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MEMORANDUM OF UNDERSTANDING
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND

THE GOVERNMENT OF CANADA
FOR THE
SULAWESI ROAD BETTERMENT PROJECT
The Government of the Republic of Indonesia and the Government of Canada,
wishing to cooperate in the Sulawesi Road Betterment Project, have agreed to
the following:
ARTICLE I
Responsible Authorities
1.

The Government of the Republic of Indonesia designates the Directorate
General Bina Marga of the Department of Public Works, (hereinafter
referred to as "Bina Marga") as the Agency responsible for the implementation of its obligations under this Memorandum.

2.


The Government of Canada designates the Canadian International Development Agency (hereinafter referred to as "CIDA") as the Agency responsible
for the implementation of its obligations under this Memorandum.
ARTICLE II
The Project

1.

The two par ties to this Memorandum shall cooperate in the Sulawesi Road
Betterment Project (Phase I), hereinafter referred to as "the Project",
as described in Annex A of this Memorandum .
Objective of the Project

2.

The objective of the Project is, by the provision of the services of a
Canadian engineering consultant, to assist in the execution of the
engineering work and analysis (i.e. sufficiency engineering, detailed

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engineering and engineering assessment of level of betterment) including technical advisory services to upgrade and expand Indonesia's
capabilities in highway planning, construction and maintenance for
implementing the Road Betterment and Bridge Replacement in Sulawesi.
3.

The Project, that is, the screening and design of this Road Betterment
PrograTilille, is Phase I of a two-phase programme.

Phase II shall be the

implementation of those recommendations under Phase I which have been
agreed to by the two Governments which propose that Phase II shall be
executed consecutively following the satisfactory conclusion of Phase I.
The Project therefore shall include a work plan providing detailed
specifications for CIDA assistance in implementing the recommendations
of Phase I , including construction management and supervision, training, maintenance and supply of equipment and materials.
ARTICLE III
Execution of the Project

1.

The Government of the Republic of Indonesia and the Government of
Canada agree to complete the Project within approximately two years of
the connnencement of the work as set out in Annex A.
This Annex provides:
a)

a detailed description of the project and scope of work; and

b)

the obligations and responsibilities of the Government of the
Republic of Indonesia and the Government of Canada.

2.

The two Governments agree to consider the preliminary recommendations
of the Project after one year of the commencement of Phase I in order
to formulate the scope of Phase II.

Plan of Operations

3.

CIDA shall submit to Bina Marga a document entitled "Plan of Operations"
which shall include an outline and schedule of the activities required
to implement the Project, an organization chart, consultan t terms of
reference and a definition of the roles and responsibilities of the

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project participants.

This Plan of Operations shall be discussed

and agreed to by CIDA and Bina Harga and shall be utilized as a
working document throughout the life of the Project.
ARTICLE IV

Financial Contribution of the Government
of the Republic of Indonesia
1.

The Government of the Republic of Indonesia through Bina Marga will
bear the cost of providing suitable counterpart personnel and the
cost of the necessary administrative assistance and local support
as specified in Annex A.
Financial Contribution of the Government of Canada

2.

The Government of Canada through CIDA will contribute an amount not
exceeding $2,900,000 (Canadian) to pay the cost of Canadian engineering consultant services and will provide payment of expenses as detailed in Annex A.
ARTICLE V
Implementation
The two Governments and their designated agents shall ensure that
this Memorandum is carried out with due diligence and efficiency
and each shall furnish the other all such information as shall be
reasonably requested.

ARTICLE VI
Communications
Any communications or documents given, made or sent by either Government or their designated agent pursuant to this Memorandum or Annex
hereto shall be in writing and shall be deemed to have been duly
gi ven, made or sent to the party to which it is addressed at the
time of its de livery by hand, mail, t e lex, cable or radiogram at
its respective address, namely:

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For Indonesia:

Mailing address:

Cable address:
Telex address:
For Canada:


Mailing address:

Cable address:

Direktur Jendral Bina Marga
Departemen Pekerjaan Umt.nn
Jl, Pattimura 20
Kebayoran Baru
Jakarta
DITJEN BIMA
47259 BIMA, Jakarta
The President
Canadian International Development Agency
200, Promenade du Portage
Hull, Quebec
KIA OG4
CIDA HULL

ARTICLE VII
Evaluation

Periodic evaluations of the Project will be carried out as agreed
upon by the Government of the Republic of Indonesia and the Government of Canada.
ARTICLE VIII
General Provisions
1.

This Memorandum shall become effective on the date of signature
and shall expire upon completion of the Project or on any date
mutually agreed upon by both Parties.

It supersedes any previous

arrangement concerning this Project made between the Government of
the Republic of Indonesia and the Government of Canada.
2,

This Memorandum does not constitute an international treaty.

It


is intended only to set out the administrative responsibilities
of the two Governments in relation to the implementation of this
Project within the framework of technical cooperation between the
two countries.
3.

This Memorandum may be amended at any time with the mutual consent
of the two Parties by an Exchange of Letters.

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IN WITNESS WHEREOF, the Undersigned, on behalf of their respective
Governments, have signed this Memorandum.

SIGNED in Jakarta on November 6, 1979

FOR THE GOVERNMENT OF THE


in duplicate.

FOR THE GOVERNMENT OF CANADA

REPUBLIC OF INDONESIA

Signed

Signed

POERNOMOSIDI HADJISAROSA

W. H. MONTGOMERY

Minister of Public Works

Ambassador of Canada

ANNEX A


1.0

Description of the Project
The Project consists of the provision of engineering consultant
services to provide additional staff for the Bina Marga Screening
and Feasibility Office (SFO) in Jakarta and to staff the Bina Marga
Road Betterment Office (RBO) in Ujung Pandang, Sulawesi.

The two

offices will review and undertake, as required, preliminary or
sufficiency engineering for approximately 1800 kilometers of roadway, detailed engineering for approximately 1500 kilometers of roadway, and identify approximately 240 kilometers of road links in
Sulawesi for annual betterment.
2.0

Scope of the Project
2.1

The role of the SFO, with the assistance of the Canadian
engineering consultant (hereinafter referred to as the
" Consultant ' ), will be to analyse the requirement for betterment of suggested road sections on the island of Sulawesi,
This will entail providing expertise to assist in highway
design review, including bridges, and to update road and
bridge inventory data, and, as required, to review traffic
forecasts as well as analyse economic benefits to be derived
from any section of roadway to be upgraded by CIDA.

2.2

The role of the RBO, with the assistance of the Consultant,
will be to act as a regional consultant group to carry out
all surveys and investigations identified by the SFO.

The

RBO will be responsible for the functional and final design
of road networks including engineering assistance of any
proj e cts designed and tendered by the RBO that are awarded
to local contractors.
2.3

The Consultant, in the context of its duties described in 2,1

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- 2 and 2.2 above, will, in Phase I, draw up a work plan specifying the management, construction supervision, training, maintenance, materials and equipment requirements needed to execute the recommendations for road construction/betterment
in Phase II.

In addition, the Consultant shall make recormn-

endations for the scope of assistance to be provided by CIDA
under Phase II.
2.4

A full outline and schedule of the activities to implement
the Project, and the scope of work of the Consultant will
be set out in a Plan of Operations as referred to in Article
III of this Memorandum.

3.0

Responsibilities and Obligations of the Government of Canada
3.1

The Government of Canada shall, through CIDA:
(1)

provide the services of the Consultant to carry out
the work described in paragraph 2. 0 above;

(2)

provide funds that will be used to pay the costs
incurred in providing such services which shall
include fees, salaries and other emoluments, travel
between Canada and the duty station in Indonesia and
the shipment of personal effects and other appropriate
expenses of the Consultant and its personnel not
provided by the Government of the Republic of Indonesia;

(3)

provide funds that will be used to pay the costs of
miscellaneous project expenses incurred outside of
Indonesia;

(4)

as agreed to by the Government of Indonesia, provide
supplies, equipment (excluding vehicles) and materials
which will be imported into Indonesia to implement the
Project;

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(5)

require the Consultant to pr epare and maintain in
both narrative and diagramatic form a work plan in
accordance with the Plan of Operations referred to
in
aイエゥ」セ・@

III of this Memorandum, which will indic-

ate the scheduling and achieved progress for each
activity of the Project under its jurisdiction;
(6)

require the Consultant to submit monthly progress,
interim and final reports to both Bina Marga and
CIDA; and

(7)

review monthly progress reports from the Consultant
and in consultation with Bina Marga take such action
as may b e r equired to ensure the successful completion
of the Project .

4.0

Responsibilities and Obligations of the Government of the Republic
of Indonesia
4.1

The Government of the Republic of Indonesia shall, through
designated authorities, in accordance with the existing l aws
and r egulations of the Repub lic of Indonesia:
(1)

provide a ll equipment, material and supplies not provided under 3.1 above to gether with local services
and labour required to complete the Project ;

(2)

provide qualified Indonesian counterpart staff as required to successfully implement the Project;

(3)

provide, free of charge, all temporary and permanent
basic furnished accommodation as required in Indonesia
for all the Consultant's personnel ass i gned to the Project;

(4)

bear the cost of local air or surface transportation
for the Consultant's personnel, but not dependents,
while trave lling within Indonesia on off icial project
business;

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- 4 (5)

provide out-of-station allowances to the Consultant's personnel in accordance with Indonesian regulations while travelling on project-related duties
away from permanent accommodation in Indonesia;

(6)

provide, free of charge at the project site, transportation and drivers while on official project
business, such facilities being provided for personal
use as available at the Consultant's own risk and the
agreement on the cost of personal use to be reached
in advance by Bina Marga and the Consultant's personnel;

(7)

provide and bear the cost of transporting the Consultant's professional equipment between the nearest point
of entry and departure to the duty station;

(8)

provide without charge, appropriate air-conditioned
office acconnnodation for the Consultant's personnel
for the SFO in Jakarta and the RBO in Ujung Pandang together with necessary furnishings (including typewriters), clerical staff, typists, domestic telephone
and postal services and any other office facilities
required to implement the Project;

(9)

establish a counterpart fund to cover local costs
of the Consultant incurred in the execution of the
Project.

Payments from this fund will be made subject

to approval of the Government of the Republic of Indonesia;
(10)

provide exemption from Import, Customs and other
duties and taxes on:
i)

all professional and technical equi pment r equired
for the use of the Consultant for its assignments

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throughout the period of the Project; and
ii) personal and household effects of the Consultant's
personnel.
Import, Customs and other duties and taxes shall be
paid by the Consultant's personnel in accordance with
the laws and regulations of the Government of the
Republic of Indonesia, if the effects mentioned in
(i) and (ii) above are sold;
(11)

release the Consultant's personnel who do not have
permanent residence in Indonesia from payment of resident and local taxes for the duration of this Project;

(12)

inform the Consultant's personnel of a ll laws and
regulations which may affect their work;

(13)

indemnify without cost to the Government of Canad.a,
and save harmless the Consultant's personnel from and
against all claims, losses, damages, ccsts, actions
and other proceedings made, sustained, brought, or
prosecuted in any manner based upon, occasioned by
or attributed to any injury, infringements, damages
or death arising from any action occuring during the
performance or the purported performance of their
functions pursuant to any agreement relating to this
Memorandum between the Consultant and the Government
of Canada.

This provision shall not relieve any person

from liability for any criminal, grossly negligent or
fraudulent act;

(14)

provide:
(i)

all permits, licences and other documents necessary
to enable the Consultant's personnel to carry out
their respective responsibilities in Indonesia; and

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- 6 (ii)

all export and exit permits required for the
return to Canada of any of the materials, equipment, effects (including personal effects), which
are the property of the Consultant and its personnel;
and

(15)

provide reasonable access to those parts of Indonesia
required to enable the Consultant's personnel to carry
out their responsibilities.

5.0

Project Implementation
5.1

The Project will commence with CIDA contracting with a
qualified Canadian consultant to carry out the Project.