Selanjutnya
""""'.
-.
MINISTRY OF FOREIGN AFFAIRS
THE HAGUE
Financial and Economic
Development Co-operation
Department
DFO/OA-169.809
The Hague, July 26, 1974
Your Excellency,
I have the honour to refer to the announcement
made by the Netherlands representative during the
meeting of the Inter-Governmental Group on Indonesia
in Amsterdam on 7 and 8 May 1974 that the Netherlands
Government would be prepared to extend financial
assistance totalling Dfl. 166 million and bilateral
food aid in the form of 12,000 tons of wheat.
The financial assistance would consist of Dfl. 124
million for project aid and Dfl. 42 million for programme
aid. As the project assistance would include Dfl. 5
million provided on a grant basis for technical assistance
related to projects, the contribution in grant form would
cover the said technical assistance of Dfl. 5 million as
well as the programme assistance amounting to Dfl. 42
million. Therefore a total of Dfl. 47 million would be
in grant form. The remaining amount of Dfl. 119 million
is composed of tranches of loans agreed in previous years
corresponding with the expected disbursements for projects
entered into in those years and of a tranche of a new loan
offered in this letter to cover disbursements for new
projects. However, in view of the nature of the new
projects which in the meantime have been selected, it is
now envisaged that part of this assistance will in fact
be disbursed after ｴｾ･＠
present fiscal year.
The Netherlands Government is prepared to make available to the Government of Indonesia a new multi-year
project loan amounting to Dfl. 127 million for financing
projects from the 1974/75 Project Aid Programme, whose
implementation would extend beyond the Indonesian fiscal
year 1974/75. The loan is to be contracted with the
Netherlands Investment Bank for Developing Countries in
The Hague.
- The loan His Excellency
·soetopo Yuwono Projohandoko
Ambassador Extraordinary and
Plenipotentiary of the
. Republic of Indonesia
-. 8, .Tobias Asserlaan
THE HAGUE
1558-12-71-125525*-3
- 2 -
The loan will be governed by a clause stipulating a
repayment period of 30 years, including a grace period of
8 years during which no repayments will be required and
a rate of interest of 2t ｾ＠ per annum.
Disbursements from the loan will not exceed Dfl. 29.9
million during the 1974 calendar year. The remaining Dfl. 97.1
million of the loan will be made available for disbursements
in 1975 and later years.
During discussions which were held in Jakarta from 4
March to 14 March 1974 between representatives of the
Indonesian and Netherlands Government agreement was reached
in principle on a number of specified projects amounting
to a part of Dfl. 85 million of this loan. A list of the
projects concerned is enclosed as Annex A.
After further discussions it was agreed in principle
that the remainder of the loan amounting to Dfl. 42 million
would be used for the projects mentioned in the Annex B.
As regards the project F-ST-3(a) on the enclosed list,
during the abovementioned discussions held in Jakarta in
March 1974, agreement was reached that this project should
be financed from the unused balances of previous loans.
The Netherlands Government will undertake a commitment
for each separate project by means of an exchange of letters
between the Netherlands Embassy in Jakarta and Eappenas. The
final commitment for each of the tentatively listed projects
will be made as soon as enough information has been received
to enable a decision to be made on the feasibility of executing
the project concerned.
Pending the conclusions of appropriate international
agreements designed to untie bilateral loans, the Netherlands
Government is prepared to consider on a case-by-case basis
to what extent projects with regard to the procurements of
goods and services in Ind0nesia itself, could be financed
on an untied basis.
The procedure mentioned in the document entitled "Procedures for the procurement and payments of goods to be
financed by project aid of the Netherlands to Indonesia",
submitted to the Embassy of the Republic of Indonesia with
Note nr. DFO/BT-212.825 of 18 November 1969, will apply to
all orders to be financed under the loan. It is, however,
understood that during consultations which will be held
between the Indonesian and Netherlands Government these
procedures will be reviewed and possibly amended.
- The Netherlands -
- 3 -
The Netherlands Government is again prepared to make
available out of its programme assistance an amount of Dfl.
10 million for the purchase of cotton in third countries.
Disbursements from the programme assistance for the
procurement of cotton and in the form of Devisa Kredit shall
not exceed Dfl. 27 million during the 1974 calendar year. The
remaining Dfl. 15 million will be made available for disbursemeni:E after 1 January 197 5 •
If a part of the programme assistance will be used for
the procurement of cotton in third countries, it is suggested
that the same conditions and payment procedure should apply
as those agreed upon for last year's cotton assistance which
were laid down in an exchange of Notes between the Embassy
of the Republic of Indonesia and the Netherlands Ministry of
Foreign Affairs.
If Your Excellency's Government deems the abovementioned
proposals acceptable, it is suggested that your answer might
take the form of a letter confirming this understanding. This
exchange of letters would not constitute a formal agreement,
but only a preliminary understanding on the main conditions
for a loan contract to be concluded at a later date between
Your Government, or an institution acting on behalf of your
Government, and the Netherlands Investment Bank for Developing
Countries acting on behalf of the Government of the Netherlands.
I avail myself of this opportunity to renew to Your
Excellency the assurance of my highest consideration.
THE MINISTER FOR DEVEJ!1CPMENT CO-OPERATION
Signed
J.P. PRONK
AGREEMENT, dated November 28, 1974
between
1.
The Republic of Indonesia, hereinafter called "Indonesia",
and
2. De Nederlandse Investeringsbank voor Ontwikkelingelanden N.V.,
established at The Hague, The Netherlands,
hereinafter called "the Bank";
WHEREAS:
The Bank is prepared to extend to Indonesia a loan amounting to
Hfl. 127.000.000,- (onehundred twentyseven million Netherlands
guilders) for the financing of specific projects of which tentative lists
are annexed to the letter dated July 26, 1974, from the Netherlands
Minister for Development Co-operation to the Ambassador of Indonesia in
The Netherlands;
The said loan forms part of the contribution which the Netherlands
Government has undertaken to make to Indonesia as laid down in the
afore said letter and the letter dated July 30, 1974 from the Ambassador
of Indonesia· in The Netherlands to the Netherlands Minister for ｄ･ｶｬｯｰｭｾ＠
Co.operation.
NOW IT IS HEREBY AGREED AS FOLLOW$:
The Bank shall grant to Indonesia and Indonesia shall accept from the
Bank a loan amounting to H!l. 127.000.000 ', - (onehundred twenty.seven
million Netherlands guilders) to be called Project-Loan 1974/?5, on the
terms and conditiona set forth in the following articles.
Article· 1
1. Indonesia shall be entitled to draw on the Project-Loan 1974/75
ae from the date on which this loan agreement has become effective,
on the understanding, however, that the total amount of the disbursements on Project-Loan 1974/75 shall not exceed Hfl. 29.900.000,(twentynine million nine hundred thousand Netherlands guilders) on
December 31, 1974, The balance amounting to Hfl. 97.100.000,- (ninety.seven million onehundred thousand Netherlands guilders) will be made
available for disbursement in 1975 and later y•ars • •
2. The disbursements on ｲｯｪ･｣ｴｾｌ｡ｮ＠ｐ
1974/75 shall be ｣ｨ｡ｲｾ､＠
Project-Loan Account Indonesia 1974/75.
to a
- Article 2 -
-,
- 2 -
Article 2
1. Indonesia shall pay on the outstanding amount of the loan a rate
of interest of 2.1/2 ｾＧ＠
which interest shall accrue from the
respective dates or disbursement.
2. The interest on the loan shall be due and payable semi-annually
on January 31 and July 31 of each year.
Article 3
1. The amounts to be made available to Indonesia by the Bank in
accordance vith this agreement under the loan shall be used for
the financing or projects mentioned in or to be added to the lists
of projects annexe.d to the letter dated July 26, 1974, from the
Netherlands Minister for ·Dav,.lopment ｾ ｣ｯ＠ .. 9per•t£on to ·uhe
i.i:'1
Ambassador of Indonesia in The Netherlands. About the financing
of each specific project out of the loan agreement has to be
reached by the Indonesian National Planningboard (Bappenas) and
the Netherlands ｾ｢｡ｹ＠
in Jakarta.
2. Wherever used in this agreement the term contract shall mean
contract concluded for the purchase of goods and/or the rendering
of services and the term goods shall mean goods or services.
Article 4
1. Drawings on the loan shall only be made by the Rijksinkoopbureau
at The Hague, hereinafter called "R.I.B.", who is entitled to
exercise on behalf of Indonesia the right to make drawings in
accordance vith the loan agreement ae from the date of this ｬｾ｡ｮ＠
agreement in such a way that-R.I.B. ahall bind Indonesia fully to
any .amount and in any respect on this subject.
ｾ＠
2. As soon as R.I.B. vill have received a Letter of Authorization
in favour of R.I.B., issued by Bappenas, to place the order(a)
concerned, R.I.B. shall request the Bank to ｲ･ｳｾｶ＠
a corresponding
amount of the loan for disbursement to the aupplier(s) concerned,
which request shall be accompanied by a copy of the Letter of
ａｾｴｨｯｲｩｺ｡ｮ＠
concerned.
·
3. The Bank shall test each application of R.I.B. for a reservation
aa mentioned in paragraph 2 on the terms and conditions of this
loan agreement and having found the application in order shall
inform R.I.B. in case of approval in writing, that the reservation
concerned has been made. The Bank shall send copies of the application of R.I.B. and of its approval to Bank Indonesia in order to
enable the latter to open a · Letter of Credit with respect to the
order(a) concerned in favour of R.I.B. with the Bank. No reservations
shall be allowed with respect to the Project-Loan 1974/?5 after
ｄ･｣ｾｭ｢ｲ＠
31, ＱＹｾＬ＠
unleea otherwise agreed upon between Indonesia
and the Bank.
4. When R.I.B. decides to draw any amount on the loan for disbursement•
tor goods, freight or insurance under a reservation as mentioned hereabove, R.I.B. shall apply for such disbursement by sending the Bank a
written request. This request shall specifically define the amount
expressed in Netherlands guilders, the name and address of the firm(a)
to which the amount has to be paid, the manner of payment and in so
far it concerns the payment of goods, the relevant order(s).
I
-
ｾｔｨ･＠
Bank
ｾ＠
- 3 -
5. The Bank shall only effectuate a written request as ment i oned in
paragraph 4, if the Bank has received a Letter of Credit ae
mentioned in paragraph 3, and if the Bank has received the document(a) mentioned in the relevant Letter of Credit and any amendment thereon together with a written confirmation from R.I.B.
stating that all the terms and conditions of the relevant Letter
of Credit (inclusive an1 a11endmen.t thereon) are complied with.
If the Letter of Credit in the for mentioned in paragraph ? of
this article will not have been opened with the Bank before the
date of reception by the Bank of the relevant written requeat
mentioned in paragraph 4, the Bank shall be entitled to make the
pay•ent concerned without the relevant Letter of Credit again•t
receipt of the documents concerned, if any available. The Bank
shall send a copy of each Letter of Credit (inclusive any amendment thereon) received from Bank Indonesia to R.I.B.
The Bank shall inform R.I.B. of the effectuation of each payment
made by the Bank under the loan.
6. In the case that R.I.B. wants to make (an) amendment(s) on a
Letter of Credit received by the Bank from Bank Indonesia, R.I.B.
shall submit to the Bank a request for such amendment(s). The Bank
shall send a copy ot laatmentioned request to the Bank Indonesia
in order to enable · the • latter to amend the Letter of Credit as
requested by R.I.B.
7. Each Letter of Credit must contain a clause authorizing R.I.B. to
make all the amendments and arrangements in the relevant Letter
of Credit and the eventual amendments thereon necessary for the ·
proper execution of the order(a) concerned for the case that an
amendment and/or arrangement in the relevant Letter o! Credit will
not have been receiyed by the Bank from Bank Indonea!a before the
date of reception by the Bank or the relevant written request
mentioned in paragraph 4, in order to enable R.I.B. to alter the
relevant Letter of Credit in conformity with the request thereto
of R. I.B. as mentioned in para·g raph 6. FUrthermore each Letter .of
Credit shall contain a clause etating that payment under the relevant Letter of Credit shall only take place after receipt of a
request from R.I.B. as mentio.n ed in paragraph 4 and that such
payment shall only be made in a manner as mentioned in said request
and also after receipt from R.I.B. of the written confirmation
mentioned in paragraph 5.
The Bank shall inform the Bank Indonesia of each amendment or
alteration made b7 R.I.B. in any Letter of Credit.
8. The Bank is net responsible tor the controlling of the documents
inclusive the written confirmation mentioned in , paragraph 5. The
Bank shall send all the docu•enta inclusive the writtea ·confil"llation
of the R.I.B. as mentioned in paragraph 5, received from the R.I.B.,
to the Bank Indoneeia ｴ･ｧｨｾｲ＠
ｾｩｴｨ＠
a schedule of remittance about
the relevant payment made by the 'Bank on request of R.I.B.
Article 5
1. The Project-Loan 1974/75 shall be repayable in twenty-three
consecutive annual instalments, the first of which shall be due and'
payable on January 31, 1983.
2: The first repayment with respect to Project-Loan 1974/75 will amount
to Hfl. 5.520.4oo,- (five million fivehund r ed twenty thousand fourhundred Netherlands guilders) and the following ones to Hfl.
5.521.800,- (five million fivehundred twentyone thousand eighthundred Netherlands guilders) each.
- 4 Article 6
1. In case Indonesia fails to pay interest on the respective due dates,
the amount unpaid will be increased by a compensation equal to five
twenty-fourth o.f one per cent (5/24 %) per calendar month as long as
the failure continues, a part of a month to count as a full month.
-
2. In case Indonesia fails to perform any of her obligations pursuant to
this agreement and/or any other loan agreement between lndonesia and
the Bank, Indonesia shall no longer be entitled to draw on the loan
and the outstanding amount under this agreement and any other loan
agreement between Indonesia and the Bank shall be due and collectable
at once upon notification in writing of the faillfre and the said amount
plus interest and compensation shall be paid by Indonesia to the Bank
forthwith. However as far as the then prevailing circumstances at the
discretion of the Bank will permit so, the Bank shall grant the opportunity to Indonesia to fulfil its obligations within a term of at ｭｯｾｴ＠
sixty days •.
Article 7
1. All payments received by the Bank will be applied in the following order:
a) to payment of costs;
b) to payment of compensation;
c) to payment of interest;
d) to payment of the outstanding amount on the loan.
2. All payments by Indonesia to the Bank must be made in Netherlands
currency in the account of the Bank with ｾ･＠
Nederlandsche Bank fJ.V. at
1
Amsterdam, without any reduction or set-off.
3. This agreement shall be free from any taxes (including duties, fees or
impositions) that shall be imposed under the laws of Indonesia or laws
in effect in its territories on or in cdnnection with the execution of
the agreement or the performance thereof by the Bank.
4. All payments of interest and principal and all other payrnPnts to be made
Indonesia shall be made without deduction for, and free from any
(including duties, tees and impositions) that shall be imposed
under the laws of Indonesia or laws.in effect in its territories, and
free from.all restrictions imposed unaer the laws of Indonesia or laws
in effect in its territories.
by
ｴｾｸ･ｳ＠
Article 8
The Bank ｾｨ｡ｬ＠
send to Indonesia a written statement of all entries iri
the books of the Bank in ｣ｯｮ･ｾｩ
Ｎ ｷｩｴｨ＠
this agreement. This statement
shall be deemed to have been acknowledged as correct by Indonesia if
objections of Inconesia to the Bank duly justified in writing have not
been made known to the Bank within a month after the statement relating
to these entries ｾ｡ｮ＠
reasonably be expected to have been received by
Indonesia.
- Article 9 -
.,,. .
)'
..
- 5 -
._,0
;.,.rticle
9
As long as this agreement is in force Indonesia shall furnish to the
Bank such information as may especially be required for the implementation
and administration of this agreement.
Article 10
1. Indonesia is obliged to furnish to the Bank in writing sufficient
evidence of the authority of the person or persons who will be
entitled to represent Indonesia towards the ｂ｡ｮｾ＠
in respect of the
performance of this agreement other than mentioned in article 4 of
this agreement.
2. The authorizations mentioned in paragraph 1 remain in force until the
Bank has been informed by Indonesia in writing that they have been
cancelled.
i\rticle 11
ｾｯ＠
delay in exercising or omission to exercise any right, power or
remedy accruine to either party under this agreement upon any default
shall impair any such right, power or remedy or be .construed to be a
waiver thereof or an acquiescence in such default unless otherwise
provided for in this ｡ｧｲ･ｾｮｴＮ＠
Ｑｾｲｴｩ｣ｬ･＠
12
ill rights of ｴｨｾ＠
Bcnk pursuant to this agreement shell redound not
only to itself but also to its ｳｵｾｯｲ＠
and.assignees.
11rti cle 13
Indonesia shall reimburse to the Bank at first requect sll costs
deriving from any default of Indonesia and in general costs other than
ordinary business expenditufes as incurred by the Bank in connection
with. the implementation of this agreement.
Article 14
1. Any dispute between the ｰ｡ｲｴｩ･ｾ＠
shall be settled by arbitration. In
such a case the conditions of bection 9.04 of the General Conditions
applicable fo loan and Guarantee Agreements, dated January 31, 1969
of the International Bank f ·o r Reconstruction and Development shall be
applied rnutatis mutandis.
2. This aereement and the interpretation of any article thereof, the
｣ｯｮｾｩｴｳ＠
mentioneC in the foregoing paragraph included, shall be
c;overned by the law of The t:etherlands.
- Article
15 -
,....• ,.cz...
ｾ＠
'
- 6 -
,.)
•
...,,../
Article 15
This agreement shall not become effective until either party having
signed the agreement, has furnished evidence satisfactory to the other
party that its signature is legal, valid and binding and that all
necessary authorizations have been obtained.
Article 16
1. For the performance of this contract and for the serving of legal
process Indonesia irrevocably elects domicile at the Embassy of
Indonesia at The Hague and the Bank elects ､ｯｭｾ｣ｩｬ･＠
at its office
at The Hague.
2. In witness whereof the parties hereto, acting through their duly
authorized representatives have ｣｡ｾｳ･､＠
this agreement to be signed
in duplicate in their respective names and delivered in The Hague
as of the day and year first above written.
FOR AND ON ｂｾｈａｌｆ＠
CF.THE
GOVERNMJ!;NT OF INDONESIA
Dl!. ｾｅｄｒｌａｎｓ＠
INVESTERINGSBANK
VCfR ONTiIKKELINGSLANDEN N.V.
DE ｾｔｉｏｎａｕＺ＠
·
Officers:
ｾ｡ｮｧｩ＠
INVESTERINGSBANK N.V.
Signed
Signed
/
-.
MINISTRY OF FOREIGN AFFAIRS
THE HAGUE
Financial and Economic
Development Co-operation
Department
DFO/OA-169.809
The Hague, July 26, 1974
Your Excellency,
I have the honour to refer to the announcement
made by the Netherlands representative during the
meeting of the Inter-Governmental Group on Indonesia
in Amsterdam on 7 and 8 May 1974 that the Netherlands
Government would be prepared to extend financial
assistance totalling Dfl. 166 million and bilateral
food aid in the form of 12,000 tons of wheat.
The financial assistance would consist of Dfl. 124
million for project aid and Dfl. 42 million for programme
aid. As the project assistance would include Dfl. 5
million provided on a grant basis for technical assistance
related to projects, the contribution in grant form would
cover the said technical assistance of Dfl. 5 million as
well as the programme assistance amounting to Dfl. 42
million. Therefore a total of Dfl. 47 million would be
in grant form. The remaining amount of Dfl. 119 million
is composed of tranches of loans agreed in previous years
corresponding with the expected disbursements for projects
entered into in those years and of a tranche of a new loan
offered in this letter to cover disbursements for new
projects. However, in view of the nature of the new
projects which in the meantime have been selected, it is
now envisaged that part of this assistance will in fact
be disbursed after ｴｾ･＠
present fiscal year.
The Netherlands Government is prepared to make available to the Government of Indonesia a new multi-year
project loan amounting to Dfl. 127 million for financing
projects from the 1974/75 Project Aid Programme, whose
implementation would extend beyond the Indonesian fiscal
year 1974/75. The loan is to be contracted with the
Netherlands Investment Bank for Developing Countries in
The Hague.
- The loan His Excellency
·soetopo Yuwono Projohandoko
Ambassador Extraordinary and
Plenipotentiary of the
. Republic of Indonesia
-. 8, .Tobias Asserlaan
THE HAGUE
1558-12-71-125525*-3
- 2 -
The loan will be governed by a clause stipulating a
repayment period of 30 years, including a grace period of
8 years during which no repayments will be required and
a rate of interest of 2t ｾ＠ per annum.
Disbursements from the loan will not exceed Dfl. 29.9
million during the 1974 calendar year. The remaining Dfl. 97.1
million of the loan will be made available for disbursements
in 1975 and later years.
During discussions which were held in Jakarta from 4
March to 14 March 1974 between representatives of the
Indonesian and Netherlands Government agreement was reached
in principle on a number of specified projects amounting
to a part of Dfl. 85 million of this loan. A list of the
projects concerned is enclosed as Annex A.
After further discussions it was agreed in principle
that the remainder of the loan amounting to Dfl. 42 million
would be used for the projects mentioned in the Annex B.
As regards the project F-ST-3(a) on the enclosed list,
during the abovementioned discussions held in Jakarta in
March 1974, agreement was reached that this project should
be financed from the unused balances of previous loans.
The Netherlands Government will undertake a commitment
for each separate project by means of an exchange of letters
between the Netherlands Embassy in Jakarta and Eappenas. The
final commitment for each of the tentatively listed projects
will be made as soon as enough information has been received
to enable a decision to be made on the feasibility of executing
the project concerned.
Pending the conclusions of appropriate international
agreements designed to untie bilateral loans, the Netherlands
Government is prepared to consider on a case-by-case basis
to what extent projects with regard to the procurements of
goods and services in Ind0nesia itself, could be financed
on an untied basis.
The procedure mentioned in the document entitled "Procedures for the procurement and payments of goods to be
financed by project aid of the Netherlands to Indonesia",
submitted to the Embassy of the Republic of Indonesia with
Note nr. DFO/BT-212.825 of 18 November 1969, will apply to
all orders to be financed under the loan. It is, however,
understood that during consultations which will be held
between the Indonesian and Netherlands Government these
procedures will be reviewed and possibly amended.
- The Netherlands -
- 3 -
The Netherlands Government is again prepared to make
available out of its programme assistance an amount of Dfl.
10 million for the purchase of cotton in third countries.
Disbursements from the programme assistance for the
procurement of cotton and in the form of Devisa Kredit shall
not exceed Dfl. 27 million during the 1974 calendar year. The
remaining Dfl. 15 million will be made available for disbursemeni:E after 1 January 197 5 •
If a part of the programme assistance will be used for
the procurement of cotton in third countries, it is suggested
that the same conditions and payment procedure should apply
as those agreed upon for last year's cotton assistance which
were laid down in an exchange of Notes between the Embassy
of the Republic of Indonesia and the Netherlands Ministry of
Foreign Affairs.
If Your Excellency's Government deems the abovementioned
proposals acceptable, it is suggested that your answer might
take the form of a letter confirming this understanding. This
exchange of letters would not constitute a formal agreement,
but only a preliminary understanding on the main conditions
for a loan contract to be concluded at a later date between
Your Government, or an institution acting on behalf of your
Government, and the Netherlands Investment Bank for Developing
Countries acting on behalf of the Government of the Netherlands.
I avail myself of this opportunity to renew to Your
Excellency the assurance of my highest consideration.
THE MINISTER FOR DEVEJ!1CPMENT CO-OPERATION
Signed
J.P. PRONK
AGREEMENT, dated November 28, 1974
between
1.
The Republic of Indonesia, hereinafter called "Indonesia",
and
2. De Nederlandse Investeringsbank voor Ontwikkelingelanden N.V.,
established at The Hague, The Netherlands,
hereinafter called "the Bank";
WHEREAS:
The Bank is prepared to extend to Indonesia a loan amounting to
Hfl. 127.000.000,- (onehundred twentyseven million Netherlands
guilders) for the financing of specific projects of which tentative lists
are annexed to the letter dated July 26, 1974, from the Netherlands
Minister for Development Co-operation to the Ambassador of Indonesia in
The Netherlands;
The said loan forms part of the contribution which the Netherlands
Government has undertaken to make to Indonesia as laid down in the
afore said letter and the letter dated July 30, 1974 from the Ambassador
of Indonesia· in The Netherlands to the Netherlands Minister for ｄ･ｶｬｯｰｭｾ＠
Co.operation.
NOW IT IS HEREBY AGREED AS FOLLOW$:
The Bank shall grant to Indonesia and Indonesia shall accept from the
Bank a loan amounting to H!l. 127.000.000 ', - (onehundred twenty.seven
million Netherlands guilders) to be called Project-Loan 1974/?5, on the
terms and conditiona set forth in the following articles.
Article· 1
1. Indonesia shall be entitled to draw on the Project-Loan 1974/75
ae from the date on which this loan agreement has become effective,
on the understanding, however, that the total amount of the disbursements on Project-Loan 1974/75 shall not exceed Hfl. 29.900.000,(twentynine million nine hundred thousand Netherlands guilders) on
December 31, 1974, The balance amounting to Hfl. 97.100.000,- (ninety.seven million onehundred thousand Netherlands guilders) will be made
available for disbursement in 1975 and later y•ars • •
2. The disbursements on ｲｯｪ･｣ｴｾｌ｡ｮ＠ｐ
1974/75 shall be ｣ｨ｡ｲｾ､＠
Project-Loan Account Indonesia 1974/75.
to a
- Article 2 -
-,
- 2 -
Article 2
1. Indonesia shall pay on the outstanding amount of the loan a rate
of interest of 2.1/2 ｾＧ＠
which interest shall accrue from the
respective dates or disbursement.
2. The interest on the loan shall be due and payable semi-annually
on January 31 and July 31 of each year.
Article 3
1. The amounts to be made available to Indonesia by the Bank in
accordance vith this agreement under the loan shall be used for
the financing or projects mentioned in or to be added to the lists
of projects annexe.d to the letter dated July 26, 1974, from the
Netherlands Minister for ·Dav,.lopment ｾ ｣ｯ＠ .. 9per•t£on to ·uhe
i.i:'1
Ambassador of Indonesia in The Netherlands. About the financing
of each specific project out of the loan agreement has to be
reached by the Indonesian National Planningboard (Bappenas) and
the Netherlands ｾ｢｡ｹ＠
in Jakarta.
2. Wherever used in this agreement the term contract shall mean
contract concluded for the purchase of goods and/or the rendering
of services and the term goods shall mean goods or services.
Article 4
1. Drawings on the loan shall only be made by the Rijksinkoopbureau
at The Hague, hereinafter called "R.I.B.", who is entitled to
exercise on behalf of Indonesia the right to make drawings in
accordance vith the loan agreement ae from the date of this ｬｾ｡ｮ＠
agreement in such a way that-R.I.B. ahall bind Indonesia fully to
any .amount and in any respect on this subject.
ｾ＠
2. As soon as R.I.B. vill have received a Letter of Authorization
in favour of R.I.B., issued by Bappenas, to place the order(a)
concerned, R.I.B. shall request the Bank to ｲ･ｳｾｶ＠
a corresponding
amount of the loan for disbursement to the aupplier(s) concerned,
which request shall be accompanied by a copy of the Letter of
ａｾｴｨｯｲｩｺ｡ｮ＠
concerned.
·
3. The Bank shall test each application of R.I.B. for a reservation
aa mentioned in paragraph 2 on the terms and conditions of this
loan agreement and having found the application in order shall
inform R.I.B. in case of approval in writing, that the reservation
concerned has been made. The Bank shall send copies of the application of R.I.B. and of its approval to Bank Indonesia in order to
enable the latter to open a · Letter of Credit with respect to the
order(a) concerned in favour of R.I.B. with the Bank. No reservations
shall be allowed with respect to the Project-Loan 1974/?5 after
ｄ･｣ｾｭ｢ｲ＠
31, ＱＹｾＬ＠
unleea otherwise agreed upon between Indonesia
and the Bank.
4. When R.I.B. decides to draw any amount on the loan for disbursement•
tor goods, freight or insurance under a reservation as mentioned hereabove, R.I.B. shall apply for such disbursement by sending the Bank a
written request. This request shall specifically define the amount
expressed in Netherlands guilders, the name and address of the firm(a)
to which the amount has to be paid, the manner of payment and in so
far it concerns the payment of goods, the relevant order(s).
I
-
ｾｔｨ･＠
Bank
ｾ＠
- 3 -
5. The Bank shall only effectuate a written request as ment i oned in
paragraph 4, if the Bank has received a Letter of Credit ae
mentioned in paragraph 3, and if the Bank has received the document(a) mentioned in the relevant Letter of Credit and any amendment thereon together with a written confirmation from R.I.B.
stating that all the terms and conditions of the relevant Letter
of Credit (inclusive an1 a11endmen.t thereon) are complied with.
If the Letter of Credit in the for mentioned in paragraph ? of
this article will not have been opened with the Bank before the
date of reception by the Bank of the relevant written requeat
mentioned in paragraph 4, the Bank shall be entitled to make the
pay•ent concerned without the relevant Letter of Credit again•t
receipt of the documents concerned, if any available. The Bank
shall send a copy of each Letter of Credit (inclusive any amendment thereon) received from Bank Indonesia to R.I.B.
The Bank shall inform R.I.B. of the effectuation of each payment
made by the Bank under the loan.
6. In the case that R.I.B. wants to make (an) amendment(s) on a
Letter of Credit received by the Bank from Bank Indonesia, R.I.B.
shall submit to the Bank a request for such amendment(s). The Bank
shall send a copy ot laatmentioned request to the Bank Indonesia
in order to enable · the • latter to amend the Letter of Credit as
requested by R.I.B.
7. Each Letter of Credit must contain a clause authorizing R.I.B. to
make all the amendments and arrangements in the relevant Letter
of Credit and the eventual amendments thereon necessary for the ·
proper execution of the order(a) concerned for the case that an
amendment and/or arrangement in the relevant Letter o! Credit will
not have been receiyed by the Bank from Bank Indonea!a before the
date of reception by the Bank or the relevant written request
mentioned in paragraph 4, in order to enable R.I.B. to alter the
relevant Letter of Credit in conformity with the request thereto
of R. I.B. as mentioned in para·g raph 6. FUrthermore each Letter .of
Credit shall contain a clause etating that payment under the relevant Letter of Credit shall only take place after receipt of a
request from R.I.B. as mentio.n ed in paragraph 4 and that such
payment shall only be made in a manner as mentioned in said request
and also after receipt from R.I.B. of the written confirmation
mentioned in paragraph 5.
The Bank shall inform the Bank Indonesia of each amendment or
alteration made b7 R.I.B. in any Letter of Credit.
8. The Bank is net responsible tor the controlling of the documents
inclusive the written confirmation mentioned in , paragraph 5. The
Bank shall send all the docu•enta inclusive the writtea ·confil"llation
of the R.I.B. as mentioned in paragraph 5, received from the R.I.B.,
to the Bank Indoneeia ｴ･ｧｨｾｲ＠
ｾｩｴｨ＠
a schedule of remittance about
the relevant payment made by the 'Bank on request of R.I.B.
Article 5
1. The Project-Loan 1974/75 shall be repayable in twenty-three
consecutive annual instalments, the first of which shall be due and'
payable on January 31, 1983.
2: The first repayment with respect to Project-Loan 1974/75 will amount
to Hfl. 5.520.4oo,- (five million fivehund r ed twenty thousand fourhundred Netherlands guilders) and the following ones to Hfl.
5.521.800,- (five million fivehundred twentyone thousand eighthundred Netherlands guilders) each.
- 4 Article 6
1. In case Indonesia fails to pay interest on the respective due dates,
the amount unpaid will be increased by a compensation equal to five
twenty-fourth o.f one per cent (5/24 %) per calendar month as long as
the failure continues, a part of a month to count as a full month.
-
2. In case Indonesia fails to perform any of her obligations pursuant to
this agreement and/or any other loan agreement between lndonesia and
the Bank, Indonesia shall no longer be entitled to draw on the loan
and the outstanding amount under this agreement and any other loan
agreement between Indonesia and the Bank shall be due and collectable
at once upon notification in writing of the faillfre and the said amount
plus interest and compensation shall be paid by Indonesia to the Bank
forthwith. However as far as the then prevailing circumstances at the
discretion of the Bank will permit so, the Bank shall grant the opportunity to Indonesia to fulfil its obligations within a term of at ｭｯｾｴ＠
sixty days •.
Article 7
1. All payments received by the Bank will be applied in the following order:
a) to payment of costs;
b) to payment of compensation;
c) to payment of interest;
d) to payment of the outstanding amount on the loan.
2. All payments by Indonesia to the Bank must be made in Netherlands
currency in the account of the Bank with ｾ･＠
Nederlandsche Bank fJ.V. at
1
Amsterdam, without any reduction or set-off.
3. This agreement shall be free from any taxes (including duties, fees or
impositions) that shall be imposed under the laws of Indonesia or laws
in effect in its territories on or in cdnnection with the execution of
the agreement or the performance thereof by the Bank.
4. All payments of interest and principal and all other payrnPnts to be made
Indonesia shall be made without deduction for, and free from any
(including duties, tees and impositions) that shall be imposed
under the laws of Indonesia or laws.in effect in its territories, and
free from.all restrictions imposed unaer the laws of Indonesia or laws
in effect in its territories.
by
ｴｾｸ･ｳ＠
Article 8
The Bank ｾｨ｡ｬ＠
send to Indonesia a written statement of all entries iri
the books of the Bank in ｣ｯｮ･ｾｩ
Ｎ ｷｩｴｨ＠
this agreement. This statement
shall be deemed to have been acknowledged as correct by Indonesia if
objections of Inconesia to the Bank duly justified in writing have not
been made known to the Bank within a month after the statement relating
to these entries ｾ｡ｮ＠
reasonably be expected to have been received by
Indonesia.
- Article 9 -
.,,. .
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..
- 5 -
._,0
;.,.rticle
9
As long as this agreement is in force Indonesia shall furnish to the
Bank such information as may especially be required for the implementation
and administration of this agreement.
Article 10
1. Indonesia is obliged to furnish to the Bank in writing sufficient
evidence of the authority of the person or persons who will be
entitled to represent Indonesia towards the ｂ｡ｮｾ＠
in respect of the
performance of this agreement other than mentioned in article 4 of
this agreement.
2. The authorizations mentioned in paragraph 1 remain in force until the
Bank has been informed by Indonesia in writing that they have been
cancelled.
i\rticle 11
ｾｯ＠
delay in exercising or omission to exercise any right, power or
remedy accruine to either party under this agreement upon any default
shall impair any such right, power or remedy or be .construed to be a
waiver thereof or an acquiescence in such default unless otherwise
provided for in this ｡ｧｲ･ｾｮｴＮ＠
Ｑｾｲｴｩ｣ｬ･＠
12
ill rights of ｴｨｾ＠
Bcnk pursuant to this agreement shell redound not
only to itself but also to its ｳｵｾｯｲ＠
and.assignees.
11rti cle 13
Indonesia shall reimburse to the Bank at first requect sll costs
deriving from any default of Indonesia and in general costs other than
ordinary business expenditufes as incurred by the Bank in connection
with. the implementation of this agreement.
Article 14
1. Any dispute between the ｰ｡ｲｴｩ･ｾ＠
shall be settled by arbitration. In
such a case the conditions of bection 9.04 of the General Conditions
applicable fo loan and Guarantee Agreements, dated January 31, 1969
of the International Bank f ·o r Reconstruction and Development shall be
applied rnutatis mutandis.
2. This aereement and the interpretation of any article thereof, the
｣ｯｮｾｩｴｳ＠
mentioneC in the foregoing paragraph included, shall be
c;overned by the law of The t:etherlands.
- Article
15 -
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ｾ＠
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- 6 -
,.)
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Article 15
This agreement shall not become effective until either party having
signed the agreement, has furnished evidence satisfactory to the other
party that its signature is legal, valid and binding and that all
necessary authorizations have been obtained.
Article 16
1. For the performance of this contract and for the serving of legal
process Indonesia irrevocably elects domicile at the Embassy of
Indonesia at The Hague and the Bank elects ､ｯｭｾ｣ｩｬ･＠
at its office
at The Hague.
2. In witness whereof the parties hereto, acting through their duly
authorized representatives have ｣｡ｾｳ･､＠
this agreement to be signed
in duplicate in their respective names and delivered in The Hague
as of the day and year first above written.
FOR AND ON ｂｾｈａｌｆ＠
CF.THE
GOVERNMJ!;NT OF INDONESIA
Dl!. ｾｅｄｒｌａｎｓ＠
INVESTERINGSBANK
VCfR ONTiIKKELINGSLANDEN N.V.
DE ｾｔｉｏｎａｕＺ＠
·
Officers:
ｾ｡ｮｧｩ＠
INVESTERINGSBANK N.V.
Signed
Signed
/