Selanjutnya
BRITISH EMBASSY
JAKARTA
HE Ali Alatas SH
Minister of Foreign Affairs
Menteri Luar Negeri
Jl Taman Pejambon No 6
Jakarta Pusat
7 April 1994
UNITED KINGDOM/INDONESIA CONCESSIONAL LOAN ARRANGEMENT NO 1 1994
I have the honour to inform you that it is the intention of
the Government of the United Kingdom of Great Britain and Northern
Ireland
to
make available to the Government of the
Republic
of
Indonesia financial support for development projects to be jointly
arranged between our two Governments.
1.02
r
The
form of the financial support will be the provision
Grant funds
through
my
(hereinafter
Government's
(hereinafter
referred
to as "ODA") to enable certain bank
(hereinafter
referred
to as "the Loans") to be provided
of
referred to as the "Grant") supplied
Overseas Development Administration
loans
on
the
terms set out in paragraph 3.01 of this Note.
1.03
The
Export
"ECGD")
Loans in Pounds Sterling supported by
Credits
my
Government's
Guarantee Department (hereinafter referred to
will be for the sum of up to £80,000,000 (eighty
as
million
Pounds Sterling) and will be made by banks acceptable to both our
Governments (hereinafter referred to as ''lending banks") to your
Government, represented by the Minister of Finance as the Borrower
(hereinafter referred to as the "Borrower").
1.04 The Loans will be eligible for support under the terms of
this Note provided that the following conditions are met and are
in conformity with the Organisation for Economic Co-operation and
Development's (OECD) Arrangement on Guidelines for Officially
Supported Export Credits (including Tied Aid Financing) in force
at the time that this arrangement comes into operation.
1.05
The
phasing
of the Grant will be determined in
each
case
depending upon the circumstances prevailing at the time of
Loan allocation.
each
1.06 Unless my Government otherwise accepts, the minimum contract
value of any project to be financed under this arrangement will be
£10,000,000 (ten million Pounds Sterling).
2.
PROCEDURES AND PRACTICES
2.01 Our Governments will exchange information and proposals,
consult and assess the suitability and feasibility of individual
projects for aid funding.
If a project satisfies both our
Governments• criteria and is in conformity with OECD guidelines,
my Government will notify your Government by letter of its
approval in principle of funding for the project, stating the
upper limit for the amount of Loan funds to be provided through a
lending bank and nominating the companies registered and carrying
on business in the United Kingdom (hereinafter referred to as
"United Kingdom companies'') which should be allowed to negotiate,
or the United Kingdom companies which should be allowed to bid.
On receipt of such a letter, your Government will, in respect of
the approved project, authorise the project executing agency, as
purchaser, either to invite bids from United Kingdom companies as
part of an international competitive bidding process prior to
nominating a company or, if our two Governments consider it
necessary, to negotiate contracts (hereinafter referred to as "the
Contracts"), with nominated United
Kingdom companies.
The
Contracts will be based on internationally recognised model forms
and detail the responsibilities of both buyer and seller.
They
will be submitted to and be subject to approval by both our
Governments
process.
at
the
earliest possible stage in
the
negotiation
2.02 When our Governments have
approved the Contracts
as
stipulated in paragragh 2.01, your Government will authorise the
project executing agency to sign the Contract. Our Governments
will then exchange letters as shown at Appendix A approving the
project for funding, and stating the amount of Loan funds to be
provided through a lending bank.
2.03 My Government will, after the exchange of letters referred to
in paragraph 2.02 comes into operation, arrange through ECGD with
the lending bank for the terms set out in paragraph 3.01 of this
Note to be applied to Loans signed by the Borrower and the lending
bank and will subsequently make the necessary payments from the
Grant to implement and sustain the said terms.
The detailed
application of the said terms to each of the Loans will be set out
in a Loan agreement, in a form acceptable to ECGD, between the
Borrower and the lending bank.
3.
TERMS AND CONDITIONS
3.01 Subject to the conditions in paragraph 2.01, the terms of the
individual Loans to be provided under these arrangements, with
ECGD support, will be that principal will be repaid over 25 years
in 36 equal semi-annual instalments, the first instalment falling
due 90 months from the date of signature of the Loan agreement;
interest will be payable six monthly from the first draw-down of
the Loan money, at a rate of 3.343% per annum based upon a year of
365 days on the balance of the Loan outstanding from day to day.
Any fiscal levies in respect of payments of interest and repayment
of principal made in respect of the Loans provided under these
arrangements will be paid by your Government or arrangements will
be made by your Government for the settlement of such levies.
Each Loan will finance 100% of the value of the UK Goods and UK
Services (as defined in paragraph 3.02) of the agreed
of the project to which it relates.
components
3.02 Unless my Government otherwise accepts in writing, goods
provided under the Contracts will be produced in and supplied from
the United Kingdom {hereinafter referred to as "UK Goods") and
services provided under the Contracts will be provided by persons
normally resident in the United Kingdom (hereinafter referred
as "UK Services").
to
3.03 The approved Contracts and Loan agreements will not be
assigned nor the texts amended without the prior approval of my
Government's ODA and ECGD and of your Government. This provision
will be stated explicitly in the Contracts.
3.04
The
Loans will not be used to meet the cost of
any
taxes,
fees,
imports or customs' duties, directly or indirectly imposed
by your Government.
Providing the United Kingdom companies
concerned comply with established Government of the Republic of
Indonesia procedures and regulations, your Government will ensure
that the following privileges are
given to United Kingdom
companies:
a)
Value Added Tax due on the import of goods which are
financed
from the Loans will be borne by your Government;
b) Exemption from customs and import duties on goods for projects
which are financed from the Loans.
3.05 UK goods purchased under the Contracts will be shipped and
insured in accordance with normal commercial competitive practice
by ships or companies of any flag or country acceptable to both
Governments.
This provision will be stated explicitly in the
Contracts.
3.06 Loans eligible for support under the arrangements set out in
this Note will be for UK capital goods and related UK services and
will
not
be used for the purchase of luxury goods, or items
for
military or defence purposes.
3.07
Your
Government
will permit my Government's
personnel
or
representatives to visit any sites or locations where projects are
being carried out which are being financed under the Loans, and
will furnish them with such information as they require regarding
the project, its progress, and financing.
3 . 08 Your Government will ensure that the Contracts provide:
a)
for my Government's personnel to have sufficient facilities to
permit
a
proper
examination
and
assessment
of
procurement
efficiency, and
b)
for
United
Kingdom companies to furnish my
quarterly progress reports on supported projects.
Government
with
3.09 Your
additional
projects.
Government will make
provision for such finance
to each Loan as may be required to complete approved
3.10 If an approved project is suspended or terminated before
completion, our two Governments will consult on measures to
resolve the problems and agree on an appropriate course of action.
If it is decided not to proceed with the project, my Government
reserves the right to recover from your Government an amount
equivalent to any sums paid out or to be paid out from the Grant.
Such consultations will not affect any rights and obligations of
the respective parties to the Contracts and the Loan agreements.
3.11 Your Government will ensure that:
a) all UK goods and all UK services for which payment has been
financed under the Loans are employed for the purposes for which
and by the user for whom they were supplied, for as long as their
being so employed remains feasible and that in no circumstances
will items purchased be used for military or defence purposes;
b)
all reasonable precautions are taken to protect any Loan funds
paid
out
under
carried out;
the Contracts in advance
of
work
being
c) any sums payable to the purchaser by or on behalf of the United
Kingdom companies relating to UK goods and UK services for which
finance is made available under the Arrangement will be paid to
the appropriate lending bank, which will inform the Borrower.
With the approval of my Government, on a case by case basis, these
sums will be made available for further drawings made by the
Borrower
services
and as approved by my Government and for UK goods and UK
only (as defined in paragraph 3.02) to remedy defects in
relation to goods and services financed under this Arrangement.
Any sum not required for this purpose will be used to reduce the
outstanding Loan balances;
r
and
d) Income tax on United Kingdom resident personnel and Corporation
tax on United Kingdom companies are levied in accordance with the
provisions
of
the
United
Kingdom/Indonesia
Double
Taxation
Convention
which has effect in Indonesia for the taxable year
in
which the income is derived.
3.12 Unless my Government accepts otherwise, the
become effective and all Loan agreements must be
8
Contract must
signed before
April, 1995 in order to be eligible for the Grant support.
4.
If the arrangements set out above are acceptable to the
Government of the Republic of Indonesia I have the honour to
suggest
on
record the understanding of our two Governments in this matter
which
be
that this Note, and your reply to that effect, will place
will come into operation on the date of your reply and will
referred to as "the United Kingdom/Indonesia Concessional Loan
Arrangement No 1 of 1994".
I avail myself of this opportunity to renew to your Excellency the
assurance of my highest consideration.
Signed
Alastair Goodlad
Minister of State for
Foreign & Commonwealth Affairs
APPENDIX A
I
have
the
honour
to
refer to the
Exchange
of
Notes
dated
constituting the United Kingdom/ Indonesia
Concessional Loan Arrangement No. 1 of 1994 (hereinafter referred
to as the "Arrangement"), the recent consultations between our
Governments
regarding the project known as (name of project to be
inserted), and my letter of .................•
principle for the project.
offering support in
2.
My Government's support for this project will be in the form
of a Grant valued at (amount to be inserted) (hereinafter referred
to as the "Grant Allocation") which will be applied in support of
a loan provided by the approved lending bank (name to be inserted)
(hereinafter referred to as the "Loan Allocation") to be used to
finance Contracts with United Kingdom companies.
3.
my
Depending upon the rate of draw-down of the Loan Allocation,
Government may from time to time have to revalue the Grant
Allocation
required
in
order to sustain the terms of
the
Loan
Allocation which are set out in paragraph 3.01 of the Arrangement.
Any increase or decrease in the Grant Allocation will be notified
-
to your Government.
4.
The arrangements for this project and the purpose for which
the Loan Allocation will be used are as discussed during recent
consultations between our two Governments, set out in the project
memorandum attached hereto.
These arrangements may be varied in
detail
total
within
the
above
Loan
Allocation
by
mutual
arrangement between our two Governments.
5. The terms and conditions set out in the Arrangement will apply
and will come into operation when the Loan Allocation becomes
effective.
6. This allocation will lapse if the Loan Allocation Agreement is
not signed before (date to be inserted).
7.
If the arrangements set out above and in the project
memorandum attached hereto are acceptable to your Government 1 I
have the honour to suggest that this letter and your reply to that
effect will place on record the understanding of our two
Governments in this matter 1 wh i ch will be referred to as "the
(name of the project to be inserted) allocation letter number
(number to be inserted) of 19 (year to be inserted)".
I avail myself of this opportunity to renew to Your Excellency the
assurance of my highest consideration.
-
MINISTER FOR FOREIGN AFFAIRS
REPUBLIC OF INDONESIA
Jakarta, April 7, 1994
Your Excellency,
I
have the honour to acknowledge receipt and to
for Your Excellency's Note of today's
financial support to be made available to
the cost of certain development projects.
the
and
thank
you
date concerning the
tJIY Government
towards
I confirm that the contents of your Note are acceptable to
Government of the Republic of Indonesia and that your Note
this reply place on record the - under-s tanding of our two
Governments ｾｮ＠
this matter. These arrangements will come into
operation today and will be known as the Unit,ed Kingdom/Indonesia
Concessional Loan Arrangement No. 1, 1994.
I avail myself of this opportunity to renew
Excellency the assurance of my highest consideration.
Minister
ｦｯｲｾｩｧｮ＠
to
Affairs
Signed
Ali Alatps, SH
His Excellency,
The Rt Hon Alastair Goodlad MP
Minister of State for Foreign and
Commonwealth Affairs.
c/o British Embassy
J a k a r t
a
Your
JAKARTA
HE Ali Alatas SH
Minister of Foreign Affairs
Menteri Luar Negeri
Jl Taman Pejambon No 6
Jakarta Pusat
7 April 1994
UNITED KINGDOM/INDONESIA CONCESSIONAL LOAN ARRANGEMENT NO 1 1994
I have the honour to inform you that it is the intention of
the Government of the United Kingdom of Great Britain and Northern
Ireland
to
make available to the Government of the
Republic
of
Indonesia financial support for development projects to be jointly
arranged between our two Governments.
1.02
r
The
form of the financial support will be the provision
Grant funds
through
my
(hereinafter
Government's
(hereinafter
referred
to as "ODA") to enable certain bank
(hereinafter
referred
to as "the Loans") to be provided
of
referred to as the "Grant") supplied
Overseas Development Administration
loans
on
the
terms set out in paragraph 3.01 of this Note.
1.03
The
Export
"ECGD")
Loans in Pounds Sterling supported by
Credits
my
Government's
Guarantee Department (hereinafter referred to
will be for the sum of up to £80,000,000 (eighty
as
million
Pounds Sterling) and will be made by banks acceptable to both our
Governments (hereinafter referred to as ''lending banks") to your
Government, represented by the Minister of Finance as the Borrower
(hereinafter referred to as the "Borrower").
1.04 The Loans will be eligible for support under the terms of
this Note provided that the following conditions are met and are
in conformity with the Organisation for Economic Co-operation and
Development's (OECD) Arrangement on Guidelines for Officially
Supported Export Credits (including Tied Aid Financing) in force
at the time that this arrangement comes into operation.
1.05
The
phasing
of the Grant will be determined in
each
case
depending upon the circumstances prevailing at the time of
Loan allocation.
each
1.06 Unless my Government otherwise accepts, the minimum contract
value of any project to be financed under this arrangement will be
£10,000,000 (ten million Pounds Sterling).
2.
PROCEDURES AND PRACTICES
2.01 Our Governments will exchange information and proposals,
consult and assess the suitability and feasibility of individual
projects for aid funding.
If a project satisfies both our
Governments• criteria and is in conformity with OECD guidelines,
my Government will notify your Government by letter of its
approval in principle of funding for the project, stating the
upper limit for the amount of Loan funds to be provided through a
lending bank and nominating the companies registered and carrying
on business in the United Kingdom (hereinafter referred to as
"United Kingdom companies'') which should be allowed to negotiate,
or the United Kingdom companies which should be allowed to bid.
On receipt of such a letter, your Government will, in respect of
the approved project, authorise the project executing agency, as
purchaser, either to invite bids from United Kingdom companies as
part of an international competitive bidding process prior to
nominating a company or, if our two Governments consider it
necessary, to negotiate contracts (hereinafter referred to as "the
Contracts"), with nominated United
Kingdom companies.
The
Contracts will be based on internationally recognised model forms
and detail the responsibilities of both buyer and seller.
They
will be submitted to and be subject to approval by both our
Governments
process.
at
the
earliest possible stage in
the
negotiation
2.02 When our Governments have
approved the Contracts
as
stipulated in paragragh 2.01, your Government will authorise the
project executing agency to sign the Contract. Our Governments
will then exchange letters as shown at Appendix A approving the
project for funding, and stating the amount of Loan funds to be
provided through a lending bank.
2.03 My Government will, after the exchange of letters referred to
in paragraph 2.02 comes into operation, arrange through ECGD with
the lending bank for the terms set out in paragraph 3.01 of this
Note to be applied to Loans signed by the Borrower and the lending
bank and will subsequently make the necessary payments from the
Grant to implement and sustain the said terms.
The detailed
application of the said terms to each of the Loans will be set out
in a Loan agreement, in a form acceptable to ECGD, between the
Borrower and the lending bank.
3.
TERMS AND CONDITIONS
3.01 Subject to the conditions in paragraph 2.01, the terms of the
individual Loans to be provided under these arrangements, with
ECGD support, will be that principal will be repaid over 25 years
in 36 equal semi-annual instalments, the first instalment falling
due 90 months from the date of signature of the Loan agreement;
interest will be payable six monthly from the first draw-down of
the Loan money, at a rate of 3.343% per annum based upon a year of
365 days on the balance of the Loan outstanding from day to day.
Any fiscal levies in respect of payments of interest and repayment
of principal made in respect of the Loans provided under these
arrangements will be paid by your Government or arrangements will
be made by your Government for the settlement of such levies.
Each Loan will finance 100% of the value of the UK Goods and UK
Services (as defined in paragraph 3.02) of the agreed
of the project to which it relates.
components
3.02 Unless my Government otherwise accepts in writing, goods
provided under the Contracts will be produced in and supplied from
the United Kingdom {hereinafter referred to as "UK Goods") and
services provided under the Contracts will be provided by persons
normally resident in the United Kingdom (hereinafter referred
as "UK Services").
to
3.03 The approved Contracts and Loan agreements will not be
assigned nor the texts amended without the prior approval of my
Government's ODA and ECGD and of your Government. This provision
will be stated explicitly in the Contracts.
3.04
The
Loans will not be used to meet the cost of
any
taxes,
fees,
imports or customs' duties, directly or indirectly imposed
by your Government.
Providing the United Kingdom companies
concerned comply with established Government of the Republic of
Indonesia procedures and regulations, your Government will ensure
that the following privileges are
given to United Kingdom
companies:
a)
Value Added Tax due on the import of goods which are
financed
from the Loans will be borne by your Government;
b) Exemption from customs and import duties on goods for projects
which are financed from the Loans.
3.05 UK goods purchased under the Contracts will be shipped and
insured in accordance with normal commercial competitive practice
by ships or companies of any flag or country acceptable to both
Governments.
This provision will be stated explicitly in the
Contracts.
3.06 Loans eligible for support under the arrangements set out in
this Note will be for UK capital goods and related UK services and
will
not
be used for the purchase of luxury goods, or items
for
military or defence purposes.
3.07
Your
Government
will permit my Government's
personnel
or
representatives to visit any sites or locations where projects are
being carried out which are being financed under the Loans, and
will furnish them with such information as they require regarding
the project, its progress, and financing.
3 . 08 Your Government will ensure that the Contracts provide:
a)
for my Government's personnel to have sufficient facilities to
permit
a
proper
examination
and
assessment
of
procurement
efficiency, and
b)
for
United
Kingdom companies to furnish my
quarterly progress reports on supported projects.
Government
with
3.09 Your
additional
projects.
Government will make
provision for such finance
to each Loan as may be required to complete approved
3.10 If an approved project is suspended or terminated before
completion, our two Governments will consult on measures to
resolve the problems and agree on an appropriate course of action.
If it is decided not to proceed with the project, my Government
reserves the right to recover from your Government an amount
equivalent to any sums paid out or to be paid out from the Grant.
Such consultations will not affect any rights and obligations of
the respective parties to the Contracts and the Loan agreements.
3.11 Your Government will ensure that:
a) all UK goods and all UK services for which payment has been
financed under the Loans are employed for the purposes for which
and by the user for whom they were supplied, for as long as their
being so employed remains feasible and that in no circumstances
will items purchased be used for military or defence purposes;
b)
all reasonable precautions are taken to protect any Loan funds
paid
out
under
carried out;
the Contracts in advance
of
work
being
c) any sums payable to the purchaser by or on behalf of the United
Kingdom companies relating to UK goods and UK services for which
finance is made available under the Arrangement will be paid to
the appropriate lending bank, which will inform the Borrower.
With the approval of my Government, on a case by case basis, these
sums will be made available for further drawings made by the
Borrower
services
and as approved by my Government and for UK goods and UK
only (as defined in paragraph 3.02) to remedy defects in
relation to goods and services financed under this Arrangement.
Any sum not required for this purpose will be used to reduce the
outstanding Loan balances;
r
and
d) Income tax on United Kingdom resident personnel and Corporation
tax on United Kingdom companies are levied in accordance with the
provisions
of
the
United
Kingdom/Indonesia
Double
Taxation
Convention
which has effect in Indonesia for the taxable year
in
which the income is derived.
3.12 Unless my Government accepts otherwise, the
become effective and all Loan agreements must be
8
Contract must
signed before
April, 1995 in order to be eligible for the Grant support.
4.
If the arrangements set out above are acceptable to the
Government of the Republic of Indonesia I have the honour to
suggest
on
record the understanding of our two Governments in this matter
which
be
that this Note, and your reply to that effect, will place
will come into operation on the date of your reply and will
referred to as "the United Kingdom/Indonesia Concessional Loan
Arrangement No 1 of 1994".
I avail myself of this opportunity to renew to your Excellency the
assurance of my highest consideration.
Signed
Alastair Goodlad
Minister of State for
Foreign & Commonwealth Affairs
APPENDIX A
I
have
the
honour
to
refer to the
Exchange
of
Notes
dated
constituting the United Kingdom/ Indonesia
Concessional Loan Arrangement No. 1 of 1994 (hereinafter referred
to as the "Arrangement"), the recent consultations between our
Governments
regarding the project known as (name of project to be
inserted), and my letter of .................•
principle for the project.
offering support in
2.
My Government's support for this project will be in the form
of a Grant valued at (amount to be inserted) (hereinafter referred
to as the "Grant Allocation") which will be applied in support of
a loan provided by the approved lending bank (name to be inserted)
(hereinafter referred to as the "Loan Allocation") to be used to
finance Contracts with United Kingdom companies.
3.
my
Depending upon the rate of draw-down of the Loan Allocation,
Government may from time to time have to revalue the Grant
Allocation
required
in
order to sustain the terms of
the
Loan
Allocation which are set out in paragraph 3.01 of the Arrangement.
Any increase or decrease in the Grant Allocation will be notified
-
to your Government.
4.
The arrangements for this project and the purpose for which
the Loan Allocation will be used are as discussed during recent
consultations between our two Governments, set out in the project
memorandum attached hereto.
These arrangements may be varied in
detail
total
within
the
above
Loan
Allocation
by
mutual
arrangement between our two Governments.
5. The terms and conditions set out in the Arrangement will apply
and will come into operation when the Loan Allocation becomes
effective.
6. This allocation will lapse if the Loan Allocation Agreement is
not signed before (date to be inserted).
7.
If the arrangements set out above and in the project
memorandum attached hereto are acceptable to your Government 1 I
have the honour to suggest that this letter and your reply to that
effect will place on record the understanding of our two
Governments in this matter 1 wh i ch will be referred to as "the
(name of the project to be inserted) allocation letter number
(number to be inserted) of 19 (year to be inserted)".
I avail myself of this opportunity to renew to Your Excellency the
assurance of my highest consideration.
-
MINISTER FOR FOREIGN AFFAIRS
REPUBLIC OF INDONESIA
Jakarta, April 7, 1994
Your Excellency,
I
have the honour to acknowledge receipt and to
for Your Excellency's Note of today's
financial support to be made available to
the cost of certain development projects.
the
and
thank
you
date concerning the
tJIY Government
towards
I confirm that the contents of your Note are acceptable to
Government of the Republic of Indonesia and that your Note
this reply place on record the - under-s tanding of our two
Governments ｾｮ＠
this matter. These arrangements will come into
operation today and will be known as the Unit,ed Kingdom/Indonesia
Concessional Loan Arrangement No. 1, 1994.
I avail myself of this opportunity to renew
Excellency the assurance of my highest consideration.
Minister
ｦｯｲｾｩｧｮ＠
to
Affairs
Signed
Ali Alatps, SH
His Excellency,
The Rt Hon Alastair Goodlad MP
Minister of State for Foreign and
Commonwealth Affairs.
c/o British Embassy
J a k a r t
a
Your