates the Canadian International
Development Agency (hereinafter referred to as "CIDA") as the Agency
responsible for the implementation of its obligations under this
Memorandum.
ARTICLE II
The
1.
Project
The two Parties to this Memorandum shall cooperate in the National
Cement Distribution System Study, hereinafter referred to as "the
Project" as described in Annex A of the Memorandum .
- 2 -
Objective of the Project
2.
The objective of the Project is to study and recommend a National
Cement Distribution System which will provide an integrated system
for efficiently distributing cement to the domestic markets in
Indonesia and to viable export markets.
ARTICLE III
Execution of the Project
1.
The Government of the Republic of Indonesia and the Government of
Canada agree to complete the Project within approximately one year of
the commencement of the work as set out in Annexes A, B and C which
constitute an integral part of this Memorandum.
These Annexes shall:
a)
provide a detailed description of the work;
and
b)
state the obligations and responsibilities of the Government
of the Republic of Indonesia and the Government of Canada.
Plan of Operations
2.
ClDA shall submit to DGBCI as soon as possible after the signing of
this Memorandum a document entitled Plan of Operations which shall
include an outline and schedule of the activities required to implement
the Project, an organization chart, a description of the Project and a
- 3 definition of the roles and responsibilities of the Project participants.
This Plan of Operations shall be discussed by CIDA and DGBCI and approved
by both Governments and shall be utilized as a working document throughout the life of the Project .
ARTICLE IV
Financial Contribution of the Government
of the Republic of Indonesia
1.
The Government of the Republic of Indonesia through DGBCI will bear
the cost of providing suitable counterpart personnel and the cost of
the necessary administrative assistance and other local support as
specified in Annex C.
Financial Contribution of the Government of Canada
2.
The Government of Canada, through CIDA, will contribute an amount
not exceeding $450,000.00 (Canadian) to pay the cost of Canadian
consulting services and will provide payment of expenses as detailed in
Annex B.
ARTICLE V
Implementation
The two Governments and their designated agents shall ensure that this
Memorandum is carried out with due diligence and efficiency and each
shall furnish the other all such information as shall be reasonably
requested.
ARTICLE VI
Communications
Any communications or documents given, made or sent by either Government
- 4 or their designated agent pursuant to this Memorandum or Annexes hereto
shall be in writing and shall be deemed to have been duly given, made
or sent to the party to which it is addressed at the time of its
delivery by hand, mail, telex, cable or radiogram at its respective
address, namely:
For Indonesia:
For Canada:
Address:
ｾｩｬｮｧ＠
Director General of Basic Chemical
Industries
Department of Industries
Jl. Kebon Sirih, 31
Jakarta.
Cable Address:
DITJENIKD
Telex Address:
46374 PERKIM JKT
ｾｩｬｮｧ＠
Address:
The President
Canadian International Development
Agency
200, Promenade du Portage
Hull, Quebec
KlA OG4
Cable Address:
CIDA HULL
ARTICLE VII
Evaluation
Periodic evaluations of the Project will be carried out as agreed
upon by both Governments .
ARTICLE VIII
General Provisions
1.
This Memorandum shall become effective on the date of signature
and shall expire upon completion of the Project on any date mutually
agreed upon by the Parties.
It supersedes any previous arrangement
concerning this Project made between the Government ot the Republic
of Indonesia and the Government of Canada.
- 5 2.
This Memorandum does not constitute an international treaty.
It
is intended only to set out the administrative responsibilities of
the two Governments in relation to the implementation of this Project
within the framework of technical cooperation between the two countries .
3.
Any dispute arising out of the interpretation or implementation of
this Memorandum shall be settled amicably by consultation or negotiation
between the two Governments.
4.
This Memorandum may be amended at any time with the mutual consent
of the two Parties by an Exchange of Letters .
IN WITNESS WHEREOF, the undersigned, on behalf of their respective
Governments, have signed this Memorandum .
SIGNED in Jakarta on March
FOR THE GOVERNMENT OF THE
REPUBLIC oA· INDONESIA
Signed
Ir. A.R. SOEHOED
Minister of Industries
IJ , 1980 in duplicate.
FOR THE GOVERNMENT OF CANADA
Signed
W. H. MONTGOMERY
Ambassador
ANNEX A
1.0 Description of the Project
Cement production in Indonesia grew slowly until 1966 when it
reached 400 , 000 tons per year.
By 1975 annual production had
reached one million tons, and the Indonesian Government was
estimating that by 1985 annual production would be near twelve
million tons .
This rapid expansion of production has created
major problems with the traditional distribution and transportation systems.
The Government of the Republic of Indonesia in May 1978, after
reviewing a prefeasibility study prepared under CIDA auspices,
decided that a full study was required to set out the most
feasible and cost effective comprehensive National Cement
Distribution System.
2.0
Scope of the Project
The Project is intended to determine :
the present and predicted
demand for cement by region and by season:
cement down to the village level;
capacity by region .
the end users of
and the future cement production
The scope of the Project will include an
assessment of the most economic market for each cement manufacturer,
a review of existing transportation and distribution systems and
an economic analysis of investing in bulk production, storage and
various transport facilities.
The effect of recommended alternatives on local employment and on
the
ｯｷｮ｣ｾｳｨｩｰ＠
of production, transportation and distribution
systems will be evaluated.
In view of this analysis , a National
·- -
- 2 -
Cement Distribution System will be designed which will provide
supply of cement to all areas, optimize delivery systems,
identify export markets and make recommendations on necessary
regulatory changes required to implement the system.
ANNEX B
3. 0
RESPONSIBILITIES AND OBLIGATIONS OF THE GOVERNMENT OF CANADA
3.1
The Government of Canada shall through CIDA:
1) Provide the services of a Canadian Consultant to carry
out the Scope of Work described in paragraph 2.0 above.
Such services shall include fees , salaries and other
emoluments, travel costs between Canada and the duty
station in Indonesia and other appropriate expenses of
the Canadian Consultant and his personnel not provided
by the Government of the Republic of Indonesia.
2) Provide miscellaneous expenses incurred in relation to
the Project outside Indonesia.
3) Provide the equipment (excluding vehicles), supplies and
materials which will be imported into Indonesia to
implement the Project.
4) Require the Canadian Consultant to prepare and maintain
in both narrative and diagramatic form a Plan of Work
in accordance with the Plan of Operations described in
Article Ill which will indicate the scheduling and
achieved progress for each activity of the Project under
their jurisdiction.
5) Require the Canadian Consultant to submit monthly progress
reports to both DGBCI and CIDA, and take such action as
may be required to ensure the successful completion of
the Project.
ANNEX C
4. 0
RESPONSIBILITIES AND OBLIGATIONS OF THE GOVERNMENT OF
THE REPUBLIC OF INDONESIA
4 .1
The Government of the Republic of Indonesia shall, through
designated authorities/DGBCI, in accordance with the existing
laws and regulations of the Republic of Indonesia:
1) Provide all equipment, material and supplies not
provided under paragraph 3.1 above, together with
local
services and labour required to complete the Project .
2) Provide, at no cost to Canada, qualified Indonesian
counterpart staff as required to successfully implement
the Project.
3) Provide, free of charge, all permanent accommodation as
required in Indonesia for all the Consultant's personnel
assigned to the Project for a period exceeding six months .
4) Provide out-of-station allowances to Canadian Consultant
personnel while travelling on agreed project-related
duties away from permanent accommodation in Indonesia.
5) Bear the cost of local air or surface transportation for
the consultants while travelling within Indonesia on
agreed official project business.
6) Provide, free of charge, transportation and drivers for
Canadian Consultant personnel while on official project
business.
7) Provide, without charge, appropriate air-conditioned office
accommodation for Canadian Consultant personnel together
- 2 -
with necessary furnishings (including typewriters), clerical
staff, typists , domestic telephone and postal services and any
other office facilities required to implement the Project.
B)
Assist the Canadian Consultant personnel in obt aining all
relevant information, from the various Ministries and other
Indonesian Government Institutions, necessary to carry out
the study .
9)
Provide exemption from import , Customs and other duties and
taxes on :
i)
all professional and technical equipment required for
the use of the Consultant personnel for their assignments
throughout the period of the Project;
ii)
and
personal and household effects of the Canadian
Consultant personnel.
Import, Customs and other duties and taxes shall be paid by the
Canadian Consultant personnel in accordance with the laws and
regulations of the Government of the Republic of Indonesia, if
the effects mentioned in (i) and (ii) above are sold in Indonesial
10)
Release the Consultant's personnel who do not have permanent
residence in Indonesia from payment of resident and local taxes
for the duration of the Project.
11)
Inform the Canadian personnel of all laws and regulations which
may effect their work.
12)
Indemnify without cost to the Government of Canada, and save
harmlegs the Canadian engineers from .And .Aeainl'