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ARRANGEMENT
BETWEEN
THE
ｇｏｖｾｒｎｍｅｔ＠

OF THE REPUBLIC OF INDONESIA
A N D

THE GOVERNMENT OF THE REPUBLIC OF KOREA
REGARDING
TECHNICAL COOPERATION FOR
THE FEASIBILITY STUDY ON THE ROAD NETWORK IMPROVEMENT
IN BALI

The Government of the Republic of Indonesia (hereinafter
referred to as the " GOI " ), and
the
Government
of
the
Republic of Korea (hereinafter referred to as the "GOK " ).

In
consideration
of the friendly relations existing
between the two countries.
Desiring to strengthen
and
expand
the
relationship
between the two countries through economic and techn i ca 1
cooperation, especially in the field of the road development.
In
accordance
with the provision of the Agreement
regarding
Economic
and Technical Cooperation and Trade
Promotion
between
the

Government
of
the Republic of
Indonesia and the Government of the Republic of Korea signed
in Jakarta on April 24, 1971, and entered into force on August
14, 1971.
Have agreed to carry out the Feasibility Study on the
Road Network. Improvement in Ba 1 i (hereinafter referred to as
"Study") according to the terms
and
conditions
set
forth
below and the Terms of Reference attached hereto.

Article 1
Objective
The
objective of the Study is to contribute to
socio-economic deve 1 opment of Indonesia through the

network development in the Bali Island comprising new
construction and betterment of the existing road for
tourism promotion and regional development.

the
road
road
the

Article 2
Executing Authorities
1.

The Executing Authorities concerned for the Study sha 11
be the Ministry of Public Works (hereinafter referred to
as the "MPW " )
for
GOI
and the Korea International
Cooperation Agency (hereinafter referred to as the

" KOICA") for GOK.

2.

MPW
designates
the Directorate
Genera 1 of
Highways
(hereinafter
referred
to as the "DGH")
as
the
executing agency for the implementation of the Study.

3.

I"OICA des i g'1ates the Korea Consu 1 tants Internat ion a 1
(hereinafter referred to as the "KCI " ) as the consultant

agency to implement the Study.

Article 3
Contribution
1.

GOI shall provide KCI with all possible conveniences
requested in connection with the Study according to the
Terms of Reference attached to this Arrangement.

2.

GOK shall provide the
technical services equivalent
to approximate 1 y
seven
hundred
twenty
thousand
US

dollars (US.$ 720,000) in ｣ｯｮ､ｵｴｾｧ＠
the Study.

Article 4
Responsibilities of the Indonesian Authority
For the purpose of expediting the Study, GOI in accordance
with the prevailing laws and regulations shall :
1.

2.

Exempt KCI and its dispatched personne 1 from
taxes, duties and any other taxes in respect of :

income

(1)

Any
payment made

to
KCI or to its dispatched
personne 1 in accordance with carrying out of the
Study. ·

(2)

Any equipment, materials and supplies brought into
Indo'1esia which would be subsequently withdrawn
therefrom unless mutually agreed upon otherwise.

Facilitate prompt customs clearance of any equipment,
materials, and supplies required for the Study.

3.

Ensure that dispatched personnel by KCI related to the
Study will be promptly provided with necessary entry and
exit
visas,

resident permits and
trave 1 documents
required for their stay in Indonesia.

4.

Issue all necessary permits and authorizations required
for carrying out the Study.

5.

Arrange for any protection deemed necessary to ensure the
safety of personnel
and equipment of KCI in the areas
for the
Study, in transit and in any other official
activities in Indonesia related to the Study.

6.

Protect KCI
and its personne 1 from any claim by third
parties resulting
from
their operations under this
Arrangement.
The provision will not relieve any person from liability
for and criminal, grossly negligent or fraudulent act.
Article 5
Responsibilities of the Korean Authorities

KOICA shall :
1.

Have KCI fulfill the Study under this Arrangement and the
Terms o+' Reference, using the best technical knowledge
according to the accepted professional standards.

2.

Exercise
reasonable
precautions to ensure that KCI
ｳｾ｡ｬ＠
at all times observe and comply with the laws and
regulations of the Republic of Indonesia
and also
to
have
due respect and regard for local traditions and
customs during its stay in Indonesia.
Article 6
Settlement of Dispute

Any
dispute
arising
out of
the
interpretation

or
implementation of this Arrangement shall be settled amicably
by consultation or negotiation between the two Governments.
Article 7
Duration
1.

This Arrangement shall be effective from the date of its
signature, and the Study shall be deemed to commence from
the date when KOICA give KCI a formal notice to proceed
with the Study after the effective date of this
Arrangement.

2.

This
Arrangement shall cease to have effect thirteen
(13) months after the date of KCI consultants arrive in
Indonesia or on such other date as may subsequently be
agreed upon between the two Governments.

Article 8
Amendments
8.1

Amendments to this Arrangement may be made if necessary,
by exchange of letters between the two Governments .

8. 2

Terms of Reference on the Study attached herein
form an integral part
of this Arrangement.

shall

IN WITNESS WHEREOF, the undersigned, duly authorized
thereto by their respective Governments, have signed this
Arrangement.
DONE in duplicate
at
Jakarta on
the
fifth
day of
May 1994 in the English language.
Both texts being equa 11 y
authentic.

FOR THE GOVERNMENT OF
THE REPUBLIC OF KOREA

FOR THE GOVERNMENT OF
THE REPUBLIC OF INDONESIA

Signed
RADINAL MOOCHTAR
MINISTER OF PUBLIC WORKS
REPUBLIC OF INDONESIA

Signed
ｋｙｕｾＭｴｈｌ＠

KIM
OF THE
REPUBLIC OF KOREA
ａｍｂｾｓｄｏｒ＠

TERMS OF REFERENCE
FOR
ROAD NETWORK IMPROVEMENT STUDY
ON BALI

1.

Background
The number of foreign tourists who visited Indonesia in 1991 was 2. 050,000

which outnumbers the visitors for 1988 by 30 percent.

Presently, the most

attractive areas for foreign tourists in Indonesia are in the order of Bali,
Java and Nusa Tenggara Barat.
substitute

industries

other than oi 1.

for

The Government of Indonesia promotes oil
the purpose of increasing the national income

As a part of this, the Government is now intending to double

the present tourists in order to further escalate the income derived from the
tourism.
Bali is a world wide well-known tourism spot which has been remarkably
contributing to the above-mentioned government's strategy.

However, the

existing infrastructure especially the road networks and some of the road link
capacity in Bali island are still inadequate to cope with the increasing
traff ic demand by tourism.
Major bottlenecks of the network in Bali are lack of the road links connecting east and west due to topographic hindrance of deep glens and difficulty
in widening or realigning the existing roads due to the limited right-of-way
or topographic obstacle . since the present road network has mainly developed
following the old footpath running on or along ridge in the colonial era.
Under such situation.

the Government of Indonesia has recognized the

necessity of formulating road development covering the whole tourism island
and requested the Korean Government to conduct a Road Network Improvement
Study in Bali in light with the Government policy.
6-1

2.

Objective of the Study
The objective of the Study is to carry out the Feasibility Study on

the Road Network Development in the Bali Island for the tourism promotion
and regional development.
3.

Description of the Project
The project to be studied will be classified into (1) New Construction,

comprising Outer Ring Road of Denpasar (Mengwitani - Batuan, 15 km) and
Sunset Road (Kuta - Tanah Lot, 20 km). and (2) Betterment of the existing
road covering Cekik- Singaraja- Amlapura (177 km) and Denpasar- Gilimanuk
(129 km) section, among which 100 km road will be selected.

4.

Scope of Work
The Study will cover the following items
1)

Socia - economic survey
Collection and review of all available data, previous study reports,
current development programs on tourism and other industries. and
provision of economic profile for the Bali.

2)

Traffic survey
To conduct traffic survey on the study roads, including origin - destination survey for the category l.

Preparation of traffic forecast by

vehicle types on each homogeneous road segment.
for the category l, New Constrtuction.

6-2

Diversion analysis

3)

Field survey
Topographic surveys as required for the preliminary engineering.
Soils and materials investigations including test pits, auger
borings, CBR tests and laboratory analysis.

Location of quarries

and natural deposits of suitable materials shall be identified.
Foundation investigation for bridges and other structures.
4)

Transport network analysis and prioritization.
Transport network shall be reviewed.

Projections of modal share

for the commodity and passenger within Bali and between Bali and
outside shall be made.
For category 1, New Construction. road network analysis shall be
conducted for the area influenced by the new road construction.
Tohpati - Kusamba, road for which construction has commenced, shall
be tested for economic feasibility.
For category 2, Betterment, the total 300 km of coastal arterial
and collector roads shall be divided into homogeneous segments and
priorities analysed to select 100 km for further detailed study.
5)

Preliminary design
Establishment of design standards for category 1 and category 2
respectively to estimate project cost including constuction costs,
right-of-way acquisition costs, maintenance costs, etc.

The

cost will be broken down into foreign and local components.
6)

Economic analysis
Review vehicle operating costs analysed and used recent road
development studies, and adapt for this study.
Economic evaluations

economic internal rate of return, net

present value, optimum open years shall be analysed.

Also evalu-

ation of direct impact of road development to economic development
in Bali and the region.

Sensitivity tests to be conducted.

6-3

7)

Environmental impact study
Environmental impact study shall include influence of the project
on Balinese culture and sociology.

5.

Time Schedule
The study will require a total of thirteen (13) months for its completion.

Tentative

schedule

for

the

key study activities are shown in the

schedule

attached hereto.
6.

Inputs to be made by the Authorities Concerned.
For the successful execution of the study, the following inputs shall be

made by Korean and Indonesian authorities respectively.
6. l.

Inputs by the Korean Au thor i ty

l) Staffing
The study team will be composed of well qualified experts from various
disciplines as shown below.

Man - Months
Specialist

No
Total

Team Leader
Traffic Engineer
Highway Engineer
Structural Engineer
Soil/Material Engineer
System Analyst
Cost Estimator
Transport Economist
Regional Planner
Tourism/Environment/
Sociology Expert
T o t a l

l

12

1
1

6
10
8
6
2
3
3

l
1

l
l
l
l
l
10

Home
(Korea)
6
3
5
4
3
2
2

Field
(Indonesia)
6
3
5
4
3

-

l

-

3

l

l
2
l
2

54

27

27

l

2) Living allowances for the foreign experts during their stay in
Indonesia including their travel expenses t o and from Indonesia
for the purpose of study.
6-4

3) Field survey cost :
The following field survey cost necessary for the study shall
be borne by the Korean authority
Traffic survey
Topographical survey
Sub-soil investigation for deciding structural foundation &
materials sources investigation
other field survey cost related with the study
4) International and local travel costs for foreign experts of the
study team.
5) Cost for overseas communications.
6) Printing costs of reports.
6. 2

Inputs by the Indonesian Authority

1) Bina Marga will act as the counterpart agency to the Team and also
as the co ordinating body in relation with other governmental and
nongovernmental organizations concerned for the smooth operation
of the Study and shall assign counterpart government engineers.
as well as the local consultant to assist in the conduct of the study.

(Man-Months)
Specialist

Counterpart

Project Manager/Highway Engineer
Transport Economist
Regional Planner
Tourism Specialist
Total

6.
3.
3.
3.

0
0
0
0

15. 0

6-5

2)

Supporting Data
Bina Marga shall provide all existing study reports, maps, survey
data, reference plans, all economic statistics and other publications (design standards, specifications, etc.) relevant to the
study .

3)

Testing laboratory facilities and surveying equipment :
Bina Marga shall make available testing laboratory facilities and
surveying equipment as required for the project.

4)

Office and facilities
Bina Marga shall provide adequate office space, office furniture
including telephone, facsimile, telex and airconditioners.

7.

Reports
Following reports shall be submitted to the Government of Indonesia.
I) Inception Report(20 copies) to be submitted within two(2) months
after

start of the

Study

describing

study

methodology, study

schedule, study organization. etc.
2) Interim Report(20 copies) to be submitted within five(5) months
after the start of the Study.
3) Draft Final Report(20 copies) to be submitted within eleven(ll )
months after the start of the study showing all the findings of the
study, conclusions and recommendations and the Indonesian Government
shall deliver its comments on the Draft Final Report within one month
after the submission of the report.
4) Final Report(30 copies) to be submitted within one(!) month after
the receipt of comments on the Draft Final Report from the Government of Indonesia.

6-6

(ATTACHMENT)

TENTATIVE STUDY SCHEDULE
M0 N T H

1

2

3

4

6

5

7

8

9

10

11

12

13

Category 1
- Route Study
-Preliminary
Engineering &
Feasibility
Study.

Category 2
-Prioritization
-Preliminary
Engineering &
Feasibility
Study.

Reporting

Note

Ic/R
It/R
DF/R
F/R

I)

=

=
=
=

t,.

t,.

t,.

Ic/R

It/R

DF/R

Inception Report
Interim Report
Draft Final Report
Final Report

t,.

F/R