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I
MEMORANDUM OF UNDERSTANDING
BETHEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE ｇｏｖｅｒｎｾＱｔ＠
OF ITALY
FOR THE PRE-FEASIBILITY & FEASIBILITY STUDY OF
WEST SUMATERA HYDRO ELECTRIC POWER PROJECT
The Government of the Republic of Indonesia, and the Government of
Italy wishing to cooperate in the development of the West Sumatera
Hydro Electric Power Project Pre-Feasibility & Feasibility Study
in Sumatera, Indonesia, have agreed to the following :
ART I C L E
I
Responsible Authorities
l.
The Government of the Republic of Indonesia designates Perusahaan Umum Listrik Negara of the Department of Mines and Energy
(hereinafter referred to as "PLN") the Agency responsible for
the implementation of its obligations under this Memorandum.
2.
The Government of Italy designates Servizi Tecnici Internazionali
(hereinafter referred to as "ITS") as the Agency responsible for
the implementation of its obligations under this Memorandum.
A RT I C L E
II
The Project
l.
The two parties to this
Sumatera Hydro Electric
lity Study, hereinafter
described in Annex l of
Memorandum shall cooperate in the West
Power Project Pre-Feasibility &Feasibireferred to as "the Project", as
This Memorandum.
Objective of the Project
ｾ＠
2.
The Objective of the Project is to prepare terms of reference
for the engineering design of constructing hydro-electric power
installations at West Sumatera as further described and detailed
in Annex I to this Memorandum.
I
2.
A R T I C L E III
Plan of Operations
The technicalities and Plan of Operations to implement the Project
shall be provided in the specific Agreement between PLN and ITS.
This specific agreement will form an integral part of this
Memorandum of Understanding.
The provisions of such specific Agreement shall ensure the Government of Italy and the Government of Indonesia that the work shall
be completed within fourteen months from the commencement and in
conformity with the rules and regulation set out by both Govern ments.
A R T I C L E IV
Financial Contribution of the Government
of the Republic of Indonesia
The Government of the Republic of Indonesia ｴｨｲｯｵｧｾ＠
PLN will bear
the cost of providing suitable counterpart personnel and the cost
of the necessary administrative assistance and local support as
specified in Annex II . through it State Budget.
Financial Contribution of the Government of Italy
The Government of Italy will contribute an amount of US$ 400,000
to pay the cost of ITS and will provide such services as specified
in Annex II.
ART I C L E V
Implementation
The two Government and their designated agent shall ensure that
this Memorandum is carried out with due dilligence and efficiency
and each shall furnish the other all such information as shall be
reasonably requested.
I
3.
A R T I C L E VI
lj
Communications
Any communications or documents given, made or sent by either
Government or their designated agent pursuant to this Memorandum
or Annexes hereto shall be in writing and shall be deemed to have
duly given, made or sent to the party to which it is addressed at
the time of its delivery by hand, mail, telex, cable or radiogram
at its respective address, namely
l'i
For Indonesia : Mailing address : Director of Planning
Perusahaan Umum Listrik Negara
Jl . Trunojoyo Blok M.l/135,
JAKARTA SELATAN, INDONESIA.
For Italy
Cable address
PLNPST JAKARTA.
Telex address
47156 PLNPST IA.
Mailing address
Director General of the Department
on Technical Cooperation, of the
Ministry of Foreign Affairs, Rome
610429
Cable address
A R T I C L E VII .
I
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 Italy.
A R T I C L E VIII
General
1.
Provisions
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 Italy.
-
I
,,I:
ｾＭ＠
4.
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 implementa tion of this Project within the framework of technical Co operation 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.
IN WITHNESS WHEREOF, the undersigned, on behalf of their respective
Governments have signed this Memorandum.
SIGNED in Jakarta on .
1980 in duplicate.
July 1,
FOR THE GOVERNMENT OF THE
REPUBLIC OF INDONESIA
Signed
SAMAUN ｓａｍｄｉｾｕｎ＠
Director General of Power
of the Departemen of Mines
and Energy
FOR THE GOVERNMENT OF
rwv
Signed
ELIO ｐａｓＬｃｒｅｌｾ＠
Ital\av Ambassador
Annex I
CONrENTS OF ANNEX I :
PLAN OF OPERATION PRE-FEASIBILI'IY AND FEASJBELITY STUDIES
w"EST SUMATRA HYDROELECI'RIC PROJECT
1.
Foreword
2.
Terms of Reference
3.
Scope of the Study
4.
Phase I -
Pre-Feasibility Study
4.1. Collection and Review of Data
4. 2. Topography
4. 3. Hydrology
4. 4. Geology, Soil Mechanics and Seisroology
4.4.1. General
4.4.2. Collection and Interpretation of Existing
Data
4.4.3. Photogeology
4. 4. 4. Field 1·vorks
4. 5. Envirornnental Survey
4.6. Socio-Economic Study
4. 7. Power and Energy Demand Forecast
4. 7 . 1. General
I
4. 7. 2. Characteristics of the Market and Areas of
Influence within the National Framework
4.7.3. System of Electric Plants in the Area
4.7.4. Present Costs and Prices for Energy
4.7.5. Demand Forecast
4. 8. Engineering Studies and Choice of Alternative
4.9. Economic Analysis of Alternatives
4.10 Reports
5.
Phase II - Feasibility Study
5 . 1. Introduction
5. 2. Topography and Mapping
5. 3. Hydrology and Hydraulics
5. 4. Geology, Soil Mechanics and Seisroology
5 . 4. 1. General
5.4.2. Seismology
5.4.3. Local Geological Field Horks
-
I
2
5 . 5 . Envirornnental Impact Assessment and Human
Implications.
5. 6. Engineering Studies
5.7. Economic and Financial Analysis
5.8 . Reports
6.
Organization of Work
6.1. General
6 . 2 . Timing and Time Schedule
6.3. Personnel and Personnel Chart
Armexe
Curricula Vitae
I
-
I
Annex
II
OBLIGATIONS AND RESPONSIBILITIES
1.
I.
The Government of Italy shall,
1.
Provide the services of ITS to carry out the description
of Project specified in Annex I. In particular during the
course of the work the ITS will keep in close contact with
the Asian Development Bank (ADB) in view of the interest
shown by ADB for the follow-up of the present Study.
2.
Provide funds that will be used to pay the costs incurred
in providing such services including but not be limited to
living accommodations, fees, salaries and other emoluments,
travel costs between Italy and, Jakarta Project site and
within Indonesia and other appropriate expenses of ITS and
his personnel not provided by the Government of Indonesia.
3.
Provide miscellaneous expenses incurred in relation to the
Project outside Indonesia.
4.
Provide supplies, equipment and materials which are
required to implement the Project which will need to be
imported into Indonesia.
5.
Review monthly progress reports from ITS and in consultation with PLN take such action as may be required to ensure
the successful completion of the Project.
6.
Require the ITS to prepare and maintain in both narrative
and diagramatic form a Plan of Work which will clearly
show the scheduling and achieved progress for each activity
of the Project under his jurisdiction.
7.
Require ITS to submit report as described on list I &list
II of Annex I, to PLN.
8.
Security of all documents etc. taken to Italy for the
purpose of this project.
9.
Require ITS to maintain constant emphasis on the training
of PLN personnel during the elaboration of the study.
II.
The Government of the Republic of Indonesia shall, through
designated authorities, in accordance with the existing laws
and regulations of the Republic of Indonesia :
1.
Provide all equipment, material and supplies not provided
under 1.4 above together with services and labour required
to complete the Project.
2.
Provide at no cost to Italy suitably Indonesian counterpart
staff as required to successfully implement the Project.
3.
All available reports, document drawings, maps, aerial
photographs, statistical and other information relating to
the study, translated into the English language where
required . The Government of the Republic of Indonesia will
permit any of these items to be taken to Italy except of
confidential items .
4.
Provide without charge, appropriate office accomodation
for the engineering consultant staff together with necessary
furnishings, one draftman, one typist required to implement
the Project.
5.
Provide exemption from Import, Customs and other duties
and taxes on :
I
i.
all professional and technical equipment required for
the use of ITS personnel for their assignments throughout the period of the Project ;
Import, customs and other duties and taxes shall be paid
by the Italian personnel if the effects mentioned in (i)
above are sold.
6.
Inform the Italian personnel of all laws and regulations
which may effect their work.
I
List 1
RE P 0 RT
Pre-Feasibility Study
====================================================================
T I T LE
No. of
Copies
Estimation date of submittal
after Commencement of SERVICE
l.
Interim Report
10
The middle of 2nd month after
the Commencement date of the
SERVICES .
2.
Draft Report
10
Within 3 l/2 (three and half)
month after the Commencement
date of the SERVICES.
3.
Final Report
30
Within l(one) month after
approval of the draft report
by PLN .
4.
Supporting Data
5.
Monthly progress Report
10
( 1 reproduceable
10
Within l(one) month after
approval of the draft report
by PLN.
Every month during the period
of SERVICES but not later
than 2(two) weeks after the
end of the report month.
I
REPORT
List 2
Feasibility Study
===================================================================
T I T LE
No. of
Copies
Estimation data of Submittal
after Commencement of SERVICE
1.
Interim Report
(Concerning project
output Study)
10
Within 3 (three) month after
the date of authorization to
proceed with Feasibility
Study.
2.
Draft Final Report
10
Within 5 l/2 (five and half)
month after the date of
authorization to proceed with
Feasibility Study .
3.
Final
-
30
30
Within l(one) month after
approval of the Draft Report
by PLN.
Report
Summary Report
Main Report
Appendix
10
4.
Supporting Report
Within l(one) month after
( 1 reproduceable ) approval of the Draft Report
by PLN.
5.
Monthly Progress Report
10
Every month during the period
of SERVICES but not later
than 2(two) weeks after the
report month.
I
MEMORANDUM OF UNDERSTANDING
BETHEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE ｇｏｖｅｒｎｾＱｔ＠
OF ITALY
FOR THE PRE-FEASIBILITY & FEASIBILITY STUDY OF
WEST SUMATERA HYDRO ELECTRIC POWER PROJECT
The Government of the Republic of Indonesia, and the Government of
Italy wishing to cooperate in the development of the West Sumatera
Hydro Electric Power Project Pre-Feasibility & Feasibility Study
in Sumatera, Indonesia, have agreed to the following :
ART I C L E
I
Responsible Authorities
l.
The Government of the Republic of Indonesia designates Perusahaan Umum Listrik Negara of the Department of Mines and Energy
(hereinafter referred to as "PLN") the Agency responsible for
the implementation of its obligations under this Memorandum.
2.
The Government of Italy designates Servizi Tecnici Internazionali
(hereinafter referred to as "ITS") as the Agency responsible for
the implementation of its obligations under this Memorandum.
A RT I C L E
II
The Project
l.
The two parties to this
Sumatera Hydro Electric
lity Study, hereinafter
described in Annex l of
Memorandum shall cooperate in the West
Power Project Pre-Feasibility &Feasibireferred to as "the Project", as
This Memorandum.
Objective of the Project
ｾ＠
2.
The Objective of the Project is to prepare terms of reference
for the engineering design of constructing hydro-electric power
installations at West Sumatera as further described and detailed
in Annex I to this Memorandum.
I
2.
A R T I C L E III
Plan of Operations
The technicalities and Plan of Operations to implement the Project
shall be provided in the specific Agreement between PLN and ITS.
This specific agreement will form an integral part of this
Memorandum of Understanding.
The provisions of such specific Agreement shall ensure the Government of Italy and the Government of Indonesia that the work shall
be completed within fourteen months from the commencement and in
conformity with the rules and regulation set out by both Govern ments.
A R T I C L E IV
Financial Contribution of the Government
of the Republic of Indonesia
The Government of the Republic of Indonesia ｴｨｲｯｵｧｾ＠
PLN will bear
the cost of providing suitable counterpart personnel and the cost
of the necessary administrative assistance and local support as
specified in Annex II . through it State Budget.
Financial Contribution of the Government of Italy
The Government of Italy will contribute an amount of US$ 400,000
to pay the cost of ITS and will provide such services as specified
in Annex II.
ART I C L E V
Implementation
The two Government and their designated agent shall ensure that
this Memorandum is carried out with due dilligence and efficiency
and each shall furnish the other all such information as shall be
reasonably requested.
I
3.
A R T I C L E VI
lj
Communications
Any communications or documents given, made or sent by either
Government or their designated agent pursuant to this Memorandum
or Annexes hereto shall be in writing and shall be deemed to have
duly given, made or sent to the party to which it is addressed at
the time of its delivery by hand, mail, telex, cable or radiogram
at its respective address, namely
l'i
For Indonesia : Mailing address : Director of Planning
Perusahaan Umum Listrik Negara
Jl . Trunojoyo Blok M.l/135,
JAKARTA SELATAN, INDONESIA.
For Italy
Cable address
PLNPST JAKARTA.
Telex address
47156 PLNPST IA.
Mailing address
Director General of the Department
on Technical Cooperation, of the
Ministry of Foreign Affairs, Rome
610429
Cable address
A R T I C L E VII .
I
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 Italy.
A R T I C L E VIII
General
1.
Provisions
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 Italy.
-
I
,,I:
ｾＭ＠
4.
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 implementa tion of this Project within the framework of technical Co operation 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.
IN WITHNESS WHEREOF, the undersigned, on behalf of their respective
Governments have signed this Memorandum.
SIGNED in Jakarta on .
1980 in duplicate.
July 1,
FOR THE GOVERNMENT OF THE
REPUBLIC OF INDONESIA
Signed
SAMAUN ｓａｍｄｉｾｕｎ＠
Director General of Power
of the Departemen of Mines
and Energy
FOR THE GOVERNMENT OF
rwv
Signed
ELIO ｐａｓＬｃｒｅｌｾ＠
Ital\av Ambassador
Annex I
CONrENTS OF ANNEX I :
PLAN OF OPERATION PRE-FEASIBILI'IY AND FEASJBELITY STUDIES
w"EST SUMATRA HYDROELECI'RIC PROJECT
1.
Foreword
2.
Terms of Reference
3.
Scope of the Study
4.
Phase I -
Pre-Feasibility Study
4.1. Collection and Review of Data
4. 2. Topography
4. 3. Hydrology
4. 4. Geology, Soil Mechanics and Seisroology
4.4.1. General
4.4.2. Collection and Interpretation of Existing
Data
4.4.3. Photogeology
4. 4. 4. Field 1·vorks
4. 5. Envirornnental Survey
4.6. Socio-Economic Study
4. 7. Power and Energy Demand Forecast
4. 7 . 1. General
I
4. 7. 2. Characteristics of the Market and Areas of
Influence within the National Framework
4.7.3. System of Electric Plants in the Area
4.7.4. Present Costs and Prices for Energy
4.7.5. Demand Forecast
4. 8. Engineering Studies and Choice of Alternative
4.9. Economic Analysis of Alternatives
4.10 Reports
5.
Phase II - Feasibility Study
5 . 1. Introduction
5. 2. Topography and Mapping
5. 3. Hydrology and Hydraulics
5. 4. Geology, Soil Mechanics and Seisroology
5 . 4. 1. General
5.4.2. Seismology
5.4.3. Local Geological Field Horks
-
I
2
5 . 5 . Envirornnental Impact Assessment and Human
Implications.
5. 6. Engineering Studies
5.7. Economic and Financial Analysis
5.8 . Reports
6.
Organization of Work
6.1. General
6 . 2 . Timing and Time Schedule
6.3. Personnel and Personnel Chart
Armexe
Curricula Vitae
I
-
I
Annex
II
OBLIGATIONS AND RESPONSIBILITIES
1.
I.
The Government of Italy shall,
1.
Provide the services of ITS to carry out the description
of Project specified in Annex I. In particular during the
course of the work the ITS will keep in close contact with
the Asian Development Bank (ADB) in view of the interest
shown by ADB for the follow-up of the present Study.
2.
Provide funds that will be used to pay the costs incurred
in providing such services including but not be limited to
living accommodations, fees, salaries and other emoluments,
travel costs between Italy and, Jakarta Project site and
within Indonesia and other appropriate expenses of ITS and
his personnel not provided by the Government of Indonesia.
3.
Provide miscellaneous expenses incurred in relation to the
Project outside Indonesia.
4.
Provide supplies, equipment and materials which are
required to implement the Project which will need to be
imported into Indonesia.
5.
Review monthly progress reports from ITS and in consultation with PLN take such action as may be required to ensure
the successful completion of the Project.
6.
Require the ITS to prepare and maintain in both narrative
and diagramatic form a Plan of Work which will clearly
show the scheduling and achieved progress for each activity
of the Project under his jurisdiction.
7.
Require ITS to submit report as described on list I &list
II of Annex I, to PLN.
8.
Security of all documents etc. taken to Italy for the
purpose of this project.
9.
Require ITS to maintain constant emphasis on the training
of PLN personnel during the elaboration of the study.
II.
The Government of the Republic of Indonesia shall, through
designated authorities, in accordance with the existing laws
and regulations of the Republic of Indonesia :
1.
Provide all equipment, material and supplies not provided
under 1.4 above together with services and labour required
to complete the Project.
2.
Provide at no cost to Italy suitably Indonesian counterpart
staff as required to successfully implement the Project.
3.
All available reports, document drawings, maps, aerial
photographs, statistical and other information relating to
the study, translated into the English language where
required . The Government of the Republic of Indonesia will
permit any of these items to be taken to Italy except of
confidential items .
4.
Provide without charge, appropriate office accomodation
for the engineering consultant staff together with necessary
furnishings, one draftman, one typist required to implement
the Project.
5.
Provide exemption from Import, Customs and other duties
and taxes on :
I
i.
all professional and technical equipment required for
the use of ITS personnel for their assignments throughout the period of the Project ;
Import, customs and other duties and taxes shall be paid
by the Italian personnel if the effects mentioned in (i)
above are sold.
6.
Inform the Italian personnel of all laws and regulations
which may effect their work.
I
List 1
RE P 0 RT
Pre-Feasibility Study
====================================================================
T I T LE
No. of
Copies
Estimation date of submittal
after Commencement of SERVICE
l.
Interim Report
10
The middle of 2nd month after
the Commencement date of the
SERVICES .
2.
Draft Report
10
Within 3 l/2 (three and half)
month after the Commencement
date of the SERVICES.
3.
Final Report
30
Within l(one) month after
approval of the draft report
by PLN .
4.
Supporting Data
5.
Monthly progress Report
10
( 1 reproduceable
10
Within l(one) month after
approval of the draft report
by PLN.
Every month during the period
of SERVICES but not later
than 2(two) weeks after the
end of the report month.
I
REPORT
List 2
Feasibility Study
===================================================================
T I T LE
No. of
Copies
Estimation data of Submittal
after Commencement of SERVICE
1.
Interim Report
(Concerning project
output Study)
10
Within 3 (three) month after
the date of authorization to
proceed with Feasibility
Study.
2.
Draft Final Report
10
Within 5 l/2 (five and half)
month after the date of
authorization to proceed with
Feasibility Study .
3.
Final
-
30
30
Within l(one) month after
approval of the Draft Report
by PLN.
Report
Summary Report
Main Report
Appendix
10
4.
Supporting Report
Within l(one) month after
( 1 reproduceable ) approval of the Draft Report
by PLN.
5.
Monthly Progress Report
10
Every month during the period
of SERVICES but not later
than 2(two) weeks after the
report month.