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MEMORANDUM OF UNDERSTANDING
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF AUSTRALIA
RELATING TO
SANGGAU WATER SUPPLY PROJECT IN INDONESIA

MEMORANDUM OF UNDERSTANDING RELATING TO
SANGGAU WATER SUPPLY PROJECT IN INDONESIA
GENERAL

1.

THIS MEMORANDUM expresses the under standings of
the Government of the Republic of In donesia
and the Government of Australia concerning the
responsibilities and contributions respectively
of the two Governments in regard to the Sanggau

Water Supply Project (hereinafter referred to
as the Project) located in West Kalimantan which
is intended to provide a reticulated water supply
to Sanggau as further described and detailed in
Annexures 1, 2 and 3 to this Memorandum.

AUTHORITIES

2.

The Executing Authorities for this Project will be :
ror the Indonesian Government : DIRECTORATE GENERAL
OF HOUSING, BUILDING PLANNING AND URBAN DEVELOPMENT
OF THE MINISTRY OF PUBLIC WORKS (D IRE KTORAT JENDERAL
CIPTA KARYA DEPARTEMEN PEKERJAAN UMUM) .
For ·the Australian Government : THE AUSTRALIAN
DEVELOPMENT ASS ISTANCE BUREAU OF THE DEPARTMENT OF
FOREIGN AFFAIRS.
The Australian Development Assistance Bureau may
nominate suitable qualified agents to undertake

any part of its functions on its behalf.

DURATION

3.

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 on such
other date as may subsequently be agreed between the
two Governments .

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PROJECT

4.


ORGANISATION

Responsibility for development and direction
of the Project will be vested in a Project
Co-ordinating Board, whose chairman wi 11 be
appointed by the Indonesian Government.
Membership of the Project Co-ordinating Board
will include representatives of the Indonesian
Government Ministry referred to in Clause 2
above , or nominated at the discretion of the
Indonesian Government, as well as one or two
nominees designated by the Australian Embassy
accredited to Indonesia.

The Board will meet

not less than once during the life of the Project.
5.


Functions of the Project Co-ordinating Board
wi 11 include
(a)

reviewing and reporting on progress
to the two Governments; and

(b)

recommending to the two Governments
changes in program, budget and future
development

RESPONSIBILITY

6.

Overall responsibility for this Project will
rest with the Government of Indonesia.


The

final author i ty for decisions on implementation of the agreed works program shall rest
with the Directorate General CIPTA KARYA after
consultation with the Australian Embassy .
CONTRIBUTIONS

].

The contributions of the Indonesian and Austra1ian Governments are detailed in Annexures 1, 2
and 3 and are estimated to value Rp. 350 million
and $A 389,000.- respectively.
Disbursement of the Indonesian and Australian
Governments' contr ibutions will be s ubj ect to
the normal annual Parliamentary approval of
Appropr iations.
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EVALUATION

8.

An evaluation of progress of the Project may
be at times arranged between and mutually
convenient to, the Indonesian and Australian
Governments.
Such an evaluation may be undertaken by a joint
investigation team appointed by the two Governments and independent of staff involved in the
Project.

SUPPLIES

9.

(a)

The Indonesian Government will, in
accordance with the prevailing laws

and regulations, exempt from import
duties and other taxes (or pay such
duties thereon) all goods supplied
for the established purposes of the
Proje c t as set out in Annex 1.

Prior

to such importation the Australian
Government will submit a maste r list
of all supplies to be supplied by the
Australian Government to the Indone s ian
Government;
(b)

The Indonesian Government wi 11 facilitate movement of Proj ect equipment and
s upplies by providing appropriate customs and wharfage facilities in the port
of entry and will responsible for the
expeditious tra ns port of such equipment
and supplies to the site; and


(c)

Project equipment and s upplies provided
by Au s tralia s hall be availabl e for the
unr estricted use of the Project and shall
not be withdrawn from such use without
the con se nt of t he Proj ec t Coordinatin g
boa rd.

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LIABILITY

10.

The Indonesian Government shall be responsible
for dealing with any claims which may be brought
by third parties against Australia and its
experts, agents or Australian personnel and shall

hold harmless Australia and its experts, agents
and personnel in case of any claims or liabilities
resulting from operations under this Memorandum.
This provision shall 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 a nd pe rsonal
equipment both at the Proj e ct location, in transit
and on any other official representational activity
in Indonesia.
take
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The Australian Government will
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precautions to ensure that

Austra lian personnel have due regard for local ,
traditions and customs.
SETTLEMENT OF

12.

DIFFERENCES

Any differences arising out of the interpretation
or implementation of the Memorandum shall be
settled amicably by consultation or negotiation

between the two Governments.

AMENDMENTS

13.

Amendments to this Memorandum may be made at any
t ime by an Exchange of Letters between the two
Gove rnments.

ANNEXURES 1, 2 and 3 to this Memorandum form an integral part of it.

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SIGNED in Jakarta, in duplicate, this fifth day of February 1981.

FOR THE GOVERNMENT OF
THE REPUBLIC OF INDONESIA

FOR THE GOVERNMENT OF
AUSTRALIA

Signed

Signed

POERNOMOSIDI HADJISAROSA
Minister of Public Works

THOMAS K. CRITCHLEY
Ambassador

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ANNEX 1
SANGGAU WATER SUPPLY PROJECT - WEST KALIMANTAN
SCOPE OF PROJECT

This Sanggau Water Supply Project involves the design and
construction of a water supply system for the town of Sanggau in
Kalimantan Barat.
Components of the scheme are a river intake and raw water
pumping station, a 20 l/sec capacity water treatment plant, a small
diesel- electric generating station to provide power for operation
of the pumping station, a raw water pipeline to convey water to the
treatment plant, a treated water pipeline to supply two 200 cubic metre
reservoirs to be constructed on high ground north of the town, and a
reticulation system interconnected with th e rising main supplying both
privately connected consumers and public standpipes.

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ANNEX 2
CONTRIBUTION OF THE AUSTRALIAN GOVERNMENT

This annex sets out in detai 1 the contribution of the
Australian Government to the Sanggau Water Supply Project.
1.

Execution of a study of socio-economic conditions in
Sanggau to provide data on likely water demands and
revenues, to define water distribution requirements
in various areas of the town, and to identify any
social factors critical to acceptance of the town
water supply by consumers.

2.

Provision of advice on the identification of appropriate water treatment processes and construction
materials, and where necessary, assistance to the
Indonesian authorities responsible for the preparation of contract documents.

3.

Preparation of tender documents from technical specifications provided by Indonesian authorities for
Australian supplied materials.

4.

Supply and delivery to Indonesia of diesel generating
equipment and pumping equipment.

5.

Supply and delivery to Indonesia of pipework and
fittings for the rising main from the treatment plant
to the town reservoir and the tQY./n reticulation system,
and for approximately 1200 private service connections
and 60 public standpipes.
pipewo rk. envisaged are

Approximate quantities of

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2

Rising main,
Reticulation system,

6.

150 mm diameter approximately
II
II
100 mm
80 mm

II

7.4 km

50 mm

II

II

1.6 km

Private connections

20 mm

II

II

21.8 km

Public standpipes

50 mm

II

II

3 . 0 km

Water meters

15 mm

II

II

1500

Fire hydrants

80 mm

II

II

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Supply of two prefabricated steel tanks each of 200 cubic

Assistance with design, as and where requested by
Indonesian authorities.

8.

Delivery of offshore materials to wharf at port of entry
Pontianak or Jakarta.

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7.5 km

II

metre capacity .

7.

3.4 km

ANNEX 3
CONTRIBUTION OF THE INDONESIAN GOVERNMENT

This annex sets out the contribution of the Indonesian
Government to the Sanggau Water Supply Project.
1.

Layout and design of the intake structure, raw water
pumping station, delivery pumping station, rising main,
town reservoir, reticulation system, service connections
and public standpipes.

2.

Layout and design of water treatment and power generating
facilities, with assistance from Australia as and where
requested.

3.

Preparation of contract documents and specification for
goods and services to be provided by Indonesia, and the
technical specifications for materials and equipment to
be provided by Australia.

4.

Supply of all necessary materials and equipment, except
those listed under Annex 2 above, including the water
treatment plant, foundation and pipe bedding materials,
concrete and reinforcing steel, any temporary or permanent
buildings or enclosures, fuel supplies, water treatment
chemicals, and the like.

5.

Construction of all works.

6.

The setting-up of an administration to operate and
maintain the town water supply system.

7.

Clearance through Indonesian customs of offshore materials
required for the project.

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