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MEMORANDOl-1 OF UNDERSTANDING
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNHENT OF CANADA
FOR THE
LOWER SOLO RIVER BASIN DEVELOPMENT FEASIBILITY STUDY

The Government of the Republic of Indonesia and the Government of
Canada, wishing to cooperate in the Lower Solo River Basin Development Feasibility Study, have agreed to the following
ARTICLE I
Responsible Authorities.

1.

The Government of the Republic of Indonesia designates the
Directorate General of Water Resources Development of the
Ministry of Public Works (hereinafter referred to as "DG\'IRD")
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")
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the

Agency responsible for the implementation of its obligations
under this Memorandum .
ARTICLE II.
The Project.
1.

The two Parties to this Memorandum shall cooperate in the Lower
Solo River Basin Development Feasibility Study, hereinafter
referred to as "the Project", as described in Annexes A, Band
C of this Memorandum.
Objective of thP. Project.


2.

The objective of the Project is to determine the optimal means
of improving irrigated agriculture and providing flood control
in the Lower Solo River Basin .

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ARTICLE III .
Execution of the Project .
1.
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Government of the Republjc of Indonesia and the Government

of Canada agree to complete the Project within approximately
twenty- seven months of the commencement of the work as set out
in Annexes A, B and C which constitute an integral part of
this Memorandum .
These Annexes provide

a) a description of the Project and a statement of its scope;
and
b) the obligations and responsibilities of the Government of
the Republic of Indonesia and t he Government of Canada.
Plan of Operations .
2.

CIDA shall submit to DGWRD a document entitled "Plan of Operation" which shiill include an outline and schedule of the activities required to implement the Project, an organization chart,
consultant terms of reference and a definition of the roles and
responsibilities of the Project participants. This Plan of Operations shall be discussed and agreed to by CIDA and DGWRD and
approved by both Governments 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 DGWRD will
bear the cost of providing suitable counterpart personnel and

the cost of the necessary administrative assistance and local
support as specified in Annex C.
Financial contribution of the
Government of Canada .

2.

The Government of Canada through CIDA will contribute an amount
not exceeding $ 6,300,000 (Canadian) t .o pay the cost of Canadian

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engineering consultant services and will provide payment of expenses as detailed in Annex B.
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
reasonable 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
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be in writing and shall be deemed to have been duly

given, made or sent to the party to which it is addressed as the time
of its delivery by hand, mail, telex, cable or radiogram at its respective address, namely :
For Indonesia

For Canada

Mailing address

Direktorat Jenderal Pengairan
Dcpartcmcn Pckcrjaan Umum
Jl. Patimura 20
Kebayoran Baru
Jakarta.


Cable address

DITJENAIR

Telex address

47266 DJAIR 111.

Mailing address

The President
Canadian International Development
Agency
200, Promenade du Portage
Hull, Quebec

Cable address

CIDA HULL


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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.

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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.

Any dispute arising out of the interpretation or
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of this Memorandum shall be settled amicably by consultation or
negotiation between the two Governments .
4.

This Memorandum may be amended

al-


any time with tho mutuo.l con-

sent of the two Parties by an Exchange of Letters .

IN \'JITNESS WHEREOF, the undersigned, on behalf of their respective
Government, have signed this Memorandum .

signed in Jakarta on March

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1980

in duplicate

FOR THE GOVERNMENT OF THE

FOR THE GOVERNMENT OF

REPUBLIC OF INOONESIA


CANADA

Signed

Signed

Purnomosidi Hadjisarosa

W. H. Montgomery

Minister of Public Works

Ambassador

ANNEX A.

1.0. Description of the Project .
The Project will study in detail the potential water and land
resource developments in the Lower Solo River Basin identified

as meriting detailed review by the CIDA assisted prefeasibility
report of the area which was completed in December 1978. It consists of an assessment of the feasibility of these potential water and land resource developments, which are intended primarily
to increase agricultural production and productivity, to

reduce

damage due to the floods and to ensure ecologically sound watershed development . Flowing from these analyses, optimal implementation and operational programmes will be formulated .
Approximately 550 man- months of Canadian consulting engineering
services will be provided over a period of approximately 27
months to assist DGWRD in the implementation of the Project .
2.0. Scope of the Project.
2.1.

The main purposes of the Project are to determine the feasibility of potential water and land resource developments
in the Lower Solo River Basin and to define an optimal
implementation programme for recommended projects.

2.2.

The main elements of the Project include but are not necessarily limited to technical and economic feasibility
evaluations of
(1)

Possible rehabilitation and improvement of existing
irrigation systems, including existing dams (reservoirs) .

(2)

Potential flood control, flood mitigation and river
improvement projects in the Lower Solo River Basin.
Thj.s work will include analysis of the requirements
for river dyking and training works, including the
Jabung retarding basin , feasibility assessment of
proposed projects, and the preparation of contract
documents for proposed river dyking and training
works.

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(3) Projects to improve water management and drainage
system in the Jero swamp.
(4) Potential development of new irrigation systems, tributary dams and small reservoirs, and assessment of
groundwater potentials.
(5) The potential supply of water for domestic and industrial use .
2 . 3.

Based on the work described in 2.2. above, the Consultants
will :
(1) Assess the impact of proposed projects on the physical,
social and economic environtment of the Lower Solo
River Basin, taking into account the impact of developments planned for the Upper Solo and Madiun River Basins .
(2) Conduct economic and financial analysis of the proposed
development programme .
(3) On the basis of 2.3.2. and appropriate technical considerations, recommend an optimal implementation schedule
and procedures for operation and maintenance of the
proposed works.

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 Operation as referred to in Article
III of this Memorandum.
3.0. Project Implementation.
The Project will commence with CIDA contracting with a qualified
and experienced Canadian consultant to carry out the Project.

ANNEX B.

1.0 . Responsibilities and obligations of the Government of Canada .
1 . 1 . The Government of Canada shall, through CIDA
(1)

Provide the services of the Consultant to carry out
the work described in Annex A.

(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 be the Government of the Republic of
Indonesia, provide supplies, equipment (excluding
vehicles) and materials which will be imported into
Indonesia

(5)

to implement the Project.

Require the Consultant to prepare and maintain in
both narrative and diagramatic form a work plan in
accordance with the Plan of Operations referred to
in Article III of this Memorandum, which will indicate the scheduling and achieved progress for each
activity of the Project under its jurisdiction.

(6)

Require the Consultant to submit monthly progress,
quarterly progress, interim and other reports a.s
necessary required to both DGWRD and CIOA, and

(7)

Review monthly progress reports from the Consultant
and in consultation with OGWRD take such action as
may be required to ensure the successful completion
of the Project.

ANNEX C.

1 . 0 . Responsibilit ies and obligations of the Government of the
Republic of Indonesia .
1 . 1 . The Government of the Republ ic of Indonesia shall, through
designated authorities, in accordance with the existing
laws and regul ations of the Republic of Indonesia . :
{1)

Provide all equipment, material and supplies not
provided under Annex B, together with local services
and labour required to complete the Project, as will
be described in the Terms of Reference .

{2)

Provide qual ified Indonesian count erpart staff as
required to successfully implement the Project, as
will be described in the Terms of Reference.

(3)

Provide, free of charge, all temporary and permanent
basic furnished accommodati on as required in Indonesia, as described in the Terms of Reference, for all
the Consultant ' s personnel assigned to the Project .

(4)

Bear the cost of local air or surface transportation
for the Consultant ' s personnel, but not dependents ,
while travelli ng within Indonesia on offi cial project
business, which will be described in the Plan of
Operation.

(5)

Provide out- of- station allowances to the Consultant ' s
personnel in accordance with Bengawan Solo Project
regulations whil e travelling on project-related
duties away from permanent accommodation in Indonesia ,
which will be described in the Plan of Operation .

(6)

Provide vehicles with drivers at the Proj ect site for
official project business .
Such facilities being provided for personal use as
available at the Consultant ' s
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risk and the

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agreement on the cost of personal use to be reached in
advance by DGWRD snd 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
accommodation for the consultant's personnel together with
necessary furnishings (including type-writers), clerical
staff, typist, domestic telephone and postal services and
any other office facilities required to implement the
Project in accordance with local conditions and the situation prevailing at the Project site.

(9)

Ensure that a counterpart fund or a project budget is in
place 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 equipment required
for the use of the Consul tant for its assignments
throughout the period of the Project; and

ii}

personal and household effects of the Consultant's
personnel . These effects shall be limiLed to per
household : one (1) motor vehicle, one (1) radio
receiver, one (1) refrigerator, one (1) deepfreezer,
one (1) tape recorder and per person one (1) camera,
one (1) type writer, one (1) air conditioner and
other similar goods per resident employee.

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 .

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(11) Release the Cpnsultant ' 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 all laws and regulations which may affect their work .
(13) Indemnify without cost to the Government of Canada, and
save harmless the Consultant ' s personnel from and against
all claims, losses, damages, costs , 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 provisions shall not
relieve any person from liability for any criminal ,
grossly negligent or fraudulent act .
(14) Provide
(1)

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

(11)

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 .

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