CONFORMED COPY
GEF TRUST FUND GRANT NUMBER TF056723-IND
Global Environment Facility
Trust Fund Grant Agreement
(Marine Electronic Highway Demonstration Project)
between
REPUBLIC OF INDONESIA
and
INTERNATIONAL BANK FOR RECONSTRUCTION
AND DEVELOPMENT
acting as an Implementing Agency of the Global Environment Facility
Dated July 7, 2006
GEF TRUST FUND GRANT NUMBER TF056723-IND
GLOBAL ENVIRONMENT FACILITY TRUST FUND GRANT AGREEMENT
AGREEMENT, dated July 7, 2006, between REPUBLIC OF INDONESIA (the
Recipient) and INTERNATIONAL BANK FOR RECONSTRUCTION AND
DEVELOPMENT (the Bank) acting as an implementing agency of the Global
Environment Facility (GEF) in respect of grant funds provided to the GEF Trust Fund by
certain members of the Bank as participants of the GEF.
WHEREAS (A) the Bank, pursuant to Resolution No. 91-5 of March 14, 1991, of
the Executive Directors of the Bank, established the GEF to assist in the protection of the
global environment and promote thereby environmentally sound and sustainable
economic development;
(B)
following the restructuring of the GEF, such arrangements continued in
place on the basis set forth in Resolution No. 94-2 of May 24, 1994, of the Executive
Directors of the Bank which, inter alia, established the GEF Trust Fund and appointed the
Bank as trustee of the GEF Trust Fund (Resolution 94-2);
(C)
the Recipient, having satisfied itself as to the feasibility and priority of
the project described in Schedule 2 to this Agreement (the Project), has requested
assistance from the resources of the GEF Trust Fund for funding Part B.1 of the Project,
and said request having been approved in accordance with the provisions of the
Instrument for the Establishment of the Restructured Global Environment Facility
approved under Resolution 94-2;
(D)
by a GEF Grant Agreement dated June 19, 2006 between the
International Maritime Organization and the Bank, the Bank has agreed to make available
to the International Maritime Organization a GEF grant in the amount of six million eight
hundred sixty thousand Dollars ($6,860,000), for purposes of Parts A, B.2, B.3, B.4, D
and E of the Project;
(E)
a Memorandum of Understanding has been entered into among the
Recipient, Malaysia, the Republic of Singapore and the International Maritime
Organization on September 8, 2005, to provide a framework for participation,
collaboration, commitment and co-operation to implement the Marine Electronic
Highway Demonstration Project in the Straits of Malacca and Singapore (hereinafter the
Memorandum of Understanding); and
(F)
a Memorandum on Arrangements has been entered into among the
Recipient, Malaysia, the Republic of Singapore, the International Maritime Organization,
the International Hydrographic Organization, the International Association of
Independent Tanker Owners and the International Chamber of Shipping on September 8,
2005, as an implementing arrangement in accordance with Article IV of the
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Memorandum of Understanding to support, promote and collaborate in the
implementation of the Marine Electronic Highway Demonstration Project in the Straits of
Malacca and Singapore (hereinafter the Memorandum on Arrangements); and
WHEREAS the Bank has agreed, on the basis, inter alia, of the foregoing, to
extend the GEF Trust Fund Grant to the Recipient upon the terms and conditions set forth
in this Agreement;
NOW THEREFORE, the parties hereto hereby agree as follows:
ARTICLE I
General Conditions; Definitions
Section 1.01. (a) The following provisions of the "General Conditions Applicable
to Loan and Guarantee Agreements for Single Currency Loans" of the Bank, dated May
30, 1995 (as amended through May 1, 2004), with the modifications set forth in
paragraph (b) of this Section (the General Conditions) constitute an integral part of this
Agreement:
(i) Article
I;
(ii)
Sections 2.01 (2), (3), (4), (5), (6), (7), (8), (14), (15), (16), (18)
and (21), 2.02 and 2.03;
(iii) Section
3.01;
(iv)
Sections 4.01 and 4.06;
(v) Article
V;
(vi)
Sections 6.01, 6.02 (c), (e), (f), (i), (l), (m), (n), (o) and (p), 6.03,
6.04 and 6.06;
(vii)
Section 8.01 (b);
(viii)
Sections 9.01 (a) and (c), 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09;
(ix)
Sections 10.01, 10.03 and 10.04;
(x)
Article XI; and
(xi)
Sections 12.01 (c), 12.03 and 12.04.
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(b)
The General Conditions shall be modified as follows:
(i)
the term "Bank", wherever used in the General Conditions, other
than in Sections 2.01(6), 6.02(f) and 5.01(a) thereof, means the
Bank acting as an implementing agency of the GEF, except that
in Section 6.02, the term "Bank" shall also include the Bank
acting in its own capacity;
(ii)
the term "Borrower", wherever used in the General Conditions,
means the Recipient;
(iii)
the term "Loan Agreement", wherever used in the General
Conditions, means this Agreement;
(iv)
the term "Loan" and "loan", wherever used in the General
Conditions, means the GEF Trust Fund Grant;
(v)
the term "Loan Account", wherever used in the General
Conditions, means the GEF Trust Fund Grant Account;
(vi)
a new subparagraph is added after subparagraph (o) in
Section
6.02 of the General Conditions, as follows: "an
extraordinary situation shall have arisen in which any further
disbursement under the GEF Trust Fund Grant would exceed the
resources available for disbursement from the GEF."; and
(vii)
the words "corrupt or fraudulent" in paragraph (c) of
Section 6.03 of the General Conditions are replaced with
the words "corrupt, fraudulent, collusive or coercive".
Section 1.02. Wherever used in this Agreement, unless the context otherwise
requires, the several terms defined in the General Conditions and in the Recitals to this
Agreement have the respective meanings therein set forth and the following additional
terms have the following meanings:
(a)
"Eligible Category" means Category (1) set forth in the table in Part A.1
of Schedule 1 to this Agreement.
(b)
"Eligible Expenditures" means the expenditures for goods referred to in
Section 2.02 of this Agreement.
(c)
"Financial Monitoring Report" means each report prepared in accordance
with Section 4.02 of this Agreement.
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(d)
"MEH" means the Marine Electronic Highway system to be established
under the Project.
(e)
"MEH Data Center" means the data centers to be established under the
Project in the Republic of Indonesia, Malaysia and the Republic of Singapore.
(f)
"Memorandum of Agreement" means the memorandum of agreement
entered into between the Recipient and the International Maritime Organization
on May 31, 2006, specifying: (i) the functions of the Project Management Office; (ii) the
staffing (including support staff) and the facilities (including office space), to be provided
to the Project Management Office; and (iii) who shall be responsible for providing the
required staff, the facilities, and the operating costs of the Project Management Office.
(g)
"Procurement Plan" means the Recipient's procurement plan, dated
March 14, 2006, covering the initial 18 month period (or longer) of Project
implementation, as the same shall be updated from time to time in accordance with the
provisions of Section 3.02 to this Agreement, to cover succeeding 18 month periods (or
longer) of Project implementation.
(h)
"Project Area" means the area of the Strait of Malacca from One Fathom
Bank (Permatang Sedepa) to the whole of the Strait of Singapore.
(i)
"Project Coordination Unit" means the unit established within the Office
of the Deputy Minister for Nature Conservation Enhancement and Environmental
Destruction Control in the Ministry of Environment.
(j)
"Project Implementation Plan" means the plan adopted by the Recipient
and the International Maritime Organization for purposes of the carrying out of the
Project.
(k)
"Project Implementation Unit" means the unit established within the
Recipient's Directorate General of Sea Transport in the Ministry of Transport.
(l)
"Project Management Office" means the office established at Batam,
Republic of Indonesia, to administer and manage the Project.
(m)
"Project Steering Committee" means the committee established at the
regional level to implement the Project and to administer and manage the MEH system,
and includes representatives of the Recipient, Malaysia, Republic of Singapore, the
International Maritime Organization (as the Secretariat of the Committee), the
International Hydrographic Organization (as observer), the International Association of
Independent Tanker Owners (as observer) and the International Chamber of Shipping (as
observer).
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(n)
"Report-based Disbursements" means the Recipient's option for
withdrawal of funds from the GEF Trust Fund Grant Account referred to in Part A.4 of
Schedule 1 to this Agreement.
(o)
"Special Account" means the account referred to in Part B of Schedule 1
to this Agreement.
ARTICLE II
The GEF Trust Fund Grant
Section 2.01.
The Bank agrees to make available to the Recipient, on the terms
and conditions set forth or referred to in this Agreement, the GEF Trust Fund Grant in an
amount equal to one million four hundred and forty thousand Dollars ($1,440,000).
Section 2.02. The amount of the GEF Trust Fund Grant may be withdrawn
from the GEF Trust Fund Grant Account in accordance with the provisions of Schedule 1
to this Agreement for expenditures made (or, if the Bank shall so agree, to be made) in
respect of the reasonable cost of goods, works and services required for Part B.1 of the
Project and to be financed out of the proceeds of the GEF Trust Fund Grant.
Section 2.03.
The Closing Date shall be June 30, 2011, or such later date as the
Bank shall establish. The Bank shall promptly notify the Recipient of such later date.
ARTICLE III
Execution of Part B.1 of the Project
Section 3.01.
(a) The Recipient declares its commitment to the objectives of
the Project as set forth in Schedule 2 to this Agreement and, to this end, shall carry out
Part B.1 of the Project through its Ministry of Environment (as the coordinating
Ministry) and its Ministry of Transport (as the implementing Ministry), with due
diligence and efficiency and in conformity with appropriate administrative, engineering,
financial and maritime practices, and with due regard to ecological and environmental
factors, and shall provide, promptly as needed, the funds, facilities, services and other
resources required for Part B.1 of the Project.
(b)
Without limitation upon the provisions of paragraph (a) of this Section
and except as the Recipient and the Bank shall otherwise agree, the Recipient shall carry
out Part B.1 of the Project in accordance with the Implementation Program set forth in
Schedule 4 to this Agreement.
Section 3.02.
(a) Except as the Bank shall otherwise agree, procurement of the
goods required for Part B.1 of the Project and to be financed out of the proceeds of the
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GEF Trust Fund Grant shall be governed by the provisions of Schedule 3 to this
Agreement, as said provisions may be further elaborated in the Procurement Plan.
(b)
The Recipient shall update the Procurement Plan in accordance with
guidelines acceptable to the Bank, and furnish such update to the Bank not later than 12
months after the date of the preceding Procurement Plan, for the Bank's approval.
Section 3.03.
For the purposes of Section 9.08 of the General Conditions and
without limitation thereto, the Recipient shall:
(a)
prepare, on the basis of guidelines acceptable to the Bank, and furnish to
the Bank not later than six months after the Closing Date or such later date as may be
agreed for this purpose between the Recipient and the Bank, a plan designed to ensure the
continued achievement of the objectives of the Project; and
(b)
afford the Bank a reasonable opportunity to exchange views with the
Recipient on said plan.
ARTICLE IV
Financial Covenants
Section 4.01. (a) The Recipient shall maintain a financial management
system, including records and accounts, and prepare financial statements in accordance
with consistently applied accounting standards acceptable to the Bank, adequate to reflect
the operations, resources and expenditures related to Part B.1 of the Project.
(b) The
Recipient
shall:
(i)
have the financial statements referred to in paragraph (a) of this
Section for each fiscal year (or other period agreed to by the
Bank), audited, in accordance with consistently applied auditing
standards acceptable to the Bank, by independent auditors
acceptable to the Bank;
(ii)
furnish to the Bank as soon as available, but in any case not later
than six months after the end of each such year (or such other
period agreed to by the Bank): (A) certified copies of the
financial statements referred to in paragraph (a) of this Section
for such year (or other period agreed to by the Bank), as so
audited; and (B) an opinion on such statements by said auditors,
in scope and detail satisfactory to the Bank; and
(iii)
furnish to the Bank such other information concerning such
records and accounts, and the audit of such financial statements,
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and concerning said auditors, as the Bank may from time to time
reasonably request.
(c)
For all expenditures with respect to which withdrawals from the GEF
Trust Fund Grant Account were made on the basis of reports referred to in Part A.4 of
Schedule 1 to this Agreement (Report-based Disbursements) or on the basis of statements
of expenditure, the Recipient shall:
(i)
retain, until at least one year after the Bank has received the
audit report for, or covering, the fiscal year in which the last
withdrawal from the GEF Trust Fund Grant Account was made,
all records (contracts, orders, invoices, bills, receipts and other
documents) evidencing such expenditures;
(ii)
enable the Bank's representatives to examine such records; and
(iii)
ensure that such reports and statements of expenditure are
included in the audit for each fiscal year (or other period agreed
to by the Bank), referred to in paragraph (b) of this Section.
Section 4.02.
(a) Without limitation upon the Recipient's progress reporting
obligations set out in paragraph 6 of Schedule 4 to this Agreement, the Recipient shall
prepare and furnish to the Bank a financial monitoring report, in form and substance
satisfactory to the Bank, which:
(i)
sets forth sources and uses of funds for Part B.1 of the Project,
both cumulatively and for the period covered by said report,
showing separately funds provided under the GEF Trust Fund
Grant, and explains variances between the actual and planned
uses of such funds;
(ii)
describes physical progress in Project implementation, both
cumulatively and for the period covered by said report, and
explains variances between the actual and planned Project
implementation; and
(iii)
sets forth the status of procurement under Part B.1 of the Project,
as at the end of the period covered by said report.
(b)
The first Financial Monitoring Report shall be furnished to the Bank not
later than 45 days after the end of the first calendar quarter after the Effective Date, and
shall cover the period from the incurrence of the first expenditure under Part B.1 of the
Project through the end of such first calendar quarter; thereafter, each Financial
Monitoring Report shall be furnished to the Bank not later than 45 days after each
subsequent calendar quarter, and shall cover such calendar quarter.
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ARTICLE V
Remedies of the Bank
Section 5.01. Pursuant to Section 6.02 (p) of the General Conditions, the
following additional events are specified:
(a)
the GEF Trust Fund Grant Agreement between the International
Maritime Organization and the Bank referred to in Whereas Clause (D) of this
Agreement, shall have failed to become effective six months after its signing or such later
date as the Bank may agree;
(b)
the Memorandum of Understanding shall have been amended,
suspended, waived or terminated so as to affect materially and adversely the ability of the
Recipient to perform any of its obligations under this Agreement;
(c)
the Memorandum on Arrangements shall have been amended,
suspended, waived or terminated so as to affect materially and adversely the ability of the
Recipient to perform any of its obligations under this Agreement; and
(d)
the Memorandum of Agreement shall have been amended, suspended,
waived or terminated so as to affect materially and adversely the ability of the Recipient
to perform any of its obligations under this Agreement.
ARTICLE VI
Effectiveness, Termination
Section 6.01.
The following events are specified as additional conditions to the
effectiveness of the GEF Trust Fund Grant within the meaning of Section 12.01 (c) of the
General Conditions:
(a)
The GEF Trust Fund Grant Agreement referred to in Whereas Clause (D)
of this Agreement shall have been executed on behalf of the International Maritime
Organization and the Bank.
(b)
The Project Coordination Unit shall have been established in accordance
with paragraph 3 (a) of Schedule 4 to this Agreement.
(c)
The Project Implementation Unit shall have been established in
accordance with paragraph 3 (b) of Schedule 4 to this Agreement.
(d)
For purposes of Section 4.01 of this Agreement, the Recipient shall have
established auditing arrangements, acceptable to the Bank, including provisions to make
the audit report available to the public.
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(e)
The Project Implementation Plan, acceptable to the Bank, shall have
been adopted by the Recipient in accordance with paragraph 4 of Schedule 4 to this
Agreement.
Section 6.02. The date ninety (90) days after the date of this Agreement is
hereby specified for the purposes of Section 12.04 of the General Conditions.
Section 6.03. This Agreement shall continue in effect until the GEF Trust
Fund Grant has been fully disbursed and the parties to this Agreement have fulfilled all
their obligations hereunder.
ARTICLE VII
Representative of the Recipient; Addresses
Section 7.01. The Minister of Finance of the Recipient is designated as
representative of the Recipient for the purposes of Section 11.03 of the General
Conditions.
Section 7.02. The following addresses are specified for the purposes of
Section 11.01 of the General Conditions:
For the Recipient:
Ministry of Finance
c/o Directorate General of Treasury
Jalan Lapangan Banteng Timur 2-4
P. O. Box 1139
Jakarta 10710
Republic of Indonesia
Cable
address:
Telex:
Facsimile:
FINMINISTRY
45799 DJMLN-IA
(21) 381 2859
Jakarta
44319
DEPKEU-IA
For the Bank:
International Bank for
Reconstruction and Development
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
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Cable
address:
Telex:
Facsimile:
INTBAFRAD 248423
(MCI)
(202)
477-6391
Washington, D.C.
64145 (MCI)
IN WITNESS WHEREOF, the parties hereto, acting through their duly
authorized representatives, have caused this Agreement to be signed in their respective
names in Jakarta, Republic of Indonesia, as of the day and year first above written.
REPUBLIC OF INDONESIA
By /s/ Mulia P. Nasution
Authorized Representative
INTERNATIONAL BANK FOR
RECONSTRUCTION AND DEVELOPMENT
as an Implementing Agency of the Global Environment Facility
By /s/ Andrew Steer
Authorized Representative
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SCHEDULE 1
Withdrawal of the Proceeds of the GEF Trust Fund Grant
A. General
1.
The table below sets forth the Categories of items to be financed out of the
proceeds of the GEF Trust Fund Grant, the allocation of the amounts of the GEF Trust
Fund Grant to each Category and the percentage of expenditures for items so to be
financed in each Category:
Amount of the
GEF Trust Fund Grant
% of
Allocated (Expressed
Expenditures
Category
in Dollars)
to be Financed
(1) Goods
1,310,000
100%
(2)
Unallocated
130,000
TOTAL 1,440,000
2.
Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be
made in respect of payments made for expenditures prior to the date of this Agreement.
3.
The Bank may require withdrawals from the GEF Trust Fund Grant Account to
be made on the basis of statements of expenditure for expenditures under contracts for
goods costing less than $200,000 equivalent per contract under such terms and conditions
as the Bank shall specify by notice to the Recipient.
4.
The Recipient may request withdrawals from the GEF Trust Fund Grant Account
to be made on the basis of reports to be submitted to the Bank in form and substance
satisfactory to the Bank, such reports to include the FMR and any other information as
the Bank shall specify by notice to the Recipient (Report-based Disbursements). In the
case of the first such request submitted to the Bank before any withdrawal has been made
from the GEF Trust Fund Grant Account, the Recipient shall submit to the Bank only a
statement with the projected sources and applications of funds for Part B.1 of the Project
for the six-month period following the date of such request.
B. Special
Account
1.
The Recipient may open and maintain in Dollars a special deposit account in a
commercial bank acceptable to the Bank, on terms and conditions satisfactory to the
Bank, including appropriate protection against set-off, seizure and attachment.
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2.
After the Bank has received evidence satisfactory to it that the Special Account
has been opened, withdrawals from the GEF Trust Fund Grant Account of amounts to be
deposited into the Special Account shall be made as follows:
(a)
if the Recipient is not making Report-based Disbursements, withdrawals
shall be made in accordance with the provisions of Annex A to this Schedule 1; and
(b)
if the Recipient is making Report-based Disbursements, withdrawals
shall be made in accordance with the provisions of Annex B to this Schedule 1.
3.
Payments out of the Special Account shall be made exclusively for Eligible
Expenditures. For each payment made by the Recipient out of the Special Account, the
Recipient shall, at such time as the Bank shall reasonably request, furnish to the Bank
such documents and other evidence showing that such payment was made exclusively for
Eligible Expenditures.
4.
Notwithstanding the provisions of Part B.2 of this Schedule, the Bank shall not
be required to make further deposits into the Special Account:
(a)
if the Bank, at any time, is not satisfied that the reports referred to in
Part A.4 of this Schedule 1 adequately provide the information required for Report-based
Disbursements;
(b)
if the Bank determines at any time that all further withdrawals for
payment of Eligible Expenditures should be made by the Recipient directly from the GEF
Trust Fund Grant Account; or
(c)
if the Recipient shall have failed to furnish to the Bank, within the period
of time specified in Section 4.01(b)(ii) of this Agreement, any of the audit reports
required to be furnished to the Bank pursuant to said Section in respect of the audit of:
(A) the records and accounts for the Special Account; or (B) the records and accounts
reflecting expenditures with respect to which withdrawals were Report-based
Disbursements or were made on the basis of statements of expenditure, as the case
may be.
5.
The Bank shall not be required to make further deposits into the Special Account
in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank
shall have notified the Recipient of its intention to suspend in whole or in part the right of
the Recipient to make withdrawals from the GEF Trust Fund Grant Account pursuant to
Section 6.02 of the General Conditions. Upon such notification, the Bank shall
determine, in its sole discretion, whether further deposits into the Special Account may
be made and what procedures should be followed for making such deposits, and shall
notify the Recipient of its determination.
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6.
(a)
If the Bank determines at any time that any payment out of the Special
Account was made for an expenditure which is not an Eligible Expenditure, or was not
justified by the evidence furnished to the Bank, the Recipient shall, promptly upon notice
from the Bank, provide such additional evidence as the Bank may request, or deposit into
the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal
to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit
by the Bank into the Special Account shall be made until the Recipient has provided such
evidence or made such deposit or refund, as the case may be.
(b)
If the Bank determines at any time that any amount outstanding in the
Special Account will not be required to cover payments for Eligible Expenditures during
the six-month period following such determination, the Recipient shall, promptly upon
notice from the Bank, refund to the Bank such outstanding amount.
(c)
The Recipient may, upon notice to the Bank, refund to the Bank all or
any portion of the funds on deposit in the Special Account.
(d)
Refunds to the Bank made pursuant to subparagraph (a), (b) or (c) of this
paragraph 6 shall be credited to the GEF Trust Fund Grant Account for subsequent
withdrawal or for cancellation in accordance with the provisions of the GEF Trust Fund
Grant Agreement.
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Annex A
to
SCHEDULE 1
Operation of Special Account When Withdrawals Are
Not Report-based Disbursements
1.
For the purposes of this Annex, the term "Authorized Allocation" means the
amount of $300,000 to be withdrawn from the GEF Trust Fund Grant Account and
deposited into the Special Account pursuant to paragraph 2 of this Annex.
2.
Withdrawals of the Authorized Allocation and subsequent withdrawals to
replenish the Special Account shall be made as follows:
(a)
For withdrawals of the Authorized Allocation, the Recipient shall furnish
to the Bank a request or requests for deposit into the Special Account of an amount or
amounts which in the aggregate do not exceed the Authorized Allocation. On the basis of
each such request, the Bank shall, on behalf of the Recipient, withdraw from the GEF
Trust Fund Grant Account and deposit into the Special Account such amount as the
Recipient shall have requested.
(b)
For replenishment of the Special Account, the Recipient shall furnish to
the Bank requests for deposit into the Special Account at such intervals as the Bank shall
specify. Prior to or at the time of each such request, the Recipient shall furnish to the
Bank the documents and other evidence required pursuant to Part B.3 of Schedule 1 to
this Agreement for the payment or payments in respect of which replenishment is
requested. On the basis of each such request, the Bank shall, on behalf of the Recipient,
withdraw from the GEF Trust Fund Grant Account and deposit into the Special Account
such amount as the Recipient shall have requested and as shall have been shown by said
documents and other evidence to have been paid out of the Special Account for Eligible
Expenditures. Each such deposit into the Special Account shall be withdrawn by the
Bank from the GEF Trust Fund Grant Account under one or more of the Eligible
Category.
3.
The Bank shall not be required to make further deposits into the Special Account,
once the total unwithdrawn amount of the GEF Trust Fund Grant minus the total amount
of all outstanding special commitments entered into by the Bank pursuant to Section 5.02
of the General Conditions shall equal the equivalent of twice the amount of the
Authorized Allocation. Thereafter, withdrawal from the GEF Trust Fund Grant Account
of the remaining unwithdrawn amount of the GEF Trust Fund Grant shall follow such
procedures as the Bank shall specify by notice to the Recipient. Such further withdrawals
shall be made only after and to the extent that the Bank shall have been satisfied that all
such amounts remaining on deposit in the Special Account as of the date of such notice
will be utilized in making payments for Eligible Expenditures.
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Annex B
to
SCHEDULE 1
Operation of Special Account When Withdrawals Are
Report-based Disbursements
1.
Withdrawals from the GEF Trust Fund Grant Account shall be deposited by the
Bank into the Special Account in accordance with the provisions of Schedule 1 to this
Agreement. Each such deposit into the Special Account shall be withdrawn by the Bank
from the GEF Trust Fund Grant Account under one or more of the Eligible Category.
2.
Upon receipt of each application for withdrawal of an amount of the GEF Trust
Fund Grant, the Bank shall, on behalf of the Recipient, withdraw from the GEF Trust
Fund Grant Account and deposit into the Special Account an amount equal to the lesser
of: (a) the amount so requested; and (b) the amount which the Bank has determined,
based on the reports referred to in Part A.4 of this Schedule 1 applicable to such
withdrawal application, is required to be deposited in order to finance Eligible
Expenditures during the six-month period following the date of such reports.
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SCHEDULE 2
Description of the Project
The objectives of the Project are:
(a)
to assist the Republic of Indonesia, Malaysia, the Republic of Singapore
and representatives of some of the large commercial ship owners that use the Strait of
Malacca and the Strait of Singapore, to collectively decide whether to establish a marine
electronic highway for the entire length of the Straits of Malacca and Singapore; and
(b)
to improve maritime safety and reduce environmental damage to the
globally-significant shared natural resources of the Straits of Malacca and Singapore.
The Project consists of the following parts, subject to such modifications thereof
as the Recipient and the Bank may agree upon from time to time to achieve such
objectives:
Part A: Marine Electronic Highway System Design, Coordination and Operation
1.
System Planning and International Maritime Organization Management
(a)
Management of the operational aspects of the Project by the International
Maritime Organization.
(b)
Development of a system for the management and on-line access and
storage of data and information, including links to the MEH Data Centers and financial
and economic assessments.
(c)
Development of criteria and measurable indicators for Project
performance assessment, including the carrying out of a baseline survey to compile and
analyze data and information covering a period of about thirty years up to the inception
of the Project, as a basis for evaluation of the impact of the MEH system.
2. Project
Management
Office
(a)
Strengthening the capacity of the staff of the Project Management Office,
including relevant training.
(b)
Establishment of MEH Data Centers in the Republic of Indonesia,
Malaysia and the Republic of Singapore, including provision of relevant training to the
staff of the MEH Data Centers in operation and management of the MEH system and in
data handling and exchange.
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3.
Project Steering Committee Support
Carrying out of meetings of the Project Steering Committee, the Technical
Committees and the Working Groups, including travel and accommodations for
participants.
Part B: Marine Electronic Highway System Development
1.
Tide and Current Facilities
Tidal and current monitoring on the Republic of Indonesia's coast of the Strait of
Malacca, including provision of relevant equipment.
2. Hydrographic
Survey
(a)
Carrying out of a hydrographic survey within the designated traffic
separation scheme in the Strait of Malacca within the Project Area.
(b)
Provision of training to the hydrographic surveyors of the hydro-
oceanographic services of the Republic of Indonesia, Malaysia and the Republic of
Singapore.
3.
Electronic Navigation Charts
Production of high resolution electronic navigation charts for the Project Area,
including provision of relevant computer software licenses to the Republic of Indonesia
and to Malaysia.
4.
Information Exchange System
Establishment of a MEH information exchange system, including data servers,
data exchange protocols and training of staff in data exchange.
Part C: Ship-Board Equipment and Communications
Carrying out of testing of the demonstration MEH system by about 160 ships
fitted with type-approved electronic chart display and information systems, including
internet connectivity.
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Part D: Marine Environment Protection
1.
Oil Spill and Sand Wave Models
Carrying out of a modeling and analysis of: (i) the likely movement of oil spills
originating in the Project Area; and (ii) the sand wave formation and movement in the
Project Area.
2.
Sensitive Area Mapping
Research and development of options for providing real-time geo-referenced
environmental protection information to mariners navigating in the Straits of Malacca
and Singapore and for conservation and coastal resources management and mapping of
sensitive areas.
3.
Emergency Response Systems
Carrying out of simulated oil and chemical spill emergency response exercises to
determine the cost-effectiveness and efficiency of the MEH system in the event of
chemical and oil spill incidents from ships.
Part E: Information Dissemination, Evaluation and Scale-up Plan
1.
Website and Publicity
Production and dissemination of information through the Internet on the MEH
system, including technical reports, progress reports and a newsletter, and carrying out of
national and regional workshops and seminars to provide information and seek feedback
on the benefits and applicability of the MEH system.
2. Evaluation
(a)
Assessment of the cost and benefits of the establishment and use of the
MEH system in terms of maritime safety and marine environment protection, including:
(i) the development of criteria and measurable indicators for the socio-economic
assessment of the MEH system; and (ii) the carrying out of a socio-economic survey to
evaluate the benefits of the MEH system.
(b)
(i)
Carrying out of an assessment of the technical functionalities of
the MEH system, including system performance.
(ii)
Carrying out of a continuous monitoring of new and potential
technologies that could be linked to the MEH system or enhance its performance,
including the carrying out of technical evaluations on the new technologies to determine
their suitability, value added contribution, enhancing performance and cost effectiveness.
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(c)
Carrying out of an assessment of the MEH system, including institutional
and legal aspects.
(d)
Consolidation of the technical, institutional, legal, financial and
economic assessments of the MEH system, including the implementation of the Project,
and development of a managing tool blueprint.
3. System
Development
Carrying out of marketing strategies to package and market the MEH system and its
marine information and other products, and the services it could provide.
* * *
The Project is expected to be completed by December 31, 2010.
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SCHEDULE 3
Procurement
Section I.
General
A.
All goods and services (other than consultants' services) shall be procured in
accordance with the provisions of Section I of the "Guidelines: Procurement under IBRD
Loans and IDA Credits" dated May 2004 (the Procurement Guidelines), and with the
provisions of this Schedule.
B.
The capitalized terms used below in this Schedule to describe particular
procurement methods or methods of review by the Bank of particular contracts, have the
meanings ascribed to them in the Procurement Guidelines.
Section II.
Particular Methods of Procurement of Goods and Services (other than
Consultants' Services)
A. International
Competitive
Bidding. Contracts shall be awarded on the basis of
International Competitive Bidding. The provisions of paragraphs 2.55 and 2.56 of the
Procurement Guidelines, providing for domestic preference in the evaluation of bids,
shall apply to goods manufactured in the territory of the Recipient.
B.
Other Procurement Procedures
1. Shopping. Goods estimated to cost less than $200,000 equivalent per
contract may be procured under contracts awarded on the basis of Shopping.
Section III.
Review by the Bank of Procurement Decisions
Except as the Bank shall otherwise determine by notice to the Recipient, the
following contracts shall be subject to Prior Review by the Bank each contract for goods
estimated to cost the equivalent of $200,000 or more. All other contracts shall be subject
to Post Review by the Bank.
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SCHEDULE 4
Implementation Program
1.
The Recipient shall, until completion of the Project, remain a member of, and an
active participant in, the Project Steering Committee.
2.
The Recipient shall, in accordance with the Memorandum of Agreement, cause
to be established by December 31, 2006, and, thereafter, maintained until the completion
of the Project, the Project Management Office, with facilities and support staff at all
times acceptable to the Bank.
3.
The Recipient shall establish, and thereafter maintain until completion of the
Project:
(a)
the Project Coordination Unit with terms of reference, facilities and staff
at all times acceptable to the Bank; and
(b)
the Project Implementation Unit with term of reference, facilities and
staff, including a procurement officer and a financial officer, at all times acceptable to the
Bank.
4.
The Recipient shall adopt and, thereafter, apply in the implementation of the
Project, the Project Implementation Plan, acceptable to the Bank, which shall include the
description of: (a) implementation arrangements; (b) the procurement procedures set forth
in Schedule 3 to this Agreement and standard procurement documentation; (c) reporting
requirements, financial management procedures and audit procedures as set forth in
Article 4 of this Agreement; and (d) the Project Performance Indicators set forth in
Schedule 5 to this Agreement, and shall not amend, suspend, abrogate, repeal or waive
any provisions of the Project Implementation Plan without the prior agreement of the
Bank.
5.
In carrying out Part B.1 of the Project, the Recipient shall, not later than April 30,
2007, complete the purchase and installation of new tidal stations and the upgrading of
existing tidal stations.
6. The
Recipient
shall:
(a)
maintain policies and procedures adequate to enable it to monitor and
evaluate on an ongoing basis, in accordance with the indicators acceptable to the Bank,
the carrying out of Part B.1 of the Project and the achievement of the objectives thereof;
(b)
prepare, under terms of reference satisfactory to the Bank, and furnish to
the Bank, on or about June 30 of each year, commencing June 30, 2007, a report
integrating the results of the monitoring and evaluation activities performed pursuant to
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paragraph (a) of this Section, on the progress achieved in the carrying out of Part B.1 of
the Project during the period preceding the date of said report and setting out the
measures recommended to ensure the efficient carrying out of Part B.1 of the Project and
the achievement of the objectives thereof during the period following such date; and
(c)
review with the Bank, by October 1 of each year, commencing
October 1, 2007, or such later date as the Bank shall request, the report referred to in
paragraph (b) of this Section, and, thereafter, take all measures required to ensure the
efficient completion of Part B.1 of the Project and the achievement of the objectives
thereof, based on the conclusions and recommendations of the said report and the Bank's
views on the matter.
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SCHEDULE 5
Performance Indicators
Target Values
Data Collection and
Reporting
Performance
Baseline YR1
YR2
YR3
YR4
YR5
Frequency
Data
Indicators
and
Collection
Reports
Instruments
Component
Two (Part B)
Indonesian
No
40% 100% 100% 100% 100% Semi-
Progress
navigational
activity
annual
reports
data gathering
system in
Straits upgraded
and data
provided to
MEH PMO.