Selanjutnya
A.I.D. Loan No. 497 - T- 075
A.I . D. Project No. 497 -0304
PROJECT
LOAN AGREEMENT
BETWEEN
THE REPUBLIC OF INDONESIA
AND THE
UNITED STATES OF AMERICA
FOR
SECONDARY FOOD CROPS DEVELOPMENT
Dated : May 23 , 1983 .
II
PROJECT LOAN AGREEMENT
Table of Contents
PAGE
-
Title Page
Table of Contents
I-
II
Article 1 :
The Agreement
1
Article 2:
The Project
l
SECTION 2 . 1 .
Article 3 :
Financing
SECT! ON 3 . 1.
SECTION 3 . 2.
SECTION 3 . 3.
Article 4 :
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
Article 5:
4.1 .
4. 2.
4. 3.
4 . 4.
4. 5.
4.6.
Interest
Repayment
Application , Currency, and Place of Payment
Prepayment
Renegotiation of Terms
Termination of Full Payment
Conditions Precedent to Disbursement
SECTION 5.3 .
SECTION 5.4.
First Disbursement
Conditions Precedent to Additional
Disbursement for Technical Assistance
Notification
Terminal Dates for Conditions Precedent
Special Covenants
SECTION 6. 1.
SECTION 6.2 .
Article 7:
The Loan
Borrower Resources for the Project
Project Assistance Completion Date
Loan Terms
SECTION 5 . 1 .
SECTION 5 . 2.
Article 6:
Definition of Project
Project EvaliiHtion
Implementat1on Plan
Procurement Source
SECTION 7. 1 .
SECTION 7. 2.
Foreign Exchange Costs
Local Currency Costs
1
2
2
2
3
3
3
4
4
4
5
5
6
6
7
7
7
7
7
8
8
8
8
/
Article 8:
SECTION
SECTION
SECTION
SECTION
SECTION
Article 9:
Disbursements
8. 1.
8. 2.
8 . 3.
8. 4.
8.5.
Disbursement for Foreign Exchange Costs
Disbursement for Local Currency Costs
Other Forms of Disbursement
Rate of Exchange
Date of Disbursement
Miscellaneous
SECTION 9. 1 .
SECTION 9. 2.
SECTION 9. 3.
Communications
Representatives
Standard Provisions Annex
PAGE
--9-
9
10
10
10
11
11
11
12
12
Amplified Description of the Project
ANNEX I
Project Loan Standard Provisions
ANNEX II
/
A. I . D. Loan No . 497-T - 075
A. I . D. Project No. 497 - 0304
PROJECT LOAN AGREEMENT
Dated : May 23 , 1983 .
Between
Republic of Indonesia ("Borrower")
and
The United States of America , acting through the Agency for
International Development ("A . I . D". ).
Article 1 .
The Agreement .
The purpose of this Agreement is to set out the understandings
of the parties named above ("Parties") with respect to the
undertaking by the Borrower of the Project described below, and with
respect to the financing of the Project by the Parties .
Article 2.
The Project .
SECTION 2.1 .
Definition of Project .
The Project, which is
further described in Annex I, wi ll assist the Government of
Indonesia to increase the production of secondary crops in selected
provinces and to improve the marketing of such crops through the
introduction of technology in production , post - harvest operation and
marketing, training , demonstration farms and systems trials, special
studies and assistance for the development of a National Food Policy
Library .
Project .
Annex I, attached, amplifies the above definition of the
-2-
Within the limits of the above definition of the Project,
elements of the amplified description stated in Annex I may be
changed by written agreement of the authorized representatives of
the Parties named in Section 9. 2, without formal amendment of this
Agreement .
Article 3.
Financing.
SECTION 3.1 .
The Loan.
To assist the Borrower to meet the cost
of carrying out the Project, A. I.D . pursuant to the Foreign
Assistance Act of 1961, as amended, agrees to lend the Borrower
under the terms of this Agreement six million four hundred thousand
United States ("U . S . ") Dollars ($6,400,000) to support the Project.
The aggregate amount of disbursements under the Loan is referred to
as "Principal" .
The Loan may be used to finance foreign exchange costs, as
defined in Section 7.1., and local currency costs, as defined in
Section 7.2., of goods and services required for the Project.
SECTION 3. 2.
(a)
Borrower Resources for the Project.
The Borrower agrees to provide or cause to be provided for
the Project all funds, in addition to the Loan, and all other
resources required to carry out the Project effectively and in a
timely manner .
(b)
The resources provided by the Borrower for the Project will
be not less than the equivalent of U. S. $ 6,291 , 000, including costs
borne on an "in-kind" basis.
-3-
SECTION 3 . 3 .
(a)
Project Assistance Completion Date.
The "Project Assistance Completion Date" (PACD), which is
April 15, 1988, or such other date as the Parties may agree to in
writing, is the date by which the Parties estimate that all services
financed under the Loan will have been performed and all goods
furnished under the Loan will have been furnished for the Project as
contemplated in this Agreement.
(b)
Except as A.I . D. may otherwise agree in writing, A.I.D .
will not issue or approve documentation which would authorize
disbursement of the Loan for services performed subsequent to the
PACD or for goods furnished for the Project, as contemplated in this
Agreement, subsequent to the PACD .
(c)
Requests for disbursement, accompanied by necessary
supporting documentation prescribed in Project Implementation
Letters , are to be received by A. I . D. or any bank described in
Section 8.1 no later than nine {9) months following the PACD, or
such other period as A.I . D. agrees to in writing.
After such
period, A. I . D., giving notice in writing to the Borrower, may at any
time or times reduce the amount of the Loan by all or any part
thereof for which requests for disbursement, accompanied by
necessary supporting documentation prescribed in Project
Implementation Letters, were not received before the expiration of
said period.
Article 4.
Loan Terms.
SECTION 4 . 1 .
Interest.
The Borrower will pay to A. I . D.
interest which will accrue at the rate of two percent (2%) per annum
- 4-
for ten (10) years following the rlate of the first disbursement
hereunder and at the rate of three percent (3%) per annum thereafter
on the outstanding balance of Principal and on any due and unpaid
interest.
Interest on the outstanding balance will accrue from the
date (as defined in Section 8. 5. ) of each respective disbursement,
and will be payable semiannually .
The first payment of interest
will be payable no later than six (6) months after the first
disbursement hereunder , on a date to be specified by A. I . D.
SECTION 4 . 2.
Repayment.
The Borrower will repay to A. I . D. the
Principal within forty (40) years from the date of the first
disbursement of the Loan in sixty - one (61) approximately equal
semiannual installments of Principal and interest .
The first
installment of Principal will be payable nine and one - half (9 - l/2)
years after the date on which the first interest payment is due in
accordance with Section 4. 1 .
A. I . D. will provide the Borrower with
an amortization schedule in accordance with this Section after the
final disbursement unde r the Loan .
SECTION 4. 3.
Application, Currency, and Place of Payment .
All
payments of interest and Principal hereunder will be made in U. S.
Dollars and will be applied first to the payment of interest due and
then to the repayment of Principal .
Except as A. I . D. may otherwise
specify in writing, payments will be made to the Controller, Office
of Financial Management, Agency for International Development,
Washington, D.C . 20523, u.s.A . , and will be deemed made when
received by the Office of Financial Management .
SECTION 4. 4.
Prepayment .
Upon payment of all interest and any
refunds then due, the Borrower may prepay, without penalty, all or
-5any part of the Principal.
Unless A.I . D. otherwise agrees in
writing, any such prepayment will be applied to the installments of
Principal in the inverse order of their maturity .
SECTION 4.5.
Renegotiation of Terms.
(a)
The Borrower and
A.I.D. agree to negotiate, at such time or times as either may
request, an acceleration of the repayment of the Loan in the event
that there is any significant and continuing improvement in the
internal and external economic and financial position and prospects
of the Republic of Indonesia,
which enable the Borrower to repay
the Loan on a shorter schedule .
(b)
Any request by either Party to the other to so negotiate
will be made pursuant to Section 9.2, and will give the name and
address of the person or persons who will represent their requesting
Party in such negotiations.
(c)
Within thirty (30) days after delivery of a request to
negotiate, the requested Party will communicate to the other,
pursuant to Section 9.2 , the name and address of the person or
persons who will represent the requested Party in such negotiations.
(d)
The representatives of the Parties will meet to carry on
negotiations no later than thirty (30) days after delivery of the
requested Party's communication under subsection (c).
The
negotiations will take place at a location mutually agreed upon by
the representatives of the Parties, provided that, in the absence of
mutual agreement, the negotiations will take place at the office of
Borrower ' s Ministry of Finance in the Republic of Indonesia .
SECTION 4.6.
Termination on Full Payment .
Upon payment in full
of the Principal and any accrued interest, this Agreement and all
obligations of the Borrower and A.I.D . under it will cease .
-6-
Article
s.
Conditions Precedent to Disbursement.
SECTION 5-l·
First Disbursement .
Prior to the first
disbursement under the Loan, or to the issuance by A.I . D. of
documentation pursuant to which disbursement will be made, the
Borrower will, except as the Parties may otherwise agree in writing,
furnish to A.I.D. in form and substance satisfactory to A. I . D.:
(a)
An opinion of the Minister of Justice of the Borrower that
this Agreement has been duly authorised and/or ratified by, and
executed on behalf of , the Borrower, and that it constitutes a valid
and legally binding obligation of the Borrower in accordance with
all of its terms;
(b)
A statement of the name of the person holding or acting in
the office of the Borrower specified in Section 9.2, and of any
additional representatives, together with a specimen signature of
each person specified in such statement;
(c)
Submission to USAID of a mutually agreed upon plan for the
allocation , schedule and method of disbursement of funds to
participating agencies namely, the Directorate General of Food Crops
Agriculture (DGFCA), the National Logistics Agency (BULOG),
Department of Cooperatives, the Agency for Agricultural Extension,
Training and Education (AAETE) and Bank Rakyat Indonesia (BRI);
(d)
Evidence that creation of a Steering Committee consisting
of the Director, Directorate of Foodcrops Production Development
(DGFCA) , Ministry of Agriculture Chairman; Director of Research and
Development , BULOG; and Director , Directorate General of Cooperative
Business Development, Ministry of Cooperatives, and such other
members as the GOI may deem appropriate, has been created to oversee
the project.
-7SECTION 5. 2.
Conditions Precedent to Additional Disbursement
For Technical Assistance.
Prior to disbursement under the Loan, or
to the issuance by A.I.D. of documentation to which disbursement
will be made for technical services, the Borrower will, except as
the Parties may otherwise agree in writing, furnish to A.I . D. in
form and substance satisfactory to A.I . D.:
(a)
Evidence of the establishment of the Palawija Project
Office and appointment of GOI counterparts includi ng the Project
Director, the Project Cropping Systems Specialist, the Project
Post-Harvest and Marketing Specialist and the Project Agricultural
Economist; and that at least three project vehicles are available
for the technical assistance team , except for the contract for the
Library Development Specialist.
(b)
Evidence that sufficient funds have been provided to permit
the Palawija Project Office to function effec tively.
SECTION 5.3.
Notification.
When A.I.D. has determined that the
conditions precedent specified in Section 5. 1 and 5.2 have been met,
it will promptly notify the Borrower .
SECTION 5. 4.
Terminal Dates for Conditions Precedent.
If all
of the conditions specified in Section 5.1 have not been met within
90 days from the date of this Agreement , or such later date as
A.I . D. may agree to in writing, A. I.D., at its option may terminate
this Agreement by written notice to Borrower .
Article 6.
Special Covenants.
SECTION 6. 1 .
Project Evaluation.
The Parties agree to
establish an evaluation program as part of the Project.
Except as
the Parties otherwise agree in writing, the program will include,
during the implementation of the Project and at one or more points
-8-
thereafter: (a) evaluation or progress toward attainment of the
objectives of the Project; (b) identification and evaluation of
problem areas or constraints which may inhibit such attainment;
(c) assessment of how such information may be used to help overcome
such problems; and (d) evaluation, to the degree feasible, of the
overall development impact of the Project.
SECTION 6.2.
Implementation Plan .
The GOI undertakes to submit
to USAID a detailed implementation plan for the first year of
project activities including the procedures for the procurement of
technical assistance, recruitment of field teams, and execution of
the baseline survey.
Article 7:
Procurement Source .
SECTION 1 . 1 .
Foreign Exchange Costs.
Disbursements pursuant to
Section 8.1 will be used exclusively to finance the costs of goods
and services required for the Project having their source and origin
in countries included in Code 941 of the A.I . D. Geographic Code Book
as in effect at the time orders are placed or contracts entered into
for such goods and services ("Foreign Exchange Costs"), except as
A.I.D. may otherwise agree in writing, and except as provided in the
Project Loan Standard Provisions Annex, Section C. l (b) with respect
to marine insurance .
Ocean transportation costs will be financed
under the Loan only on vessels under flag registry of the United
States, or Indonesia; or Code 941 countries as long as chartered or
operated by Indonesian shipping companies, except as A. I.D. may
otherwise agree in writing .
SECTION 1 . 2 .
Local Currency Costs.
Disbursements pursuant to
Section 8.2 will be used exclusively to finance the costs of goods
- 9-
and services required for the Project having their source and,
except as A. I.D . may otherwise agree in writing, their origin in the
Republic of Indonesia ("Local Currency Costs").
To the extent
provided for under this Agreement, "Local Currency Costs" may also
include the provision of local currency resources required for the
Project .
Article 8 .
Disbursements .
SECTION 8 . 1 .
(a)
Disbursement for Foreign Exchange Costs.
After satisfaction of the conditions precedent, the
Borrower may obtain disbursements of funds under the Loan for the
Foreign Exchange Costs of goods or services required for the Project
in accordance with the terms of this Agreement, by such of the
following methods as may be mutually agreed upon :
(1)
by submitting to A. I . D. with necessary supporting
documentation as prescribed in Project Implementation Letters, (A)
requests for reimbursement for such goods or services, or (B)
requests for A. I.D. to procure commodities or services on Borrower's
behalf for the Project; or
(2)
by requesting A. I.D . to issue Letters of Commitment
for specified amounts (A) to one or more U. S . banks , satisfactory to
A. I . D. , committing A. I.D . to reimburse such bank or banks for
payments made by them to contractors or suppliers under Letters of
Credit or otherwise, for such goods or services, or (B) directly to
one or more contractors or suppliers, committing A.I.D. to pay such
contractors or suppliers for such goods and services .
(b)
Banking charges incurred by Borrower in connection with
Letters of Commitment and Letters of Credit will be financed under
-10-
the Loan unless the Borrower instructs A. I.D. to the contrary.
Such
other charges as the Parties may agree to may also be financed under
the Loan.
SECTION
(a)
s.z.
Disbursement for Local Currency Costs
After satisfaction of the conditions precedent, the
Borrower may obtain disbursements of funds under the Loan for
ｌｯ｣ｾｬ＠
Currency Costs required for the Project in accordance with the terms
of this Agreement by submitting to A.I.D., with necessary supporting
documentation as prescribed in Project Implementation Letters,
requests to finance such costs .
(b)
obtained:
The local currency needed for such disbursement may be
(1)
In local currency acquired by A. I . D. by purchase or
from local currency already owned hy the
u.s .
Government or (2) by
A. I.D. requesting the Borrower to make available the local currency
for such costs, and thereafter reimbursing an amount of U.S. Dollars
equal to the amount of local currency made available by the
Borrower .
The U. S . dollar equi valent of the local currency made
available hereunder will be the amount of U. S. dollars required by
A. I . D. to obtain the local currency .
SECTION 8.3.
Other Forms of Disbursement .
Disbursements of the
Loan may also be made through such other mP.ans as the Parties may
agree to in writing.
SECTION 8.4 .
Rate of Exchange .
Except as may more specifically
be provided under Section 8.2, if funds provided under the Loan are
introduced into Indonesia by A.I . D. or any public or private agency
for purposes of carrying out obligations of A. I.D. hereunder, the
Borrower will make such arrangements as may be necessary so that
such funds may be converted into currency of Republic of Indonesia
-11at the highest rate of exchange which, at the time the conversion is
made, is not unlawful in Indonesia.
SECTlON 8.5.
Date of Disbursement.
Disbursements by A.I . D.
will be deened to occur (a) on the date on which A. I.D. makes a
disbursemen t to the Borrower or its designee, or to a bank,
contractor or supplier pursuant to a Letter of Commitment, contract,
or purchase order;
(b)
on the date on which A. I.D . disburses to
the Borrower or its designee local currency acquired in accordance
with Section 8 . 2.
Article 9 .
Miscellaneous
SECTION 9 . 1.
Communications .
Any notice, request, document, or
other communication submitted by either Party to the other under
this Agreement will be in writing or by telegram or cable, and will
be deemed duly given or sent when delivered to such party at the
following addresses :
To the Borrower :
Mail Address :
Departemen Luar Negcri
Jala n Pejambon No.6
Jakarta Pusat
Indonesia
Alterna t e address for telegrams : DEPLU JAKARTA
To A. I . D. :
Mail Address :
U. S . Agency for International Development
Ame r ican Embassy
Jl . Medan Merdeka Selatan 5
Jakarta , Indonesia
Alterna t e address for telegrams: USAID AMEMB JAKARTA
All such communications will be in English , unless the Parties
otherwise agree in writing .
Other addresses may be
the above upon the giving of notice.
ｳｵｾｴｩ･､＠
The Borrower, in addition,
will provide the USAID Mission with a copy of each communication
for
-] 2-
sent to A. I .D .
SECTION 9 . 2 .
Representatives.
For all purposes relevant to
this Agreement, the Borrower will he represented by
ｴｾ･＠
JndivJctual
holding or acting in the office of Chairman or Vice Chairman,
ｄ･ｶｐｊｾｰｭｮｴ＠
National
ｾｮ､＠
Planning Agency (BAPPENAS)
A.I . D. will be
represented by the individual holding or acting in the office of
Mission Director, USAID Mission to
each of whnm, ty
ｉｮ､ｯ･ｾｩＮ＠
,,ritten noUce, may designate additional representatives for all
purposes other than exercising the power under Section 2 . 1 to revise
elements of the a mplified
in Annex I .
ｾ･ｳ｣ｲｩｰｴｯｮ＠
The namrs of the
representatives of the Borro,,rer, with spec imeP sigratures, Fi 11 be
provided to A. I . D. , which may accept as duly authorized any
instrument signed by such
in implementation Clf this
ｲ･ｰｴＧｳｮ｡ｩｶｾ＠
Agreement, until receipt of written notice of revocation of their
authority .
SECTION 9 . 3 .
Standard Provisions Annex .
A "Project Loan
Standard Provisions Annex" (Annex 2) is attacherl to nnd forms part
of this Agreement.
IN
liiiEREOF, the Republic of Indonesia and the United
ｉｾｔｎｅｓ＠
States o( AmPrica, each acting through its duly authorized
rep resentative, have caused this
names And
､･ｊｩｶｾｲ＠
to he signed in their
ａｧｲｾ･ｭｮｴ＠
as of the day anrl year first above writlen .
REPUBliC OF INDONESIA
UNITED STATES OF AMERICA
Signed
Atmono Suryo M. A.
Director General
for ｆ ｯｲｾｩｧｮ＠
Economic Rela t ions
ｾｨｮ＠
Signed
c.
... arge
Monjo
｣Ｇｬａｦ［ｾＱｲ･ｳ＠
- 1 -
Annex 1
AMPLIFIED PROJECI' DESQUPTION
I.
General Description
The goal of the Secondary Foodcrops Development Project is to
increase the volume of consumption, employment and income through the
increase in production and improvement of marketing of secondary crops
in each project site in the Provinces of Lampung , East Java and South
Sulawesi. To achieve these goals, the project will assist the
Directorate General of Food Crops, Department of Agriculture, to
introduce a technology package consisting of site specific cropping
systems, inputs and facilities for production and post harvest operation,
and special extension services on improved agronomic practices and
marketing of secondary crops . For purposes of this project, the
secondary crops, known in Indonesian as palawija, will be limited to
peanut, soybean, corn, and cassava.
This is a five year project starting in Indonesian Fiscal Year (IFY)
1983/1984 and terminating in Indonesian Fiscal Year 1988/1989. It is
fundamentally a trial, demonstration and extension project --- testing
new cropping systems, demonstrating the superiority of improved cropping
systems over traditional systems, improving post harvest operations, and
developing the market for secondary crops. The project concentrates on
three project sites representing various agronomic conditions under which
secondary crops are grown in Indonesia.
The four purposes of the project are:
(l) To conduct trials, demonstrations and related studies as a basis
for planning expansion of the project and for the formulation of
appropriate policies regarding prices, subsidies, production, consumption
and market development.
(2) To improve the quality, storeability, and market acceptance of
secondary crops by adoption of recommended pre and post harvest
technology that includes harvesting, threshing, drying, storing and
processing at the farm level and at various stages of the marketing chain.
(3) To bring about rapid adoption of recommended production
technology using improved varieties, commercial inputs (e.g. fertilizers,
seeds, inoculum, pesticides), improved agronomic practices, and site
specific cropping systems.
(4) To identify possible extension, marketing and behavioral change
models for maximizing the contribution of secondary food crops toward
improved nutrition.
- zBone, South Sulawesi; North Lampung, Lampung; and Ponorogo, East
Java are selected as pilot sites because they are predominantly secondary
crop producing areas with potential for increased production; they
represent different agro-climatic conditions; their populations consume
secondary crops as a supplement or substitute for rice, and improved
cropping systems have been tested with some degree of success .
It is anticipated that the introduction of the new cropping systems
will increase cropping intensity by 60\ for peanut and soybean, and 30%
for corn and cassava, thus bringing an incremental area of 54,400
hectares into production. Moreover, productivity in these incremental
areas should increase by SO% through the use of improved varieties,
agronomic practices and judicious use of commercial inputs. Thus, after
three years, the project will expand those methods demonstrated as
successful throughout the participating provinces.
Production inputs to increase yields include fertilizer, lime ,
seeds, pesticides, rhyzobiwn inoculum , small tillage equipment and draft
animals for Lampung and Bone. Marketing inputs include drying sheds,
simple mechanical dryers , storage facilities , and simple harvesting and
processing equipment. The proper application of the inputs will be
accompanied by field level instruction and demonstration conducted by six
Field Teams, each consisting of a Cropping Systems Agronomist, Marketing
and Post Harvest Specialist and an Agricultural Economist working with
the regular extension workers (PPS, PPM, PPL) on project sites . In
demonstration areas consisting of 180 farms of S hectare units the Field
Teams will encourage the farmers to adopt appropriate cropping systems,
assist in procuring inputs, and teach ｦ｡ｲｾｳ＠
recommended agronomic and
post harvest management practices.
In intensification areas, they will assist farmers and KUDs develop
farm plans and investment plans respectively as a basis for obtaining
supervised credit . In both demonstration and intensification areas, they
will also encourage KUD/PUSKUD/INKUD and private dealers to procure
secondary crops on a regular and contractual basis by offering attractive
prices for products of superior quality.
Data for agro-economic research on cropping systems, costs and
returns, production functions, fertilizer-yield response, and variety
trials will be obtained from demonstration farms . Research on post
harvest operations will be done at the BULOG Research and Training Center
and cooperating KUD/DOLOG/BULOG facilities . Demonstration on post
harvest at farm level will be done in cooperation with KUD. Cropping
systems research will be done in areas of potential expansion. Special
studies relating to pricing, subsidies, import and export, market
development, baseline and evaluation surveys will be done by Indonesian
or u.s. institutions. Specific topics will be developed by the technical
assistance team in cooperation ｜ｾｩｴｨ＠
the Indonesian counterparts. In
- 3 -
addition a market basket type study will be included in the baseline
survey to establish the present consumption and nutritional status of
beneficiaries and establish a basis from which nutritional interventions
can be formulated as the need arises .
will be short term designed to provide specific
All ｴｲ｡ｩｮＱｾ＠
management and technical skills. Three months training on production and
marketing and post harvest operations will be given to the Field Teams in
Jakarta before they are posted to the project sites. This will be
organized by the Agency for Agricultural Extension, Training and
Education (AAETE), with the technical support of the Agency for
Agricultural Research and Development (AARD) , the Directorate General for
Food Crops (DGFC), and the National Logistics Bureau (BULOG) . Two \Yeeks
training in production and post harvest management will be given to
contact farmers and KUD staff as well as well as private dealers on
project sites. This will be organized by the Field Teams with the
support of the provincial and kabupaten extension services.
The above activities will be under the overall administration of the
Directorate of Food Crops Production Development, Directorate General of
Food Crops Agriculture, where a Palawija Project Office (PPO) will be
created to administer the project. The PPO will be assisted by technical
advisers consisting of an Agricultural Economist, a Cropping Systems
Agronomist and a Marketing and Post Harvest Specialist. These technical
advisers will have as counterparts similar experts from the Directorate
General of Food Crops and together they will provide managerial,
administrative, and technical backstop services to the Field Teams .
Operational support services to the project will be accomplished
through contractual arrangement. The DGFC will contract with the Central
Research Institute for Food Crops (CRIFC) to conduct research on cropping
systems. The AAETE, with the technical support of CRIFC, the
Agricultural College, Bogor (IPB) , DGFC and BULOG, will organize
production, marketing and post-harvest training for the Field Teams. The
Bank Rakyat Indonesia (BRI) will provide supervised credit to farmers in
intensification areas in accordance with existing credit schemes. Gadjah
Mada University or others will supply rhyzobium inoculum. Selected
universities in South Sulawesi, Java and Lampung will conduct the
baseline, evaluation and monitoring studies. Studies on agricultural and
food policies, pricing, subsidies, market development, export and import
will be contracted to local or US universities . The project will also
provide ｬｩｾｴ･､＠
assistance in the establishment of Food Policy Library as
a principal repository of research materials for food policy studies.
- 4 -
The project will be represented in the BIMAS coordinating conunittee
at the national level by the Di rector of Food Crops Production
Development. TI1e project will be represented in the kabUpaten BIMAS
coordinating committee by the Kepala Dinas.
In addition a Steering Committee will be created consisting of the
Director, Directorate of Food Crops Production Development, DGFCA, as
Chairman; Director, Research and Development, BULOG; Director General of
Cooperat ive Business Development and other member as the Government may
so decide . This Committee will oversee implementation of the project and
\¥ill meet at least monthly . The Project Director will serve as a
secretary who will prepare the agenda and keep the ｾｩｮｵｴ･ｳ＠
of the
meetings . The USAID Project Manager may attend the meeting as an
observer.
II.
Responsibility of the GOI and AID
1.
Tedmical Assistance
The AID contribution will finance approximately 156 person months
long-term and 15 person months short-term technical assistance under
host country contracts. Costs of the the four long term consultants
consisting of one cropping systems specialist , one marketing and
post-harvest specialist, one agricultural economist/systems analyst ,
and one library development specialist include base salary , and
other support costs per AID and GOI contracting guidelines . Costs
of the short term consultants will include consultancy fee, per
diem, international and in-country travel and other miscellaneous
expenses related to the consu1tancy. If the technical assistance is
contracted through a private agency, USAID's contribution may be
made available to finance overhead cost and home office support of
the contractor.
z.
Personnel
GO! will pay for all local pP.rsonnel costs including salary of
counterpart experts, Field Teams and support personnel such as
secretaries, drivers, clerks and administrative assistants .
3.
Training
AID loan funds are provided for approved short-term overseas
training and will be used for international travel, per diem,
tuition and matriculation fees, books, supplies, and related
educational expenses in accordance with AID regulations . In-country
training costs uill be shared by AID and the GOI. Loan ｦｵｮ､ｾ＠
will
be used for the per diem and travel costs of trainees and the GO!
will pay for the operational cost of the training institutions .
- s4.
Operational Support
Operational support services to be funded by AID will be provided by
participating agencies other than DGFC in the form of training,
research, rhyzobium production and distribution, and special
studies. It is anticipated that research on cropping systems Hill
be conducted by CRIFC, in-country training for Field Teams by AAETE,
rhyzobium inoculum production and distribution by Gadjah Mada - University, while special studies including baseline evaluation and
monitoring, will be contracted to local universities . At least
three vehicles to support the technical assistance for the project
will be provided by the GO! prior to the execution of any IA
contract except for the contract for the Library Development
specialist.
s.
Commodities
All production inputs, office space, operations and maintenance,
equipment and supplies, will be provided by the GO! .
III. Financial Procedures
Technical assistance and overseas training is expected to be
provided via a host-country contract with DGFC. USAID/I will
reimburse the contractor for expenses upon presentation of
appropriate documentation, including the DGFC certificate of
performance. In country training and contract operational support
ftmds will be administered by the DGFC. CoiiBllodi ties may be either
purchased from stocks (shelf items) available in Indonesia or
purchased from international sources specifically for the project in
accordance with AID regulations. Detailed information on
procurement , contracting , and financing procedures will be provided
through Project Implementation Letters (PIL).
IV.
Evaluation and
ｍｯｮｩｴｲｾ＠
A baseline survey , which forms the basis of subsequent evaluations
will be conducted at the beginning of project implementation.
Mid-term and final evaluations based on the baseline survey will be
conducted at the end of the third year and during the final year of
the project. Continuous monitoring of implementation and project
performance will be done between evaluation periods. It is
anticipated that baseline evaluation and monitoring studies will be
conducted by local universities through contractual arrangement.
- 6 -
Table 1
SUllllrary of Costs By Sources and Allocation of Funds in $000
Allocation
Technical Assistance
Training
Personnel
Operational Support
Conlnodities
Cont . and Inflation
Total
FX
AID
LC
Total
1756
343
399
1756
742
864
1908
2772
680
450
2757
1130
6400
3643
GOI
Total
641
582
4036
1032
6291
Total Cost
1756
1383
582
2772
4106
2162
12691
* Any adjustments among line items which exceed 15% must be agreed to in
writing by the parties. However, the total amount provided by A. I.D. may
not exceed the amount stated in Section 3.1 of the Loan Agreement, and
the total anount provided by the GOI may not be less than the amount
stated in Section 3.2 of the Loan Agreement.
.).
.
.
Table of Content
Project Loan Standard Provisions
Annex 2
ｐ｡ｾ＠
Article A:
Project Implementation Letters
1
Article B.
General Covenants
l
SECTION B. 1.
SECTION B. 2.
SECTION B. 3.
SECTION B. 4.
SECTIJN B.S.
SECTION B. 6 .
SECTION B. 7 .
SECTION B.8
Article C:
Procurement Provisions
SECT :ON C. l.
SECTION C.2.
SECTION C. 3.
SECTION C. 4 .
SECTION C. 5 .
SECTION C. 6.
SECTION C. 7 .
SECTION C.8.
ArticleD·
Special Rules
Eligibility Date
Plans, Specifications, and Contracts
Reasonable Price
Notification to Potential Suppliers
Shipping
Insurance
U.S. Government- Owned Excess Property
Termination; Remedies
SECTION D. 1.
SECTION D 2.
SECTION
SECTION
SECTION
SECTION
SECTION
Consultation
Execution of Project
Utilization of Goods and Services
Taxation
Reports, Records, Inspections, Audit
Completeness of Information
Other Payments
Information and Marking
D. 3.
0.4.
D.S.
0.6.
D. 7.
Cancellation by Borrower
Events of Default; Acceleration
Suspension
Cancellation by A. I. D.
Continued Effectiveness of Agreement
Refunds
Nonwaiver of Remedies
1
l
2
2
2, 3
3
3
3
3
3. 4
4
Ｇｾ＠ 5
5
5, 6
6. 7
7
7
7
71 8
8
8
9
9
9
- 7 -
Table 2
Project Financial Plan, By Allocation, 1983-1987
in $000
Allcx::atl.on of
Furrls
AID
FX
LC
241
117
60
205
148
Tedmical
Assistance
Trainirg
Personnel
A.I . D. Project No. 497 -0304
PROJECT
LOAN AGREEMENT
BETWEEN
THE REPUBLIC OF INDONESIA
AND THE
UNITED STATES OF AMERICA
FOR
SECONDARY FOOD CROPS DEVELOPMENT
Dated : May 23 , 1983 .
II
PROJECT LOAN AGREEMENT
Table of Contents
PAGE
-
Title Page
Table of Contents
I-
II
Article 1 :
The Agreement
1
Article 2:
The Project
l
SECTION 2 . 1 .
Article 3 :
Financing
SECT! ON 3 . 1.
SECTION 3 . 2.
SECTION 3 . 3.
Article 4 :
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
Article 5:
4.1 .
4. 2.
4. 3.
4 . 4.
4. 5.
4.6.
Interest
Repayment
Application , Currency, and Place of Payment
Prepayment
Renegotiation of Terms
Termination of Full Payment
Conditions Precedent to Disbursement
SECTION 5.3 .
SECTION 5.4.
First Disbursement
Conditions Precedent to Additional
Disbursement for Technical Assistance
Notification
Terminal Dates for Conditions Precedent
Special Covenants
SECTION 6. 1.
SECTION 6.2 .
Article 7:
The Loan
Borrower Resources for the Project
Project Assistance Completion Date
Loan Terms
SECTION 5 . 1 .
SECTION 5 . 2.
Article 6:
Definition of Project
Project EvaliiHtion
Implementat1on Plan
Procurement Source
SECTION 7. 1 .
SECTION 7. 2.
Foreign Exchange Costs
Local Currency Costs
1
2
2
2
3
3
3
4
4
4
5
5
6
6
7
7
7
7
7
8
8
8
8
/
Article 8:
SECTION
SECTION
SECTION
SECTION
SECTION
Article 9:
Disbursements
8. 1.
8. 2.
8 . 3.
8. 4.
8.5.
Disbursement for Foreign Exchange Costs
Disbursement for Local Currency Costs
Other Forms of Disbursement
Rate of Exchange
Date of Disbursement
Miscellaneous
SECTION 9. 1 .
SECTION 9. 2.
SECTION 9. 3.
Communications
Representatives
Standard Provisions Annex
PAGE
--9-
9
10
10
10
11
11
11
12
12
Amplified Description of the Project
ANNEX I
Project Loan Standard Provisions
ANNEX II
/
A. I . D. Loan No . 497-T - 075
A. I . D. Project No. 497 - 0304
PROJECT LOAN AGREEMENT
Dated : May 23 , 1983 .
Between
Republic of Indonesia ("Borrower")
and
The United States of America , acting through the Agency for
International Development ("A . I . D". ).
Article 1 .
The Agreement .
The purpose of this Agreement is to set out the understandings
of the parties named above ("Parties") with respect to the
undertaking by the Borrower of the Project described below, and with
respect to the financing of the Project by the Parties .
Article 2.
The Project .
SECTION 2.1 .
Definition of Project .
The Project, which is
further described in Annex I, wi ll assist the Government of
Indonesia to increase the production of secondary crops in selected
provinces and to improve the marketing of such crops through the
introduction of technology in production , post - harvest operation and
marketing, training , demonstration farms and systems trials, special
studies and assistance for the development of a National Food Policy
Library .
Project .
Annex I, attached, amplifies the above definition of the
-2-
Within the limits of the above definition of the Project,
elements of the amplified description stated in Annex I may be
changed by written agreement of the authorized representatives of
the Parties named in Section 9. 2, without formal amendment of this
Agreement .
Article 3.
Financing.
SECTION 3.1 .
The Loan.
To assist the Borrower to meet the cost
of carrying out the Project, A. I.D . pursuant to the Foreign
Assistance Act of 1961, as amended, agrees to lend the Borrower
under the terms of this Agreement six million four hundred thousand
United States ("U . S . ") Dollars ($6,400,000) to support the Project.
The aggregate amount of disbursements under the Loan is referred to
as "Principal" .
The Loan may be used to finance foreign exchange costs, as
defined in Section 7.1., and local currency costs, as defined in
Section 7.2., of goods and services required for the Project.
SECTION 3. 2.
(a)
Borrower Resources for the Project.
The Borrower agrees to provide or cause to be provided for
the Project all funds, in addition to the Loan, and all other
resources required to carry out the Project effectively and in a
timely manner .
(b)
The resources provided by the Borrower for the Project will
be not less than the equivalent of U. S. $ 6,291 , 000, including costs
borne on an "in-kind" basis.
-3-
SECTION 3 . 3 .
(a)
Project Assistance Completion Date.
The "Project Assistance Completion Date" (PACD), which is
April 15, 1988, or such other date as the Parties may agree to in
writing, is the date by which the Parties estimate that all services
financed under the Loan will have been performed and all goods
furnished under the Loan will have been furnished for the Project as
contemplated in this Agreement.
(b)
Except as A.I . D. may otherwise agree in writing, A.I.D .
will not issue or approve documentation which would authorize
disbursement of the Loan for services performed subsequent to the
PACD or for goods furnished for the Project, as contemplated in this
Agreement, subsequent to the PACD .
(c)
Requests for disbursement, accompanied by necessary
supporting documentation prescribed in Project Implementation
Letters , are to be received by A. I . D. or any bank described in
Section 8.1 no later than nine {9) months following the PACD, or
such other period as A.I . D. agrees to in writing.
After such
period, A. I . D., giving notice in writing to the Borrower, may at any
time or times reduce the amount of the Loan by all or any part
thereof for which requests for disbursement, accompanied by
necessary supporting documentation prescribed in Project
Implementation Letters, were not received before the expiration of
said period.
Article 4.
Loan Terms.
SECTION 4 . 1 .
Interest.
The Borrower will pay to A. I . D.
interest which will accrue at the rate of two percent (2%) per annum
- 4-
for ten (10) years following the rlate of the first disbursement
hereunder and at the rate of three percent (3%) per annum thereafter
on the outstanding balance of Principal and on any due and unpaid
interest.
Interest on the outstanding balance will accrue from the
date (as defined in Section 8. 5. ) of each respective disbursement,
and will be payable semiannually .
The first payment of interest
will be payable no later than six (6) months after the first
disbursement hereunder , on a date to be specified by A. I . D.
SECTION 4 . 2.
Repayment.
The Borrower will repay to A. I . D. the
Principal within forty (40) years from the date of the first
disbursement of the Loan in sixty - one (61) approximately equal
semiannual installments of Principal and interest .
The first
installment of Principal will be payable nine and one - half (9 - l/2)
years after the date on which the first interest payment is due in
accordance with Section 4. 1 .
A. I . D. will provide the Borrower with
an amortization schedule in accordance with this Section after the
final disbursement unde r the Loan .
SECTION 4. 3.
Application, Currency, and Place of Payment .
All
payments of interest and Principal hereunder will be made in U. S.
Dollars and will be applied first to the payment of interest due and
then to the repayment of Principal .
Except as A. I . D. may otherwise
specify in writing, payments will be made to the Controller, Office
of Financial Management, Agency for International Development,
Washington, D.C . 20523, u.s.A . , and will be deemed made when
received by the Office of Financial Management .
SECTION 4. 4.
Prepayment .
Upon payment of all interest and any
refunds then due, the Borrower may prepay, without penalty, all or
-5any part of the Principal.
Unless A.I . D. otherwise agrees in
writing, any such prepayment will be applied to the installments of
Principal in the inverse order of their maturity .
SECTION 4.5.
Renegotiation of Terms.
(a)
The Borrower and
A.I.D. agree to negotiate, at such time or times as either may
request, an acceleration of the repayment of the Loan in the event
that there is any significant and continuing improvement in the
internal and external economic and financial position and prospects
of the Republic of Indonesia,
which enable the Borrower to repay
the Loan on a shorter schedule .
(b)
Any request by either Party to the other to so negotiate
will be made pursuant to Section 9.2, and will give the name and
address of the person or persons who will represent their requesting
Party in such negotiations.
(c)
Within thirty (30) days after delivery of a request to
negotiate, the requested Party will communicate to the other,
pursuant to Section 9.2 , the name and address of the person or
persons who will represent the requested Party in such negotiations.
(d)
The representatives of the Parties will meet to carry on
negotiations no later than thirty (30) days after delivery of the
requested Party's communication under subsection (c).
The
negotiations will take place at a location mutually agreed upon by
the representatives of the Parties, provided that, in the absence of
mutual agreement, the negotiations will take place at the office of
Borrower ' s Ministry of Finance in the Republic of Indonesia .
SECTION 4.6.
Termination on Full Payment .
Upon payment in full
of the Principal and any accrued interest, this Agreement and all
obligations of the Borrower and A.I.D . under it will cease .
-6-
Article
s.
Conditions Precedent to Disbursement.
SECTION 5-l·
First Disbursement .
Prior to the first
disbursement under the Loan, or to the issuance by A.I . D. of
documentation pursuant to which disbursement will be made, the
Borrower will, except as the Parties may otherwise agree in writing,
furnish to A.I.D. in form and substance satisfactory to A. I . D.:
(a)
An opinion of the Minister of Justice of the Borrower that
this Agreement has been duly authorised and/or ratified by, and
executed on behalf of , the Borrower, and that it constitutes a valid
and legally binding obligation of the Borrower in accordance with
all of its terms;
(b)
A statement of the name of the person holding or acting in
the office of the Borrower specified in Section 9.2, and of any
additional representatives, together with a specimen signature of
each person specified in such statement;
(c)
Submission to USAID of a mutually agreed upon plan for the
allocation , schedule and method of disbursement of funds to
participating agencies namely, the Directorate General of Food Crops
Agriculture (DGFCA), the National Logistics Agency (BULOG),
Department of Cooperatives, the Agency for Agricultural Extension,
Training and Education (AAETE) and Bank Rakyat Indonesia (BRI);
(d)
Evidence that creation of a Steering Committee consisting
of the Director, Directorate of Foodcrops Production Development
(DGFCA) , Ministry of Agriculture Chairman; Director of Research and
Development , BULOG; and Director , Directorate General of Cooperative
Business Development, Ministry of Cooperatives, and such other
members as the GOI may deem appropriate, has been created to oversee
the project.
-7SECTION 5. 2.
Conditions Precedent to Additional Disbursement
For Technical Assistance.
Prior to disbursement under the Loan, or
to the issuance by A.I.D. of documentation to which disbursement
will be made for technical services, the Borrower will, except as
the Parties may otherwise agree in writing, furnish to A.I . D. in
form and substance satisfactory to A.I . D.:
(a)
Evidence of the establishment of the Palawija Project
Office and appointment of GOI counterparts includi ng the Project
Director, the Project Cropping Systems Specialist, the Project
Post-Harvest and Marketing Specialist and the Project Agricultural
Economist; and that at least three project vehicles are available
for the technical assistance team , except for the contract for the
Library Development Specialist.
(b)
Evidence that sufficient funds have been provided to permit
the Palawija Project Office to function effec tively.
SECTION 5.3.
Notification.
When A.I.D. has determined that the
conditions precedent specified in Section 5. 1 and 5.2 have been met,
it will promptly notify the Borrower .
SECTION 5. 4.
Terminal Dates for Conditions Precedent.
If all
of the conditions specified in Section 5.1 have not been met within
90 days from the date of this Agreement , or such later date as
A.I . D. may agree to in writing, A. I.D., at its option may terminate
this Agreement by written notice to Borrower .
Article 6.
Special Covenants.
SECTION 6. 1 .
Project Evaluation.
The Parties agree to
establish an evaluation program as part of the Project.
Except as
the Parties otherwise agree in writing, the program will include,
during the implementation of the Project and at one or more points
-8-
thereafter: (a) evaluation or progress toward attainment of the
objectives of the Project; (b) identification and evaluation of
problem areas or constraints which may inhibit such attainment;
(c) assessment of how such information may be used to help overcome
such problems; and (d) evaluation, to the degree feasible, of the
overall development impact of the Project.
SECTION 6.2.
Implementation Plan .
The GOI undertakes to submit
to USAID a detailed implementation plan for the first year of
project activities including the procedures for the procurement of
technical assistance, recruitment of field teams, and execution of
the baseline survey.
Article 7:
Procurement Source .
SECTION 1 . 1 .
Foreign Exchange Costs.
Disbursements pursuant to
Section 8.1 will be used exclusively to finance the costs of goods
and services required for the Project having their source and origin
in countries included in Code 941 of the A.I . D. Geographic Code Book
as in effect at the time orders are placed or contracts entered into
for such goods and services ("Foreign Exchange Costs"), except as
A.I.D. may otherwise agree in writing, and except as provided in the
Project Loan Standard Provisions Annex, Section C. l (b) with respect
to marine insurance .
Ocean transportation costs will be financed
under the Loan only on vessels under flag registry of the United
States, or Indonesia; or Code 941 countries as long as chartered or
operated by Indonesian shipping companies, except as A. I.D. may
otherwise agree in writing .
SECTION 1 . 2 .
Local Currency Costs.
Disbursements pursuant to
Section 8.2 will be used exclusively to finance the costs of goods
- 9-
and services required for the Project having their source and,
except as A. I.D . may otherwise agree in writing, their origin in the
Republic of Indonesia ("Local Currency Costs").
To the extent
provided for under this Agreement, "Local Currency Costs" may also
include the provision of local currency resources required for the
Project .
Article 8 .
Disbursements .
SECTION 8 . 1 .
(a)
Disbursement for Foreign Exchange Costs.
After satisfaction of the conditions precedent, the
Borrower may obtain disbursements of funds under the Loan for the
Foreign Exchange Costs of goods or services required for the Project
in accordance with the terms of this Agreement, by such of the
following methods as may be mutually agreed upon :
(1)
by submitting to A. I . D. with necessary supporting
documentation as prescribed in Project Implementation Letters, (A)
requests for reimbursement for such goods or services, or (B)
requests for A. I.D. to procure commodities or services on Borrower's
behalf for the Project; or
(2)
by requesting A. I.D . to issue Letters of Commitment
for specified amounts (A) to one or more U. S . banks , satisfactory to
A. I . D. , committing A. I.D . to reimburse such bank or banks for
payments made by them to contractors or suppliers under Letters of
Credit or otherwise, for such goods or services, or (B) directly to
one or more contractors or suppliers, committing A.I.D. to pay such
contractors or suppliers for such goods and services .
(b)
Banking charges incurred by Borrower in connection with
Letters of Commitment and Letters of Credit will be financed under
-10-
the Loan unless the Borrower instructs A. I.D. to the contrary.
Such
other charges as the Parties may agree to may also be financed under
the Loan.
SECTION
(a)
s.z.
Disbursement for Local Currency Costs
After satisfaction of the conditions precedent, the
Borrower may obtain disbursements of funds under the Loan for
ｌｯ｣ｾｬ＠
Currency Costs required for the Project in accordance with the terms
of this Agreement by submitting to A.I.D., with necessary supporting
documentation as prescribed in Project Implementation Letters,
requests to finance such costs .
(b)
obtained:
The local currency needed for such disbursement may be
(1)
In local currency acquired by A. I . D. by purchase or
from local currency already owned hy the
u.s .
Government or (2) by
A. I.D. requesting the Borrower to make available the local currency
for such costs, and thereafter reimbursing an amount of U.S. Dollars
equal to the amount of local currency made available by the
Borrower .
The U. S . dollar equi valent of the local currency made
available hereunder will be the amount of U. S. dollars required by
A. I . D. to obtain the local currency .
SECTION 8.3.
Other Forms of Disbursement .
Disbursements of the
Loan may also be made through such other mP.ans as the Parties may
agree to in writing.
SECTION 8.4 .
Rate of Exchange .
Except as may more specifically
be provided under Section 8.2, if funds provided under the Loan are
introduced into Indonesia by A.I . D. or any public or private agency
for purposes of carrying out obligations of A. I.D. hereunder, the
Borrower will make such arrangements as may be necessary so that
such funds may be converted into currency of Republic of Indonesia
-11at the highest rate of exchange which, at the time the conversion is
made, is not unlawful in Indonesia.
SECTlON 8.5.
Date of Disbursement.
Disbursements by A.I . D.
will be deened to occur (a) on the date on which A. I.D. makes a
disbursemen t to the Borrower or its designee, or to a bank,
contractor or supplier pursuant to a Letter of Commitment, contract,
or purchase order;
(b)
on the date on which A. I.D . disburses to
the Borrower or its designee local currency acquired in accordance
with Section 8 . 2.
Article 9 .
Miscellaneous
SECTION 9 . 1.
Communications .
Any notice, request, document, or
other communication submitted by either Party to the other under
this Agreement will be in writing or by telegram or cable, and will
be deemed duly given or sent when delivered to such party at the
following addresses :
To the Borrower :
Mail Address :
Departemen Luar Negcri
Jala n Pejambon No.6
Jakarta Pusat
Indonesia
Alterna t e address for telegrams : DEPLU JAKARTA
To A. I . D. :
Mail Address :
U. S . Agency for International Development
Ame r ican Embassy
Jl . Medan Merdeka Selatan 5
Jakarta , Indonesia
Alterna t e address for telegrams: USAID AMEMB JAKARTA
All such communications will be in English , unless the Parties
otherwise agree in writing .
Other addresses may be
the above upon the giving of notice.
ｳｵｾｴｩ･､＠
The Borrower, in addition,
will provide the USAID Mission with a copy of each communication
for
-] 2-
sent to A. I .D .
SECTION 9 . 2 .
Representatives.
For all purposes relevant to
this Agreement, the Borrower will he represented by
ｴｾ･＠
JndivJctual
holding or acting in the office of Chairman or Vice Chairman,
ｄ･ｶｐｊｾｰｭｮｴ＠
National
ｾｮ､＠
Planning Agency (BAPPENAS)
A.I . D. will be
represented by the individual holding or acting in the office of
Mission Director, USAID Mission to
each of whnm, ty
ｉｮ､ｯ･ｾｩＮ＠
,,ritten noUce, may designate additional representatives for all
purposes other than exercising the power under Section 2 . 1 to revise
elements of the a mplified
in Annex I .
ｾ･ｳ｣ｲｩｰｴｯｮ＠
The namrs of the
representatives of the Borro,,rer, with spec imeP sigratures, Fi 11 be
provided to A. I . D. , which may accept as duly authorized any
instrument signed by such
in implementation Clf this
ｲ･ｰｴＧｳｮ｡ｩｶｾ＠
Agreement, until receipt of written notice of revocation of their
authority .
SECTION 9 . 3 .
Standard Provisions Annex .
A "Project Loan
Standard Provisions Annex" (Annex 2) is attacherl to nnd forms part
of this Agreement.
IN
liiiEREOF, the Republic of Indonesia and the United
ｉｾｔｎｅｓ＠
States o( AmPrica, each acting through its duly authorized
rep resentative, have caused this
names And
､･ｊｩｶｾｲ＠
to he signed in their
ａｧｲｾ･ｭｮｴ＠
as of the day anrl year first above writlen .
REPUBliC OF INDONESIA
UNITED STATES OF AMERICA
Signed
Atmono Suryo M. A.
Director General
for ｆ ｯｲｾｩｧｮ＠
Economic Rela t ions
ｾｨｮ＠
Signed
c.
... arge
Monjo
｣Ｇｬａｦ［ｾＱｲ･ｳ＠
- 1 -
Annex 1
AMPLIFIED PROJECI' DESQUPTION
I.
General Description
The goal of the Secondary Foodcrops Development Project is to
increase the volume of consumption, employment and income through the
increase in production and improvement of marketing of secondary crops
in each project site in the Provinces of Lampung , East Java and South
Sulawesi. To achieve these goals, the project will assist the
Directorate General of Food Crops, Department of Agriculture, to
introduce a technology package consisting of site specific cropping
systems, inputs and facilities for production and post harvest operation,
and special extension services on improved agronomic practices and
marketing of secondary crops . For purposes of this project, the
secondary crops, known in Indonesian as palawija, will be limited to
peanut, soybean, corn, and cassava.
This is a five year project starting in Indonesian Fiscal Year (IFY)
1983/1984 and terminating in Indonesian Fiscal Year 1988/1989. It is
fundamentally a trial, demonstration and extension project --- testing
new cropping systems, demonstrating the superiority of improved cropping
systems over traditional systems, improving post harvest operations, and
developing the market for secondary crops. The project concentrates on
three project sites representing various agronomic conditions under which
secondary crops are grown in Indonesia.
The four purposes of the project are:
(l) To conduct trials, demonstrations and related studies as a basis
for planning expansion of the project and for the formulation of
appropriate policies regarding prices, subsidies, production, consumption
and market development.
(2) To improve the quality, storeability, and market acceptance of
secondary crops by adoption of recommended pre and post harvest
technology that includes harvesting, threshing, drying, storing and
processing at the farm level and at various stages of the marketing chain.
(3) To bring about rapid adoption of recommended production
technology using improved varieties, commercial inputs (e.g. fertilizers,
seeds, inoculum, pesticides), improved agronomic practices, and site
specific cropping systems.
(4) To identify possible extension, marketing and behavioral change
models for maximizing the contribution of secondary food crops toward
improved nutrition.
- zBone, South Sulawesi; North Lampung, Lampung; and Ponorogo, East
Java are selected as pilot sites because they are predominantly secondary
crop producing areas with potential for increased production; they
represent different agro-climatic conditions; their populations consume
secondary crops as a supplement or substitute for rice, and improved
cropping systems have been tested with some degree of success .
It is anticipated that the introduction of the new cropping systems
will increase cropping intensity by 60\ for peanut and soybean, and 30%
for corn and cassava, thus bringing an incremental area of 54,400
hectares into production. Moreover, productivity in these incremental
areas should increase by SO% through the use of improved varieties,
agronomic practices and judicious use of commercial inputs. Thus, after
three years, the project will expand those methods demonstrated as
successful throughout the participating provinces.
Production inputs to increase yields include fertilizer, lime ,
seeds, pesticides, rhyzobiwn inoculum , small tillage equipment and draft
animals for Lampung and Bone. Marketing inputs include drying sheds,
simple mechanical dryers , storage facilities , and simple harvesting and
processing equipment. The proper application of the inputs will be
accompanied by field level instruction and demonstration conducted by six
Field Teams, each consisting of a Cropping Systems Agronomist, Marketing
and Post Harvest Specialist and an Agricultural Economist working with
the regular extension workers (PPS, PPM, PPL) on project sites . In
demonstration areas consisting of 180 farms of S hectare units the Field
Teams will encourage the farmers to adopt appropriate cropping systems,
assist in procuring inputs, and teach ｦ｡ｲｾｳ＠
recommended agronomic and
post harvest management practices.
In intensification areas, they will assist farmers and KUDs develop
farm plans and investment plans respectively as a basis for obtaining
supervised credit . In both demonstration and intensification areas, they
will also encourage KUD/PUSKUD/INKUD and private dealers to procure
secondary crops on a regular and contractual basis by offering attractive
prices for products of superior quality.
Data for agro-economic research on cropping systems, costs and
returns, production functions, fertilizer-yield response, and variety
trials will be obtained from demonstration farms . Research on post
harvest operations will be done at the BULOG Research and Training Center
and cooperating KUD/DOLOG/BULOG facilities . Demonstration on post
harvest at farm level will be done in cooperation with KUD. Cropping
systems research will be done in areas of potential expansion. Special
studies relating to pricing, subsidies, import and export, market
development, baseline and evaluation surveys will be done by Indonesian
or u.s. institutions. Specific topics will be developed by the technical
assistance team in cooperation ｜ｾｩｴｨ＠
the Indonesian counterparts. In
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addition a market basket type study will be included in the baseline
survey to establish the present consumption and nutritional status of
beneficiaries and establish a basis from which nutritional interventions
can be formulated as the need arises .
will be short term designed to provide specific
All ｴｲ｡ｩｮＱｾ＠
management and technical skills. Three months training on production and
marketing and post harvest operations will be given to the Field Teams in
Jakarta before they are posted to the project sites. This will be
organized by the Agency for Agricultural Extension, Training and
Education (AAETE), with the technical support of the Agency for
Agricultural Research and Development (AARD) , the Directorate General for
Food Crops (DGFC), and the National Logistics Bureau (BULOG) . Two \Yeeks
training in production and post harvest management will be given to
contact farmers and KUD staff as well as well as private dealers on
project sites. This will be organized by the Field Teams with the
support of the provincial and kabupaten extension services.
The above activities will be under the overall administration of the
Directorate of Food Crops Production Development, Directorate General of
Food Crops Agriculture, where a Palawija Project Office (PPO) will be
created to administer the project. The PPO will be assisted by technical
advisers consisting of an Agricultural Economist, a Cropping Systems
Agronomist and a Marketing and Post Harvest Specialist. These technical
advisers will have as counterparts similar experts from the Directorate
General of Food Crops and together they will provide managerial,
administrative, and technical backstop services to the Field Teams .
Operational support services to the project will be accomplished
through contractual arrangement. The DGFC will contract with the Central
Research Institute for Food Crops (CRIFC) to conduct research on cropping
systems. The AAETE, with the technical support of CRIFC, the
Agricultural College, Bogor (IPB) , DGFC and BULOG, will organize
production, marketing and post-harvest training for the Field Teams. The
Bank Rakyat Indonesia (BRI) will provide supervised credit to farmers in
intensification areas in accordance with existing credit schemes. Gadjah
Mada University or others will supply rhyzobium inoculum. Selected
universities in South Sulawesi, Java and Lampung will conduct the
baseline, evaluation and monitoring studies. Studies on agricultural and
food policies, pricing, subsidies, market development, export and import
will be contracted to local or US universities . The project will also
provide ｬｩｾｴ･､＠
assistance in the establishment of Food Policy Library as
a principal repository of research materials for food policy studies.
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The project will be represented in the BIMAS coordinating conunittee
at the national level by the Di rector of Food Crops Production
Development. TI1e project will be represented in the kabUpaten BIMAS
coordinating committee by the Kepala Dinas.
In addition a Steering Committee will be created consisting of the
Director, Directorate of Food Crops Production Development, DGFCA, as
Chairman; Director, Research and Development, BULOG; Director General of
Cooperat ive Business Development and other member as the Government may
so decide . This Committee will oversee implementation of the project and
\¥ill meet at least monthly . The Project Director will serve as a
secretary who will prepare the agenda and keep the ｾｩｮｵｴ･ｳ＠
of the
meetings . The USAID Project Manager may attend the meeting as an
observer.
II.
Responsibility of the GOI and AID
1.
Tedmical Assistance
The AID contribution will finance approximately 156 person months
long-term and 15 person months short-term technical assistance under
host country contracts. Costs of the the four long term consultants
consisting of one cropping systems specialist , one marketing and
post-harvest specialist, one agricultural economist/systems analyst ,
and one library development specialist include base salary , and
other support costs per AID and GOI contracting guidelines . Costs
of the short term consultants will include consultancy fee, per
diem, international and in-country travel and other miscellaneous
expenses related to the consu1tancy. If the technical assistance is
contracted through a private agency, USAID's contribution may be
made available to finance overhead cost and home office support of
the contractor.
z.
Personnel
GO! will pay for all local pP.rsonnel costs including salary of
counterpart experts, Field Teams and support personnel such as
secretaries, drivers, clerks and administrative assistants .
3.
Training
AID loan funds are provided for approved short-term overseas
training and will be used for international travel, per diem,
tuition and matriculation fees, books, supplies, and related
educational expenses in accordance with AID regulations . In-country
training costs uill be shared by AID and the GOI. Loan ｦｵｮ､ｾ＠
will
be used for the per diem and travel costs of trainees and the GO!
will pay for the operational cost of the training institutions .
- s4.
Operational Support
Operational support services to be funded by AID will be provided by
participating agencies other than DGFC in the form of training,
research, rhyzobium production and distribution, and special
studies. It is anticipated that research on cropping systems Hill
be conducted by CRIFC, in-country training for Field Teams by AAETE,
rhyzobium inoculum production and distribution by Gadjah Mada - University, while special studies including baseline evaluation and
monitoring, will be contracted to local universities . At least
three vehicles to support the technical assistance for the project
will be provided by the GO! prior to the execution of any IA
contract except for the contract for the Library Development
specialist.
s.
Commodities
All production inputs, office space, operations and maintenance,
equipment and supplies, will be provided by the GO! .
III. Financial Procedures
Technical assistance and overseas training is expected to be
provided via a host-country contract with DGFC. USAID/I will
reimburse the contractor for expenses upon presentation of
appropriate documentation, including the DGFC certificate of
performance. In country training and contract operational support
ftmds will be administered by the DGFC. CoiiBllodi ties may be either
purchased from stocks (shelf items) available in Indonesia or
purchased from international sources specifically for the project in
accordance with AID regulations. Detailed information on
procurement , contracting , and financing procedures will be provided
through Project Implementation Letters (PIL).
IV.
Evaluation and
ｍｯｮｩｴｲｾ＠
A baseline survey , which forms the basis of subsequent evaluations
will be conducted at the beginning of project implementation.
Mid-term and final evaluations based on the baseline survey will be
conducted at the end of the third year and during the final year of
the project. Continuous monitoring of implementation and project
performance will be done between evaluation periods. It is
anticipated that baseline evaluation and monitoring studies will be
conducted by local universities through contractual arrangement.
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Table 1
SUllllrary of Costs By Sources and Allocation of Funds in $000
Allocation
Technical Assistance
Training
Personnel
Operational Support
Conlnodities
Cont . and Inflation
Total
FX
AID
LC
Total
1756
343
399
1756
742
864
1908
2772
680
450
2757
1130
6400
3643
GOI
Total
641
582
4036
1032
6291
Total Cost
1756
1383
582
2772
4106
2162
12691
* Any adjustments among line items which exceed 15% must be agreed to in
writing by the parties. However, the total amount provided by A. I.D. may
not exceed the amount stated in Section 3.1 of the Loan Agreement, and
the total anount provided by the GOI may not be less than the amount
stated in Section 3.2 of the Loan Agreement.
.).
.
.
Table of Content
Project Loan Standard Provisions
Annex 2
ｐ｡ｾ＠
Article A:
Project Implementation Letters
1
Article B.
General Covenants
l
SECTION B. 1.
SECTION B. 2.
SECTION B. 3.
SECTION B. 4.
SECTIJN B.S.
SECTION B. 6 .
SECTION B. 7 .
SECTION B.8
Article C:
Procurement Provisions
SECT :ON C. l.
SECTION C.2.
SECTION C. 3.
SECTION C. 4 .
SECTION C. 5 .
SECTION C. 6.
SECTION C. 7 .
SECTION C.8.
ArticleD·
Special Rules
Eligibility Date
Plans, Specifications, and Contracts
Reasonable Price
Notification to Potential Suppliers
Shipping
Insurance
U.S. Government- Owned Excess Property
Termination; Remedies
SECTION D. 1.
SECTION D 2.
SECTION
SECTION
SECTION
SECTION
SECTION
Consultation
Execution of Project
Utilization of Goods and Services
Taxation
Reports, Records, Inspections, Audit
Completeness of Information
Other Payments
Information and Marking
D. 3.
0.4.
D.S.
0.6.
D. 7.
Cancellation by Borrower
Events of Default; Acceleration
Suspension
Cancellation by A. I. D.
Continued Effectiveness of Agreement
Refunds
Nonwaiver of Remedies
1
l
2
2
2, 3
3
3
3
3
3. 4
4
Ｇｾ＠ 5
5
5, 6
6. 7
7
7
7
71 8
8
8
9
9
9
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Table 2
Project Financial Plan, By Allocation, 1983-1987
in $000
Allcx::atl.on of
Furrls
AID
FX
LC
241
117
60
205
148
Tedmical
Assistance
Trainirg
Personnel