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ARRANGEMENTS FOR THE USE OF THE FLY RIVER
FOR THE OK TEDI MINING PROJECT
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF PAPUA NEW GUINEA

The Government of the Republic of Indonesia and the Government of Papua New
Guinea;
Considering the Basic Agreement on Bol'de1' Arrangements signed in Port Moresby
on 11 April 1990;
Having regard in particular to Articles 13, 15, lG, and 17 thereof;
Desiring to provide arrangements and to specify terms and conditions relating
to transit navigation of the Fly River in relation to the establishment and
operation of the Ok Tedi Mining Project;

HAVE ARRANGED as follows :
Paragraph 1
Definitions

1.


For the purposes of these Ar·r·angements:
(a) "the Basic Agreement" means the Basic Agreement on Bor·der
Arrangements between the Government of the Republic of Indonesia and
the Government of Papua New Guinea signed in Port Moresby on 11
April 1990 ;
(b) "the Boundary Waters" means those waters described in Article l(b)
of the Agreement between the Republic of Indonesia and Austr·alia
signed on 12 February 1973;

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(c) "the Project" means the Ok Tedi Mining Project including all
facilities constructed and developed for use in the Project;
(d} "Aircraft" means aircraft or any type of aircraft, designed to
manoeuvre on land or on water,

engaged or employed in the

establishment and oper·ation of the Project,


which are clearly

identifiable as such by distinctive and uniform markings;

( e) "Vessel" means any vessel, including every type of watercraft other
than a seaplane on the water, used or capable of being used as means
of transportation on water,

and engaged or employed

in the

establishment and operation of the Project;
(f) "Goods" means any material used or to be used by the Project

except

prohibited material;
(g} "Person" means any person who is authorised by the Project to

execute specific duties related to the Project;
(h} "Equipment" means any kind of material descr·ibed in the cargo
manifest which will be utilised by the Project,

except prohibited

material; and
( i) "Transit Navigation" means navigation by any vessel the activities
of which include passing through and calling at certain points of
either country along the Boundary Waters.
Paragraph 2
Freedom of Navigation

In accordance with Article 13 of the Basic Agreement, Vessels registered in
Papua New Guinea may navigate freely throughout the Boundary Waters without

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mooring or anchoring in the territory of the Republic of Indonesia, unless
expressly specified in Paragraph 4.


Paragraph 3
Transit Navigation

1.

Subject to Paragraph 3. 2 hereof, the Parties hereto acknowledge that the
transport of goods and persons through the Boundary Waters by Vessels is
an exei'cise of the right of tr·ansi t

navigation in accordance with

Article 13 of the Basic Agreement.
2.

Whilst in transit through the Boundary Waters, Vessels, their crew,
owners and all on board, will comply with the following terms and
conditions:
(a) every


Vessel will be clearly identifiable as such by bear-ing

distinctive and uniform markings;
(b) every Vessel will be properly trimmed and in a safe and satisfactory
condition;
( c) the cargo,

equipment,

material and goods carried on every Vessel

will be stored in a safe place and in a satisfactory manner;
(d) every Vessel will carry such equipment as is necessary for safe
tr·ansi t thr·ough the Boundary Waters;
( e} Every Vessel will be manned by a competent and sufficient number- of
crews;
(f) every Vessel will transit at a safe speed;

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(g) every Vessel will observe all aids, directions, and ma1-kings placed
in the Boundary Waters, or on the banks of those Waters, to assist
in the fr navigation; and
(h) all vessels navigating through the Boundat'Y Waters, will observe the
local collision regulations in force. Unless the Parties hereto
ag1'ee otherwise, these rules are:
( i)

when vessels are appt'oaching one another· and the width of the
navigable fairway is sufficient to avoid risk of coll is ion,
each will alter her course to starboard so that each will pass
on the port side of the other; and

(ii)

where the navigable fairway is not sufficiently wide to permit
compliance with rule (i):

.


( /-\ \J

if one vessel is loaded and the other is light, the
light vessel will give way to the loaded vessel; and

(B)

if both vessels are loaded, the vessel facing into the
main flow will give way to the other vessel; and

(C)

the said vessels will take early and substantial action
to keep well clear of each other and for this purpose
will indicate by whistle or other audible means requir-ed
by the collision regulation.

3.

For the purposes of facilitating transit navigation by vessels, the

appropriate authorities of the Republic of Indonesia and Papua New
Guinea will,

in accor·dance with their respective laws but subject to

paragraph 3.4 hereof exempt from:

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(a) all customs procedures and formalities including all customs
charges;
(b) all immigration and emigration pl'ocedures and formalities; and
(c) all prohibitions on the import or· export of goods,

Vessels

(including their owne1·s, cargo and crew), together with all persons
employed in, and goods and materials used or produced in the
operation of the Project.
4.


In relation to standards of public heal th or the quarantine of persons
or goods under the laws of the Parties hereto, no exemption will be
granted but the appr·opriate authorities of the Parties hereto will use
their best endeavours to grant speedily any clearances required and will
consult and cooperate as necessary to this end.

5.

It is acknowledged by the Parties hereto that approximately once a month
throughout the operation of th e Project it will be ne c essary to
transpo r t along the Boundary Waters certain materials which, when used
in combination, will be of an explosive nature. Such materials will be
used by the Project for engineering, construction, mining or other civil
or commercial pur·poses. It is agreed that the appropriate authorities of
the Republi c of Indonesia will be notified at

least 30 days in advance

of their intended transport and that all necessary safety measures

according to the existing International Maritime Organization (IMO)
r egulations will be taken in respect of the transport of such materials.
G.

In the event that a Ves se l is s eized or impounded under the l aws of the
Republic of Indonesia for the purposes of enforcing any judgement or·
order of a court or tribunal of the Republic of Indonesia, the
a ppr opri a te Indonesian autho1' i ti e s will, subject to any terms and
conditions as may be agreed between the Parties he r e to, give sympathe tic
consideration to any request for the release of such Vessel.

G

1.

Except as is specifically agreed herein, no fees, charges or dues will
be charged or levied on Vessels, their cargoes, crew or owners in
relation to the transit navigation of the Boundary Waters.
Paragraph 4
Mooring and Anchoring of Vessels


Without prejudice to Paragraph 2, Vessels may moor· or anchor on that
part of the territory of the Republic of Indonesia comprised by the
Boundary Waters and adjacent bank in the following circumstances:
(a) in the event of a medical emergency;
(b) for the purpose of transferring personnel between Vessels or between
Vessels and the territory of Papua New Guinea;
(c) in the event of mechanical or navigational difficulties including
collision, running aground and encountering obstacles to navigation;
(d) where navigation is rendered hazardous due to water or river
conditions or other natural disturbances; and
( e) to comply with the dir·ections of the authorities of either of the
Parties hereto.
Paragraph 5
Dredging and Clearing the Boundary Waters

1.

In order to facilitate the safe and efficient use of the Boundary Waters
for navigational and other purposes related to the Project, the Parties
hereto acknowledge that the Boundary Waters will require from time to
time to be dredged and cleared for the purposes of and at the cost of
the Project. D1·edging and clearing programs are subject to annual
approval by the Government of the Republic of Indonesia.

"I

2.

Vessels and persons employed in the Project may enter into that part of
the territor-y of the Republic of Indonesia comprised by the Boundary
Waters and adjacent bank in 01-det' to :
(a) dredge the Boundary Waters;
(b) clear the Boundary Watei's of all hazar·ds to navigation;
(c) remove Pr·oject Vessels from sand banks or- other obstacles; and
(d) effect repairs to or- salvage Vessels or other equipment.

3.

Persons employed in the Project as mentioned in sub paragraph 2 will not
enter Indonesian territory without the approval of the appropriate
Indonesian authorities except in the case of emergency when subsequent
notification is sufficient.

4.

The spoil of dr·edging operations together with all hazards to navigation
cleared from the Boundary Waters will be deposited in the territory of
Papua New Guinea.

5.

In clearing the Boundary Waters, steps will be taken to avoid dange1· of
erosion and pollution of the river.
Paragraph G
Salvage Operations

Approval for· salvage operations of Vessels and equipment will be granted at
the request of the Project.

Aids to Navigation
1.

In accordance with Article 13 of the Basic Agreement, aids to navigation
will be installed in the Boundary Waters for the purposes of the Project
and for general navigation on account of the Project,
approval by the Government of the Republic of Indonesia.

subject to

n
0

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(.

Such aids may be installed, constructed,

resi ted and maintained on a

regular basis by personnel engaged or employed by the Project upon
reasonable

notice being given to the appropriate author-ities of the

Republic of Indonesia.
3.

In the event of an emergency relating to the safety of navigation,
authorised personnel may without notice carry out repairs to such aids
and report subsequently to the Government of the Republic of Indonesia.
Paragraph 8
Eme1-gency Landing

1.

Aircraft may enter- the Indonesian te1-ri tory or land in the nearest
airfield within the territory in the event of emergency including, but
not limited to, bad weather, navigational difficulties, airport
conditions or other technical problems.

2.

In such case the Aircraft will:
(a) comply with rules and procedures relating to emergency operations as
adopted by the member States of the Chicago Convention 1944; and
(b) repor-t as soon as possible to the civil aviation authorities of the
Republic of Indonesia and comply with their directions.
Paragraph 9
Radio Transmissions

Arrangements wi 11 be made between the appr-opr-iate authorities of the Parties
hereto for the reservation of radio signs and frequencies for use in
connection with the Project.

Paragraph 10
Prevention and Abatement of Pollution

1.

In accordance with Article 16 of the Basic Agreement all reasonable
measures will be taken by the P1'oject to prevent and abate any pollution
caused by the Project. Subject to approval of the Government of the
Republic of Indonesia, Vessels or persons employed in or by the Project
may enter into the territory of the Republic of Indonesia in order to
take steps for the prevention, abatement, dispersal,

removal or

remedying of the pollution caused by, emanating from, or related to the
Project.
2.

The Government of Papua New Guinea will be liable for any damage caused
by pollution from the Project which cannot be abated under the
provisions of Paragraph 10. For the purpose of assessing the extent of
any such damage the Government of the Republic of Indonesia will permit
the installation of necessary facilities to monitor the quality of the
environment in the Boundary Waters and on the adjacent bank.

Such

facilities may be installed, constructed, resited and maintained on a
regular basis by personnel engaged or employed by the Project upon
reasonable notice being given to the appropriate authorities of the
Republic of Indonesia.
3.

Vessels will not discharge oily mixtures,

noxious liquid substances,

including waste and garbage in the Boundary Waters. Every Vessel with an
installed toilet facility will be equipped with a device or devices to
contain the Vessel's sewerage, or to incinerate it, or to treat it to an
adequate degree, which is not harmful to human heal th and the living
environment.
4.

Dt'edging of the Boundar·y Waters will be carried out in a manner that
will minimise harmful environmental effects. All reasonable and
practicable measures will be taken to ensure that dredging does not
cause a degradation of water quality and bottom sediments.

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5.

In clearing the Boundary Water·s, soil, tr·ees and other· objects removed
will be thrown out to such a distance from the banks of the Boundary
Water·s or levelled down in such a way as to avoid any danger that the
banks might fall in, or the l'iver bed be polluted, and so as to prevent
the flow of water from being obstructed.
Paragraph 11
Revision

The Parties hereto may at any time by consultation and mutual agreement revise
or amend this Arrangement.
Paragraph 12
Settlement of Disputes

Any disputes between the Parties arising out of the interpretation or
implementation of this Arrangement will be settled amicably through
consultation or negotiation.
Paragraph 13
Commencement

This Ar-r-angement will become effective on the date of the signing by both
Parties.

Rahaul

Signed at

FOR THE GOVERNMENT OF THE
REPUBLIC OF INDONESIA
Signed

on

15 セッカオョ「・Nイ@

l98o

FOR THE GOVERNMENT OF
PAPUA NEW GUINEA
Signed