Selanjutnya
LOAN AGREEMENT
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF CAMADA
Sulawesi Regional Development Project
AGREEMENT MADE IN DUPLICATE THE /)/, &{.,
BETWEEN:
DAY OF
:rvtj , 1984.
The GOVERNMENT OF THE REPUBLIC OF INDONESIA
(hereinafter referred to as
Indonesia
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The GOVERNMENT OF CANADA
herein represented by the
Secretary of State for
External Affairs acting
through the President of the
Canadian International
Development Agency (hereinafter referred to as Canada
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WHEREAS Indonesia wishes to secure a development loan for the
use of Indonesia as described in Annex A to this agreement;
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AND WHEREAS Canada is willing to make a development loan available
for this purpose on the terms and conditions provided herein;
NOW THEREFORE the parties hereto agree as follows:
ARTICLE I
THE LOAN
Section 1.01
Canada shall make available to Indonesia on the terms and conditions
hereinafter set forth a loan in an amount not to exceed eiaht
million six hundred thousand Canadian dollars (Cdn. $8,600:000) .
This loan shall be provided parallel to a contribution for technical
assistance, the latter being subject of a separate Memorandum of
Understanding.
Section 1.02
Canada shall open on its books a loan account in the name of
Indonesia and shal l credit to such account the full amount of the
l oan. Withdrawals, payments and disbursements may be made from
the loan account in accordance with the provisions of th i s agreement.
Section 1.03
This loan shall be free from interest, commitment or service charges .
Section 1.04
Repayment of the principal amount of the loan shall be made in
eighty (80) semi-annual instalments of one hundred and seven
thousand five hundred Canadian dollars (Cdn. $107,500) each, due
and payable on March 31 and September 30 in each succeedin9 year
commencing on September 30, 1994 and ending on March 31, 2034 .
Section 1.05
Indonesia shall have the right to prepay the principal amount in
whole or in part on any date without Matice to Canada. The amount
of any prepayment shall be applied to the instalments of principal
payable in the reverse order of their maturity.
Section 1.06
All payments as set forth herin shall be made by Indonesia in
Canadian dollars to the Receiver General for Canada and shall be
deemed to have been paid when received by the Receiver General
for Canada.
Section 1.07
The principal of the loan shall be paid to Canada without any
deductions whatsoever and more particularly shall be free from any
taxes, charges or other restrictions imposed under the Laws of
Indonesia and those in effect in its territories or administrative,
political or judicial divisions or subdivisions.
Section 1.08
The parties agree that they will negotiate, at the request of
either Indonesia or Canada, concerning acceleration of payments
to the Receiver General for Canada required to be made under this
agreement at any time after six (6) months before the first payment
of principal becomes due and payable. Indonesia and Canada shall
mutually determine whether such an acceleration should take place
on the basis of the capacity of Indonesia to service a more rapid
liquidation of its obligations in the light of its internal and
external financial and economic position.
ARTICLE II
USE OF THE LOAN
Section 2.01
Except as may otherwise be specifically agreed to by Canada, the
proceeds of the loan shall be used by Indonesia exclusively for
the purchase of agreed goods and services as described in Annex A
This Annex shall be subject to such subsequent modifications as
may be agreed upon between Canada and Indonesia.
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Section 2.02
Services, materials and equipment to be financed from the proceeds
of the loan shall be used exclusively to carry out the projects; the
goods and services procured in Canada and financed from the loan
shall have an overall Canadian content of not less than sixty-six
and two-thirds percent (66 2/3%) unless otherwi se agreed to by
Canada.
Section 2.03
Services, materials and equipment contracted for prior to the
effective date of this agreement may not be financed out of the
proceeds of the loan except as may otherwise be agreed to by Canada.
Section 2.04
Proceeds from the loan shall not be used by Indonesia to meet the
cost of any taxes, fees or customs duties imposed directly or
indirectly by Indonesia on any services, materials or equipment
required for the project .
ARTICLE II I
WITHDRAWALS OF PROCEEDS OF LOAN
Sec ti on 3. 01
Withdrawals shall be deemed to occur on the dates on which payments
are made by Canada either directly to Indonesia or its designated
agent, or to a firm or a banking institution in respect of goods
and services supplied under this agreement.
Section 3.02
Subject to the conditions and limitations set forth herein, Indonesia
shall be entitled to withdrawals from the loan account in such
amounts as are required to meet the costs of the goods and services,
freight and insurance as may be applicable which are eligible for
financing as the costs become due and payable in accordance with
Annex "B".
Section 3.03
Indonesia or its designated agent shall provide Canada with a
copy of each contract purchase order for the procurement of services,
materials and equipment in respect of which any withdrawal is to be
made.
Section 3.04
Withdrawa l s from the loan account may be made in favour of such
persons or agencies as may be designated by Indonesia and agreed
to by Canada.
Section 3.05
At the end of each quarter, Indonesia or its designated agent shall
submit to Canada one (1) application for withdrawal of such amounts
as shall have been paid during that quarter startin9 with the last
quarter of 1984 in accordance with the provisions of Annex 8
unless otherwise agreed to by Canada.
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Section 3.06
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Indonesia or its designated agent shall furnish or cause to be
furnished, to Canada such documents and other evidence in support
of its application for withdrawal as Canada may reasonably request,
such evidence to be sufficient in form and substance to establish
that the amounts to be withdrawn are properly related to the purposes
of this agreement.
ARTICLE IV
CANCELLATION AND SUSPENSION
Section 4.01
Indonesia may, by sixty (60) days' written Notice to Canada, cancel
all or any part of the loan not withdrawn by Indonesia prior to
the giving of such ｾｊｯｴｩ｣･＠
and not required to meet outstanding
financial obligations to suppliers or firms incurred under the loan.
Section 4.02
If any of the following events occur, Canada may suspend in whole
or in part the right of Indonesia to make withdrawals under the
loan agreement, or declare the principal outstanding due and payable
immediately and cancel that part of the loan not previously withdrawn:
(a)
a default by Indonesia in the payment of principal
or in any other payments or repayments required
under this agreement and the Annexes hereto;
(b)
a default on the part of Indonesia in the performance
of any undertakings under this agreement;
(c)
any extraordinary situation which renders it
impossible for Indonesia to perform its obligations
under this agreement.
Section 4.03
If the full amount of the loan is not committed by Indonesia by
September 30, 1989, the balance wi 11 be cance 11 ed by sixty ( 60)
days' written Notice from Canada and the final instalment or instalments of the repayment to be made be reduced accordingly unless
otherwise agreed by Canada and Indonesia.
ARTICLE V
GENERAL UNDERTAKINGS
Section 5.01
Indonesia shall ensure that the projects are carried out, operated
and maintained with due diligence and efficiency and in conformity
with sound engineering, construction and financial practices.
Section 5.02
Canada and Indonesia shall cooperate fully to ensure that the purpose
of the loan will be accomplished, and each shall furnish to the
other all such information as shall reasonably be requested with
regard to the general status of the loan. Indonesia shall inform
Canada as soon as possible of any condition or contingency which
interferes with, or threatens to interfere with, the accomplishment
of the project or any matter or thing in connection therewith.
Section 5.03
Indonesia shall afford accredited representatives of Canada all
reasonable opportunities to visit any part of the territories of
Indonesia for purposes related to this loan agreement, including
project performance and finance verification.
Section 5.04
This agreement and any Annex hereto shall be free from any taxes,
fees or other charges that may be imposed under the Laws of
Indonesia and those in effect in its territories or administrative,
political or judicial divisions or subdivisions in connection with
the execution, issue, delivery and registration thereof.
Section 5.05
It is understood and agreed by Indonesia and Canada, that the
Articles of this agreement and Annexes 11 /1. 11 , 11 811 , 11 C11 and 11 011
attached thereto all form an integral part of this agreement.
Section 5.06
For the purposes of this agreement and Annexes hereto Indonesia
shall include any agent or agents authorized by and on behalf of
Indonesia with regard to its rights, duties and obligations
herein.
ARTICLE VI
COMMUN I CJl.TI ON S
Section 6.01
Any communications or documents given, made or sent by either
Indonesia or Canada pursuant to this agreement or any Annex 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, telegram, cable or radiogram at its
respective address, namely:
For Indonesia
Mail Address:
Directorate General for
International Monetary Affairs
Department of Finance
Jalan Lapangan Banteng Timur #4
Jakarta, Indonesia
Telex: 45799 DJMLN IA
For Canada
Mail Address:
Canadian Embassy
Wisma Metropolitan, 5th Floor
Jalan Jenderal Sudirman
P.O. Box 52/JKT
Jakarta Pusat, Indonesia
Cable Address:
DOMCAN JAKARTA
and/or
Mail Address:
The President
Canadian International Development Agency
200 Promenade du Portage
Hull, Quebec, Canada KlA OGA
Cable Address:
CIDA HULL
Section 6.02
Any one of the parties hereto may, by written Notice to the other
party hereto, change the address to which any Notice or request
intended for the party so giving such Notice shall be addressed.
Section 6.03
All communications and documents pertaining to this agreement
shall be in the English language.
ARTICLE VII
SIMULTANEOUS EXECUTION OF AGREEMENT
Section 7.01
This agreement may be simultaneously executed in several counterparts each of which so executed shall be deemed to be an original.
Section 7.02
This agreement and Annexes A
B
C and 0 attached hereto,
which form part of this agreement, may be amended from time to time
upon agreement of the parties concerned. Amendment to the main body
of the agreement shall be executed by a formal amendment si0ned
by the authorized representatives. However, amendments to the
Annexes may be by an exchange of letters between Indonesia and
Canada.
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IN WITNESS WHEREOF, the parties hereto have caused to be subscribed
the signature of their authorized representative at Jakarta ｾｳ＠ of
the day and the year first above written.
Signed on behalf of the
Government of the Republic
of Indonesia
Signed
Signed on behalf of the
Government of Canada
Prof. Dr Mochtar Kusumaatmadja
Minister of Foreign Affairs
ｬＯｏｾｵｴｹ＠
Signed
JIJ;(e Honourat;i; Jean Chretien
Prime Minister and
Secretary of State for
External Affairs
ANNEX A
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USE OF THE LOAN
l.
2.
The loan covers certain expenditures made within the context
of the Sulawesi Regional Development Project, a five years
project commencing in September 1984 and terminating in Seotember
1989. These expenditures shall comprise two broad areas as
follows:
a)
Integrated Area Development. On the basis of previously
conducted design studies for the development of Sanrego
and Mawasangka-Gu in respectively South Sulawesi and
South East Sulawesi, certain specific and well ､･ｳｩｾｮ＠
socio-economic development activities shall be undertaken.
These activities shall concentrate on agriculture and
fisheries, supporting infrastructure and social programme.
b)
Sectoral Activities at the Provincial Level. On the basis
of existing sectoral and other studies undertaken previously,
funds shall be used to support follow-on project designs
and implementation of selected activities in South Sulawesi
and South East Sulawesi resulting from these preliminary
studies.
More in particular, loan funds shall be used to finance a predetermined portion of development activities including, but not
necessarily confined to, the following components:
a)
For Integrated Area Development in Sanrego and Mawasangka-Gu,
loan funds shall be applied to components mentioned in the
existing development designs for the two areas, including
but not limited to:
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agriculture and fisheries production
establishment of rural extension centres
irrigation development
construction of markets
reforestation and plantations
village development
water supply and sanitation
resettlement
establishment of health centres
strengthening of cooperatives
road construction
studies
b)
For Province-wide Sectoral Activities in South and South
East Sulawesi, loan funds shall be applied to the following
components or such others as shall be agreed to:
land resource inventory and plannin9
small-scale fisheries
food crop marketing and small-scale agro-industry
village cadres, women, farmers leaders
cooperative development
small-scale irrigation
3.
The use of loan funds shall be determined on an annual basis
for each ensuing year by mutual agreement between Indonesia and
Canada represented, respectively, by members of the Steering
Committee of the Provincial Develooment Pro9ramme, and the
Project Team Leader of the Canadian International Development
Agency and/or his representative of the Canadian Embassy and
(upon invitation) the Canadian Executing Agency which will be
responsible for the technical assistance component of this
project. These annual meetings shall occur at the time of the
national planning consultations of the Government of Indonesia .
4.
The loan shall be considered an integral part of the overall
Sulawesi Regional Development Project to which Canada also
provides a contribution, the latter being subject of a seoarate
Memorandum of Understanding and Plan of Operations. As such
the use of loan funds shall be guided by the Plan of Operations.
ANNEX B
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ADMINISTRATION OF THE LOAN
1.
The Government of Canada shall act through the intermediary
of the Canadian International Development Agency (CIDA) for
the purposes of this loan agreement.
2.
The Canadian International Development Agency (CIDA) will
contract a Canadian Executing Agency (CEA) for the purpose
of advising on the administration of the loan.
3.
The Government of Indonesia designates the Department of Home
Affairs as its agent to coordinate the activities to be financed
under the loan.
4.
The Government of Indonesia, through the Department of Finance
shall submit to CIDA formal requests, on a quarterly basis,
for reimbursement from loan funds. These requests shall be
substantiated by supporting financial documentation (generated
in accordance with paragraph 5 below) detailing disbursements
made by Indonesia for goods supplied, services rendered and
generally for work done relating to any of the activities set
out in Annex A
The first such request shall cover loan
activities undertaken during the last quarter of 1984, and the
last such request shall cover the third quarter of 1989. The
reimbursement should be transferred to the Bank of Indonesia's
account with the Bank of Canada, Ottawa, in favour of the
Republic of Indonesia.
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5.
Quarterly requests for reimbursements shall be based on timely,
accurate and comprehensive individual sub-project reporting
which shall, both in physical and financial resource use terms,
be directly related to original approved sub-project plans .
The priority order of the reporting process shall be as follows:
a)
Project quarterly reports shal l be prepared by the
responsible project officer up to and including the
District (Kabupaten) level subsequent to the end of
each quarter of the fiscal year;
b)
The reports, after review at the BAPPEDA II level,
shall be forwarded from the district level to ｴｾ･＠
Provincial level for preparation of a consolidated
financial/performance report including the Provincewide project reports;
c)
BAPPEDA I, with the assistance of the CEA advisor,
shall finalize and approve the quarterly financial
report, including a reconciliation of the CIDA
funding reimbursement and submit this report to
the Department of Home Affairs (DGRD) through the
Provincia l Governor, with copy to the Department
of Finance;
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d)
Both the CEA and DGRD shall approve this report
and DGRD shall forward it to the Department of
Finance which shall formally request CIDA
reimbursement ;
e)
CIDA shall provide reimbursement to the Department
of Finance no later than one month after receipt
of the reimbursement request and supporting
documentation at the Bank of Indonesia's middle
rate of the Canadian dollar at the day of transfer,
unless further clarification is required by Canada,
in which case reimbursement shall be made as soon
as possible after receipt of such clarification;
f)
At the end of each fiscal year an annual
consolidated financial statement prepared by
BAPPEDA I shall be audited by GOI auditors and
submitted to the Department of Home Affairs (DGRD);
g)
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Copies of the audited annual statements shall be
forwarded to the GOI, Directorate General for
International Monetary Affairs of the Department
of Finance and CIDA. Quarterly statements of
disbursements reflecting loan withdrawals and
current balance of the loan will be prepared by
CIDP. and forwarded to the Bank of Indonesia and
the Directorate General for International
Monetary Affairs of the Department of Finance .
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ANNEX C
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SPECIAL RESPONSIBILITIES OF THE GOVERNMENT OF INDONESIA
1.
Planning, implementation and monitoring of integrated area and
province-wide development activities to be financed under the
loan shall be the responsibility of the Government of Indonesia
and shall follow the mechanism established under an expanded
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Provincial Development Programme.
2.
The Government of Indonesia sha ll audit all expenditures made
under this Loan Agreement following the procedures established
under the Provincial Development Programme. Accredited Canadian
representatives shall have full access to all reports resulting
from these audits.
3.
The Government of Indonesia shall make available, through the
Provincial Development Programme, supplemented if necessary by
national sectora l allocations, sufficient additional funds
required to carry out the i mplementation of the existing integrated Area Development Designs for Sanrego and Mawasangka-Gu
(South and South East Su lawesi respectively) as well as the
Province-wide Sectoral Activities planned under this project.
It is understood that of the total activities to be financed
under the Integrated Area Development design and the Provincewide Sectoral Activities, the Government of Indonesia shall
finance a five years average of roughly 70% of al l costs
involved, the loan representing roughly 30%, precise annual
proportions to be agreed upon during the annual meetings
between the Government of Indonesia and the Government of
Canada.
4.
The Government of Indones ia shall establi sh a five years plan
for the staffing of the BAPPEDAS I and II in South and South
East Sulawesi, which shall be such as to enable the smooth
planning, coordination and monitoring of activities to be
financed under the loan. This plan shall be completed before
the commencement of the project and updated annually. It
shall be made available to the Government of Canada for
comments.
5.
In implementing land resources inventory and land use planning,
the Government of Indones ia shall use Canadian services should
expatriate expertise be required. In other cases where
expatriate expertise or foreign goods need to be fina nced
under the loan, the Government of Indonesia shall give
preference, all other things being equal, to Canadian sources.
6.
The loan funds shall be applied to integrated area and
province-wide development activities in conjunction with a
Canadian contribution for institutional support which is
subject of a separate Memorandum of Understanding, including
a Plan of Operation. Within this context:
a)
planning for the use of loan funds shall follow
the "bottom up procedure of an expanded Provincial
Development Programme with active parti cipation of
Canadian advisors, the latter to be funded through
the aforementioned contribution;
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b)
i mplementation of activities to be financed under
the loan, being the responsibility of the Government
of Indonesia, shall be active ly assisted by Canadian
advisors and short-term consultants to be funded
under the aforementioned contribution;
c)
monitoring of activities sha ll be performed through
improved monitoring procedures of an expanded
Provincial Development Programme with the
assistance of the Canadian Advisors aforementioned,
and supplemented by the servi ces of an inde9endent
Canadian monitor, the latter to be financed under
the aforementioned contribution;
d)
evaluations of activities will be performed by
independent Canadian consultants one of whoM is
also the aforementioned monitor, in cooperation
with an appointed representative of the Government
of Indonesia and other specia li sts if required.
Costs associated with the functions of the
Canadian consu ltants shall be financed under the
aforementioned contribution .
7.
The GOI, with the active participation of the CEA shall
establish a comprehensive project information system in South
and South East Sulawesi Provinces that will faci l itate the
overall planning funct i on .
8.
The Government of Indonesia shall bear all taxes, duti es,
and any levies enforced in the Republic of Indonesia with
respect to the implementation of this agreement.
ANNEX
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PROCUREMENT FOR LAND RESOURCES INVE NTORY
ｐｾｄ＠
PLANNING
l.
Should the GO! wish to use Canadian services for land resource
inventory and planning, above $100,000, the Government of
Indonesia shall invite tenders for services from a reoresentative list of Canadian suppliers, which can be obta i ned from
the Canadian International Development Agency.
2.
A copy of the invitation to tender, together with a list of
Canadian suppliers invited to tender, shall be forwarded by
the Government of Indonesia to the Canadian International
Development Agency.
3.
Each Canadian supplier i nvited to tender shall be instructed :
a) to send a copy of his tender to the Canadian
International Development Agency at the same time
as the tender is forwarded to the Government of
Indones ia;
b) to include with the copy of the tender sent to the
Canadian International Development Agency, a
completed Canadian content form;
c) the Government of ｉｮ､ｯ･
ｾ ｩ ｡ Ｌ＠ after analyzing the
tenders, shall obtain the prior concurrence of the
Canadian International Development Agency before
awarding a contract ;
d) the Government of Indonesia shall award the contract
to the most reasonable evaluated bid meeting the
required specifications and having the necessary
Canadian content, unless otherwise agreed by Canada .
4.
The selected firm shall submit monthly progress claims with a
co py of each such claim to the Canadian International Develonment
Agency. Payment shall be made in accordance with the terms
agreed upon between the Government of Indonesia and the firm.
Payment shall be made directly to the firm by the Canadian
International Development Agency upon ｲ･｣ｩｾｴ＠
of notice of
verification from the Government of Indonesia.
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF CAMADA
Sulawesi Regional Development Project
AGREEMENT MADE IN DUPLICATE THE /)/, &{.,
BETWEEN:
DAY OF
:rvtj , 1984.
The GOVERNMENT OF THE REPUBLIC OF INDONESIA
(hereinafter referred to as
Indonesia
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The GOVERNMENT OF CANADA
herein represented by the
Secretary of State for
External Affairs acting
through the President of the
Canadian International
Development Agency (hereinafter referred to as Canada
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WHEREAS Indonesia wishes to secure a development loan for the
use of Indonesia as described in Annex A to this agreement;
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AND WHEREAS Canada is willing to make a development loan available
for this purpose on the terms and conditions provided herein;
NOW THEREFORE the parties hereto agree as follows:
ARTICLE I
THE LOAN
Section 1.01
Canada shall make available to Indonesia on the terms and conditions
hereinafter set forth a loan in an amount not to exceed eiaht
million six hundred thousand Canadian dollars (Cdn. $8,600:000) .
This loan shall be provided parallel to a contribution for technical
assistance, the latter being subject of a separate Memorandum of
Understanding.
Section 1.02
Canada shall open on its books a loan account in the name of
Indonesia and shal l credit to such account the full amount of the
l oan. Withdrawals, payments and disbursements may be made from
the loan account in accordance with the provisions of th i s agreement.
Section 1.03
This loan shall be free from interest, commitment or service charges .
Section 1.04
Repayment of the principal amount of the loan shall be made in
eighty (80) semi-annual instalments of one hundred and seven
thousand five hundred Canadian dollars (Cdn. $107,500) each, due
and payable on March 31 and September 30 in each succeedin9 year
commencing on September 30, 1994 and ending on March 31, 2034 .
Section 1.05
Indonesia shall have the right to prepay the principal amount in
whole or in part on any date without Matice to Canada. The amount
of any prepayment shall be applied to the instalments of principal
payable in the reverse order of their maturity.
Section 1.06
All payments as set forth herin shall be made by Indonesia in
Canadian dollars to the Receiver General for Canada and shall be
deemed to have been paid when received by the Receiver General
for Canada.
Section 1.07
The principal of the loan shall be paid to Canada without any
deductions whatsoever and more particularly shall be free from any
taxes, charges or other restrictions imposed under the Laws of
Indonesia and those in effect in its territories or administrative,
political or judicial divisions or subdivisions.
Section 1.08
The parties agree that they will negotiate, at the request of
either Indonesia or Canada, concerning acceleration of payments
to the Receiver General for Canada required to be made under this
agreement at any time after six (6) months before the first payment
of principal becomes due and payable. Indonesia and Canada shall
mutually determine whether such an acceleration should take place
on the basis of the capacity of Indonesia to service a more rapid
liquidation of its obligations in the light of its internal and
external financial and economic position.
ARTICLE II
USE OF THE LOAN
Section 2.01
Except as may otherwise be specifically agreed to by Canada, the
proceeds of the loan shall be used by Indonesia exclusively for
the purchase of agreed goods and services as described in Annex A
This Annex shall be subject to such subsequent modifications as
may be agreed upon between Canada and Indonesia.
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Section 2.02
Services, materials and equipment to be financed from the proceeds
of the loan shall be used exclusively to carry out the projects; the
goods and services procured in Canada and financed from the loan
shall have an overall Canadian content of not less than sixty-six
and two-thirds percent (66 2/3%) unless otherwi se agreed to by
Canada.
Section 2.03
Services, materials and equipment contracted for prior to the
effective date of this agreement may not be financed out of the
proceeds of the loan except as may otherwise be agreed to by Canada.
Section 2.04
Proceeds from the loan shall not be used by Indonesia to meet the
cost of any taxes, fees or customs duties imposed directly or
indirectly by Indonesia on any services, materials or equipment
required for the project .
ARTICLE II I
WITHDRAWALS OF PROCEEDS OF LOAN
Sec ti on 3. 01
Withdrawals shall be deemed to occur on the dates on which payments
are made by Canada either directly to Indonesia or its designated
agent, or to a firm or a banking institution in respect of goods
and services supplied under this agreement.
Section 3.02
Subject to the conditions and limitations set forth herein, Indonesia
shall be entitled to withdrawals from the loan account in such
amounts as are required to meet the costs of the goods and services,
freight and insurance as may be applicable which are eligible for
financing as the costs become due and payable in accordance with
Annex "B".
Section 3.03
Indonesia or its designated agent shall provide Canada with a
copy of each contract purchase order for the procurement of services,
materials and equipment in respect of which any withdrawal is to be
made.
Section 3.04
Withdrawa l s from the loan account may be made in favour of such
persons or agencies as may be designated by Indonesia and agreed
to by Canada.
Section 3.05
At the end of each quarter, Indonesia or its designated agent shall
submit to Canada one (1) application for withdrawal of such amounts
as shall have been paid during that quarter startin9 with the last
quarter of 1984 in accordance with the provisions of Annex 8
unless otherwise agreed to by Canada.
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Section 3.06
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Indonesia or its designated agent shall furnish or cause to be
furnished, to Canada such documents and other evidence in support
of its application for withdrawal as Canada may reasonably request,
such evidence to be sufficient in form and substance to establish
that the amounts to be withdrawn are properly related to the purposes
of this agreement.
ARTICLE IV
CANCELLATION AND SUSPENSION
Section 4.01
Indonesia may, by sixty (60) days' written Notice to Canada, cancel
all or any part of the loan not withdrawn by Indonesia prior to
the giving of such ｾｊｯｴｩ｣･＠
and not required to meet outstanding
financial obligations to suppliers or firms incurred under the loan.
Section 4.02
If any of the following events occur, Canada may suspend in whole
or in part the right of Indonesia to make withdrawals under the
loan agreement, or declare the principal outstanding due and payable
immediately and cancel that part of the loan not previously withdrawn:
(a)
a default by Indonesia in the payment of principal
or in any other payments or repayments required
under this agreement and the Annexes hereto;
(b)
a default on the part of Indonesia in the performance
of any undertakings under this agreement;
(c)
any extraordinary situation which renders it
impossible for Indonesia to perform its obligations
under this agreement.
Section 4.03
If the full amount of the loan is not committed by Indonesia by
September 30, 1989, the balance wi 11 be cance 11 ed by sixty ( 60)
days' written Notice from Canada and the final instalment or instalments of the repayment to be made be reduced accordingly unless
otherwise agreed by Canada and Indonesia.
ARTICLE V
GENERAL UNDERTAKINGS
Section 5.01
Indonesia shall ensure that the projects are carried out, operated
and maintained with due diligence and efficiency and in conformity
with sound engineering, construction and financial practices.
Section 5.02
Canada and Indonesia shall cooperate fully to ensure that the purpose
of the loan will be accomplished, and each shall furnish to the
other all such information as shall reasonably be requested with
regard to the general status of the loan. Indonesia shall inform
Canada as soon as possible of any condition or contingency which
interferes with, or threatens to interfere with, the accomplishment
of the project or any matter or thing in connection therewith.
Section 5.03
Indonesia shall afford accredited representatives of Canada all
reasonable opportunities to visit any part of the territories of
Indonesia for purposes related to this loan agreement, including
project performance and finance verification.
Section 5.04
This agreement and any Annex hereto shall be free from any taxes,
fees or other charges that may be imposed under the Laws of
Indonesia and those in effect in its territories or administrative,
political or judicial divisions or subdivisions in connection with
the execution, issue, delivery and registration thereof.
Section 5.05
It is understood and agreed by Indonesia and Canada, that the
Articles of this agreement and Annexes 11 /1. 11 , 11 811 , 11 C11 and 11 011
attached thereto all form an integral part of this agreement.
Section 5.06
For the purposes of this agreement and Annexes hereto Indonesia
shall include any agent or agents authorized by and on behalf of
Indonesia with regard to its rights, duties and obligations
herein.
ARTICLE VI
COMMUN I CJl.TI ON S
Section 6.01
Any communications or documents given, made or sent by either
Indonesia or Canada pursuant to this agreement or any Annex 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, telegram, cable or radiogram at its
respective address, namely:
For Indonesia
Mail Address:
Directorate General for
International Monetary Affairs
Department of Finance
Jalan Lapangan Banteng Timur #4
Jakarta, Indonesia
Telex: 45799 DJMLN IA
For Canada
Mail Address:
Canadian Embassy
Wisma Metropolitan, 5th Floor
Jalan Jenderal Sudirman
P.O. Box 52/JKT
Jakarta Pusat, Indonesia
Cable Address:
DOMCAN JAKARTA
and/or
Mail Address:
The President
Canadian International Development Agency
200 Promenade du Portage
Hull, Quebec, Canada KlA OGA
Cable Address:
CIDA HULL
Section 6.02
Any one of the parties hereto may, by written Notice to the other
party hereto, change the address to which any Notice or request
intended for the party so giving such Notice shall be addressed.
Section 6.03
All communications and documents pertaining to this agreement
shall be in the English language.
ARTICLE VII
SIMULTANEOUS EXECUTION OF AGREEMENT
Section 7.01
This agreement may be simultaneously executed in several counterparts each of which so executed shall be deemed to be an original.
Section 7.02
This agreement and Annexes A
B
C and 0 attached hereto,
which form part of this agreement, may be amended from time to time
upon agreement of the parties concerned. Amendment to the main body
of the agreement shall be executed by a formal amendment si0ned
by the authorized representatives. However, amendments to the
Annexes may be by an exchange of letters between Indonesia and
Canada.
11
11
11
,
11
,
11
11
11
11
,
IN WITNESS WHEREOF, the parties hereto have caused to be subscribed
the signature of their authorized representative at Jakarta ｾｳ＠ of
the day and the year first above written.
Signed on behalf of the
Government of the Republic
of Indonesia
Signed
Signed on behalf of the
Government of Canada
Prof. Dr Mochtar Kusumaatmadja
Minister of Foreign Affairs
ｬＯｏｾｵｴｹ＠
Signed
JIJ;(e Honourat;i; Jean Chretien
Prime Minister and
Secretary of State for
External Affairs
ANNEX A
11
11
USE OF THE LOAN
l.
2.
The loan covers certain expenditures made within the context
of the Sulawesi Regional Development Project, a five years
project commencing in September 1984 and terminating in Seotember
1989. These expenditures shall comprise two broad areas as
follows:
a)
Integrated Area Development. On the basis of previously
conducted design studies for the development of Sanrego
and Mawasangka-Gu in respectively South Sulawesi and
South East Sulawesi, certain specific and well ､･ｳｩｾｮ＠
socio-economic development activities shall be undertaken.
These activities shall concentrate on agriculture and
fisheries, supporting infrastructure and social programme.
b)
Sectoral Activities at the Provincial Level. On the basis
of existing sectoral and other studies undertaken previously,
funds shall be used to support follow-on project designs
and implementation of selected activities in South Sulawesi
and South East Sulawesi resulting from these preliminary
studies.
More in particular, loan funds shall be used to finance a predetermined portion of development activities including, but not
necessarily confined to, the following components:
a)
For Integrated Area Development in Sanrego and Mawasangka-Gu,
loan funds shall be applied to components mentioned in the
existing development designs for the two areas, including
but not limited to:
-
agriculture and fisheries production
establishment of rural extension centres
irrigation development
construction of markets
reforestation and plantations
village development
water supply and sanitation
resettlement
establishment of health centres
strengthening of cooperatives
road construction
studies
b)
For Province-wide Sectoral Activities in South and South
East Sulawesi, loan funds shall be applied to the following
components or such others as shall be agreed to:
land resource inventory and plannin9
small-scale fisheries
food crop marketing and small-scale agro-industry
village cadres, women, farmers leaders
cooperative development
small-scale irrigation
3.
The use of loan funds shall be determined on an annual basis
for each ensuing year by mutual agreement between Indonesia and
Canada represented, respectively, by members of the Steering
Committee of the Provincial Develooment Pro9ramme, and the
Project Team Leader of the Canadian International Development
Agency and/or his representative of the Canadian Embassy and
(upon invitation) the Canadian Executing Agency which will be
responsible for the technical assistance component of this
project. These annual meetings shall occur at the time of the
national planning consultations of the Government of Indonesia .
4.
The loan shall be considered an integral part of the overall
Sulawesi Regional Development Project to which Canada also
provides a contribution, the latter being subject of a seoarate
Memorandum of Understanding and Plan of Operations. As such
the use of loan funds shall be guided by the Plan of Operations.
ANNEX B
11
11
ADMINISTRATION OF THE LOAN
1.
The Government of Canada shall act through the intermediary
of the Canadian International Development Agency (CIDA) for
the purposes of this loan agreement.
2.
The Canadian International Development Agency (CIDA) will
contract a Canadian Executing Agency (CEA) for the purpose
of advising on the administration of the loan.
3.
The Government of Indonesia designates the Department of Home
Affairs as its agent to coordinate the activities to be financed
under the loan.
4.
The Government of Indonesia, through the Department of Finance
shall submit to CIDA formal requests, on a quarterly basis,
for reimbursement from loan funds. These requests shall be
substantiated by supporting financial documentation (generated
in accordance with paragraph 5 below) detailing disbursements
made by Indonesia for goods supplied, services rendered and
generally for work done relating to any of the activities set
out in Annex A
The first such request shall cover loan
activities undertaken during the last quarter of 1984, and the
last such request shall cover the third quarter of 1989. The
reimbursement should be transferred to the Bank of Indonesia's
account with the Bank of Canada, Ottawa, in favour of the
Republic of Indonesia.
11
11
•
5.
Quarterly requests for reimbursements shall be based on timely,
accurate and comprehensive individual sub-project reporting
which shall, both in physical and financial resource use terms,
be directly related to original approved sub-project plans .
The priority order of the reporting process shall be as follows:
a)
Project quarterly reports shal l be prepared by the
responsible project officer up to and including the
District (Kabupaten) level subsequent to the end of
each quarter of the fiscal year;
b)
The reports, after review at the BAPPEDA II level,
shall be forwarded from the district level to ｴｾ･＠
Provincial level for preparation of a consolidated
financial/performance report including the Provincewide project reports;
c)
BAPPEDA I, with the assistance of the CEA advisor,
shall finalize and approve the quarterly financial
report, including a reconciliation of the CIDA
funding reimbursement and submit this report to
the Department of Home Affairs (DGRD) through the
Provincia l Governor, with copy to the Department
of Finance;
-
d)
Both the CEA and DGRD shall approve this report
and DGRD shall forward it to the Department of
Finance which shall formally request CIDA
reimbursement ;
e)
CIDA shall provide reimbursement to the Department
of Finance no later than one month after receipt
of the reimbursement request and supporting
documentation at the Bank of Indonesia's middle
rate of the Canadian dollar at the day of transfer,
unless further clarification is required by Canada,
in which case reimbursement shall be made as soon
as possible after receipt of such clarification;
f)
At the end of each fiscal year an annual
consolidated financial statement prepared by
BAPPEDA I shall be audited by GOI auditors and
submitted to the Department of Home Affairs (DGRD);
g)
I
Copies of the audited annual statements shall be
forwarded to the GOI, Directorate General for
International Monetary Affairs of the Department
of Finance and CIDA. Quarterly statements of
disbursements reflecting loan withdrawals and
current balance of the loan will be prepared by
CIDP. and forwarded to the Bank of Indonesia and
the Directorate General for International
Monetary Affairs of the Department of Finance .
.
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.
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.
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I
ANNEX C
11
11
SPECIAL RESPONSIBILITIES OF THE GOVERNMENT OF INDONESIA
1.
Planning, implementation and monitoring of integrated area and
province-wide development activities to be financed under the
loan shall be the responsibility of the Government of Indonesia
and shall follow the mechanism established under an expanded
·
Provincial Development Programme.
2.
The Government of Indonesia sha ll audit all expenditures made
under this Loan Agreement following the procedures established
under the Provincial Development Programme. Accredited Canadian
representatives shall have full access to all reports resulting
from these audits.
3.
The Government of Indonesia shall make available, through the
Provincial Development Programme, supplemented if necessary by
national sectora l allocations, sufficient additional funds
required to carry out the i mplementation of the existing integrated Area Development Designs for Sanrego and Mawasangka-Gu
(South and South East Su lawesi respectively) as well as the
Province-wide Sectoral Activities planned under this project.
It is understood that of the total activities to be financed
under the Integrated Area Development design and the Provincewide Sectoral Activities, the Government of Indonesia shall
finance a five years average of roughly 70% of al l costs
involved, the loan representing roughly 30%, precise annual
proportions to be agreed upon during the annual meetings
between the Government of Indonesia and the Government of
Canada.
4.
The Government of Indones ia shall establi sh a five years plan
for the staffing of the BAPPEDAS I and II in South and South
East Sulawesi, which shall be such as to enable the smooth
planning, coordination and monitoring of activities to be
financed under the loan. This plan shall be completed before
the commencement of the project and updated annually. It
shall be made available to the Government of Canada for
comments.
5.
In implementing land resources inventory and land use planning,
the Government of Indones ia shall use Canadian services should
expatriate expertise be required. In other cases where
expatriate expertise or foreign goods need to be fina nced
under the loan, the Government of Indonesia shall give
preference, all other things being equal, to Canadian sources.
6.
The loan funds shall be applied to integrated area and
province-wide development activities in conjunction with a
Canadian contribution for institutional support which is
subject of a separate Memorandum of Understanding, including
a Plan of Operation. Within this context:
a)
planning for the use of loan funds shall follow
the "bottom up procedure of an expanded Provincial
Development Programme with active parti cipation of
Canadian advisors, the latter to be funded through
the aforementioned contribution;
11
b)
i mplementation of activities to be financed under
the loan, being the responsibility of the Government
of Indonesia, shall be active ly assisted by Canadian
advisors and short-term consultants to be funded
under the aforementioned contribution;
c)
monitoring of activities sha ll be performed through
improved monitoring procedures of an expanded
Provincial Development Programme with the
assistance of the Canadian Advisors aforementioned,
and supplemented by the servi ces of an inde9endent
Canadian monitor, the latter to be financed under
the aforementioned contribution;
d)
evaluations of activities will be performed by
independent Canadian consultants one of whoM is
also the aforementioned monitor, in cooperation
with an appointed representative of the Government
of Indonesia and other specia li sts if required.
Costs associated with the functions of the
Canadian consu ltants shall be financed under the
aforementioned contribution .
7.
The GOI, with the active participation of the CEA shall
establish a comprehensive project information system in South
and South East Sulawesi Provinces that will faci l itate the
overall planning funct i on .
8.
The Government of Indonesia shall bear all taxes, duti es,
and any levies enforced in the Republic of Indonesia with
respect to the implementation of this agreement.
ANNEX
11
D
11
PROCUREMENT FOR LAND RESOURCES INVE NTORY
ｐｾｄ＠
PLANNING
l.
Should the GO! wish to use Canadian services for land resource
inventory and planning, above $100,000, the Government of
Indonesia shall invite tenders for services from a reoresentative list of Canadian suppliers, which can be obta i ned from
the Canadian International Development Agency.
2.
A copy of the invitation to tender, together with a list of
Canadian suppliers invited to tender, shall be forwarded by
the Government of Indonesia to the Canadian International
Development Agency.
3.
Each Canadian supplier i nvited to tender shall be instructed :
a) to send a copy of his tender to the Canadian
International Development Agency at the same time
as the tender is forwarded to the Government of
Indones ia;
b) to include with the copy of the tender sent to the
Canadian International Development Agency, a
completed Canadian content form;
c) the Government of ｉｮ､ｯ･
ｾ ｩ ｡ Ｌ＠ after analyzing the
tenders, shall obtain the prior concurrence of the
Canadian International Development Agency before
awarding a contract ;
d) the Government of Indonesia shall award the contract
to the most reasonable evaluated bid meeting the
required specifications and having the necessary
Canadian content, unless otherwise agreed by Canada .
4.
The selected firm shall submit monthly progress claims with a
co py of each such claim to the Canadian International Develonment
Agency. Payment shall be made in accordance with the terms
agreed upon between the Government of Indonesia and the firm.
Payment shall be made directly to the firm by the Canadian
International Development Agency upon ｲ･｣ｩｾｴ＠
of notice of
verification from the Government of Indonesia.