Treaty Room - Treaty
Auatrallan FinanCial Cooparallon with lndonula
Trlpartita ArTangamant
Dated
16July 2010
Between
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,• ·I
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II' ｾ＠ Mlntatry of Finane.
A.
The \7 •.,bar ｆｵ
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manton
1
This Debt2Health Swap Arrangement (the ﾷｾ＠ \ . __ .. ｾ＠ ...._1f') comes Into effed this Fifteenttl
day or July, 2010 by and ｢･｜Ｌ
ﾷ ﾷＮｾ｡ｮ＠
the Commonwealth of Austlalia through the l)epartment of
Foreign Affairs and Trade (•Auatralta•), the Republic of lndone&ia through the Ministry of
Fh1• n :a (•I._ 1•1a•) and the Global Fund
to Fight AIDS, Tuberculosis and ....•aria (the
•Global Fund•).
WHEREAS:
A. The Global Fund was elltabUshed to attract. manage and di&burse eigniftc31t
additional reaourcea through a pul::Mic-private , _1 ;.,ership to mitigate Infections, Illness
and deeth In developing caunbiea ｬ･ｯＧＺＮＭｾ＠
.d by HIV/AIDS, tubercutosls and malaria
and thereby contribute to poverty reduction as part of the Unltsd Nations Millennium
Devetopment Goals.
B. Australia and Indonesia are committed to uaing the Debt2Health swap .... '*-Bnism as
an instrument to support addftlonal programmBB to fight tuberculosis in lndoneaia
through the Global Fund.
C. In particular, AuBtralia intends to forage the 1 • , ayment of up trJ A$75 million In debt
service owed by
ｬｮ､ｯｾＺｓ＠
ID the Export Finance and Insurance Corporation
(·EFic-'), Australia's export aedlt agency, in exchange for the ｩｬＧ｜ﾷＮ［ｾｮｴ＠
by
lndonesla of the equivalent of A$37.5 million in Global Famd approved tuberculosis
programmes in Indonesia.
C. The debt to be cancelled is part of the · -. ＭｾＧｍｩｬ｣ｨ＠
was consoUdatad and rescheduled
under the Third Reacheduling Deed dated 10 Jan•.ary 2003 between Indonesia and
EFIC in accordance with the memorandum of unden : ..ldlng dated 12 April 2002
betwaen the Governments of the Participating Creditor Countries (as defined theretn)
and Indonesia ("Third ｆＡｾｨ･､ｵｬｮｧ＠
1:-;-;d·).
E. lndonasla end EFIC propose entering into a Var1ation ｾ､＠
Bmendlng the Third
Rescheduling Deed to implement tt1e debt cancellation in ac:cadance with the terms
and conditions ar this ａｭｾｮｧ･ｴ＠
{"' - ·: · '" Deecln.
2
Therefore, Aut:.... !ia, Indonesia and 1he GlobBI Fund comrrlt as follows:
ＺＭ ｾｯｮ＠
1· C: ［ｾ｣Ｎ＠
• · ' •\nc _ :: .J Pra:
ｾｵｲ｡＠
1. Cnin principal and rntereat amounts to be paid by Indonesia to EFIC under the
Third Rescheduling Deed are earmarked for debt conversion under the terms or this
Arrangement. A total amount up to the equivalent of A$75.0 million (ihe •.• - •.r_,ked
Amount") may be cancelled under the Variation Deed in accordance wtth the terms
of this Arrangement.
2. The cancellation of the Earmarked Amount under the Variation 0. J will be ｛Ｚ ｾ＠ Ｂｾ＠
upon a aeries of USS and Euto C"..:h payments by Indonesia to the lr,'
11
'.ional Bank
for Reconstruction and 1:..\lalopmant ae trustee of the Global Fun ' Trust riBRD")
totalling the equivalent of 50% (A$37.5 million, the ·lndor.- ·•
referred to as the "Rwtrlctad eomr·
·-Ｚｸｾ＠
·_.. ___,.. also
for tha purpoaas of the Global Fund) aJ
the Earmarked Amount. PnnquieiiBs for the cancellation are that
(a) each payment i8 made to the account specified in the Contribu11on Agreement
b · !!len Indonesia and IBRD aa attBched in Annex 1 ("COntrtbuaon
Agraarr.
":");
(b) payments are to be made by lnc:k.. _Jla in 12 semt-annual inatalmenta
commencing on 1 December 2010 with subRequent lnstalmanrs being made on
the fil"8t day of June and December there:
::.:r untll1 J•Jne 20113, and!or such r-·-,r
date(s) 88 may be agreed by EFIC and IndonesiA;
(c) each payment reprwenta an amount in:
(I)
US$
equivalent to 50% of certain USS principal and lntereet
payment.; and
(ii)
Euro e ·,1Jivalent to 50% of the tota! Euro principal and interMt
paymente,
that would otherM88 be payable by lndonc-..in to EFIC under the Third
Resctledullng Deed on the relevant psyment date; and
(d) EFIC receives prompt confirmation from the Global Fund that the IBRD haa
received each cash payment due by Indonesia under this Anangement.
3
3. EFIC will determine the A$ value or the amount cancetled ynder the Variation ｵｾ＠
using the US$ and Euro foraign exchange reference ra:..
published by the RaaerY8
Bank of Australia on the relevant payment date. EFIC Is to provide written ncdce and
confirmation of such AS amount to Indonesia and the Global Fund.
Section 2- r
_IJ!\; ;a end
Util' __ _: . ,.
1. Australia and Indonesia agree that. subject to Section 4 below, the lndonaaian
Payment will be utNised for the purpoee of funding grants (the "02H Grantt•)
approved by the Global Fund for lndoll ...; :a after the date of execution of thla
Arrangement and subject to a signed Program Grant Agreement(s) belwaen the
Global Fund and a redplent in Indonesia (the "D2H Principal Recl;-=....:-"a•).
2. In accounting for the D2H Grants, the Giebel Fund will debit disbursements made to
the D2H Principal Recipients excluai• 'y from the Indonesian Payment until such
time 88 the Indonesian Payment hast _ｾ＠
diabursed In its enttraty.
3. Australia and Indonesia understand and agree that:
(a) the Global Fund will apply to the D2H Grants ita generally applicable procedures
and proces! .as, aa may be amended from time to time, fDr grant approvals and
management, indudlng financfal and prcgrammatic ｮｾｰｯｲｴｩｧ＠
and monitoring;
(b) the terms and conditions applicable to the D2H Grant& will be included in the
Program Grant Agreement(s) Signed between thtt Global Fund and the D2H
Principal Reciplanta ("D2H Grant • ' . -, .,;,,entB"); and
(c) the Global Fund will apply its diligent oversight processes fD the managf3ment of
fUnds contributed under this Arrangement and, on this basts. Australia and
Indonesia _,uld not intervene in the Global Fund's procedures ntgarding the
approval. management, oversight. or govemanoa of the grant management
pmceeaes of the Global Fund In relation to the D2H G. ..ta.
4. The Glabel Fund will provtde to Australia and Indonesia an annual report up untillhe
02H End Date {aa .•: :ined in Section 3, paragraph 6 below) on the progress d tne
D2H GraniB, including the amount of the lndonaaian Payment disbursed to the 02H
Prtncipal Recipients and the progresa against performance indlcato1'8 apedfled in the
02H Grant Agraament(s). The report is tD be ｰｲ･ＮＺｾﾷ＠
aa at 31 December each year
in respect of the preceding 12 months or, in lhe caae of the first report, such shorter
period commencing from the date of lha first disburaemtnt from lhe Indonesian
Payment The report is to be provided within 3 months of the end cA each relevant
reporting period.
5. The GlObal Fund will nOtify Australia and ｬｮ､ｯｲＮｾ
Ｎ Ｚ｡＠
rwgarding:
(a) any changae to policies of the Global Fund th..ｾ＠ will dlractly : .. Jet the
Debt2Health mechanism; and
(b) any material adverse event(a) of which It ｢･｣ｯｭｾ＠
aware In lhe implementation d
the Debt2Health mecharism i'1cluding an event delcribed in Section 4,
1*89rBPh 3.
Section 3- Payment F, .. _.. 1rw and Evidence of Paymen ;
1. The tDtal amoont that may be cancelled under the Variation Deed ehall not exceed
an amount equal to A$75 mftlion as calculated by EFIC in accordance with Section 1,
,_agraph 3.
2. EFIC shall end88W)r to give Indonesia and the Global Funa wriHen notice of not less
than 15 business days of each of the amounts referred to In Section 1, paragraph
2(c) above which EFfC estlmatea will be due on the
ｓｷ｡ｰｾＭＺ＠
next
occurring Debt2Health
t.
3. The Debi2Heatth swap Date ma"IB 1 December 2010, 1 June 2011, 1 December
2011, 1 June 2012, 1 Decamber2012 1 1 June 2013, 1 December 2013, 1 June 2014,
1 December 2014, 1 June 2015, 1 December 2015 and 1 June 2018.
4. The Indonesian Payment will be made in US$ and ｅｵｾ＠
from budgetary, 1011roes of
Indonesia to the IBRD in accardanca with the Contribution AgrtJ8mt!nt.
5
5. Australia and Indonesia understand m1d acknowledge that the Global Fund doel not
credit intereat on funds held in the Trust Account to parttcutar grants and agree that
any interest eamed on the lndonet 'an Payment fallcwtng receipt by the IBRD will
accrue In the Global Fund's general pool of' funds, and not be alloa.. ｾ＠
speclftcally to
the D2H Grants.
8. The Global Fund will provide to Aus..--ua evidence of the amount of the Indonesian
Payment that has been disbursed by the Global Fund to the D2H Principal Rscipkmta
not later than three months after the occurrence of the first of the folia· ,,.;g ､［Ｎ
(a) the date of the ､ｩ｡｢ｵｮｾ･ｲｴ＠
ﾷ ｾＮｴＺ＠
by the Global Fund d the entirety of the lndor
ian
Payment to the D2H Principal Recipients;
(b) the date upon which Australia pravides written notice to the Global Fund and to
Indonesia that this Arrangel'118r1t haa been tanninatad in accordance wtth
Section 4, paragraph 5;
(c) 31 March 2018.
The eartiest of' these dates will be considered the
·o2H End o•·_
In the event that tha D2H End Date ie dartvad from any of the datat\ referred to In
sub-paragraphs (b) or (c) above, the Global Fund wtll notify Australia of the amount
of the Indonesian Payment that haa been recei\'ad by the Global Fund and that has
not been disbursed by the Globel Fund.
7. In the event that the total A$ value of all iniBreet and principal Installments cancelled
under the Variation Deed as at the last Debl:2Health Swap Date is letMt than
A$74,950,000, Australia and Indonesia shall use their bMt endeavors to agree ｡ｾ＠
extenalon of the cancellation terrna provided fer in this Anangement and the Variation
Deed to enable the total AS value of all lnr' ·11meonta cancelled to reach the
Earmarked Amount
6
8. Not later than nine months after the D2H End Date, the Global Fund will provide tc
Australia:
(a) a report an the progress of the D2H Principal Recipients against per1bnnance
indicators specified In the D2H Grant Agreements: and
(b) a summary of the report(a) t:, . ｾ＠ the D2H Principal Recipients have au',. •.::; ｾ＠
to
the Global Fund llJQarding the expenditures made under the D2H Grants up to
and Including the date that is three months: Ｎｾｴｲ＠
tie D2H End Date, aa verffled by
the L.acal Fund Agent ("LfA•), using applicable Global Fund polici ｾＮ＠
9. Tlle costs of the verification by the LFA of the reports referred to In paragraph 8
aboV8 at any other administratiwl oosts of the Global Fund in managing the D2H
Grant& will not be atb1butad to the Indonesian Payment.
10. Australia, or any person author1sed by Australia, will be • .,l;;tled to 8C2SI
PI'OSJ'8lllrnes funded by the D2H Grant according to sectlon 2 1 paragraph 1. In cases
where Australia wishes to acceaa programmes fUnded by D2H G, _,.ts, Australia will
infonn Indonesia and the Global Fund In due time and endeaVour to coordinate aile
visits wtltllndonesla and/or the 02H Prindpal Recipient as required.
Section 4 · r
.
ﾷ ｾ＠
-· ·
.i Tal :__ .: . ,,
1. Austrana may, by giving notice to Global Fund and Indonesia, suspend the
eppUcation of this Arrangement if:
(a) lndonesta fails to pay any amount of the Indonesian Payment on the rei8Y8nt due
de as specified In Section 1, parsgraph 2; or
(b} the Giebel Fund does not provide confirmation of payment to EFIC ｡ｾｳｰ･｣ｬｦｴ､＠
in
Section 1, paragraph 2.
2. In the BYent that this Ar.-· ,.gement Is suspended as a result of events ｲｾ＠ ...ＮＺｾ＠
to in
Section 4, sub-paragraphs 1(a) or(b) above:
(a)
subject tc Section 4, paragreph 3, any amount of contrlbudona paid by
Indonesia
to the Global Fund that ha not yet t..:..JI dlsburaed by tha GlObal
7
Fund as D2H Grants will continue to be dlsbul"'ed through the sane D2H
Grant PI"'C888 applying prior lo the suspension until the basnce of funds is
exhausted; and
Australia wiM, at ita dhscretlan, reinstate this Arrangement once it Is t ｾ Ｎ Ｚ Ｚ Ｚｦｬ･､＠
(b)
ｾ［＠
..ｾ＠ the relevant amount has been paid by Indonesia and
rec.:.: ...:1 by IBRD
as the trustee of the Global Fund Tr •. ｾ Ｍ
3. In the evant that
(a) the D2H Principal Recipient(&) do not demonstrate
ａｾ＠
to
the Global FL61d a1d
that the portton of the Indo.. _Jian Payment allocated to such D2H
ＺＮ ｾｬ｡＠
Principal Reclplent(a) was e)Cpen' J on the activities approved under the D2H
Grant ａｧｾＦ･ｭｮｴｳ＠
and that the D2H Principal Reclpient(s) implemented the 02H
Grants in accordance with the appllc 'Je policies, rules and regulations gc:: ··..iT1ing
D2H Grant Agntements (as verift • by the Global Fund in the annual reports
referred to in Section 2, paragraph 4 or otherwisa); and
(b) the Global Fund makes efforts
to atop, and to rectify the consequences of, .,y
Improper use of the abovementioned funds by the D2H Princlpal Reci, lent!, bul
these efforts are not successful,
Australia
may, at its discretion, fallowing consultation with Indonesia and the Global
Fund:
(c) direct the Gobel Fund to suspend payments to those D2H
ｐｲｴｮｃＺｾｉ＠
Recipients
identified In sub-pa-agraphs (a) and (b) abowe, and lhe Global Fund will comply
with the direction; or
(d) suspend the application of Section 2, paragraph 1 and Section 2. paragraph 2 of
this Arrangement.
The amount of the Indonesian Paymant that was not disbursed by the Global Fund
for D2H Grenta that have been suspended under sub-parag••ｾ ｨｳ＠
(c) or (d) and the
amOllnt whiCh was not apent by D2H Principal Recipient& on the relevant D2H Grants
will ba held by ttte Global Fund as part of the Indonesian Payment A suspension
under sub-paragraphs (C) or (d) will apply until such time as Australia makes a
8
decision pursuant tD Section 4, paragraph 4. If Austrulia exercises Its right under
sub-paragraph (c), Australia is not precluded from later exerciling ita right under subparagraph (d), following further consultation with lndonesla and the Global Fund.
to Section 4, p· .. _..,.h 3,
its discretion, lift the suspension of payments to eo...-· in 02H
4. In the evtnt that Au&tralta exarcieea a right purauant
Australia will, at
Principal R&Qplenta or reinstate the ｾｬ｣｡ｴｩｮ＠
of Section 2, paragraph 1 . , ::1
Section 2, paragraph 2 (as applicable), once it ia satiefted that the circumatancea
givi'l:J rise to the suspension no longer exist.
5. Australia may tenninate this Arrangement If, followfng a suspension purauant t.o
Section 4, paragraph 1 or Section 4, subi'.,
ｾ ｧｲ｡ｰｨ＠
3(d), the clrcumstau:es giving
rise to the suspension continue to ext · for more than 12 months, by gMng IM'Itten
notice to the Global Fund and to Indonesia. On tennlnation, the amount of the
Indonesian Payment that was not dilbt•raed by the Global Fund ror ltle 02H Grant&
and the amount which waa not spent by D2H Principal ReclpientB on the D2H Grants
wtll cease to be IJ88d solely for the 02H Gra1ts, and will Instead be made available
for other grants awarded by the Global Fund, including thoee to lndoneela.
1. This Arrangement constJtutea the entire agreement belwaen the parttea to it and
supersedes any prior oral or written agraementa or communications '-• Ｎ ｊｾｉｮｧ＠
the
subject matter.
2. lhia Arrangement may be amended or maclified only by a written agreement signed
by all parties to this Arrangement.
3. All notioes and other communications un · -;.,· thia Arrangement muet be:
(a) in writing;
(b) in the English language;
(c) sent to the relevant recipients at the addreu. f3iC number or email addreas aet
out in Annex 2 to ttlia Arrangement.
The foUowing documents will fonn, be read and construed as an Integral part of this
AITBngement: Form of ContriooHon (. •nex 1); and contact details (Anna 2).
Anr.-- 1:
Conbibutlon Agreement between the Republic of Indonesia and the lntllmatlonal Bank
fer Reconstruction and Development (IBRD) as Trustee of the Trust Fund for The Global
Fund to Fight AlDS, Tuberculosis and Malaria to be executed wfthin 8 v..Ｍ［ＮｾＺｃｓ＠
from
signing of this Arrangement.
Annu2:
COntact detail& d the parties Involved.
10
4*(/&%
4*(/&%
4*(/&%
Anr___, 1:
The Wortd Bank
MERNA,OfML IIANM FOR RECCHB'mUCllCN AI\ID DE\IEL.OPMENT
111 I H 8tnlll N.W.
w.l*lgkln, D.C . 204SS
Q02) "'73-1000
｣Ｎ｢ｬ･ｾ［＠
ｉｈｔｂａｆｾｄ＠
U.8.A
[ ...... ........ . 2010]
Dr. Rahmat WaJuyanto
Director General of Debt Management
MinistJy ofFinance
Gcdung Utama Lantai Ill
n. Lapangan Banteng Timur 2-4
P.O. Box 1139
Jakarm 10710
Indonesia
tile llqllblk oflrultmulfl 11114 tile lrttnJH ·•
AgiWIIMIII ｾ＠
BtuiA for I'«
Trlpartita ArTangamant
Dated
16July 2010
Between
C -- - .110n1 _. ·:
dla ":' _ Ｍ ﾷｾ＠ 11.
•
i;• of : ..18tnlll acting..,- '011 ::-.
:of ｆｯｾ
A••· ·
Ｍ
Tr. · ;
,• ·I
Rt ap1.· .c ·
·1on• .. 1iaacUng ( _.ｾｕｧｨ＠
II' ｾ＠ Mlntatry of Finane.
A.
The \7 •.,bar ｆｵ
ｾ＠
·
··. Fight .·
oeut·.: : : I ｓｷ｡ｰＭｾ
ｾ Ｎ＠ ｾ＠
•:uloeie and · atat ·•
•
ｾ＠ ｾＷＵ＠
manton
1
This Debt2Health Swap Arrangement (the ﾷｾ＠ \ . __ .. ｾ＠ ...._1f') comes Into effed this Fifteenttl
day or July, 2010 by and ｢･｜Ｌ
ﾷ ﾷＮｾ｡ｮ＠
the Commonwealth of Austlalia through the l)epartment of
Foreign Affairs and Trade (•Auatralta•), the Republic of lndone&ia through the Ministry of
Fh1• n :a (•I._ 1•1a•) and the Global Fund
to Fight AIDS, Tuberculosis and ....•aria (the
•Global Fund•).
WHEREAS:
A. The Global Fund was elltabUshed to attract. manage and di&burse eigniftc31t
additional reaourcea through a pul::Mic-private , _1 ;.,ership to mitigate Infections, Illness
and deeth In developing caunbiea ｬ･ｯＧＺＮＭｾ＠
.d by HIV/AIDS, tubercutosls and malaria
and thereby contribute to poverty reduction as part of the Unltsd Nations Millennium
Devetopment Goals.
B. Australia and Indonesia are committed to uaing the Debt2Health swap .... '*-Bnism as
an instrument to support addftlonal programmBB to fight tuberculosis in lndoneaia
through the Global Fund.
C. In particular, AuBtralia intends to forage the 1 • , ayment of up trJ A$75 million In debt
service owed by
ｬｮ､ｯｾＺｓ＠
ID the Export Finance and Insurance Corporation
(·EFic-'), Australia's export aedlt agency, in exchange for the ｩｬＧ｜ﾷＮ［ｾｮｴ＠
by
lndonesla of the equivalent of A$37.5 million in Global Famd approved tuberculosis
programmes in Indonesia.
C. The debt to be cancelled is part of the · -. ＭｾＧｍｩｬ｣ｨ＠
was consoUdatad and rescheduled
under the Third Reacheduling Deed dated 10 Jan•.ary 2003 between Indonesia and
EFIC in accordance with the memorandum of unden : ..ldlng dated 12 April 2002
betwaen the Governments of the Participating Creditor Countries (as defined theretn)
and Indonesia ("Third ｆＡｾｨ･､ｵｬｮｧ＠
1:-;-;d·).
E. lndonasla end EFIC propose entering into a Var1ation ｾ､＠
Bmendlng the Third
Rescheduling Deed to implement tt1e debt cancellation in ac:cadance with the terms
and conditions ar this ａｭｾｮｧ･ｴ＠
{"' - ·: · '" Deecln.
2
Therefore, Aut:.... !ia, Indonesia and 1he GlobBI Fund comrrlt as follows:
ＺＭ ｾｯｮ＠
1· C: ［ｾ｣Ｎ＠
• · ' •\nc _ :: .J Pra:
ｾｵｲ｡＠
1. Cnin principal and rntereat amounts to be paid by Indonesia to EFIC under the
Third Rescheduling Deed are earmarked for debt conversion under the terms or this
Arrangement. A total amount up to the equivalent of A$75.0 million (ihe •.• - •.r_,ked
Amount") may be cancelled under the Variation Deed in accordance wtth the terms
of this Arrangement.
2. The cancellation of the Earmarked Amount under the Variation 0. J will be ｛Ｚ ｾ＠ Ｂｾ＠
upon a aeries of USS and Euto C"..:h payments by Indonesia to the lr,'
11
'.ional Bank
for Reconstruction and 1:..\lalopmant ae trustee of the Global Fun ' Trust riBRD")
totalling the equivalent of 50% (A$37.5 million, the ·lndor.- ·•
referred to as the "Rwtrlctad eomr·
·-Ｚｸｾ＠
·_.. ___,.. also
for tha purpoaas of the Global Fund) aJ
the Earmarked Amount. PnnquieiiBs for the cancellation are that
(a) each payment i8 made to the account specified in the Contribu11on Agreement
b · !!len Indonesia and IBRD aa attBched in Annex 1 ("COntrtbuaon
Agraarr.
":");
(b) payments are to be made by lnc:k.. _Jla in 12 semt-annual inatalmenta
commencing on 1 December 2010 with subRequent lnstalmanrs being made on
the fil"8t day of June and December there:
::.:r untll1 J•Jne 20113, and!or such r-·-,r
date(s) 88 may be agreed by EFIC and IndonesiA;
(c) each payment reprwenta an amount in:
(I)
US$
equivalent to 50% of certain USS principal and lntereet
payment.; and
(ii)
Euro e ·,1Jivalent to 50% of the tota! Euro principal and interMt
paymente,
that would otherM88 be payable by lndonc-..in to EFIC under the Third
Resctledullng Deed on the relevant psyment date; and
(d) EFIC receives prompt confirmation from the Global Fund that the IBRD haa
received each cash payment due by Indonesia under this Anangement.
3
3. EFIC will determine the A$ value or the amount cancetled ynder the Variation ｵｾ＠
using the US$ and Euro foraign exchange reference ra:..
published by the RaaerY8
Bank of Australia on the relevant payment date. EFIC Is to provide written ncdce and
confirmation of such AS amount to Indonesia and the Global Fund.
Section 2- r
_IJ!\; ;a end
Util' __ _: . ,.
1. Australia and Indonesia agree that. subject to Section 4 below, the lndonaaian
Payment will be utNised for the purpoee of funding grants (the "02H Grantt•)
approved by the Global Fund for lndoll ...; :a after the date of execution of thla
Arrangement and subject to a signed Program Grant Agreement(s) belwaen the
Global Fund and a redplent in Indonesia (the "D2H Principal Recl;-=....:-"a•).
2. In accounting for the D2H Grants, the Giebel Fund will debit disbursements made to
the D2H Principal Recipients excluai• 'y from the Indonesian Payment until such
time 88 the Indonesian Payment hast _ｾ＠
diabursed In its enttraty.
3. Australia and Indonesia understand and agree that:
(a) the Global Fund will apply to the D2H Grants ita generally applicable procedures
and proces! .as, aa may be amended from time to time, fDr grant approvals and
management, indudlng financfal and prcgrammatic ｮｾｰｯｲｴｩｧ＠
and monitoring;
(b) the terms and conditions applicable to the D2H Grant& will be included in the
Program Grant Agreement(s) Signed between thtt Global Fund and the D2H
Principal Reciplanta ("D2H Grant • ' . -, .,;,,entB"); and
(c) the Global Fund will apply its diligent oversight processes fD the managf3ment of
fUnds contributed under this Arrangement and, on this basts. Australia and
Indonesia _,uld not intervene in the Global Fund's procedures ntgarding the
approval. management, oversight. or govemanoa of the grant management
pmceeaes of the Global Fund In relation to the D2H G. ..ta.
4. The Glabel Fund will provtde to Australia and Indonesia an annual report up untillhe
02H End Date {aa .•: :ined in Section 3, paragraph 6 below) on the progress d tne
D2H GraniB, including the amount of the lndonaaian Payment disbursed to the 02H
Prtncipal Recipients and the progresa against performance indlcato1'8 apedfled in the
02H Grant Agraament(s). The report is tD be ｰｲ･ＮＺｾﾷ＠
aa at 31 December each year
in respect of the preceding 12 months or, in lhe caae of the first report, such shorter
period commencing from the date of lha first disburaemtnt from lhe Indonesian
Payment The report is to be provided within 3 months of the end cA each relevant
reporting period.
5. The GlObal Fund will nOtify Australia and ｬｮ､ｯｲＮｾ
Ｎ Ｚ｡＠
rwgarding:
(a) any changae to policies of the Global Fund th..ｾ＠ will dlractly : .. Jet the
Debt2Health mechanism; and
(b) any material adverse event(a) of which It ｢･｣ｯｭｾ＠
aware In lhe implementation d
the Debt2Health mecharism i'1cluding an event delcribed in Section 4,
1*89rBPh 3.
Section 3- Payment F, .. _.. 1rw and Evidence of Paymen ;
1. The tDtal amoont that may be cancelled under the Variation Deed ehall not exceed
an amount equal to A$75 mftlion as calculated by EFIC in accordance with Section 1,
,_agraph 3.
2. EFIC shall end88W)r to give Indonesia and the Global Funa wriHen notice of not less
than 15 business days of each of the amounts referred to In Section 1, paragraph
2(c) above which EFfC estlmatea will be due on the
ｓｷ｡ｰｾＭＺ＠
next
occurring Debt2Health
t.
3. The Debi2Heatth swap Date ma"IB 1 December 2010, 1 June 2011, 1 December
2011, 1 June 2012, 1 Decamber2012 1 1 June 2013, 1 December 2013, 1 June 2014,
1 December 2014, 1 June 2015, 1 December 2015 and 1 June 2018.
4. The Indonesian Payment will be made in US$ and ｅｵｾ＠
from budgetary, 1011roes of
Indonesia to the IBRD in accardanca with the Contribution AgrtJ8mt!nt.
5
5. Australia and Indonesia understand m1d acknowledge that the Global Fund doel not
credit intereat on funds held in the Trust Account to parttcutar grants and agree that
any interest eamed on the lndonet 'an Payment fallcwtng receipt by the IBRD will
accrue In the Global Fund's general pool of' funds, and not be alloa.. ｾ＠
speclftcally to
the D2H Grants.
8. The Global Fund will provide to Aus..--ua evidence of the amount of the Indonesian
Payment that has been disbursed by the Global Fund to the D2H Principal Rscipkmta
not later than three months after the occurrence of the first of the folia· ,,.;g ､［Ｎ
(a) the date of the ､ｩ｡｢ｵｮｾ･ｲｴ＠
ﾷ ｾＮｴＺ＠
by the Global Fund d the entirety of the lndor
ian
Payment to the D2H Principal Recipients;
(b) the date upon which Australia pravides written notice to the Global Fund and to
Indonesia that this Arrangel'118r1t haa been tanninatad in accordance wtth
Section 4, paragraph 5;
(c) 31 March 2018.
The eartiest of' these dates will be considered the
·o2H End o•·_
In the event that tha D2H End Date ie dartvad from any of the datat\ referred to In
sub-paragraphs (b) or (c) above, the Global Fund wtll notify Australia of the amount
of the Indonesian Payment that haa been recei\'ad by the Global Fund and that has
not been disbursed by the Globel Fund.
7. In the event that the total A$ value of all iniBreet and principal Installments cancelled
under the Variation Deed as at the last Debl:2Health Swap Date is letMt than
A$74,950,000, Australia and Indonesia shall use their bMt endeavors to agree ｡ｾ＠
extenalon of the cancellation terrna provided fer in this Anangement and the Variation
Deed to enable the total AS value of all lnr' ·11meonta cancelled to reach the
Earmarked Amount
6
8. Not later than nine months after the D2H End Date, the Global Fund will provide tc
Australia:
(a) a report an the progress of the D2H Principal Recipients against per1bnnance
indicators specified In the D2H Grant Agreements: and
(b) a summary of the report(a) t:, . ｾ＠ the D2H Principal Recipients have au',. •.::; ｾ＠
to
the Global Fund llJQarding the expenditures made under the D2H Grants up to
and Including the date that is three months: Ｎｾｴｲ＠
tie D2H End Date, aa verffled by
the L.acal Fund Agent ("LfA•), using applicable Global Fund polici ｾＮ＠
9. Tlle costs of the verification by the LFA of the reports referred to In paragraph 8
aboV8 at any other administratiwl oosts of the Global Fund in managing the D2H
Grant& will not be atb1butad to the Indonesian Payment.
10. Australia, or any person author1sed by Australia, will be • .,l;;tled to 8C2SI
PI'OSJ'8lllrnes funded by the D2H Grant according to sectlon 2 1 paragraph 1. In cases
where Australia wishes to acceaa programmes fUnded by D2H G, _,.ts, Australia will
infonn Indonesia and the Global Fund In due time and endeaVour to coordinate aile
visits wtltllndonesla and/or the 02H Prindpal Recipient as required.
Section 4 · r
.
ﾷ ｾ＠
-· ·
.i Tal :__ .: . ,,
1. Austrana may, by giving notice to Global Fund and Indonesia, suspend the
eppUcation of this Arrangement if:
(a) lndonesta fails to pay any amount of the Indonesian Payment on the rei8Y8nt due
de as specified In Section 1, parsgraph 2; or
(b} the Giebel Fund does not provide confirmation of payment to EFIC ｡ｾｳｰ･｣ｬｦｴ､＠
in
Section 1, paragraph 2.
2. In the BYent that this Ar.-· ,.gement Is suspended as a result of events ｲｾ＠ ...ＮＺｾ＠
to in
Section 4, sub-paragraphs 1(a) or(b) above:
(a)
subject tc Section 4, paragreph 3, any amount of contrlbudona paid by
Indonesia
to the Global Fund that ha not yet t..:..JI dlsburaed by tha GlObal
7
Fund as D2H Grants will continue to be dlsbul"'ed through the sane D2H
Grant PI"'C888 applying prior lo the suspension until the basnce of funds is
exhausted; and
Australia wiM, at ita dhscretlan, reinstate this Arrangement once it Is t ｾ Ｎ Ｚ Ｚ Ｚｦｬ･､＠
(b)
ｾ［＠
..ｾ＠ the relevant amount has been paid by Indonesia and
rec.:.: ...:1 by IBRD
as the trustee of the Global Fund Tr •. ｾ Ｍ
3. In the evant that
(a) the D2H Principal Recipient(&) do not demonstrate
ａｾ＠
to
the Global FL61d a1d
that the portton of the Indo.. _Jian Payment allocated to such D2H
ＺＮ ｾｬ｡＠
Principal Reclplent(a) was e)Cpen' J on the activities approved under the D2H
Grant ａｧｾＦ･ｭｮｴｳ＠
and that the D2H Principal Reclpient(s) implemented the 02H
Grants in accordance with the appllc 'Je policies, rules and regulations gc:: ··..iT1ing
D2H Grant Agntements (as verift • by the Global Fund in the annual reports
referred to in Section 2, paragraph 4 or otherwisa); and
(b) the Global Fund makes efforts
to atop, and to rectify the consequences of, .,y
Improper use of the abovementioned funds by the D2H Princlpal Reci, lent!, bul
these efforts are not successful,
Australia
may, at its discretion, fallowing consultation with Indonesia and the Global
Fund:
(c) direct the Gobel Fund to suspend payments to those D2H
ｐｲｴｮｃＺｾｉ＠
Recipients
identified In sub-pa-agraphs (a) and (b) abowe, and lhe Global Fund will comply
with the direction; or
(d) suspend the application of Section 2, paragraph 1 and Section 2. paragraph 2 of
this Arrangement.
The amount of the Indonesian Paymant that was not disbursed by the Global Fund
for D2H Grenta that have been suspended under sub-parag••ｾ ｨｳ＠
(c) or (d) and the
amOllnt whiCh was not apent by D2H Principal Recipient& on the relevant D2H Grants
will ba held by ttte Global Fund as part of the Indonesian Payment A suspension
under sub-paragraphs (C) or (d) will apply until such time as Australia makes a
8
decision pursuant tD Section 4, paragraph 4. If Austrulia exercises Its right under
sub-paragraph (c), Australia is not precluded from later exerciling ita right under subparagraph (d), following further consultation with lndonesla and the Global Fund.
to Section 4, p· .. _..,.h 3,
its discretion, lift the suspension of payments to eo...-· in 02H
4. In the evtnt that Au&tralta exarcieea a right purauant
Australia will, at
Principal R&Qplenta or reinstate the ｾｬ｣｡ｴｩｮ＠
of Section 2, paragraph 1 . , ::1
Section 2, paragraph 2 (as applicable), once it ia satiefted that the circumatancea
givi'l:J rise to the suspension no longer exist.
5. Australia may tenninate this Arrangement If, followfng a suspension purauant t.o
Section 4, paragraph 1 or Section 4, subi'.,
ｾ ｧｲ｡ｰｨ＠
3(d), the clrcumstau:es giving
rise to the suspension continue to ext · for more than 12 months, by gMng IM'Itten
notice to the Global Fund and to Indonesia. On tennlnation, the amount of the
Indonesian Payment that was not dilbt•raed by the Global Fund ror ltle 02H Grant&
and the amount which waa not spent by D2H Principal ReclpientB on the D2H Grants
wtll cease to be IJ88d solely for the 02H Gra1ts, and will Instead be made available
for other grants awarded by the Global Fund, including thoee to lndoneela.
1. This Arrangement constJtutea the entire agreement belwaen the parttea to it and
supersedes any prior oral or written agraementa or communications '-• Ｎ ｊｾｉｮｧ＠
the
subject matter.
2. lhia Arrangement may be amended or maclified only by a written agreement signed
by all parties to this Arrangement.
3. All notioes and other communications un · -;.,· thia Arrangement muet be:
(a) in writing;
(b) in the English language;
(c) sent to the relevant recipients at the addreu. f3iC number or email addreas aet
out in Annex 2 to ttlia Arrangement.
The foUowing documents will fonn, be read and construed as an Integral part of this
AITBngement: Form of ContriooHon (. •nex 1); and contact details (Anna 2).
Anr.-- 1:
Conbibutlon Agreement between the Republic of Indonesia and the lntllmatlonal Bank
fer Reconstruction and Development (IBRD) as Trustee of the Trust Fund for The Global
Fund to Fight AlDS, Tuberculosis and Malaria to be executed wfthin 8 v..Ｍ［ＮｾＺｃｓ＠
from
signing of this Arrangement.
Annu2:
COntact detail& d the parties Involved.
10
4*(/&%
4*(/&%
4*(/&%
Anr___, 1:
The Wortd Bank
MERNA,OfML IIANM FOR RECCHB'mUCllCN AI\ID DE\IEL.OPMENT
111 I H 8tnlll N.W.
w.l*lgkln, D.C . 204SS
Q02) "'73-1000
｣Ｎ｢ｬ･ｾ［＠
ｉｈｔｂａｆｾｄ＠
U.8.A
[ ...... ........ . 2010]
Dr. Rahmat WaJuyanto
Director General of Debt Management
MinistJy ofFinance
Gcdung Utama Lantai Ill
n. Lapangan Banteng Timur 2-4
P.O. Box 1139
Jakarm 10710
Indonesia
tile llqllblk oflrultmulfl 11114 tile lrttnJH ·•
AgiWIIMIII ｾ＠
BtuiA for I'«