Selanjutnya
THIS AGREEMENT MADE IN DUPLICATE THE
4th Day of May , 1973
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
(hereinafter called "Indonesia")
-- and -THE GOVERNMENT OF CANADA
(hereinafter referred to as "Canada") as
represented by the Secretary of State for
External Affairs acting through the President
of the Canadian International Development
Agency (hereinafter referred to as "CIDA").
WHEREAS Indonesia wishes Canada to provide financing for
developmental projects in the civil aviation sector (hereinafter referred to as "the Projects")as described in Annex "A"
of this agreement.
AND WHEREAS Canada is willing to make a loan available for
the purpose of financing Projects in the Civil Aviation Sector
on the terms and conditions provided herein;
NOW THEREFORE the parties hereto agree as follows:
ARTICLE
I
The Loan
Section 1. 01
Canada shall make available to Indonesia on the terms and
conditions hereinafter set forth a development Loan in an amount
not to exceed twenty-five million Canadian dollars ($25,000,000).
Section 1. 02
Canada shall open on its books a Loan Account in the name
of Bank Indone sia acting for and on behalf of the Government of
Indone sia (here inafter referred to as "Bank Indone sia"), and
shall credit to such account the full amount of the Loan.
Withdrawals ..••
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Withdrawals, payments and disbursements may be made from the
Loan Account in accordance with the provisions of this Agreement.
Section 1.03
This Loan shall be free from interest, connnitment or service
charges.
Section 1.04
Repayment of the principal amount of the Loan shall be made
in eighty semi-annual instalments of three hundred and twelve
thousand and five hundred Canadian dollars ($312,500) each, due
and payable on the last day of September and March in each year
connnencing on March 31, 1984 and ending on September 30, 2023.
Section 1.05
Indonesia shall have the right to prepay principal in whole
or in part on any date without notice to Canada. The amount of any
prepayment shall be applied on the instalments on principal then
remaining payable in the reverse order of their maturity.
Section 1.06
All payments and prepayments, as set forth herein, shall be
made by Indonesia in Canadian dollars to the Receiver-General of
Canada, and shall be deemed to have been paid when received by
the Receiver-General of Canada.
Section 1.07
The principal of the Loan shall be paid without any deductions
whatsoever and more particularly shall be free from any taxes,
charges or other restrictions imposed under the laws of Indonesia
and those in effect in its territories or subdivisions.
Secti on 1.08
Indone sia agr e es that it will negotiate, a t the r e quest of
Canada, concerning acce leration of payments to the Re c e iverGeneral of Canada to be made under this Agr eement a t any time
afte r ....
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after six (6) months before the first payment of principal
becomes due and payable. Indonesia and Canada shall nn.ltually
determine whether, on the basis of the capacity of Indonesia to
service a more rapid liquidation of its obligations in the light
of its internal and external financial aid and economic position,
such an acceleration should take place.
ARTICLE
II
Use of the Loan
Section 2.01
Except as may otherwise be specifically agreed to by Canada,
the proceeds of the Loan shall be used by Indonesia exclusively
for the purchase of certain equipment, materials and services in
Canada and for the payments of freight and insurance for such
equipment, materials and services, which are required to undertake development projects which are approved by CIDA related to
the developments of the Civil Aviation sector in Indonesia.
Specific projects recommended by Indonesia for financing under
this loan agreement will be approved by CIDA through simple
exchange of letters. Eligible equipment, materials and services
which may be required to carry out the Projects, shall be as
described in Annex "A", and procedures for their procurement and
payment shall be those set forth in Annex "B", both Annexes being
subject to such modification as may be agreed upon between Canada
and Indonesia.
Section 2.02
Each of the Proj ects to be financed from the proceeds of
the Loan shall have an overall Canadian content of not less than
sixty-six and two-thirds percent (66 2/3 %).
Section 2.03
Projects contracted for prior to the effective date of this
Agreement may not be financed out of the proceeds of the Loan
except as may otherwise be agreed to by Canada.
Section 2. 04 ..
- 4 Section 2.04
The equipment and materials supplied under this Agreement
are for domestic Indonesian consumption and shall not be reexported by Indonesia .
Section 2.05
Proceeds from the Loan shall not be used by Indonesia to
meet the costs of any taxes, fees or customs duties imposed
directly or indirectly by Indonesia on the items procured.
ARTICLE
III
Withdrawals of Proceeds of Loan
Section 3.01
Withdrawals from the Loan Account shall be for payments to
Canadian suppliers for imports by Indonesia of equipment,
materials and services eligible under this Agreement and for the
payment of freight and insurance thereof. Such payments will be
made under irrevocable letters of credit, expressed in Canadian
currency, issued by Indonesian foreign exchange banks designated
by Bank Indonesia through designated correspondent Canadian banks.
Section 3. 02
Withdrawals shall be deemed to occur on the dates on which
reimbursements are made from the Loan Account to the designated
Canadian bank for the payments to suppliers referred to in
Section 3. 01.
Section 3.03
Subject to the conditions and limitations set forth,
Indonesia shall be entitled to withdrawals from the Loan Account
in such amounts as are required to meet the reasonable costs of
the equipment, materials and services in Annex "A" and the costs
of freight and insurance thereof, as these be come due and payable.
Section 3.04 ...
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Section 3.04
Indonesia or its designated agent shall provide Canada with
a copy of each invitation to tender, contract and/or purchase
order for the procurement of equipment, materials or services
under this Loan Agreement in respect of which any withdrawal is
to be made. Bank Indonesia and/or the relevant Indonesian foreign
exchange bank, designated by Bank Indonesia, shall provide Canada
with a copy of each irrevocable letter of credit issued under
this Agreement.
Section 3.05
Unless otherwise agreed to by CIDA, withdrawal of proceeds
from the Loan shall not exceed in each year the amount of five
million Canadian dollars ($5,000,000.00).
Section 3.06
The Indonesian procuring Agency shall furnish, or cause to
be furnished to Canada such documents and other evidence in
support of the letters of credit referred to in Section 3.01 as
Canada may reasonably request, such evidence to be sufficient
in form and substance to establish that the amounts to be withdrawn are properly related to the purposes of the Loan Agreement.
ARTICLE IV
Cancellation and Suspension
Section 4.01
Indonesia may, by sixty (60) days' notice to Canada cancel
all or any part of the Loan not withdrawn by Indonesia prior to
the giving of such notice and not required to meet outstanding
financial obligations to suppliers or firms incurred under the
Loan.
Section 4.02
If any of the following events occur and continue to occur,
Canada may, by sixty (60) days' notice to Indonesia, specifying
the
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the reason for suspension, suspend in whole or in part the
right of Indonesia to obtain withdrawals from the Loan Account
a) A default on the part of Indonesia in the performance of any
undertaking under this Agreement;
b) Any situation which renders it impossible for Indonesia to
perform its obligations under this Agreement.
If suspension occurs and continues for thirty (30) days, Canada
may by sixty (60) days' notice to Indonesia, cancel that part of
the Loan not withdrawn prior to the giving of such notice, and
not required to meet outstanding financial obligations to
suppliers or firms incurred under the Loan.
Section 4.03
Unless otherwise agreed to by Canada, if the full amount
of the Loan is not connnitted by March 31, 1979, the balance will
be cancelled and the final instalments of the repayment to be
made by Indonesia shall be reduced accordingly.
Section 4.04
Additional funds may be provided to Indonesia under this
Loan Agreement and subject to the same terms and conditions
outlined in the present Agreement, unless otherwise agreed to
by Canada. The provision of such additional funds shall be
effected through simple exchange of letters, and shall
necessitate modifications to the present Loan Agreement
concerning principal balance outstanding and repayments.
ARTICLE
V
General Undertakings
Section 5.01
Indonesia and Canada shall ensure that this Agreement is
carried out with due diligence and efficiency and each shall
furnish to the other all such information as shall reasonably
be requested.
Responsibilities
- 7 Responsibilities of Indonesia with regard to equipment, materials
and services shall be as described in Annex "C", this Annex being
subject to such modification as may be agreed upon between Canada
and Indonesia.
Section 5.02
Indonesia shall afford accredited representatives of Canada
all reasonable opportunities to visit any part of the territories
of Indonesia for purposes related to this Loan Agreement.
Section 5.03
The present Agreement and any Annex hereto shall be free
from any taxes, fees or other charges that may be imposed under
the laws of Indonesia and these in effect in its territories or
administrative, political or juridical divisions or subdivisions
in connection with the execution, issue, delivery and registration
thereof.
Section 5.04
Indonesia shall provide or cause to be provided as needed
all local costs financing and resources which may be required
to implement this Agreement.
Section 5.05
For the purposes of this Agreement and the Annexes hereto,
Indonesia shall include any agent or agents authorized by and
on behalf of Indonesia with regard to its right, duties and
obligations herein.
ARTICLE
VI
Section 6.01
Any communication or document given, made or sent by either
Indonesia or Canada pursuant to the present Agreement or any
Annex thereto shall be in writing and shall be deemed to have
been ••••
- 8 been duly given, made or sent to the party to which it is
addressed at the time of its delivery by hand, mail, telegram
cable or radiogram at its respective address, namely :
For Indonesia
Mail Address:
Cable Address:
and/or
Mail Address:
Cable Address:
For Canada:
Mail Address:
Cable Address:
and/or
Mail Address:
Cable Address:
Department of Foreign Affairs
Jalan Singamangaraja 97
Jakarta, Indonesia
DEPLU JAKARTA
Bank Indonesia
Jalan Kebon Sirih No. 82-84
Jakarta, Indonesia
Delegasi, Jakarta
Canadian International Development
Agency
122 Bank Street
Ottawa, Ontario, KIA OG4
CIDA, Ottawa
Canadian Embassy
Jalan Budi Kemuliaan No.6, Jakarta
Indonesia
Domcan, Jakarta
Section 6.02
Any one of the parties hereto may, by notice to the other
party, change the address to which any notice or request intended
for the party so giving such notice shall be addressed.
Section 6.03
All connnunications and documents submitted to Canada shall
be either the English or the French language and all technical
specifications therein shall be in terms of Canadian standards
except where Canada may otherwise agree in writing.
Section 6.04
This Agreement may be simultaneously executed in several
counterparts each of which so executed shall be deemed an
original.
IN WITNESS ...
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IN WITNESS WHEREOF, the parties hereto have caused to be
subscribed the signatures of their authorized representatives
at the City of Jakarta as of the day and year first above
written.
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ON BEHALF OF THE GOVERNMENT OF THE
REPU'6LIC OF INDONESIA
Signed
ADAM MALIK
Minister for Foreign Affairs
ON BEHALF OF THE GOVERNMENT OF
CANADA
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Signed
W. T. DELWORTH
Ambassador
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ANNEX "A" TO CIVIL AVIATION PROJECTS
LOAN AGREEMENT
BETWEEN THE GOVERNMENT TO THE REPUBLIC
OF INDONESIA
- and THE GOVERNMENT OF CANADA
Use of The Loan
1) The proceeds of the Loan are to be used exclusively to
finance the purchase of certain equipment, materials and
services in Canada and for the payments of freight and
insurance which are required for development projects in
Indonesia related to the development of the civil aviation
sector. The equipment, materials and services supplied
under the Loan shall not exceed twenty-five million Canadian
dollars ($ 25,000,000) and shall be approved through simple
exchange of letter between CIDA and Indonesia.
2) Purchases under the Loan shall have an overall Canadian
content of not less than sixty-six and two-thirds percent
( 66 j. % ) and shall be eligible for export under Canadian
export regulations and for import under Indonesian import
regulations .
3) Atomic energy materials and equipment, arms, armaments,
guns, ammunition, and all other equipment or materials for
primarily military use or for the manufacture thereof are
prohibited for supply under this Loan.
4) At CIDA's request, substantiation may be required from time
to time that the products and services purchased under this
Agreement are required for developmental purposes by Indonesia.
Annex
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ANNEX "B" TO CIVIL AVIATION PROJECTS LOAN AGREEMENT
BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
- and THE GOVERNMENT OF CANADA
Procurement and Payment Procedures
1.1. For equipment, materials and services eligible for financing
under this Loan Agreement, Indonesia must officially request
that the item be included under this Loan Agreement and
receive approval by CIDA through simple exchange of letters.
1.2. Project proposals with definition and justification of the
project, along with other supporting documentation will be
supplied to CIDA in support of requests by Indonesia for
withdrawals of the proceeds of this Loan.
1.3. Equipment, materials and services eligible for financing
under this Loan Agreement may be procured by the public
sector (government departments and/or agencies).
Procurement Procedures
Procurement of Consultant Services
2.1. Where consultant services may be procured in Canada under
this Agreement, a competitive proposal call shall be made
from a representative number of qualified Canadian firms,
unless otherwise agreed to by CIDA . Lists of Canadian firms
may be obtained from the Canadian Embassy in Jakarta or
from CIDA in Ottawa.
2.2. The list of Canadian firms invited to propose shall be as
approved by CIDA unless otherwise agreed to by CIDA.
2.3. Where a Canadian firm is selected, the contract with the
firm will be negotiated and let by Indonesia; the terms
and conditions of the contract shall b e subject to approval
by CIDA.
Procurement . . . .
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Procurement of Equipment and Materials
3.1. All procurement of equipment and materials shall be subject
to competitive tender procedures unless prior approval for
waiver is obtained from CIDA.
3.2. Before any purchase contracts are entered into, the prospective contracting party shall invite tenders from a representative number of Canadian suppliers of the required products
unless otherwise agreed to by CIDA.
3.3. A copy of each Invitation to Tender, together with a list of
Canadian Suppliers invited to tender, shall be forwarded by
Indonesia to the Canadian Embassy in Jakarta or to Canada.
3.4. Tenders for materials, equipment and construction services
will be called on the basis, as may be applicable in the
particular case, of supply, delivery to site, installation
and erection, construction, completion and warranty maintenance
thereof. Where applicable tenders shall be instructed to show
separate costs of supply FOB and insurance and freight, and
the cost of local operation in Indonesia in their bids.
3.5. List of Canadian suppliers may be obtained from the Canadian
Embassy in Jakarta or from CIDA in Ottawa. The assessment
of the tenders received will be forwarded to CIDA. Prior to
the issuance of a purchasing contract, Bank Indonesia will
obtain confirmation from Canada to the use of the Loan for
each transaction through CIDA which will constitute clearance
for the transaction for Canadian content and tendering
regulations.
3.6. The Canadian companies invited to tender shall be instructed
to
a) include in their tender a declaration of the Canadian
content of the equipment and materials they are offering
for purchase;
b) send . . . .
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e) Prior to shipment of equipment and materials, the
Canadian supplier shall complete a Canadian Content Form
and forward it along with technical specifications
complying with Canadian quality standards and all supporting documentation, as specified in the Letter of Credit,
to CIDA for approval.
3.9. The Canadian supplier or the accredited Canadian selling
agent for Indonesia shall be responsible for :
a) arranging and paying for freight and insurance;
b) inspection of the equipment and materials prior to
packing and shipping.
4. Payment Procedures
Equipment, Materials and Services
4.1. The Bank Indonesia shall, when a contract is awarded, open
through Canadian Bank letters of credit in favour of
Canadian suppliers.
4.2. CIDA shall confirm to the Canadian Bank that the Bank will
be reimbursed by the Canadian International Development
Agency from the development loan funds, upon receipt of
evidence of shipments having been made under and in
conformity with terms of letters of credit opened by Bank
Indonesia.
4.3. All banking charges incurred by the Bank Indonesia in
connection with the opening of letter of credit through
the Canadian Bank will be reimbursed by CIDA from the
development loan funds. Any interest charges that may be
payable by Bank Indonesia to the Canadian Bank in the event
of that bank advancing funds to meet payments to Canadian
suppliers will also be reimbursed by CIDA from the development loan funds. Statements of disbursements will be
prepared by CIDA and forwarded to Bank Indonesia at least
on six monthly basis.
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b) send copies of all tenders to CIDA at the same time
as they are forwarded to the recipient Indonesian
procurement agency; (the copies of tenders received
by CIDA will be treated as a closed tender call and
not opened until the dates established by the
recipient);
c) complete a Canadian Content Form including statement
that the price is fair and reasonable and forward it
to CIDA with each copy of tender;
d) submit to CIDA, technical specifications complying
with the Canadian quality standards for the equipment
and materials to be supplied.
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3.7. If other than the lowest evaluated tender with acceptable
Canadian content is to be approved, the concurrence of CIDA
shall be obtained before the purchase contract is issued.
3.8. CIDA may upon receipt of formal advance application, waive
the requirement for competitive tenders in the situations
specified hereunder
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a) when procurement concerns equipment and materials which
areonly available from a single source;
b) when procurement concerns equipment and materials which
by nature and specification are peculiar to a specific
manufacturing process or end equipment and materials;
c) when equipment and materials are to be procured under
such other conditions which appear to CIDA to merit a
waiver from the tendering procedures;
d) Applications for waiver, supported by reasons therefore,
must be forwarded through the Canadian Embassy, Jakarta
to CIDA in Ottawa. No procurement action shall be
initiated until the notification of approval is given
by CIDA;
e) Prior . . .
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ANNEX ''C''
RESPONSIBILITIES OF THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
1. With respect to equipment and materials, and to consultant
services provided from Canada :
1.1. Indonesia will arrange with Indonesian custom officials
to properly clear through Indonesian customs free of
imports, customs and other duties and taxes all equipment
and materials required to support and undertake the
implementation of the project(s). Indonesia will exempt
the consultant and its personnel (other than personnel
who are citizens or permanent residents of Indonesia)
from, or bear the costs of, any taxes, duties, fees,
levies, and other impositions imposed under its laws
and regulations or the laws and regulations in effect
in its territories or any political subdivision.
1.2. Indonesia will provide at no cost to the loan account,
local facilities and services to permit the consultant to
implement the project(s) .
Details of facilities and services requirements shall be
subject to individual contractual obligation.
1.3. Indonesia will provide :
a. all Indonesian permits, licences and other such documents
required to enable Canadian personnel to carry out their
respective responsibilities in Indonesia;
b. all export and exit permits required for the return of
any of the material, equipment or effects (including
personal effects) which are the property of or are
provided by the Government of Canada, the firm or
individual Canadian employed on the provision of services
under this agreement;
c. acces to those parts of Indonesia required to enable
Canadian personnel to carry out their responsibilities
i n Indonesia.
1.4. Indonesia will indemnify and save harmless, at no cost to
the Loan Account, Canada or its personnel engaged in the
perf ormance of duties in connection with the Loan; from any
civil liability arising from any claims resulting from :
a. injury
....
- 2 a. injury or death of any such personnel during the
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performance of his duties relative to the Loan;
b. injury or death of any person arising from the work of
the project; and
c. property damage arising from the work of the project(s). I
This provision will not relieve any such personnel of
Canada from liability for any fraudulent or criminal act.
2. With respect to Materials, Equipment and Construction Services
provided from Canada :
2.1. Arrange for inspection and testing, as necessary. All
foreign exchange costs pertaining to inspection and
testing of materials and equipment procured in Canada
for projects funded under this Loan will be reimbursable
under this Agreement, where these costs are not already
reimbursable under existing financing arrangements for
the project(s) concerned.
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2.2. Undertake to be responsible for adequate insurance for
short shipments, losses or damage to the equipment and
materials during shipment and in transit. If any part
of the lost or damaged.equipment and materials is prefinanced for replacement out of the Loan Fund pending
settlement of insurance claims, on settlement of such
claims the amounts will be deposited to the account of
the Loan Fund and will be paid in Canadian dollars.
2.3. Indonesia shall be responsible for the preparation and
submission of claims to Canadian suppliers for short
shipments,and for the preparation and submission for
insurance claims in the event of losses or damage to
commodities while in transit.
2.4. Demurrage resulting from failure to provide proper
berthing shall be to the account of the Indonesia or its
designated agent and may be considered a liable charge
against the Loan.
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THIS AMENDING AGREEMENT MADE IN DUPLICATE
the
30th
day
of
March
1980
BETWEEN:
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
(hereinafter called "Indonesia")
AND:
THE GOVERNMENT OF CANADA
(hereinafter called "Canada")
as represented by the Secretary of State for
External Affairs acting through the President
of the Canadian International Development Agency
WHEREAS the Agreement dated the 4th day of May 1973 was executed by
Indonesia and Canada;
AND WHEREAS the aforesaid Agreement was a Loan Agreement in the amount
of twenty-five million Canadian dollars ($25,000,000);
AND WHEREAS Indonesia and Canada amended the aforesaid Agreement the
17th day of May 1977 to increase the amount of loan funds to twentyseven million four hundred thousand Canadian dollars ($27,400,000);
AND WHEREAS Indonesia and Canada further amended the aforesaid Agreement
the 30th day of March 1979 to extend the termination date for commitments
against the Loan to March 31, 1980;
AND WHEREAS Indonesia and Canada again further amended the aforesaid
Agreement the 27th day of April 1979 to amend Article II by adding the
following new section:
Section 2. 06
Indonesia shall immediately notify Canada
of any payment it receives for loss or damage
to commodities or materials in transit under an
insurance policy or otherwise. Unless otherwise
agreed to by Canada and Indonesia, Indonesia
shall use such proceeds to replace the commodities
or materials or portion thereof with like goods
from a Canadian source;
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AND WHEREAS Indonesia and Canada are desirous of further amending the
said Agreement,
NOW THEREFORE the parties hereto agree as follows:
I.
Section 4.03 of Article IV shall be amended and shall now read as
follows:
Section 4.03
Unless otherwise agreed to by Canada,
if the full amount of the Loan is not committed
by June 30, 1980, the balance will be cancelled
and the final instalments of the repayment to
be made by Indonesia shall be reduced accordingly.
IN WITNESS WHEREOF the parties hereto have caused to be subscribed the
signature of their authorized representatives at the City of Jakarta
as of the day and year first above written.
ON BEHALF OF THE GOVERNMENT
OF THE REPUBLIC OF INDONESIA
Signed
M. Panggabean
Minister of Foreign Affairs a.i.
ON BEHALF OF THE
GOVERNMENT OF CANADA
Signed
W. H. Montgomery
Ambassador
4th Day of May , 1973
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
(hereinafter called "Indonesia")
-- and -THE GOVERNMENT OF CANADA
(hereinafter referred to as "Canada") as
represented by the Secretary of State for
External Affairs acting through the President
of the Canadian International Development
Agency (hereinafter referred to as "CIDA").
WHEREAS Indonesia wishes Canada to provide financing for
developmental projects in the civil aviation sector (hereinafter referred to as "the Projects")as described in Annex "A"
of this agreement.
AND WHEREAS Canada is willing to make a loan available for
the purpose of financing Projects in the Civil Aviation Sector
on the terms and conditions provided herein;
NOW THEREFORE the parties hereto agree as follows:
ARTICLE
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The Loan
Section 1. 01
Canada shall make available to Indonesia on the terms and
conditions hereinafter set forth a development Loan in an amount
not to exceed twenty-five million Canadian dollars ($25,000,000).
Section 1. 02
Canada shall open on its books a Loan Account in the name
of Bank Indone sia acting for and on behalf of the Government of
Indone sia (here inafter referred to as "Bank Indone sia"), and
shall credit to such account the full amount of the Loan.
Withdrawals ..••
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Withdrawals, payments and disbursements may be made from the
Loan Account in accordance with the provisions of this Agreement.
Section 1.03
This Loan shall be free from interest, connnitment or service
charges.
Section 1.04
Repayment of the principal amount of the Loan shall be made
in eighty semi-annual instalments of three hundred and twelve
thousand and five hundred Canadian dollars ($312,500) each, due
and payable on the last day of September and March in each year
connnencing on March 31, 1984 and ending on September 30, 2023.
Section 1.05
Indonesia shall have the right to prepay principal in whole
or in part on any date without notice to Canada. The amount of any
prepayment shall be applied on the instalments on principal then
remaining payable in the reverse order of their maturity.
Section 1.06
All payments and prepayments, as set forth herein, shall be
made by Indonesia in Canadian dollars to the Receiver-General of
Canada, and shall be deemed to have been paid when received by
the Receiver-General of Canada.
Section 1.07
The principal of the Loan shall be paid without any deductions
whatsoever and more particularly shall be free from any taxes,
charges or other restrictions imposed under the laws of Indonesia
and those in effect in its territories or subdivisions.
Secti on 1.08
Indone sia agr e es that it will negotiate, a t the r e quest of
Canada, concerning acce leration of payments to the Re c e iverGeneral of Canada to be made under this Agr eement a t any time
afte r ....
- 3 -
after six (6) months before the first payment of principal
becomes due and payable. Indonesia and Canada shall nn.ltually
determine whether, on the basis of the capacity of Indonesia to
service a more rapid liquidation of its obligations in the light
of its internal and external financial aid and economic position,
such an acceleration should take place.
ARTICLE
II
Use of the Loan
Section 2.01
Except as may otherwise be specifically agreed to by Canada,
the proceeds of the Loan shall be used by Indonesia exclusively
for the purchase of certain equipment, materials and services in
Canada and for the payments of freight and insurance for such
equipment, materials and services, which are required to undertake development projects which are approved by CIDA related to
the developments of the Civil Aviation sector in Indonesia.
Specific projects recommended by Indonesia for financing under
this loan agreement will be approved by CIDA through simple
exchange of letters. Eligible equipment, materials and services
which may be required to carry out the Projects, shall be as
described in Annex "A", and procedures for their procurement and
payment shall be those set forth in Annex "B", both Annexes being
subject to such modification as may be agreed upon between Canada
and Indonesia.
Section 2.02
Each of the Proj ects to be financed from the proceeds of
the Loan shall have an overall Canadian content of not less than
sixty-six and two-thirds percent (66 2/3 %).
Section 2.03
Projects contracted for prior to the effective date of this
Agreement may not be financed out of the proceeds of the Loan
except as may otherwise be agreed to by Canada.
Section 2. 04 ..
- 4 Section 2.04
The equipment and materials supplied under this Agreement
are for domestic Indonesian consumption and shall not be reexported by Indonesia .
Section 2.05
Proceeds from the Loan shall not be used by Indonesia to
meet the costs of any taxes, fees or customs duties imposed
directly or indirectly by Indonesia on the items procured.
ARTICLE
III
Withdrawals of Proceeds of Loan
Section 3.01
Withdrawals from the Loan Account shall be for payments to
Canadian suppliers for imports by Indonesia of equipment,
materials and services eligible under this Agreement and for the
payment of freight and insurance thereof. Such payments will be
made under irrevocable letters of credit, expressed in Canadian
currency, issued by Indonesian foreign exchange banks designated
by Bank Indonesia through designated correspondent Canadian banks.
Section 3. 02
Withdrawals shall be deemed to occur on the dates on which
reimbursements are made from the Loan Account to the designated
Canadian bank for the payments to suppliers referred to in
Section 3. 01.
Section 3.03
Subject to the conditions and limitations set forth,
Indonesia shall be entitled to withdrawals from the Loan Account
in such amounts as are required to meet the reasonable costs of
the equipment, materials and services in Annex "A" and the costs
of freight and insurance thereof, as these be come due and payable.
Section 3.04 ...
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Section 3.04
Indonesia or its designated agent shall provide Canada with
a copy of each invitation to tender, contract and/or purchase
order for the procurement of equipment, materials or services
under this Loan Agreement in respect of which any withdrawal is
to be made. Bank Indonesia and/or the relevant Indonesian foreign
exchange bank, designated by Bank Indonesia, shall provide Canada
with a copy of each irrevocable letter of credit issued under
this Agreement.
Section 3.05
Unless otherwise agreed to by CIDA, withdrawal of proceeds
from the Loan shall not exceed in each year the amount of five
million Canadian dollars ($5,000,000.00).
Section 3.06
The Indonesian procuring Agency shall furnish, or cause to
be furnished to Canada such documents and other evidence in
support of the letters of credit referred to in Section 3.01 as
Canada may reasonably request, such evidence to be sufficient
in form and substance to establish that the amounts to be withdrawn are properly related to the purposes of the Loan Agreement.
ARTICLE IV
Cancellation and Suspension
Section 4.01
Indonesia may, by sixty (60) days' notice to Canada cancel
all or any part of the Loan not withdrawn by Indonesia prior to
the giving of such notice and not required to meet outstanding
financial obligations to suppliers or firms incurred under the
Loan.
Section 4.02
If any of the following events occur and continue to occur,
Canada may, by sixty (60) days' notice to Indonesia, specifying
the
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the reason for suspension, suspend in whole or in part the
right of Indonesia to obtain withdrawals from the Loan Account
a) A default on the part of Indonesia in the performance of any
undertaking under this Agreement;
b) Any situation which renders it impossible for Indonesia to
perform its obligations under this Agreement.
If suspension occurs and continues for thirty (30) days, Canada
may by sixty (60) days' notice to Indonesia, cancel that part of
the Loan not withdrawn prior to the giving of such notice, and
not required to meet outstanding financial obligations to
suppliers or firms incurred under the Loan.
Section 4.03
Unless otherwise agreed to by Canada, if the full amount
of the Loan is not connnitted by March 31, 1979, the balance will
be cancelled and the final instalments of the repayment to be
made by Indonesia shall be reduced accordingly.
Section 4.04
Additional funds may be provided to Indonesia under this
Loan Agreement and subject to the same terms and conditions
outlined in the present Agreement, unless otherwise agreed to
by Canada. The provision of such additional funds shall be
effected through simple exchange of letters, and shall
necessitate modifications to the present Loan Agreement
concerning principal balance outstanding and repayments.
ARTICLE
V
General Undertakings
Section 5.01
Indonesia and Canada shall ensure that this Agreement is
carried out with due diligence and efficiency and each shall
furnish to the other all such information as shall reasonably
be requested.
Responsibilities
- 7 Responsibilities of Indonesia with regard to equipment, materials
and services shall be as described in Annex "C", this Annex being
subject to such modification as may be agreed upon between Canada
and Indonesia.
Section 5.02
Indonesia shall afford accredited representatives of Canada
all reasonable opportunities to visit any part of the territories
of Indonesia for purposes related to this Loan Agreement.
Section 5.03
The present Agreement and any Annex hereto shall be free
from any taxes, fees or other charges that may be imposed under
the laws of Indonesia and these in effect in its territories or
administrative, political or juridical divisions or subdivisions
in connection with the execution, issue, delivery and registration
thereof.
Section 5.04
Indonesia shall provide or cause to be provided as needed
all local costs financing and resources which may be required
to implement this Agreement.
Section 5.05
For the purposes of this Agreement and the Annexes hereto,
Indonesia shall include any agent or agents authorized by and
on behalf of Indonesia with regard to its right, duties and
obligations herein.
ARTICLE
VI
Section 6.01
Any communication or document given, made or sent by either
Indonesia or Canada pursuant to the present Agreement or any
Annex thereto shall be in writing and shall be deemed to have
been ••••
- 8 been duly given, made or sent to the party to which it is
addressed at the time of its delivery by hand, mail, telegram
cable or radiogram at its respective address, namely :
For Indonesia
Mail Address:
Cable Address:
and/or
Mail Address:
Cable Address:
For Canada:
Mail Address:
Cable Address:
and/or
Mail Address:
Cable Address:
Department of Foreign Affairs
Jalan Singamangaraja 97
Jakarta, Indonesia
DEPLU JAKARTA
Bank Indonesia
Jalan Kebon Sirih No. 82-84
Jakarta, Indonesia
Delegasi, Jakarta
Canadian International Development
Agency
122 Bank Street
Ottawa, Ontario, KIA OG4
CIDA, Ottawa
Canadian Embassy
Jalan Budi Kemuliaan No.6, Jakarta
Indonesia
Domcan, Jakarta
Section 6.02
Any one of the parties hereto may, by notice to the other
party, change the address to which any notice or request intended
for the party so giving such notice shall be addressed.
Section 6.03
All connnunications and documents submitted to Canada shall
be either the English or the French language and all technical
specifications therein shall be in terms of Canadian standards
except where Canada may otherwise agree in writing.
Section 6.04
This Agreement may be simultaneously executed in several
counterparts each of which so executed shall be deemed an
original.
IN WITNESS ...
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IN WITNESS WHEREOF, the parties hereto have caused to be
subscribed the signatures of their authorized representatives
at the City of Jakarta as of the day and year first above
written.
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ON BEHALF OF THE GOVERNMENT OF THE
REPU'6LIC OF INDONESIA
Signed
ADAM MALIK
Minister for Foreign Affairs
ON BEHALF OF THE GOVERNMENT OF
CANADA
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Signed
W. T. DELWORTH
Ambassador
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ANNEX "A" TO CIVIL AVIATION PROJECTS
LOAN AGREEMENT
BETWEEN THE GOVERNMENT TO THE REPUBLIC
OF INDONESIA
- and THE GOVERNMENT OF CANADA
Use of The Loan
1) The proceeds of the Loan are to be used exclusively to
finance the purchase of certain equipment, materials and
services in Canada and for the payments of freight and
insurance which are required for development projects in
Indonesia related to the development of the civil aviation
sector. The equipment, materials and services supplied
under the Loan shall not exceed twenty-five million Canadian
dollars ($ 25,000,000) and shall be approved through simple
exchange of letter between CIDA and Indonesia.
2) Purchases under the Loan shall have an overall Canadian
content of not less than sixty-six and two-thirds percent
( 66 j. % ) and shall be eligible for export under Canadian
export regulations and for import under Indonesian import
regulations .
3) Atomic energy materials and equipment, arms, armaments,
guns, ammunition, and all other equipment or materials for
primarily military use or for the manufacture thereof are
prohibited for supply under this Loan.
4) At CIDA's request, substantiation may be required from time
to time that the products and services purchased under this
Agreement are required for developmental purposes by Indonesia.
Annex
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ANNEX "B" TO CIVIL AVIATION PROJECTS LOAN AGREEMENT
BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
- and THE GOVERNMENT OF CANADA
Procurement and Payment Procedures
1.1. For equipment, materials and services eligible for financing
under this Loan Agreement, Indonesia must officially request
that the item be included under this Loan Agreement and
receive approval by CIDA through simple exchange of letters.
1.2. Project proposals with definition and justification of the
project, along with other supporting documentation will be
supplied to CIDA in support of requests by Indonesia for
withdrawals of the proceeds of this Loan.
1.3. Equipment, materials and services eligible for financing
under this Loan Agreement may be procured by the public
sector (government departments and/or agencies).
Procurement Procedures
Procurement of Consultant Services
2.1. Where consultant services may be procured in Canada under
this Agreement, a competitive proposal call shall be made
from a representative number of qualified Canadian firms,
unless otherwise agreed to by CIDA . Lists of Canadian firms
may be obtained from the Canadian Embassy in Jakarta or
from CIDA in Ottawa.
2.2. The list of Canadian firms invited to propose shall be as
approved by CIDA unless otherwise agreed to by CIDA.
2.3. Where a Canadian firm is selected, the contract with the
firm will be negotiated and let by Indonesia; the terms
and conditions of the contract shall b e subject to approval
by CIDA.
Procurement . . . .
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Procurement of Equipment and Materials
3.1. All procurement of equipment and materials shall be subject
to competitive tender procedures unless prior approval for
waiver is obtained from CIDA.
3.2. Before any purchase contracts are entered into, the prospective contracting party shall invite tenders from a representative number of Canadian suppliers of the required products
unless otherwise agreed to by CIDA.
3.3. A copy of each Invitation to Tender, together with a list of
Canadian Suppliers invited to tender, shall be forwarded by
Indonesia to the Canadian Embassy in Jakarta or to Canada.
3.4. Tenders for materials, equipment and construction services
will be called on the basis, as may be applicable in the
particular case, of supply, delivery to site, installation
and erection, construction, completion and warranty maintenance
thereof. Where applicable tenders shall be instructed to show
separate costs of supply FOB and insurance and freight, and
the cost of local operation in Indonesia in their bids.
3.5. List of Canadian suppliers may be obtained from the Canadian
Embassy in Jakarta or from CIDA in Ottawa. The assessment
of the tenders received will be forwarded to CIDA. Prior to
the issuance of a purchasing contract, Bank Indonesia will
obtain confirmation from Canada to the use of the Loan for
each transaction through CIDA which will constitute clearance
for the transaction for Canadian content and tendering
regulations.
3.6. The Canadian companies invited to tender shall be instructed
to
a) include in their tender a declaration of the Canadian
content of the equipment and materials they are offering
for purchase;
b) send . . . .
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e) Prior to shipment of equipment and materials, the
Canadian supplier shall complete a Canadian Content Form
and forward it along with technical specifications
complying with Canadian quality standards and all supporting documentation, as specified in the Letter of Credit,
to CIDA for approval.
3.9. The Canadian supplier or the accredited Canadian selling
agent for Indonesia shall be responsible for :
a) arranging and paying for freight and insurance;
b) inspection of the equipment and materials prior to
packing and shipping.
4. Payment Procedures
Equipment, Materials and Services
4.1. The Bank Indonesia shall, when a contract is awarded, open
through Canadian Bank letters of credit in favour of
Canadian suppliers.
4.2. CIDA shall confirm to the Canadian Bank that the Bank will
be reimbursed by the Canadian International Development
Agency from the development loan funds, upon receipt of
evidence of shipments having been made under and in
conformity with terms of letters of credit opened by Bank
Indonesia.
4.3. All banking charges incurred by the Bank Indonesia in
connection with the opening of letter of credit through
the Canadian Bank will be reimbursed by CIDA from the
development loan funds. Any interest charges that may be
payable by Bank Indonesia to the Canadian Bank in the event
of that bank advancing funds to meet payments to Canadian
suppliers will also be reimbursed by CIDA from the development loan funds. Statements of disbursements will be
prepared by CIDA and forwarded to Bank Indonesia at least
on six monthly basis.
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b) send copies of all tenders to CIDA at the same time
as they are forwarded to the recipient Indonesian
procurement agency; (the copies of tenders received
by CIDA will be treated as a closed tender call and
not opened until the dates established by the
recipient);
c) complete a Canadian Content Form including statement
that the price is fair and reasonable and forward it
to CIDA with each copy of tender;
d) submit to CIDA, technical specifications complying
with the Canadian quality standards for the equipment
and materials to be supplied.
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3.7. If other than the lowest evaluated tender with acceptable
Canadian content is to be approved, the concurrence of CIDA
shall be obtained before the purchase contract is issued.
3.8. CIDA may upon receipt of formal advance application, waive
the requirement for competitive tenders in the situations
specified hereunder
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a) when procurement concerns equipment and materials which
areonly available from a single source;
b) when procurement concerns equipment and materials which
by nature and specification are peculiar to a specific
manufacturing process or end equipment and materials;
c) when equipment and materials are to be procured under
such other conditions which appear to CIDA to merit a
waiver from the tendering procedures;
d) Applications for waiver, supported by reasons therefore,
must be forwarded through the Canadian Embassy, Jakarta
to CIDA in Ottawa. No procurement action shall be
initiated until the notification of approval is given
by CIDA;
e) Prior . . .
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ANNEX ''C''
RESPONSIBILITIES OF THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
1. With respect to equipment and materials, and to consultant
services provided from Canada :
1.1. Indonesia will arrange with Indonesian custom officials
to properly clear through Indonesian customs free of
imports, customs and other duties and taxes all equipment
and materials required to support and undertake the
implementation of the project(s). Indonesia will exempt
the consultant and its personnel (other than personnel
who are citizens or permanent residents of Indonesia)
from, or bear the costs of, any taxes, duties, fees,
levies, and other impositions imposed under its laws
and regulations or the laws and regulations in effect
in its territories or any political subdivision.
1.2. Indonesia will provide at no cost to the loan account,
local facilities and services to permit the consultant to
implement the project(s) .
Details of facilities and services requirements shall be
subject to individual contractual obligation.
1.3. Indonesia will provide :
a. all Indonesian permits, licences and other such documents
required to enable Canadian personnel to carry out their
respective responsibilities in Indonesia;
b. all export and exit permits required for the return of
any of the material, equipment or effects (including
personal effects) which are the property of or are
provided by the Government of Canada, the firm or
individual Canadian employed on the provision of services
under this agreement;
c. acces to those parts of Indonesia required to enable
Canadian personnel to carry out their responsibilities
i n Indonesia.
1.4. Indonesia will indemnify and save harmless, at no cost to
the Loan Account, Canada or its personnel engaged in the
perf ormance of duties in connection with the Loan; from any
civil liability arising from any claims resulting from :
a. injury
....
- 2 a. injury or death of any such personnel during the
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performance of his duties relative to the Loan;
b. injury or death of any person arising from the work of
the project; and
c. property damage arising from the work of the project(s). I
This provision will not relieve any such personnel of
Canada from liability for any fraudulent or criminal act.
2. With respect to Materials, Equipment and Construction Services
provided from Canada :
2.1. Arrange for inspection and testing, as necessary. All
foreign exchange costs pertaining to inspection and
testing of materials and equipment procured in Canada
for projects funded under this Loan will be reimbursable
under this Agreement, where these costs are not already
reimbursable under existing financing arrangements for
the project(s) concerned.
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2.2. Undertake to be responsible for adequate insurance for
short shipments, losses or damage to the equipment and
materials during shipment and in transit. If any part
of the lost or damaged.equipment and materials is prefinanced for replacement out of the Loan Fund pending
settlement of insurance claims, on settlement of such
claims the amounts will be deposited to the account of
the Loan Fund and will be paid in Canadian dollars.
2.3. Indonesia shall be responsible for the preparation and
submission of claims to Canadian suppliers for short
shipments,and for the preparation and submission for
insurance claims in the event of losses or damage to
commodities while in transit.
2.4. Demurrage resulting from failure to provide proper
berthing shall be to the account of the Indonesia or its
designated agent and may be considered a liable charge
against the Loan.
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THIS AMENDING AGREEMENT MADE IN DUPLICATE
the
30th
day
of
March
1980
BETWEEN:
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
(hereinafter called "Indonesia")
AND:
THE GOVERNMENT OF CANADA
(hereinafter called "Canada")
as represented by the Secretary of State for
External Affairs acting through the President
of the Canadian International Development Agency
WHEREAS the Agreement dated the 4th day of May 1973 was executed by
Indonesia and Canada;
AND WHEREAS the aforesaid Agreement was a Loan Agreement in the amount
of twenty-five million Canadian dollars ($25,000,000);
AND WHEREAS Indonesia and Canada amended the aforesaid Agreement the
17th day of May 1977 to increase the amount of loan funds to twentyseven million four hundred thousand Canadian dollars ($27,400,000);
AND WHEREAS Indonesia and Canada further amended the aforesaid Agreement
the 30th day of March 1979 to extend the termination date for commitments
against the Loan to March 31, 1980;
AND WHEREAS Indonesia and Canada again further amended the aforesaid
Agreement the 27th day of April 1979 to amend Article II by adding the
following new section:
Section 2. 06
Indonesia shall immediately notify Canada
of any payment it receives for loss or damage
to commodities or materials in transit under an
insurance policy or otherwise. Unless otherwise
agreed to by Canada and Indonesia, Indonesia
shall use such proceeds to replace the commodities
or materials or portion thereof with like goods
from a Canadian source;
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AND WHEREAS Indonesia and Canada are desirous of further amending the
said Agreement,
NOW THEREFORE the parties hereto agree as follows:
I.
Section 4.03 of Article IV shall be amended and shall now read as
follows:
Section 4.03
Unless otherwise agreed to by Canada,
if the full amount of the Loan is not committed
by June 30, 1980, the balance will be cancelled
and the final instalments of the repayment to
be made by Indonesia shall be reduced accordingly.
IN WITNESS WHEREOF the parties hereto have caused to be subscribed the
signature of their authorized representatives at the City of Jakarta
as of the day and year first above written.
ON BEHALF OF THE GOVERNMENT
OF THE REPUBLIC OF INDONESIA
Signed
M. Panggabean
Minister of Foreign Affairs a.i.
ON BEHALF OF THE
GOVERNMENT OF CANADA
Signed
W. H. Montgomery
Ambassador