Selanjutnya
A.I.D. Loan No. 497-H-017
-
LOAN
AGREEMENT
BENEEN THE
REPUBLIC OF INDONESIA
AND THE
UNITED STATES OF AMERICA
DATED:
May
2, 1969
TABIE OF CONTENTS
PAGE
SECTION NUMBER
ARTICIE I
SECTION 1.01
The Loan
l
The Loan
l
........
Te?m8 of
ARTICIE II
SECTION
SECTION
SECTION
SECTION
SECTION
2. 01
2.02
2.03
2.o4
2.05
ARTICIE III
SECTION 3.01
SECTION 3.02
ARTICIE IV
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
4.0l
4.02
4. 03
4.o4
4.05
4.o6
4.07
4.o8
4.09
5.0l
5.02
5. 03
5.o4
5.05
ARTICIE VI
r
SECTION
Section
SECTION
SECTION
SECTION
SECTION
SECTION
and Interest
l
Payment Obligations
Currency of ｒ･ｾｮｴ＠
Interest
Principal
Renegotiation of Tel'mS
1
Conditions Precedent
2
l
l
2
2
Conditions Precedent to Financing
2
Terminal Date for Fulf'illment of Conditions Precedent 3
Procurement Utilization and Eligibility of Camnodities 3
ARTICIE V
SECTION
SECTION
SECTION
SECTION
SECTION
ｒ･ｾｮｴ＠
6.0l
6.02
6.03
6.o4
6.05
6.o6
6.07
A.I.D. Regulation I
Source of Procurement
Date of Procurement
Eligible Items
Procurement for Public Sector
Procurement for Private Sector
utilization of Carmodities
Minimum Size of Transactions
Procedures
3
3
3
3
3
4
4
4
4
Letters of Camnitment and Disbursement
5
Request for Letters of Camnitment
other Forms of Disbursement
Terminal Date for Requests for Letters of Ccmnitment
Terminal Date for Requests for Disbursement
Documentation Requirement
5
5
5
5
5
Additional Covenants and Warranties
5
Reports
Notice of Adverse Developments
Taxation on Loan Agreement and Payments Thereunder
Camnission Fees, and other Payments
Financing Physical Facilities
IMF Standby Agreement
Local currency Proceeds
5
5
6
6
6
6
6
ii
Section Number
ARTICIE VII
SECTION
SECTION
SECTION
SECTION
SECTION
ｾ＠
Remedies of A.I.D.
7.01
7.02
7.03
7.o4
7.05
ARTICIE VIII
SECTION 8.01
SECTION 8.02
6
6
Events of Default; Acceleration
Termination of Disbursement, Transfer of Goods to A.I.D. 7
Refunds
7
Waivers
8
Expenses of Collection
8
Miscellaneous
8
Use of Representatives
Comnunications
8
8
LOAN AGREEMENT
day of May, 1969, between the Government of
the RIPUBLIC OF INDONESIA ("Borrower") and the Government of UNITED STATES
OF AMERICA, acting through the AGENCY FOR INTERNATIONAL DEVEIOFMENT ("A.I.D.").
AGREEMENT dated the Second
ARTICLE I
The Loan
SECTION l.01 The Loan. In accordance with the Econanic Cooperation
Agreement between the Govermnent of the Republic of Indonesia. and the Government
of the Uhited States of America. signed a.t Djakarta October 16, 1950, as
supplemented by the Exchange of Notes of Econanic and Technical Cooperation
signed at Washington and Dja.k.a.rta. January 5 and 12, 1953, and subject to the
terms and conditions of this Agreement, A.I.D. hereby agrees to lend
Borrower pursuant to the Foreign Assistance Act of 1961, as amended, an
amount not to exceed Forty Four Million Dalla.rs ($ 44,ooo,ooo) for the
foreign exchange costs of canmodities and carmodity related services needed
to pranote the stabilization, rehabilitation and developnent of the Indonesian
econany, including essential raw materials needed for agricultural production,
spa.re parts and machinery and equipnent. Comnodities and services authorized
to be financed hereunder a.re hereinafter referred to as "Eligible Items".
The aggregate amount disbursed hereunder is hereinafter referred to as
"Principal".
ARTICIE II
Terms of Repayment and Interest
SECTION 2.01. Payment Obligations. The Borrower agrees to repe\Y
the Loan, and to P8\Y interest on the Loan, in accordance with the terms of
this Agreement. All payments shall be applied first to the payment of the
accrued interest and then to the repayment of the Principal due.
SECTION ＲＮｾ＠
Currency of Repayment. All obligations of the Borrower
to make payments under this Agreement shall be discharged by the payment of
such coin or currency as at the time of payment is legal tender in the united
States of America for payment of public and private debts (herein called "united
States dollars").
SECTION 2.03. Interest. Borrower shall P8\Y to A.I.D. interest which
shall accrue at the rate of two percent ＨｾＩ＠
per annum during ten years
inlnediately following the date of the first disbursement hereunder and at
the rate of three percent ＨｾＩ＠
per annum thereafter on the outstanding
balance of Principal and on a.ey due and unpaid interest. Interest on the
outstanding balance shall accrue fran the date of each respective disbursement and shall be canputed on the basis of a 365-day year. Disbursement
hereunder shall be deemed to occur on the date on which payment by A.I.D. is
ma.de either directly to Borrower or its designee or to a banking institution
pursuant to a letter of camnitment. Interest shall be PS\YB.ble semi-annually.
The first payment of interest shall be due and payable no later than six (6)
months after the first disbursement hereunder on a date to be specified by A.I.D.
- 2 -
SECTION 2.o4. Principal. Bm>rower shall repay the Principal to
A.I.D. in United states doil&rs within forty (40) years fran the date
of the first disbursement hereunder in sixty-one (61) approximately equal
semi-annual installments. The first installment of Principal shall be due
nine and one-half (9-1/2) years after the first interest payment is due in
accordance with Section 2.03. Upon canpletion of disbursement, A.I.D. will
furnish an appropriate Amortization Schedule.
SECTION 2.05. Renegotiation of Terms. Borrower and A.I.D. agree
that, at the request of either party but not sooner than six (6) months
prior to the date when the first repayment of Principal is due, they will
negotiate concerning appropriate acceleration of the repayment of the Principal.
It is agreed that Borrower and A.I.D. will mutually determine to what extent
repayment should be accelerated on the basis of one or more of the following
criteria:
{a) Significant improvement in the internal econanic and
financial situation of the Republic of Indonesia;
(b) Favorable trends in the balance of payments and foreign
exchange holdings of the Republic of Indonesia;
(c) Ability of the Republic of Indonesia to make future
repayments of A.I.D. loans without interfering with the service of debts
owing to any Ullited States Government agency or any international organization
of which the United States is a member.
ARTICIE III
Conditions Precedent
SECTION 3.01. Conditions Precedent to Financing. Prior to and as
conditions precedent to the issuance of the first letter of camnitment or
other authorization of disbursement, unless A.I.D. agrees otherwise, the
Borrower shall furnish in form and substance satisfactory to A.I.D.:
-
(a) An opinion or opinions of the Minister of Justice of
Indonesia or of other counsel satisfactory to A.I.D. demonstrating that the
Agreement has been duly authorized or ratified by and executed and delivered
on behalf of the Borrower and constitutes a valid and binding obligation of
the Borrower in accordance with its terms;
(b) Evidence of the authority of the person or persons who
will a.ct as the representatives of the Borrower in connection with the
operation of this Agreement, together with the authenticated specimen of
signature, in duplicate, of each such person.
- 3 ( c) Evidence that Borrower has entered into a new standby
arrangement with the International Monetary Fund (IMF).
SECTION 3.02. Terminal Date for Fulfillment of Conditions Precedent.
If the conditions required by Section 3.01 have not been canpleted within
thirty ｾｳ＠
atter the date of this Agreement or by such other date as shall
be agreed to in writing by A.I.D., A.I.D. J118¥ at any time thereafter at its
option terminate this Agreement by giving notice to the Borrower. Upon the
giving of such notice all obligations of the parties hereunder shall forthwith be
terminated.
ARTICIE IV
Procurement, utilization, and Eligibility of Camnodities
SECTION 4.01. A.I.D. Regulation I. Except as A.I.D. may otherwise
specify in writing, this Loan and the Procurement and utilization of Eligible
Items financed under it is subject to the terms and conditions of A.I.D.
Regulation I as fran time to time amended and in effect, which is incorporated
and ma.de a part hereof. If any provision of A.I.D. Regulation I is inconsistent
with a provision of this Agreement, the provision of this Agreement shall govern.
SECTION 4.02. Source of Procurement. Except as A.I.D. ma.y otherwise
agree in writing, all Eligible Items shall have their source and origin in
the United States.
SECTION 4.03. Date of Procurement. No camnodities or camnodity
related services may be financed under letters of credit opened prior to
the Eligibility Date, which shall be the date of this ｾｲ･ｭｮｴＬ＠
nor, in
the case of payments not nade through Letters of Credit, where the bill of
lading is dated prior to the Eligibility Date.
SECTION 4.o4. Eligible Items. All camnodities which J118¥ be imported
of the
and paid for with Export Bonus foreign exchange under ｲ･ｧｵｬ｡ｴｩｾｳ＠
Borrower in effect on the date of this Agreement (the B.E. List) shall be
eligible for financing under the Loan, subject to any exceptions or
conditions stated in this Agreement or in any Implementation Letter or
Cc:mnodity Procurement Instruction which may be issued hereunder. other
items, including items which may hereafter be added to the B.E. List, shall
becane eligible for financing under this Agreement only with the written
agreement of A.I.D. A.I.D. nay decline to finance any specific ccmnodity
or service when in its judgment such financing would be inconsistent with
the purpose of the Loan or of the Foreign Assistance Act of 1961, as amended.
SECTION 4.05. Procurement for Public Sector. With respect to
procurement hereunder by or for the Borrower, its agencies and any subsidized
state enterprise:
(a) Notwithstanding Section 201.ll (a) of A.I.D. 2egulation I.,
Borrower shall ava.il itself of opportunities to procure U.S. Government-owned
excess property to the maximum extent consistent with the purpose of this Loan;
- 4 (b) The provisions of Section 201.22 of A.I.D. Regulation I
regarding caupetitive bid procedures shall apply unless A.I.D. otherwise agrees
in writing;
( c) Borrower will undertake to assure that public end users under
this Loan establish adequate loe;istics management facilities and that adequate
funds are available to pay banking charges, custcms duties and other ccmnodity
related charles in connection with camnodities imported by public and users.
SECTION 4.o6. Procurement for Private Sector. A.I.D. Regulation I
shall apply to procurement by the private sector or a.ey- unsubsidized state
enterprise unless exception theref'ran is provided by A.I.D. in a Letter of
Implementation or a Canmodity Procurement Instruction. Borrower warrants and
covenants that after execution of the Agreement it shall take all necessary
steps to encourage Indonesian importers and end-users to utilize A.I.D. Small
Business facilities in order to maximize caupetition and in a.ey- case to obtain
canpetitive quotations fran a reasonable number of potential suppliers.
SECTION 4.07. utilization of Camnodities. Borrower shall use its
best efforts: (a) to assure the pranpt and effective utilization of the funds
ma.de available and the ccmnodities to be financed under this Agreement in
accordance with applicable Indonesian and A.I.D. legislation, policies, and
regulations, and (b) to prevent the use of conmodities financed under this
Agreement to promote or assist a.ey- project or activity associated with or
financed by a.ey- country not included in Code 935 of the A.I.D. ｇ･ｾｰｨｩ｣＠
Code
Book as in effect at the time of such projected use, except with the prior
written consent of A.I.D.
SECTION 4.o8.
Minimum Size of Transactions. Except where authorized
by A.I.D. in writing, no foreign exChiilge allocation or letter of crellit issmd
pursuant to this Agreement shall be in an amount less than Five Thousand
Dollars ($5,000).
SECTION 4.09. Procedures. A.I.D. will issue a Camnodity Procurement
Instruction (CPI) for the information and reference of both parties which
will record:
- a description of the procurement authorized by this Agreement;
- The applicable Camnodity Financing Procedures which, pursuant
to this Agreement, are A.I.D.'s Standard Camnodity Financing
Procedures utilizing A.I.D. Regulation I except as Regulation I
may be inconsistent with the Agreement;
- the authorized methods of financing, as set out in Article V
hereof;
- special provisions applicable to the procurement authorized
by this Agreement (including both provisions applicable to
specific ecmnodity codes and provisions of general application).
Such special provisions will be stated in form suitable for
incorporation in instructions to importers issued by Borrower.
- 5ARTICIE V
Letters of Camnitment and Disbursement
SECTION 5.01. Request for Letters of Ccmmitment. To obtain disbursement of the Loan, the Borrower may fran time to tiiiie su'tinit Financing
Requests to A.I.D. for the issuance of letters of camnitment to one or more
banking institutions in the United States designated by the Borrower and
satisfactory to A.I.D., camnitting A.I.D. to reimburse such bank or banks for
payments me.de, through letters of credit or otherwise, to the Borrower or
any designee of the Borrower, pursuant to such documentation requirements as
A.I.D. may prescribed. Bank:ing charges incurre4 in connection with letters
of camnitment and disbursements shall be for the account of the Borrower
and my be financed by the Loan.
SECTION 5.02. other Forms of Disbursement. Disbursement of the Loan
al.so may be made through such other means and bY such other procjdures as
the Borrower and ａｾｉＮｄ＠
may agree in writing.
SECTION 5.03. Terminal Da.te for Re uests for Letters of Commitment.
Except as A.I.D. may otherwise agree in wr t
, no letters of c
tment shall
be issued in response to a Financing Request received after twelve (l2) months
fran the Date of signing of this Agreement.
SECTION 5.o4. Terminal Date for lequestinfor Disbursement. Except
as A.I.D. may otherwise agree in writing, no disbursement of the Loan shall
be made against documentation sul:mitted after eighteen (18) months frccn the
date of signing of this Agreement.
SECTION 5.05. Documentation Requirements. Regulation I specifies in
detail the documents required by A.I.D. to substantiate disbursements under
this Loan Agreement by letter of cOlllDitment or other method of financing.
The document number shown in the letter of camnitment or other disbursing
authorization document shall be the number reflected on all disbursement
documents sul:mitted to A.I.D. In addition to the above the Borrower shall
maintain records adequate to establish that the camnodities financed hereunder
have been utilized in accordance with Section 4.07 of this Agreement.
ARTICIE VI
Additional Covenants and Warranties
SECTION 6.0l. Reports. A.I.D. shall be furnished with such reports
and information relating to the goods and services financed by the Loan and
the performance of Borrower's obligations under this Agreement as it may
reasonably request.
SECTION 6.02. Notice of Adverse Developments. The Borrower shall
prauptly inform A.I.D. of any conditions which interfere with or threaten to
interfere with the repayment
-
LOAN
AGREEMENT
BENEEN THE
REPUBLIC OF INDONESIA
AND THE
UNITED STATES OF AMERICA
DATED:
May
2, 1969
TABIE OF CONTENTS
PAGE
SECTION NUMBER
ARTICIE I
SECTION 1.01
The Loan
l
The Loan
l
........
Te?m8 of
ARTICIE II
SECTION
SECTION
SECTION
SECTION
SECTION
2. 01
2.02
2.03
2.o4
2.05
ARTICIE III
SECTION 3.01
SECTION 3.02
ARTICIE IV
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
4.0l
4.02
4. 03
4.o4
4.05
4.o6
4.07
4.o8
4.09
5.0l
5.02
5. 03
5.o4
5.05
ARTICIE VI
r
SECTION
Section
SECTION
SECTION
SECTION
SECTION
SECTION
and Interest
l
Payment Obligations
Currency of ｒ･ｾｮｴ＠
Interest
Principal
Renegotiation of Tel'mS
1
Conditions Precedent
2
l
l
2
2
Conditions Precedent to Financing
2
Terminal Date for Fulf'illment of Conditions Precedent 3
Procurement Utilization and Eligibility of Camnodities 3
ARTICIE V
SECTION
SECTION
SECTION
SECTION
SECTION
ｒ･ｾｮｴ＠
6.0l
6.02
6.03
6.o4
6.05
6.o6
6.07
A.I.D. Regulation I
Source of Procurement
Date of Procurement
Eligible Items
Procurement for Public Sector
Procurement for Private Sector
utilization of Carmodities
Minimum Size of Transactions
Procedures
3
3
3
3
3
4
4
4
4
Letters of Camnitment and Disbursement
5
Request for Letters of Camnitment
other Forms of Disbursement
Terminal Date for Requests for Letters of Ccmnitment
Terminal Date for Requests for Disbursement
Documentation Requirement
5
5
5
5
5
Additional Covenants and Warranties
5
Reports
Notice of Adverse Developments
Taxation on Loan Agreement and Payments Thereunder
Camnission Fees, and other Payments
Financing Physical Facilities
IMF Standby Agreement
Local currency Proceeds
5
5
6
6
6
6
6
ii
Section Number
ARTICIE VII
SECTION
SECTION
SECTION
SECTION
SECTION
ｾ＠
Remedies of A.I.D.
7.01
7.02
7.03
7.o4
7.05
ARTICIE VIII
SECTION 8.01
SECTION 8.02
6
6
Events of Default; Acceleration
Termination of Disbursement, Transfer of Goods to A.I.D. 7
Refunds
7
Waivers
8
Expenses of Collection
8
Miscellaneous
8
Use of Representatives
Comnunications
8
8
LOAN AGREEMENT
day of May, 1969, between the Government of
the RIPUBLIC OF INDONESIA ("Borrower") and the Government of UNITED STATES
OF AMERICA, acting through the AGENCY FOR INTERNATIONAL DEVEIOFMENT ("A.I.D.").
AGREEMENT dated the Second
ARTICLE I
The Loan
SECTION l.01 The Loan. In accordance with the Econanic Cooperation
Agreement between the Govermnent of the Republic of Indonesia. and the Government
of the Uhited States of America. signed a.t Djakarta October 16, 1950, as
supplemented by the Exchange of Notes of Econanic and Technical Cooperation
signed at Washington and Dja.k.a.rta. January 5 and 12, 1953, and subject to the
terms and conditions of this Agreement, A.I.D. hereby agrees to lend
Borrower pursuant to the Foreign Assistance Act of 1961, as amended, an
amount not to exceed Forty Four Million Dalla.rs ($ 44,ooo,ooo) for the
foreign exchange costs of canmodities and carmodity related services needed
to pranote the stabilization, rehabilitation and developnent of the Indonesian
econany, including essential raw materials needed for agricultural production,
spa.re parts and machinery and equipnent. Comnodities and services authorized
to be financed hereunder a.re hereinafter referred to as "Eligible Items".
The aggregate amount disbursed hereunder is hereinafter referred to as
"Principal".
ARTICIE II
Terms of Repayment and Interest
SECTION 2.01. Payment Obligations. The Borrower agrees to repe\Y
the Loan, and to P8\Y interest on the Loan, in accordance with the terms of
this Agreement. All payments shall be applied first to the payment of the
accrued interest and then to the repayment of the Principal due.
SECTION ＲＮｾ＠
Currency of Repayment. All obligations of the Borrower
to make payments under this Agreement shall be discharged by the payment of
such coin or currency as at the time of payment is legal tender in the united
States of America for payment of public and private debts (herein called "united
States dollars").
SECTION 2.03. Interest. Borrower shall P8\Y to A.I.D. interest which
shall accrue at the rate of two percent ＨｾＩ＠
per annum during ten years
inlnediately following the date of the first disbursement hereunder and at
the rate of three percent ＨｾＩ＠
per annum thereafter on the outstanding
balance of Principal and on a.ey due and unpaid interest. Interest on the
outstanding balance shall accrue fran the date of each respective disbursement and shall be canputed on the basis of a 365-day year. Disbursement
hereunder shall be deemed to occur on the date on which payment by A.I.D. is
ma.de either directly to Borrower or its designee or to a banking institution
pursuant to a letter of camnitment. Interest shall be PS\YB.ble semi-annually.
The first payment of interest shall be due and payable no later than six (6)
months after the first disbursement hereunder on a date to be specified by A.I.D.
- 2 -
SECTION 2.o4. Principal. Bm>rower shall repay the Principal to
A.I.D. in United states doil&rs within forty (40) years fran the date
of the first disbursement hereunder in sixty-one (61) approximately equal
semi-annual installments. The first installment of Principal shall be due
nine and one-half (9-1/2) years after the first interest payment is due in
accordance with Section 2.03. Upon canpletion of disbursement, A.I.D. will
furnish an appropriate Amortization Schedule.
SECTION 2.05. Renegotiation of Terms. Borrower and A.I.D. agree
that, at the request of either party but not sooner than six (6) months
prior to the date when the first repayment of Principal is due, they will
negotiate concerning appropriate acceleration of the repayment of the Principal.
It is agreed that Borrower and A.I.D. will mutually determine to what extent
repayment should be accelerated on the basis of one or more of the following
criteria:
{a) Significant improvement in the internal econanic and
financial situation of the Republic of Indonesia;
(b) Favorable trends in the balance of payments and foreign
exchange holdings of the Republic of Indonesia;
(c) Ability of the Republic of Indonesia to make future
repayments of A.I.D. loans without interfering with the service of debts
owing to any Ullited States Government agency or any international organization
of which the United States is a member.
ARTICIE III
Conditions Precedent
SECTION 3.01. Conditions Precedent to Financing. Prior to and as
conditions precedent to the issuance of the first letter of camnitment or
other authorization of disbursement, unless A.I.D. agrees otherwise, the
Borrower shall furnish in form and substance satisfactory to A.I.D.:
-
(a) An opinion or opinions of the Minister of Justice of
Indonesia or of other counsel satisfactory to A.I.D. demonstrating that the
Agreement has been duly authorized or ratified by and executed and delivered
on behalf of the Borrower and constitutes a valid and binding obligation of
the Borrower in accordance with its terms;
(b) Evidence of the authority of the person or persons who
will a.ct as the representatives of the Borrower in connection with the
operation of this Agreement, together with the authenticated specimen of
signature, in duplicate, of each such person.
- 3 ( c) Evidence that Borrower has entered into a new standby
arrangement with the International Monetary Fund (IMF).
SECTION 3.02. Terminal Date for Fulfillment of Conditions Precedent.
If the conditions required by Section 3.01 have not been canpleted within
thirty ｾｳ＠
atter the date of this Agreement or by such other date as shall
be agreed to in writing by A.I.D., A.I.D. J118¥ at any time thereafter at its
option terminate this Agreement by giving notice to the Borrower. Upon the
giving of such notice all obligations of the parties hereunder shall forthwith be
terminated.
ARTICIE IV
Procurement, utilization, and Eligibility of Camnodities
SECTION 4.01. A.I.D. Regulation I. Except as A.I.D. may otherwise
specify in writing, this Loan and the Procurement and utilization of Eligible
Items financed under it is subject to the terms and conditions of A.I.D.
Regulation I as fran time to time amended and in effect, which is incorporated
and ma.de a part hereof. If any provision of A.I.D. Regulation I is inconsistent
with a provision of this Agreement, the provision of this Agreement shall govern.
SECTION 4.02. Source of Procurement. Except as A.I.D. ma.y otherwise
agree in writing, all Eligible Items shall have their source and origin in
the United States.
SECTION 4.03. Date of Procurement. No camnodities or camnodity
related services may be financed under letters of credit opened prior to
the Eligibility Date, which shall be the date of this ｾｲ･ｭｮｴＬ＠
nor, in
the case of payments not nade through Letters of Credit, where the bill of
lading is dated prior to the Eligibility Date.
SECTION 4.o4. Eligible Items. All camnodities which J118¥ be imported
of the
and paid for with Export Bonus foreign exchange under ｲ･ｧｵｬ｡ｴｩｾｳ＠
Borrower in effect on the date of this Agreement (the B.E. List) shall be
eligible for financing under the Loan, subject to any exceptions or
conditions stated in this Agreement or in any Implementation Letter or
Cc:mnodity Procurement Instruction which may be issued hereunder. other
items, including items which may hereafter be added to the B.E. List, shall
becane eligible for financing under this Agreement only with the written
agreement of A.I.D. A.I.D. nay decline to finance any specific ccmnodity
or service when in its judgment such financing would be inconsistent with
the purpose of the Loan or of the Foreign Assistance Act of 1961, as amended.
SECTION 4.05. Procurement for Public Sector. With respect to
procurement hereunder by or for the Borrower, its agencies and any subsidized
state enterprise:
(a) Notwithstanding Section 201.ll (a) of A.I.D. 2egulation I.,
Borrower shall ava.il itself of opportunities to procure U.S. Government-owned
excess property to the maximum extent consistent with the purpose of this Loan;
- 4 (b) The provisions of Section 201.22 of A.I.D. Regulation I
regarding caupetitive bid procedures shall apply unless A.I.D. otherwise agrees
in writing;
( c) Borrower will undertake to assure that public end users under
this Loan establish adequate loe;istics management facilities and that adequate
funds are available to pay banking charges, custcms duties and other ccmnodity
related charles in connection with camnodities imported by public and users.
SECTION 4.o6. Procurement for Private Sector. A.I.D. Regulation I
shall apply to procurement by the private sector or a.ey- unsubsidized state
enterprise unless exception theref'ran is provided by A.I.D. in a Letter of
Implementation or a Canmodity Procurement Instruction. Borrower warrants and
covenants that after execution of the Agreement it shall take all necessary
steps to encourage Indonesian importers and end-users to utilize A.I.D. Small
Business facilities in order to maximize caupetition and in a.ey- case to obtain
canpetitive quotations fran a reasonable number of potential suppliers.
SECTION 4.07. utilization of Camnodities. Borrower shall use its
best efforts: (a) to assure the pranpt and effective utilization of the funds
ma.de available and the ccmnodities to be financed under this Agreement in
accordance with applicable Indonesian and A.I.D. legislation, policies, and
regulations, and (b) to prevent the use of conmodities financed under this
Agreement to promote or assist a.ey- project or activity associated with or
financed by a.ey- country not included in Code 935 of the A.I.D. ｇ･ｾｰｨｩ｣＠
Code
Book as in effect at the time of such projected use, except with the prior
written consent of A.I.D.
SECTION 4.o8.
Minimum Size of Transactions. Except where authorized
by A.I.D. in writing, no foreign exChiilge allocation or letter of crellit issmd
pursuant to this Agreement shall be in an amount less than Five Thousand
Dollars ($5,000).
SECTION 4.09. Procedures. A.I.D. will issue a Camnodity Procurement
Instruction (CPI) for the information and reference of both parties which
will record:
- a description of the procurement authorized by this Agreement;
- The applicable Camnodity Financing Procedures which, pursuant
to this Agreement, are A.I.D.'s Standard Camnodity Financing
Procedures utilizing A.I.D. Regulation I except as Regulation I
may be inconsistent with the Agreement;
- the authorized methods of financing, as set out in Article V
hereof;
- special provisions applicable to the procurement authorized
by this Agreement (including both provisions applicable to
specific ecmnodity codes and provisions of general application).
Such special provisions will be stated in form suitable for
incorporation in instructions to importers issued by Borrower.
- 5ARTICIE V
Letters of Camnitment and Disbursement
SECTION 5.01. Request for Letters of Ccmmitment. To obtain disbursement of the Loan, the Borrower may fran time to tiiiie su'tinit Financing
Requests to A.I.D. for the issuance of letters of camnitment to one or more
banking institutions in the United States designated by the Borrower and
satisfactory to A.I.D., camnitting A.I.D. to reimburse such bank or banks for
payments me.de, through letters of credit or otherwise, to the Borrower or
any designee of the Borrower, pursuant to such documentation requirements as
A.I.D. may prescribed. Bank:ing charges incurre4 in connection with letters
of camnitment and disbursements shall be for the account of the Borrower
and my be financed by the Loan.
SECTION 5.02. other Forms of Disbursement. Disbursement of the Loan
al.so may be made through such other means and bY such other procjdures as
the Borrower and ａｾｉＮｄ＠
may agree in writing.
SECTION 5.03. Terminal Da.te for Re uests for Letters of Commitment.
Except as A.I.D. may otherwise agree in wr t
, no letters of c
tment shall
be issued in response to a Financing Request received after twelve (l2) months
fran the Date of signing of this Agreement.
SECTION 5.o4. Terminal Date for lequestinfor Disbursement. Except
as A.I.D. may otherwise agree in writing, no disbursement of the Loan shall
be made against documentation sul:mitted after eighteen (18) months frccn the
date of signing of this Agreement.
SECTION 5.05. Documentation Requirements. Regulation I specifies in
detail the documents required by A.I.D. to substantiate disbursements under
this Loan Agreement by letter of cOlllDitment or other method of financing.
The document number shown in the letter of camnitment or other disbursing
authorization document shall be the number reflected on all disbursement
documents sul:mitted to A.I.D. In addition to the above the Borrower shall
maintain records adequate to establish that the camnodities financed hereunder
have been utilized in accordance with Section 4.07 of this Agreement.
ARTICIE VI
Additional Covenants and Warranties
SECTION 6.0l. Reports. A.I.D. shall be furnished with such reports
and information relating to the goods and services financed by the Loan and
the performance of Borrower's obligations under this Agreement as it may
reasonably request.
SECTION 6.02. Notice of Adverse Developments. The Borrower shall
prauptly inform A.I.D. of any conditions which interfere with or threaten to
interfere with the repayment