Selanjutnya

MEMORANDUM OF UNDERSTANDING
CONCERNING GENERAL

ARRANGEMENTS AND PROCEDURES

RELATING TO THE AUSTRALIA-WORLD
I

BANK CO-FINANCING FACILITY



This document records

the understandings between the

Government of the Republic of Indonesia and the Government of
Australia with respect
provision

to the general


of assistance

under

Facility with the World Bank.
jects

to be undertaken

procedures

for

the

the Australian Co - financing
Specific arrangements for pro -

in Indonesia under the co-financing


Facility will be formally recorded in separate documents
be known

as

Project

Arrangements, to be

signed

to

in each

instance by the two Governments.

OBJECTIVES


l .

The objective

of

the Australian

Co -

financing Facility is to assist in the
preparation for,

or implementation or,

World Bank endorsed projects

in Indonesia

by offering Australian scientific and technical


expertise

and, where appropriate,

Australian supplies.

The Co- financing

Facility extends the scope of assistance
which Australia is able to provide under
the regular bilateral aid program .

FORMS OF

2.

ASSISTANCE

co-financing assistance offered by Australia

may be in the form of grant aid for technical expertise, training or supplies .

TERMS OF
ASSISTANCE

3.

Assistance provided under the Co - financing
Facility

may be

limited

to Australian

services and supplies to the maximum extent
possible, taking into account the availabi lity of local

serviccc


and

supplies, o ·'

a case by case basis .

... //

...

2

PROJECT

4.

SELECTION AND

a)


Identifi cation

As the Government of Indonesia,

after

OFFER OF

consultation with the World Bank, identifies

ASSISTANCE

a Bank supported project in Indonesia suitable
for Australian
of Indonesia

assistance ,

the Government


will advise the Australian

Government .
b)

Consideration and Offer

If the Australian Government is able to
respond

positively

the Australian

to such

a request,

Embassy , Jakarta ,


will

inform the Indonesian Government in writing
of an offer in

principle to provide assis-

tance to the selected project , subject to
further consultations as to the financial
limit , form and timing of such assistance .

ACCEPTANCE

5.

OF OFFER

If the Australian offer is acceptable in
principle, the Indonesian Government will

inform the Australian Embassy in writing .

TERMS OF
REFERENCE

6.

The Indonesian Government

or

the desig -

nated technical authority (Executing Agent)
responsible for the project, will prepare
comprehensive Terms of Reference in consultation with the

World Bank .

Reference will define project


The Terms of
objectives,

scope of assistance sought from Australia,
timing

of

project

implementation

and

a schedule of project supplies to be obtainerl
from Australia .

. . . /I . ..

3

FORMAL

7.

APPROVAL

Following consideration of the Terms of
Reference submitted by the Government of
Indonesia

and

of the estimated cost of

services to be supplied,

the Australian

Government will make a formal commitment
to provide funds to the project .

SELECTION OF

8.

The Australian Government will assist the

AUSTRALIAN

Indonesian Executing Agent

CONSULTANTS

an Australian

OR CONTRACTORS

agreed services, by observing the following

firm

in

selecting

for the provision of

established procedures :
Public advertisement in Australia of
required project technical services.
Determination of a short- list of
consultants on the basis of capability
statements considered by an Australian
technical advisory panel.
Clearance with the

World Bank

and the

Executing Agent ofthe scope and schedule
of services to be provided by Australia.
Invitation of short-listed organisations
to submit substantive technical proposals
based on the agreed

scope

and schedule

of services .
Referral of technical proposals to both
the World Bank and the

Executing Agent

for comment prior to final evaluation of
proposals being carried out .
Evaluation of substantive

proposals by

a joint Australian/Indonesian technical
advisory

panel

which

will
エ。ォセ@

.iuto

consideration :

. . .I I . . .

4

each organisation ' s experience

and

capacity in the technical sphere of
the project;
each organisation ' s response

to the

Terms of Reference, proposed methodology and work plan;
experience , qualifications and
セエ・ョ」@

of personnel proposed for the project ;
The Australian

firm recommended by the

technical advisory panel will be subject
to formal

approval

by

the Indonesian

Government. All contractual arrangements
with the selected firm will be stated in
specific Project Arrangements.
CONSULTANCY

PERSONNEL

9.

For the

purposes

of

each

project, the

Indonesian Government will, in accordance
with

prevailing

laws

and regulations ,

facilitate the employment by the Australian
Government
required

of the
for

consultancy

personnel

t he project and established

between the two Governments by
(a)

bearing income

or other taxes on project

salaries

allowances; Australian

and

project personnel wil l not bear these
taxes.
(b)

granting exemption from

and other
セイエ@

duties on personal and household effects;
(c)

granting exemption from taxes and duties
on the purchase in Indonesia of a locally
assembled

motor vehicle per expert

condition

that

it either be

on

sold to

. . . /I . . .

5

a person who has the same

privileges,

or to the Government authorised agents.
The expert's assignment should be on a
long term basis of at least twelve (12)
consecutive months period;
(d)

granting to Australian project personne l
a l l rights and entitlements accorded to
the

ai d

personnel of any other donor

country;
(e)

expediting the issue of all documentation
required for the entry of, and performance
of work by, project personnel including
work permits or certificates

for eligible

persons.

PROJECT

10 .

IMPLEMENTATION

The selected Australian finn will be required
to

provide

the spec i f i ed services to the

Executing Agent, which will be responsible
for project impl ementation and liaison and
consultation, as appropriate, with the World
Bank . All reports, drawings, maps , documents ,
etc .

will become to property of the Exe -

cuting Agent on completion of the respective
project .

CONSULTANT

11.

COOPERATION

The selected Australian

firms

and

the

selected Indonesian firms will cooperate
to achieve project objective .

PROCUREMENT
OF SUPPLIES

12 .

(a)

Responsibil ity

for

purchasing

and

arranging delivery of suppl ies agreed
to be
::>tc1ted

provided
in

the

by Austral i a will be
specific

Project

Arrangements .

. . . /I . . .

6

The schedule of agreed s upplies will
be specified in the offer of Australian
assistance . On completion of the project all agreed supplies shall become
the property of the Government of
Indonesia.
(b)

The Executing Agent may elect to utilise
the services of the Australian consultant or contractor to assist in procurement activities, in which case
such procurement services as may be
required will be included in the scope
of services in the contract .

(c)

Procurement services that may be
provided by the Australian consultant
or contractor could be any or all of
the following
Preparation of tender specifications;
Public advertisement for tenders
in Australia;
Receipt and evaluation of tenders;
Follow- up orders placed by or on
behalf of the Executing Agent;
Inspection and acceptance of suwlies
on completion of orders;
Arranging packing, shipment and insurance to the port of delivery in
Indonesia; and
Certification of procurement account
for payment .

(d)

The Executing Agent will

... // . ..

7

Retain overall responsibility for
procurement, as the consultant or
contractor would be acting on behalf
of the Executing Agent;
Formally place the order with the
successful tenderer ; and
Authorise payment for supplies and
associated costs , such as shipping
and insurance.

SUPPLIES

13 .

(e)

All costs associated with procurement
services provided by Australian consultants or contractors, together with
costs of shipping and insurance to the
port of delivery will be met from
Australian funds .

(f)

Responsibility for customs clearance
and transport, including associated
charges , from the port of delivery
will be the responsibility of the
Executing Agent.

(a)

The Indonesian Government will, in
accordance with prevailing laws and
regulations , either exempt from import
duties and other taxes , or pay/reimburse
such duties or taxes on all supplies
purcahsed by Australia foreach project.

(b)

The Indonesian Government will facilitate
movement of project equipment and
supplies by providing appropriate customs
and wharfage facilities in the port of
entry and will be responsible for the
expeditious transport of such equipment
and supplies to the site .

. . . /I .. .

8

PAYMENT
PROCEDURES

14 .

Payments for services and supplies provided
under the Australian contribution will be
made as follows for :
Consultant or Contractor Services - the
Australian Government will pay directly
the consultants or contractors for services
rendered, or may advance funds to the
Vbrld Bank to pay consultants on its behalf.
Payment procedures for each project will
be stated in the specific Project Arrangements. Where payment is made by the World
Bank, the Executing Agent will be responsible for providing certification to the
World Bank that the services have been
satisfactorily performed and for ensuring
that such advice is transmitted to the
world Bank in the shortest reasonable
time.
Supplies and Associated Costs - procedures
for payment for agreed supplies and
associated shipping and insurance will be
stated in the specific Project Arrangerrents.

DURATION

15.

This Memorandum will take effect from the
date of its signature.
The duration of
co-financed projects will be set out in
specific Project Arrangements.

CONTRIBUTIONS

16.

The contributions of the Indonesian and
Australian Governments will be set out in
specific Project Arrangements. Disbursement
of the Indonesian and Australian Governments '
contributions will be subject to the normal
annual budget appropriations .

. . . /I ...

9

Annual budgets, including forward allocations and actual disbursement, will be
prepared by both Governments .
PROJECT
EVALUATION AND
REVIEW

17.

The Australian Government may participate
in joint evaluation and review missions
with the Indonesian Government and the
World Bank .

LIABILITY

18 .

The Government of Indonesia will be responsible for dealing with any claims which
may be brought by third parties against
Australia and its experts, agents or
Australian personnel and will hold hrumlless
Australia and its experts, agents and
Australian personnel in case of any claims
or liabilities resulting from operations
under this Memorandum.
This provision will not relieve any person
from liability for any criminal, grossly,
negligent or fraudulent act .

SECURITY

19.

The Government of Indonesia will arrange
for any protection deemed necessary to
ensure the safety of Australian personnel,
project location, in transit in Indonesia
or on any other official representational
activity in Indonesia.
The Australian
Governmentwil l take reasonable precautions
to ensure that Australian personnel have due
regard for local traditions and customs.

SETTLEMENT OF

20 .

Any disputes arising out of the interpretation or implementation of this Memorandum
will be settled amicably by consultation or
negotiation between the two Governments .

DIFFERENCES

. . .I I . . .

10

AMENDMENTS

21 ,

Amendments to this Memorandum may be
made at any time by an

Exchange

of

Letters between the two Governments .

SIGNED at
December

Canberra ,
1985.

Signed

in duplicate , this seventeenth day of

Signed

FOR THE GOVERNMENT OF

FOR THE GOVERNMENT OF

AUSTRALIA

THE REPUBLIC OF INDONESIA