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A.I.D . LOAN NO . 497-Q-053
PROJECT NO. 497-0271

AMENDMENT NO. 2 TO
LOAN AGREEMENT
BETWEEN
THE REPUBLIC OF INDONESIA
AND THE
UNITED STATES OF AMERICA
FOR
FAMILY PLANNING ORAL CONTRACEPTIVES

Dated:

September 26, 1979

September 26, 1979
This AMENDMENT NO. 2, entered into between the REPUBLIC
OF INDONESIA ("Borrower") and the UNITED STATES OF AMERICA , acting

through the AGENCY FOR INTERNATIONAL DEVELOPMENT ( A.I.D.
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),

vJITNESSETH
WHEREAS, on July 13, 1978, the Borrower and A.I.D. entered
into a Loan Agreement, designated as A.I.D. Loan No . 497-Q-053,
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(

Loan Agreement"), whereby A. I. D. agreed to 1end to the Borrower up

to Seven Million United States Dollars ($7,000,000) ("Loan") to
assist the Borrower in financing the United States dollar costs of
commodities and related services for the Family Planning Program in
Indonesia; and
WHEREAS, on April 19, 1979, the Borrower and A.I.D. entered

into Amendme nt No. 1 to the Loan Agreement to reflect an increase of
$7,000,000 in the amount of the Loan, from $7,000,000 to $14,000,000;
and
WHEREAS, the Borrower and A.f.D. now desire to amend the
Loan Agreement to reflect a further increase of $6,000,000 in the
amount of the Loan, from $14,000,000 to $20,000,000;
nowセ@

THEREFORE, the Borrower and A.I.D. hereby agree that

the Loan Agreement, as amended, is hereby further amended as follows:
1.

Section 3.1 of the Loan Agreement is hereby

amended by substituting the words "Twenty Million United States ("U .S.")
Dollars ($20,000,000)

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for the words "Fourteen Million United States

(

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U.S.

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)

Dollars (.$14,000,000) .
2.

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The amplified description of the Project as set

forth in Annex 1 of the Loan

aァイ・ュョエセ@

as supplemented by Annex 1-A

attached to Loan Agreement Amendment No. 1, is hereby further
supplemented by Annex 1-B, attached hereto.
Except as hereinabove expressly amended, the Loan Agreement
remains in full force and effect in accordance with all of its terms.
IN WITNESS WHEREOF, the Borrower and the United States of
America, each acting through its respective duly authorized representative, have caused this Amendment No. 2 to be signed in their
names and delivered as of the day and year first above written.

REPUBLIC OF INDONESIA

UNITED STA.TES OF AMERICA

Signed
By:

By;

M. Panggabean
Minisier for Foreign
Affairs ad interim

Signed
Edward E. Masters
Ambassador

ANNEX 1-B
SUPPLEMENT TO THE AMPLIFIED
DESCRIPTION OF THE PROJECT, AS SUPPLEMENTED IN
ANNEX 1-A TO LOAN AGREEMENT AMENDMENT NO. 1
Purpose
The purpose of the second amendmen t to the Loan Agreement is
to finance calendar year (CY) 1981

importation of approxi-

mately 33.4 million cycles of oral contraceptives (OC's) to
be used in the National Family Planning Program.

Program Description
The term program refers to the Indonesian five -year (19791983) comprehensive family planning program which includes
assistance from A.I.D. through:
a.

Project 497-0270, Family Planning Development and Services
to provide up to$25 million in grants to assist the Indonesian Family Planning Coordinating Board (BKKBN) in five
interre lated areas: program development and evaluation;
family planning services; voluntary sterilization services;
training; and population studies; and

b.

Project 497-0271, Oral Contraceptives, to provide loans
totalling up to $40 million over a five-year period to
finance importation of OC's.

-2Project

Description


The second amendment to the Loan Agreement proyides A.I.D.
financing for part of the OC's required for the program in
CY 1981.

It is anticipated that subject to the availability

of funds, A.I.D. and the Borrower will enter into loan agreements in subsequent years to finance future OC requirements
as described in Annex 1-A to Loan Agreement Amendment No. 1.
Management and Implementation
Management and Implementation of this project will continue
as described in Annex 1-A to Loan Agreement Amendment No. 1 .
Duration
Under this second Amendment to the Loan Agreement, A.I.D. will
finance part of the CY 1981 importation of OC's.

Suject to

the availability of funds, subsequent annual loan agreement
amendments will provide continued project assistance for

CY 1981 - 83.
Financing
The second amendment to the Loan Agreement will provide up to
US. $6,000,000 in loan funds for procurement of OC's to be
imported during CY 1981.

During the period of the project,

it is planned that the Borrower will provide the equivalent
of U. S. $33, 100,000 including "in-kind" costs, in support of
project and program implementation.