Selanjutnya
A. I . D. Loan No. 497-V-078
A. I.D. Project No. 497-0328
PROJECT
LOAN AGREEMENT
BETWEEN
THE REPUBLIC OF INDONESIA
AND THE
UNITED STATES OF AMERICA
FOR
GENERAL PARTICIPANT TRAINING II
. .. .
Dated:
May 23 , 1983 .
II
PROJECT LOAN AGREEMENT
Table of Contents
PAGE
Title Page
I
Table of Contents
II
Article 1:
The Agreement
1
Article 2:
The Project
l
SECTION 2. 1.
Article 3:
Financing
SECTION 3. 1 .
SECTION 3. 2.
SECTION 3. 3 .
Article 4:
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
Article 5:
4. ] .
4.2 .
4. 3 .
4. 4 .
4. 5.
4. 6 .
Interest
Repayment
Application, Currency, and Place of Payment
Prepayment
Renegotiation of Terms
Termination on Full Payment
Conditions Precedent to Disbursement
SECTION 5.3 .
SECTION 5. 4 .
First Disbursement
Conditions Precedent to Disbursements
for Training Activities
Notification
Terminal Dates for Conditions Precedent
Special Covenants
SECTION 6. 1 .
SECTION 6 . 2.
SECTION 6. 3 .
Article 7:
The Loan
Borrower Resources for the Project
Project Assistance Completion Date
Loan Terms
SECTION S.l.
SECTION 5. 2.
Article 6:
Definition of Project
Project Evaluation
Continued Borrower Support for the O. T. U.
Annual Review of Selection Criteria
Procurement Source
SECTION 7. 1 .
SECTION 7.2.
Foreign Exchange Costs
Local Currency Costs
1
2
2
2
2
3
3
4
4
4
4
s
5
5
6
6
7
7
7
7
7
8
8
8
PAGE
Article 8:
SECTION
SECTION
SECTION
SECTION
SECTION
Article 9:
Disbursements
8
8. 1.
8.2.
8. 3.
8.4.
8. 5.
8
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
9
10
10
10
11
11
11
12
Amplified Description of the Project
ANNEX I
Project Loan Standard Provisions
ANNEX II
A.I.D. Loan No. 497-V-078
A.I.D. Project No . 497-0328
PROJECT LOAN AGREEMENT
Daten:
May 23, 1983 .
Between
The Republic of Indonesia ( "Borro\ver")
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 js
further described in Annex I, will assist the Government of
Indonesia to increase the effectiveness of Indonesian programs in
realizing national development objectives, by expanding the manpower
capabilities of Government ministries, public and private
universities, and private, non-profit organizations, and by creating
a capability within the Government to plan and admjnister overseas
training programs for Indonesians.
Annex I, attached, amplifies the
above definition of the Project.
Within the Jimits of the above definition of the Project,
elements of the amplified description stated in Annex T may be
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changed by written agreement of the authorized representatives of
the Parties named in Section 9.2, without formal amendmPnt of this
Agreement.
Article 3.
Financing .
SECTION 3.1.
The Loan.
To assist the Borrower to meet the costs
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 not to exceed Five Million One
Hundred and Fifty Thousand United States ("U.S.") Dollars
($5,150,000) to support the Project.
The aggregate amount of
disbursements under the Loan js 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
SECTION 3.2.
(a)
ｲ･ｱｵｩｾ､＠
for the Project.
Borrower Resources for the Project.
The Borrower ｡ｧｲ･ｾｳ＠
to provide or cause to he 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 .
$ 4,265,000, including costs
borne on an "in-kind" basis.
SECTION 3 . 3.
(a)
Project Assistance Completion Date.
The "Project Assistance Completion Date" (PACD), whjch is
April 30, 1990, or such other date as the Parties may agree to in
- 3 -
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 hy A. I . D. or any hank
in
ｾ･ｳ｣ｲｩｨ､＠
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. J.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 hy
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
for ten (10) years following the date of the first disbursement
hereunder and at the rate of three percent (3\) per annum thereafter
on the outstanding balance of Principal
ｩｮｴ･ｲｾｳＮ＠
ｾｮ､＠
on any due and unpaid
Interest on the outstanding halance wjll accrue from the
- 4 date Cas 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 - 1/2)
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 under 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 he applied first to the payment of interest
then to the repayment of Principal.
ｾＱ･＠
and
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 he 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
any 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
- 5 -
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 hy 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 wiJl 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 11nder 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 pJace at the office of
Borrower's Minister 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 .
Article
s.
Conditions Precedent to Disbursement.
SECTION 5 . 1 .
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
- 6 -
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 Borro\.rer, and that it constHutes a vaUrl
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 '"ith a specimen signature of
each person specified in such statement;
(c)
Plans for the utilization of the Borrower's contribution as
provided in Section 3. 2 of this Agreement.
(d)
Evidence that the BorrO\ver
IVill
budget sufficieHt local
currency to make its initial contribution for the Project .
SECTION 5 . 2 .
Activities .
Conditions Precedent to Disbursements For Training
Prior to disbursement under the Loan, or to the
issuance by A. I . D. of documentation to which disbursement will be
made for training activities, 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., evidence that a project
steering committee has been formed consisting of representatives
from BAPPENAS, Ministry for Efficient Utilization of State Appratus
(MENPAN), Ministry of Finance, Cabinet Secretariat, USAID and any
other ministries considered appropriate by the Government of
Indonesia .
SECTION 5 . 3 .
Notification .
When A.I . D. has determined that the
conditions precedent specified in Section 5.1 and
s. z
have been met,
- 7 -
it will p r omptly 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
thereafter: (a) evaluation of 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 informa t ion 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 .
Continued Borrower Support for the O. T.U .
As part
of its contribution to this project the Borrower agrees to establish
and fund an Overseas Training Unit which is to be in full operation
after the fourth year of this project , and which is to continue in
operation after the project is completed .
The Borrower will
determine the location of that unit no later than 9 months from the
signing of this agreement.
SECTION 6 . 3.
Annual Review of Selection Criteria .
The parties
agree to review and revise as mutually agreeable and on an annual
basis the selection criteria to he used in choosing candidates.
- 8 -
Article 7:
Procurement Source.
SECTION 7.1.
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 with respect to goods,
their source and origin and with respect to services, their
nationality in countries included in Code 941 of the A. r . 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 excepL as provided in the Project Loan Standard Provisions
Annex, Sect i on C.l (b) with respect to marine insurance.
Ocean
transportat i on 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 7.2.
Local Currency Costs .
Disbursements pursuant to
Section 8.2 will be used exclusively to finance the costs of goods
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 Conditions Precerlent, the Borrower
may obtain disbursements of funds under the Loan for the Foreign
- 9 -
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 in 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 hanks 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 .
ＨｾＩ＠
Banking
｣ｨ｡ｲｾ･ｳ＠
jncurred by Borrower in connection with
Letters of Commitment and Letters of Credit will be financed under
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 8.2.
(a)
Disbursement for Local Currency Costs
After satisfaction of Conditions
ｐｲ･｣ｾｮｴＬ＠
the Borrower
may obtain disbursements of funds under the Loan for Local Currency
Costs required for the Project in accordance with the terms of this
Agreement, hy submitting to A.I . D. , with necessary supporting
oocumentation as prescribed in Project
requests to finance such costs .
ｉｭｰｬ･ｾｴ｡ｩｯｮ＠
Letters,
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(b)
The local currency neeed for such disbursement may be
obtained:
(l)
by acquisition hy A.I . D. with U.S . Dollars by
purchase or from local currency already o1med by the
Government;
u.s.
or (2) by A. I . D. requesting the Borrower to make
availahle the local currency for such costs, and thereafter
reimbursing an amount of
u.s .
Dollars equal to the amount of local
currency marlc available by the Borrower.
The
u.s .
dollar equivalent
of the local currency made available hereunder "ill Qe the amount of
U.S. dollars required by A. I.D. to obtain the local currency .
SECTION 8 . 3 .
Other Forms of
Disbursements of the
ｄｩｳ｢ｵｲ･ｭｾｮｴＮ＠
Loan may also be made through such other means as the Parties may
agree to in writing.
S[CTION 8.4.
Rate of Exchange .
Except as may more specifically
be provided •mder 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
Borro11er will make such arrangements as may be necessary so that
such funds may be converted into currency of the Republic of
Indonesia at the highest rate of exchange which, at the time the
conversion is made, is not unlawful in Indonesia .
SECTION 8.5.
Date of Disbursement.
ｄｩｳｨｵｲ･ｭｾｮｴ＠
hy A.I . D.
wi 11 be deemed to occur (a) on the date on \oJhi ch A. I. D. makes a
disbursement to the Borrower or its designee, or to n bank,
contractor nr supplier pursuant to a Letter of Commitment, contract,
or purchase order;
(b)
on the date on Hhich A. I. D. disburses to
the Borrower or its designee local currency acquired in accordance
with Section 8.2 .
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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 he in writing or hy 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 J.uar Negeri
Jalan Pejambon No . 6
Jakarta Pusat
Indonesia
Alternate address for telegrams: DEPLU JAKARTA
ToA . I.D.:
Mail Address:
U. S . Agency for International Development
American Embassy
Jl . Medan Merdeka Selatan 5
Jakarta, Indonesia
Alternate address for telegrams: USAID AMa1B JAKARTA
All such communications will be in English, unless the Parties
otherwise agree in writing .
Other addresses may be substituted for
the above upon the giving of notice .
The Borrower, in addition,
will provide the USAID Mission with a copy of each communication
sent to A. I. D.
SECTION 9 . 2 .
Re presenta t ives .
For all purposes relevant to
this Agreement, the Borrower will be represented by the individual
holding or acting in the office of Chairman or Vice Chairman,
National Development Planning Agency (BAPPENAS) and A. I . D. will be
represented by the individual holding or acting in the office of
Mission Director, USAID Mission to Indonesia, each of whom, by
written notice, may designate additional representatives for all
purposes other than exercising the power under Section 2 . 1 to revise
- 12 ｾｬ･ｭｮｴｳ＠
of the amplified dP.scription in Annex I.
ｲ･ｰｳｮｴ｡ｩｶｾ＠
The names of the
of the Borrower, with spec1men signatures, vill he
provided to A. I.D . , which may accept as duly authorized any
instrument signed hy such representatives in implementation of this
Agreemrnt, until receipt of written notice of revocation of their
authority .
SECTION 9 . 3.
Standard Provisions Annex.
A "Project Loan
Standard Provisions Annex" (AnnPX 2) is attachecl to l'lnd forms part
of this Agreement.
IN WITNESS WHEREOF, the Republic of Inclonesia and the United
States of America, each acting through its duly authorized
representative, have caused this Agreement to be signed in their
names and delivered as of the day and year first ahove written .
REPUBLIC OF INDONESIA
UNITED STATeS OF AMERICA
Signed
Atmono Suryo M.A .
Director General
for Foreign Economic RPlations
Ｍｾｦｩｮ＠
Signed
c. Monjo '
arge cl 'Affancs
GENERAL PARTICIPA.Vr TRAINING I I PROJECf
Annex 1
AMPLIFIED PROJECT DESCRIPTION
I.
GENERAL PROJECT DESCRIPTION
The goal of the General Participant Training II Project (GPT II) is to
assist the GOI to increase the effectiveness of Indonesian programs in
realizing national devclopmPnt objectives, by faci 1i tating the long and
short term training processes by which the manpower hase of the country is
upgraded and broadened. The pnrpose of the Project is to expand the
manp01"er capabilities of government ministries; public and private
universities; and private non-profit organizations. Jn addition, GPT II
wtll also establish a permanent Overseas Training Unit (OTU) within the
GOI capable of managing all future general participanl training programs
and supporting English language training of the Indonesian Government .
The OfU, under the direction of a GOI Steering Committee, will perform the
placement and support functions now largely performed by foreign donors .
At the completion of the project, it is expected that the follOiiing
results will have been achieved :
1)
Approximately 25 persons trained at the doctoral level in the u.s.,
175 persons trained at the master's level in the u.s., and
225 persons trained in short - term technical programs, and in supervised
on-the- job programs. Approximately 70\ of the loan funcl:; will be used for
training of GOI personnel; the remaining 30% will be used for training of
private sector personnel. For purposes of this project, the private
sector is defined as private universities and private voluntary non-profit
organizations . Approximately b•o-thirds of the loan funds will be used
for lore term acadcl!lic training at the graduate level in the United States
for approximately 200 participants selected from Indonesian Government
organizations and private universities .
2) An Overseas Training Unit fully staffed and operational with the GOI
assuming full financial support for its operation in the fifth year of the
project. A subsidiary output of the unit will be an institutionalized
system for provjding high quality English language training for
parlicipants .
2
3) Specialized studies carried out on specific training - related topics.
4)
A follow-up program for partit.ipauts \·lhO are uained tmder this project as
wetl as those under other A. I.D . financed participant training to measure
utilization of training .
AID loan funds may also 'l)e userl to pay the cost of approximately 450
months of short term technical training including short courses, on-the-job
training and observation tours for GOI employees as ｜ｾ･ｬ＠
as for personnel from
private voluntary organizations. The average length of short term training is
estimated at two months. Some 225 participants ,.,ill be involved, \lith third
country training in ASEAN countries and other countries available where
appropriate. Subject to the approval of the Project Steering Committee, funds
will be made available from the contingency budget to permit participants who
were funded tmder other USAID projects and who have not completed their
training by the end of such project to complete their studies.
ｄｵｲｩｾ＠
the first year of the project the OfficP. for Training within
USAJD will continue to assist in arranging for training and placement of
students . During this period a contractor(s) will .be selected to carry out
participant placement for the next three years of the project, to do the
design study for the OTU, to provide technical assistance to the GO! on the
establishment of the aru, and to provide follow-up activities for returning
participants. By the 36th month of the project, the OTU is ｾｸｰ･｣ｴｲｬ＠
to be
functioning independently of technical assistance .
II. RESPONSIBILITIES OF THE PARTlES
The GO! will be responsible for the establishment of the Project Steering
Committee supported by a GOI - funded Secretariat . The Project Steering
Committee \rill be composed of representatives from BAPPENAS, the ｾｴｩｮｳｲｹ＠
for
Effic1ent Utilization of State Apparatus (MENPAN), ｾｴｩｮｳｲｹ＠
of ｆｩｾ｡ｮ｣･Ｌ＠
Cabinet Secretariat, and USAID and any other Minist ry deemed appropriate by
the Government of Indonesia .. The Project Steering Commmittee will review
upon beb1een the GOI
individua 1 applications per the selection criteria ｡ｾｲ･､＠
and USAID, and with overall consideration for the identification of specific
occupational skills rlemands for implementat1on of Repelita IV, and the
available supply of such skills. It will also initiate proposals for
technical assistance, review participants' progress and consider policy issues
to strengthen project goals .
The Steering Committee will select a contractor pursuant to AID
procurement regulations on host country contracting , and established selection
criteria . Once the Project Steering Committee is organized and functioning,
it wi 11 concentrate on the selection of candidates, the provision of Engllsh
language training and the identification of snort - term studies. These
activities will be supported by the GO! financial contribution as detailed in
3
the project budget for travel, English language and support costs.
International air travel for participants will be provided by the GOI on the
national airline Garuda to the closest point to the u.s. flo\ofll hy Gamda .
International air travel from that point will be provided under the AID loan.
For tl1e purpose of this Agreement, either Amsterdam or Tokyo are presently
the closest points ｦｬｯ｜ｾ＠
by Garuda and will be used to calculate the GOI and
USG contributions . ln the event of schedule changes, the line i terns in the
budget will be revised to reflect these changes as long as the total amount
provided by the GOI is not less than that provided in the Project Agreement,
and as long as the total amount prov1ded by AID is not increased . In
addition, any changes 1n tine i terns of the budget which exceed 15% must be
agreed to by the Parties in writing, as long as the total amount provided hy
the GOI is not less than that provided in the Project Agreement, and as long
as the total amount provided by AID is not increased.
A.I.D . w1ll provide ｰＡ｡｣ｾＱ･ｮｴ＠
services for candidates funded Lmder the
loan and will assist the ｓｴ･ｲｩｾ＠
Committee in the procurement and ftmding of
the contractor as detailed in the proJect budget. Once that contractor is in
place, USAID will turn over active participant training files for this project
to the contractor and assist him/her in the orderly transition of the training
function. In addition AID will provide funds under the Loan for the payment
of participant training costs together \flth associated costs for inflationary
increases . AID will also assist the Steering Committee in the identification
of short term studies relevant to training activities of the GOI, fund those
studies under short and long term technical assistance, and also ftmd a
program of regular follow-up and evaluation.
The OTU will process training requests \ohich have been approved by the
Project Steering C.ommi t tee, carry out language testing, arrangr training
ｰｲｯｾ＠
rams, maintain all training records, serve as a liaison between the
ProJect Steering Committee and US training institutions and car.ry out followup activities. The design of the Overseas Training Unit will be part of the
work of the main technical assistance contractor. Remaining stuclies will he
identified by the Project Steering Committee as the project hegins to he
implemented , and once the main contractor is in ｰｬ｡｣ｾ
Ｎ＠
The studies will be
short term and address specific policy and implementation constraints sud1 as
the effectiveness of present English language instnJction. By the ninth Month
from the date the Project Agreements have been signed, the Government of
Indonesia will decide on the ministerial location of the Overseas Training
Unit for incorporation into the consultant's design .
Participants will he selected from all Government ministries and agencies
and from private universities and voluntary non-profit organizations against
specific selection criteria and an overall revie'" process of a Project
Steering Co1mlittee. The criteria for select1on wi 11 be subject to an annual
revie\¥ and will initially consist of the ｦｯｬｴｾｮｧＺ＠
demonstrated ability in their profession or academic background,
English language fluency appropriate to requirements,
- good health,
no more than 35 years of age for a first advanced degree;
- no more that 40 years of age for a doctorate,
a degree in hand inmtediately helow the level proposed for study,
no less than two and no more than twenty years work experience,
evidence the candidate will be assigned to a job related to the
training proposed,
a study field appropriate to Indonesian clevelopmPnt needs ,
thests research appropriate to the needs of the individual's
organization ｾｮ､＠
Indonesian development needs,
program not available under any AID or other funded sectorally
a ｳｴｾｹ＠
ｾｰ･｣ｩｦ＠
program,
a direct relationship ,.,i th the skill requirementc; of the nominating
agency,
compatibility with the goals of Part I of the US Foreign Assistance Act
of 1961, as amended .
-· ·
FINANCIAL PT.AN
(U.S. DOLS)
AID
Grant
Technical Assistance
GOI
1,000,000
TOTAL
1,000,000
Loan
Participant Training
English Language Training
International Travel
Inflation/Contingency
4,500,000
125,000
L,400,000
5,900,000
320,000
320,000
335,000
460,000
525,000
6,150,000
525,000
2,055,000
8,205,000
Table of Content
Project Loan Scandard Provisions
Annex 2
Page
Article A:
Project Implementation Letters
1
Article B:
General Covenants
1
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
Article C:
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
Article D:
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
B. l.
B.Z.
B. 3 .
B. 4.
B. 5.
B.6.
B.7.
B.S.
Consultation
Execution of Project
Utilization of Goods and Services
Taxation
Reports, Records, Inspections, Audit
Completeness of Information
Other Payments
Information and Marking
Procurement Provisions
C.l.
C. 2.
C.3.
C.4.
C. 5.
C.6.
C. 7 .
C. 8.
Special Rules
Eligibility Date
Plans, Specifications, and Contracts
Reasonable Price
Notification to Potential Suppliers
Shipping
Insurance
U.S. Government - Owned Excess Property
Termination; Remedies
D.l.
D. 2 .
D. 3.
D.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
Nom
A. I.D. Project No. 497-0328
PROJECT
LOAN AGREEMENT
BETWEEN
THE REPUBLIC OF INDONESIA
AND THE
UNITED STATES OF AMERICA
FOR
GENERAL PARTICIPANT TRAINING II
. .. .
Dated:
May 23 , 1983 .
II
PROJECT LOAN AGREEMENT
Table of Contents
PAGE
Title Page
I
Table of Contents
II
Article 1:
The Agreement
1
Article 2:
The Project
l
SECTION 2. 1.
Article 3:
Financing
SECTION 3. 1 .
SECTION 3. 2.
SECTION 3. 3 .
Article 4:
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
Article 5:
4. ] .
4.2 .
4. 3 .
4. 4 .
4. 5.
4. 6 .
Interest
Repayment
Application, Currency, and Place of Payment
Prepayment
Renegotiation of Terms
Termination on Full Payment
Conditions Precedent to Disbursement
SECTION 5.3 .
SECTION 5. 4 .
First Disbursement
Conditions Precedent to Disbursements
for Training Activities
Notification
Terminal Dates for Conditions Precedent
Special Covenants
SECTION 6. 1 .
SECTION 6 . 2.
SECTION 6. 3 .
Article 7:
The Loan
Borrower Resources for the Project
Project Assistance Completion Date
Loan Terms
SECTION S.l.
SECTION 5. 2.
Article 6:
Definition of Project
Project Evaluation
Continued Borrower Support for the O. T. U.
Annual Review of Selection Criteria
Procurement Source
SECTION 7. 1 .
SECTION 7.2.
Foreign Exchange Costs
Local Currency Costs
1
2
2
2
2
3
3
4
4
4
4
s
5
5
6
6
7
7
7
7
7
8
8
8
PAGE
Article 8:
SECTION
SECTION
SECTION
SECTION
SECTION
Article 9:
Disbursements
8
8. 1.
8.2.
8. 3.
8.4.
8. 5.
8
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
9
10
10
10
11
11
11
12
Amplified Description of the Project
ANNEX I
Project Loan Standard Provisions
ANNEX II
A.I.D. Loan No. 497-V-078
A.I.D. Project No . 497-0328
PROJECT LOAN AGREEMENT
Daten:
May 23, 1983 .
Between
The Republic of Indonesia ( "Borro\ver")
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 js
further described in Annex I, will assist the Government of
Indonesia to increase the effectiveness of Indonesian programs in
realizing national development objectives, by expanding the manpower
capabilities of Government ministries, public and private
universities, and private, non-profit organizations, and by creating
a capability within the Government to plan and admjnister overseas
training programs for Indonesians.
Annex I, attached, amplifies the
above definition of the Project.
Within the Jimits of the above definition of the Project,
elements of the amplified description stated in Annex T may be
- 2 -
changed by written agreement of the authorized representatives of
the Parties named in Section 9.2, without formal amendmPnt of this
Agreement.
Article 3.
Financing .
SECTION 3.1.
The Loan.
To assist the Borrower to meet the costs
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 not to exceed Five Million One
Hundred and Fifty Thousand United States ("U.S.") Dollars
($5,150,000) to support the Project.
The aggregate amount of
disbursements under the Loan js 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
SECTION 3.2.
(a)
ｲ･ｱｵｩｾ､＠
for the Project.
Borrower Resources for the Project.
The Borrower ｡ｧｲ･ｾｳ＠
to provide or cause to he 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 .
$ 4,265,000, including costs
borne on an "in-kind" basis.
SECTION 3 . 3.
(a)
Project Assistance Completion Date.
The "Project Assistance Completion Date" (PACD), whjch is
April 30, 1990, or such other date as the Parties may agree to in
- 3 -
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 hy A. I . D. or any hank
in
ｾ･ｳ｣ｲｩｨ､＠
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. J.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 hy
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
for ten (10) years following the date of the first disbursement
hereunder and at the rate of three percent (3\) per annum thereafter
on the outstanding balance of Principal
ｩｮｴ･ｲｾｳＮ＠
ｾｮ､＠
on any due and unpaid
Interest on the outstanding halance wjll accrue from the
- 4 date Cas 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 - 1/2)
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 under 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 he applied first to the payment of interest
then to the repayment of Principal.
ｾＱ･＠
and
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 he 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
any 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
- 5 -
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 hy 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 wiJl 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 11nder 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 pJace at the office of
Borrower's Minister 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 .
Article
s.
Conditions Precedent to Disbursement.
SECTION 5 . 1 .
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
- 6 -
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 Borro\.rer, and that it constHutes a vaUrl
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 '"ith a specimen signature of
each person specified in such statement;
(c)
Plans for the utilization of the Borrower's contribution as
provided in Section 3. 2 of this Agreement.
(d)
Evidence that the BorrO\ver
IVill
budget sufficieHt local
currency to make its initial contribution for the Project .
SECTION 5 . 2 .
Activities .
Conditions Precedent to Disbursements For Training
Prior to disbursement under the Loan, or to the
issuance by A. I . D. of documentation to which disbursement will be
made for training activities, 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., evidence that a project
steering committee has been formed consisting of representatives
from BAPPENAS, Ministry for Efficient Utilization of State Appratus
(MENPAN), Ministry of Finance, Cabinet Secretariat, USAID and any
other ministries considered appropriate by the Government of
Indonesia .
SECTION 5 . 3 .
Notification .
When A.I . D. has determined that the
conditions precedent specified in Section 5.1 and
s. z
have been met,
- 7 -
it will p r omptly 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
thereafter: (a) evaluation of 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 informa t ion 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 .
Continued Borrower Support for the O. T.U .
As part
of its contribution to this project the Borrower agrees to establish
and fund an Overseas Training Unit which is to be in full operation
after the fourth year of this project , and which is to continue in
operation after the project is completed .
The Borrower will
determine the location of that unit no later than 9 months from the
signing of this agreement.
SECTION 6 . 3.
Annual Review of Selection Criteria .
The parties
agree to review and revise as mutually agreeable and on an annual
basis the selection criteria to he used in choosing candidates.
- 8 -
Article 7:
Procurement Source.
SECTION 7.1.
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 with respect to goods,
their source and origin and with respect to services, their
nationality in countries included in Code 941 of the A. r . 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 excepL as provided in the Project Loan Standard Provisions
Annex, Sect i on C.l (b) with respect to marine insurance.
Ocean
transportat i on 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 7.2.
Local Currency Costs .
Disbursements pursuant to
Section 8.2 will be used exclusively to finance the costs of goods
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 Conditions Precerlent, the Borrower
may obtain disbursements of funds under the Loan for the Foreign
- 9 -
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 in 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 hanks 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 .
ＨｾＩ＠
Banking
｣ｨ｡ｲｾ･ｳ＠
jncurred by Borrower in connection with
Letters of Commitment and Letters of Credit will be financed under
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 8.2.
(a)
Disbursement for Local Currency Costs
After satisfaction of Conditions
ｐｲ･｣ｾｮｴＬ＠
the Borrower
may obtain disbursements of funds under the Loan for Local Currency
Costs required for the Project in accordance with the terms of this
Agreement, hy submitting to A.I . D. , with necessary supporting
oocumentation as prescribed in Project
requests to finance such costs .
ｉｭｰｬ･ｾｴ｡ｩｯｮ＠
Letters,
- 10 -
(b)
The local currency neeed for such disbursement may be
obtained:
(l)
by acquisition hy A.I . D. with U.S . Dollars by
purchase or from local currency already o1med by the
Government;
u.s.
or (2) by A. I . D. requesting the Borrower to make
availahle the local currency for such costs, and thereafter
reimbursing an amount of
u.s .
Dollars equal to the amount of local
currency marlc available by the Borrower.
The
u.s .
dollar equivalent
of the local currency made available hereunder "ill Qe the amount of
U.S. dollars required by A. I.D. to obtain the local currency .
SECTION 8 . 3 .
Other Forms of
Disbursements of the
ｄｩｳ｢ｵｲ･ｭｾｮｴＮ＠
Loan may also be made through such other means as the Parties may
agree to in writing.
S[CTION 8.4.
Rate of Exchange .
Except as may more specifically
be provided •mder 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
Borro11er will make such arrangements as may be necessary so that
such funds may be converted into currency of the Republic of
Indonesia at the highest rate of exchange which, at the time the
conversion is made, is not unlawful in Indonesia .
SECTION 8.5.
Date of Disbursement.
ｄｩｳｨｵｲ･ｭｾｮｴ＠
hy A.I . D.
wi 11 be deemed to occur (a) on the date on \oJhi ch A. I. D. makes a
disbursement to the Borrower or its designee, or to n bank,
contractor nr supplier pursuant to a Letter of Commitment, contract,
or purchase order;
(b)
on the date on Hhich A. I. D. disburses to
the Borrower or its designee local currency acquired in accordance
with Section 8.2 .
- 11 -
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 he in writing or hy 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 J.uar Negeri
Jalan Pejambon No . 6
Jakarta Pusat
Indonesia
Alternate address for telegrams: DEPLU JAKARTA
ToA . I.D.:
Mail Address:
U. S . Agency for International Development
American Embassy
Jl . Medan Merdeka Selatan 5
Jakarta, Indonesia
Alternate address for telegrams: USAID AMa1B JAKARTA
All such communications will be in English, unless the Parties
otherwise agree in writing .
Other addresses may be substituted for
the above upon the giving of notice .
The Borrower, in addition,
will provide the USAID Mission with a copy of each communication
sent to A. I. D.
SECTION 9 . 2 .
Re presenta t ives .
For all purposes relevant to
this Agreement, the Borrower will be represented by the individual
holding or acting in the office of Chairman or Vice Chairman,
National Development Planning Agency (BAPPENAS) and A. I . D. will be
represented by the individual holding or acting in the office of
Mission Director, USAID Mission to Indonesia, each of whom, by
written notice, may designate additional representatives for all
purposes other than exercising the power under Section 2 . 1 to revise
- 12 ｾｬ･ｭｮｴｳ＠
of the amplified dP.scription in Annex I.
ｲ･ｰｳｮｴ｡ｩｶｾ＠
The names of the
of the Borrower, with spec1men signatures, vill he
provided to A. I.D . , which may accept as duly authorized any
instrument signed hy such representatives in implementation of this
Agreemrnt, until receipt of written notice of revocation of their
authority .
SECTION 9 . 3.
Standard Provisions Annex.
A "Project Loan
Standard Provisions Annex" (AnnPX 2) is attachecl to l'lnd forms part
of this Agreement.
IN WITNESS WHEREOF, the Republic of Inclonesia and the United
States of America, each acting through its duly authorized
representative, have caused this Agreement to be signed in their
names and delivered as of the day and year first ahove written .
REPUBLIC OF INDONESIA
UNITED STATeS OF AMERICA
Signed
Atmono Suryo M.A .
Director General
for Foreign Economic RPlations
Ｍｾｦｩｮ＠
Signed
c. Monjo '
arge cl 'Affancs
GENERAL PARTICIPA.Vr TRAINING I I PROJECf
Annex 1
AMPLIFIED PROJECT DESCRIPTION
I.
GENERAL PROJECT DESCRIPTION
The goal of the General Participant Training II Project (GPT II) is to
assist the GOI to increase the effectiveness of Indonesian programs in
realizing national devclopmPnt objectives, by faci 1i tating the long and
short term training processes by which the manpower hase of the country is
upgraded and broadened. The pnrpose of the Project is to expand the
manp01"er capabilities of government ministries; public and private
universities; and private non-profit organizations. Jn addition, GPT II
wtll also establish a permanent Overseas Training Unit (OTU) within the
GOI capable of managing all future general participanl training programs
and supporting English language training of the Indonesian Government .
The OfU, under the direction of a GOI Steering Committee, will perform the
placement and support functions now largely performed by foreign donors .
At the completion of the project, it is expected that the follOiiing
results will have been achieved :
1)
Approximately 25 persons trained at the doctoral level in the u.s.,
175 persons trained at the master's level in the u.s., and
225 persons trained in short - term technical programs, and in supervised
on-the- job programs. Approximately 70\ of the loan funcl:; will be used for
training of GOI personnel; the remaining 30% will be used for training of
private sector personnel. For purposes of this project, the private
sector is defined as private universities and private voluntary non-profit
organizations . Approximately b•o-thirds of the loan funds will be used
for lore term acadcl!lic training at the graduate level in the United States
for approximately 200 participants selected from Indonesian Government
organizations and private universities .
2) An Overseas Training Unit fully staffed and operational with the GOI
assuming full financial support for its operation in the fifth year of the
project. A subsidiary output of the unit will be an institutionalized
system for provjding high quality English language training for
parlicipants .
2
3) Specialized studies carried out on specific training - related topics.
4)
A follow-up program for partit.ipauts \·lhO are uained tmder this project as
wetl as those under other A. I.D . financed participant training to measure
utilization of training .
AID loan funds may also 'l)e userl to pay the cost of approximately 450
months of short term technical training including short courses, on-the-job
training and observation tours for GOI employees as ｜ｾ･ｬ＠
as for personnel from
private voluntary organizations. The average length of short term training is
estimated at two months. Some 225 participants ,.,ill be involved, \lith third
country training in ASEAN countries and other countries available where
appropriate. Subject to the approval of the Project Steering Committee, funds
will be made available from the contingency budget to permit participants who
were funded tmder other USAID projects and who have not completed their
training by the end of such project to complete their studies.
ｄｵｲｩｾ＠
the first year of the project the OfficP. for Training within
USAJD will continue to assist in arranging for training and placement of
students . During this period a contractor(s) will .be selected to carry out
participant placement for the next three years of the project, to do the
design study for the OTU, to provide technical assistance to the GO! on the
establishment of the aru, and to provide follow-up activities for returning
participants. By the 36th month of the project, the OTU is ｾｸｰ･｣ｴｲｬ＠
to be
functioning independently of technical assistance .
II. RESPONSIBILITIES OF THE PARTlES
The GO! will be responsible for the establishment of the Project Steering
Committee supported by a GOI - funded Secretariat . The Project Steering
Committee \rill be composed of representatives from BAPPENAS, the ｾｴｩｮｳｲｹ＠
for
Effic1ent Utilization of State Apparatus (MENPAN), ｾｴｩｮｳｲｹ＠
of ｆｩｾ｡ｮ｣･Ｌ＠
Cabinet Secretariat, and USAID and any other Minist ry deemed appropriate by
the Government of Indonesia .. The Project Steering Commmittee will review
upon beb1een the GOI
individua 1 applications per the selection criteria ｡ｾｲ･､＠
and USAID, and with overall consideration for the identification of specific
occupational skills rlemands for implementat1on of Repelita IV, and the
available supply of such skills. It will also initiate proposals for
technical assistance, review participants' progress and consider policy issues
to strengthen project goals .
The Steering Committee will select a contractor pursuant to AID
procurement regulations on host country contracting , and established selection
criteria . Once the Project Steering Committee is organized and functioning,
it wi 11 concentrate on the selection of candidates, the provision of Engllsh
language training and the identification of snort - term studies. These
activities will be supported by the GO! financial contribution as detailed in
3
the project budget for travel, English language and support costs.
International air travel for participants will be provided by the GOI on the
national airline Garuda to the closest point to the u.s. flo\ofll hy Gamda .
International air travel from that point will be provided under the AID loan.
For tl1e purpose of this Agreement, either Amsterdam or Tokyo are presently
the closest points ｦｬｯ｜ｾ＠
by Garuda and will be used to calculate the GOI and
USG contributions . ln the event of schedule changes, the line i terns in the
budget will be revised to reflect these changes as long as the total amount
provided by the GOI is not less than that provided in the Project Agreement,
and as long as the total amount prov1ded by AID is not increased . In
addition, any changes 1n tine i terns of the budget which exceed 15% must be
agreed to by the Parties in writing, as long as the total amount provided hy
the GOI is not less than that provided in the Project Agreement, and as long
as the total amount provided by AID is not increased.
A.I.D . w1ll provide ｰＡ｡｣ｾＱ･ｮｴ＠
services for candidates funded Lmder the
loan and will assist the ｓｴ･ｲｩｾ＠
Committee in the procurement and ftmding of
the contractor as detailed in the proJect budget. Once that contractor is in
place, USAID will turn over active participant training files for this project
to the contractor and assist him/her in the orderly transition of the training
function. In addition AID will provide funds under the Loan for the payment
of participant training costs together \flth associated costs for inflationary
increases . AID will also assist the Steering Committee in the identification
of short term studies relevant to training activities of the GOI, fund those
studies under short and long term technical assistance, and also ftmd a
program of regular follow-up and evaluation.
The OTU will process training requests \ohich have been approved by the
Project Steering C.ommi t tee, carry out language testing, arrangr training
ｰｲｯｾ＠
rams, maintain all training records, serve as a liaison between the
ProJect Steering Committee and US training institutions and car.ry out followup activities. The design of the Overseas Training Unit will be part of the
work of the main technical assistance contractor. Remaining stuclies will he
identified by the Project Steering Committee as the project hegins to he
implemented , and once the main contractor is in ｰｬ｡｣ｾ
Ｎ＠
The studies will be
short term and address specific policy and implementation constraints sud1 as
the effectiveness of present English language instnJction. By the ninth Month
from the date the Project Agreements have been signed, the Government of
Indonesia will decide on the ministerial location of the Overseas Training
Unit for incorporation into the consultant's design .
Participants will he selected from all Government ministries and agencies
and from private universities and voluntary non-profit organizations against
specific selection criteria and an overall revie'" process of a Project
Steering Co1mlittee. The criteria for select1on wi 11 be subject to an annual
revie\¥ and will initially consist of the ｦｯｬｴｾｮｧＺ＠
demonstrated ability in their profession or academic background,
English language fluency appropriate to requirements,
- good health,
no more than 35 years of age for a first advanced degree;
- no more that 40 years of age for a doctorate,
a degree in hand inmtediately helow the level proposed for study,
no less than two and no more than twenty years work experience,
evidence the candidate will be assigned to a job related to the
training proposed,
a study field appropriate to Indonesian clevelopmPnt needs ,
thests research appropriate to the needs of the individual's
organization ｾｮ､＠
Indonesian development needs,
program not available under any AID or other funded sectorally
a ｳｴｾｹ＠
ｾｰ･｣ｩｦ＠
program,
a direct relationship ,.,i th the skill requirementc; of the nominating
agency,
compatibility with the goals of Part I of the US Foreign Assistance Act
of 1961, as amended .
-· ·
FINANCIAL PT.AN
(U.S. DOLS)
AID
Grant
Technical Assistance
GOI
1,000,000
TOTAL
1,000,000
Loan
Participant Training
English Language Training
International Travel
Inflation/Contingency
4,500,000
125,000
L,400,000
5,900,000
320,000
320,000
335,000
460,000
525,000
6,150,000
525,000
2,055,000
8,205,000
Table of Content
Project Loan Scandard Provisions
Annex 2
Page
Article A:
Project Implementation Letters
1
Article B:
General Covenants
1
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
Article C:
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
Article D:
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
SECTION
B. l.
B.Z.
B. 3 .
B. 4.
B. 5.
B.6.
B.7.
B.S.
Consultation
Execution of Project
Utilization of Goods and Services
Taxation
Reports, Records, Inspections, Audit
Completeness of Information
Other Payments
Information and Marking
Procurement Provisions
C.l.
C. 2.
C.3.
C.4.
C. 5.
C.6.
C. 7 .
C. 8.
Special Rules
Eligibility Date
Plans, Specifications, and Contracts
Reasonable Price
Notification to Potential Suppliers
Shipping
Insurance
U.S. Government - Owned Excess Property
Termination; Remedies
D.l.
D. 2 .
D. 3.
D.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
Nom