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Grant Arrangement Develop2Build

D2B15RI01 Immersed Tunnel, West Kalimantan

D2B Grant Arrangement D2B15RI01 with Tender procedure in The Netherlands Commented [AH1]: The tittle of the Agreement:
D2B Grant Arrangement for Feasibility Study
and Basic Design of Immersed Tunnel and
Bridge in Kapuas River, West Kalimantan
The Minister for Foreign Trade and Development Cooperation of the Netherlands, legally between
The Netherlands Enterprise Agency
represented in this matter by Mr. R. Dijksterhuis, member of the board International Programs of the and
Ministry of Public Works and Housing of the Republic
Netherlands Enterprise Agency, hereinafter referred to as the Grantor, of Indonesia
Commented [AH2]: Remove from the tittle with
Tender procedure in The Netherlands
and Commented [AH3]: Is it necessary to put the name?
Commented [AH4]: Position?

Name, legally represented in this matter by , , hereinafter referred to as the Grantee, Commented [AH5]: We cant provide any name,
since the person might be promoted / mutation
during D2B implementation.
Commented [SS(6]: Please indicate who will sign the
the Grantor and Grantee hereinafter being referred to individually as Signatory and jointly as GA

Signatories, Commented [AH7]: Directorate General of


Highways, legally represented in this matter by
Director of Bridge?

WHEREAS the Facility for Infrastructure Development Develop 2 Build (D2B) a grant facility provided
by the Dutch Ministry of Foreign Affairs under the responsibility of the Minister for Foreign Trade and
Development Cooperation and implemented by the Netherlands Enterprise Agency, has selected the
D2B-project, D2B15RI01 Immersed Tunnel, West Kalimantan, for a grant Commented [AH8]: Feasibility Study and Basic
Design of Immersed Tunnel and Bridge in Kapuas
River, West Kalimantan

WHEREAS signatories have approved the development and possible tendering of the Infrastructure Commented [FG9]: Signatories

Project as it complies with the D2B Policy Rules and accept the description thereof in the Terms of
Reference D2B Project (Annex 4).

WHEREAS the grant from D2B is to support activities that tie in with the policy for private sector
development of the Minister for Foreign Trade and Development Cooperation, signatories have Commented [FG10]: Remember that this grant is for
private sectors
jointly defined and approved the Terms of Reference for the D2B Project insofar related to the Commented [FG11]: Signatories
content of the services delivered by the contractor(s). Commented [FG12]: consultants

WHEREAS the Grantee has requested the Grantor to purchase services and contract for Project
Implementation, Grantor will be the contracting authority and implement the purchasing procedure
cf+

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WHEREAS Grantor will be the contracting authority, according to Dutch Procurement Law only Grantor
is responsible for the selection procedure and is not allowed to share information on the procurement
process, except for the communication on who has obtained the contract. Commented [FG13]: Mohon diperhatikan
pengalaman ini:
KOICA pernah memberikan grant di bidang sanitasi
ke Ditjen. CIpta Karya dengan pilot proyek di
WHEREAS Grantee will show energetic leadership, supervise and facilitate the cooperation with the Palembang. Yang terjadi adalah: konsultan yang
dikontrak oleh KOICA HQ tidak mengerjakan sesuai
contractor(s) in the D2Bproject. Grant Agreement antara DItjen. CK dengan KOICA
Indonesia. Beberapa kali pihak Indonesia
menyampaikan complain, tetapi KOICA Indonesia
tidak bisa menanggapi karena yang
menandatangani kontrak konsultan adalah KOICA
WHEREAS this Cooperation arrangement is in line with the Memorandum of Understanding HQ. Alhasil Ditjen. CK dengan terpaksa menerima
hasil studi konsultan dengan beberapa catatan.
concerning The Cooperation in the Field of Water that was signed in 8th May 2015 between the The
Saya tekankan disini pentingnya pihak Belanda juga
Ministry of The Environment and Forestry, The Ministry of Public Works and Housing of The Republic menyampaikan ke GOI informasi mengenai tugas
konsultan, sesuai dengan kontrak mereka dengan
of Indonesia and The Ministry of Infrastructure and The Environment of The Netherlands. konsultan agar kita bisa claim jika konsultan tidak
mengerjakan tugas sesuai dengan grant agreement
kita dengan Belanda.
Commented [AH14]:

This Grant Arrangement consists of three parts:

I. the General Conditions (GC);

II. the Special Conditions (SC);

III. and the Annexes.

The General Conditions shall not be modified. The Special Conditions contain paragraphs specific to
each Arrangement.

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Grant Arrangement Develop2Build
D2B15RI01 Immersed Tunnel, West Kalimantan

General Conditions

1. Preliminary provisions
1. 1 This Grant Arrangement does not constitute a treaty and is based on the definitions and
conditions contained in the Dutch Policy Rules for the D2B Grant Facility, published in the
Government Gazette (Staatscourant), 16 June 2015, no. 16820 (hereinafter referred to as
the Policy Rules), unless expressly stated otherwise in this Arrangement.
1. 2 This Grant Arrangement comes into effect on the day after it has been duly signed and dated
by the Grantee as well as the Grantor.
1. 3 The following documents form part of this Arrangement. In the event of inconsistencies,
documents placed higher in the list take precedence over documents lower down the list;
a. addenda duly signed by the Grantor and the Grantee; Commented [AH15]: Appendix? Or Revision?

b. the special conditions; which include the Terms of Reference of the D2B-Project
c. the general conditions;
d. the annexes except the Terms of Reference of the D2B-Project;
e. the Policy Rules (Dutch text);
f. the Policy Rules (English translation);

2. Object of the Grant Arrangement


2.1 The Grantor awards the Grant to the Grantee in kind, consisting of the use of intellectual
property rights in relation to the result of the services performed by the contractor(s).
Grantee accepts the assignment of these limited rights.
2.2 The D2B-project is defined in the ToR-D2B-Project of this Grant Arrangement (Annex 4). The
expected end date of the D2B-Project is 31 December 2017.
2.3 The Grant amount is maximum amount and equals the amount awarded to the contractor(s) Commented [FG16]: consultants

for the D2Bproject.


2.4 Grantor will inform Grantee on the Grant amount as soon as the contract is awarded to
contractor(s). Commented [FG17]: consultants

2.5 Activities which are not described in the ToR D2B-Project are not object of the Grant
Arrangement.

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3. Grantee
3.1 The D2B-project is supervised by the Grantee, who will provide a power of attorney to a
Competent Authority to act on his behalf.
3.2 The Grantee shall ensure that the Competent Authority: Commented [AH18]: Who is Competent Authority?
A unit imbedded in DGH or a consultant?
shall receive an engagement letter;
will be attributed with sufficient capacity in order to manage the project
will respect the provisions of this Grant Arrangement

4. Statement of Acceptance

4.1 After every deliverable (schedule in Annex 5), the Grantee releases or withholds a Statement
of Acceptance within four (4) weeks after submitting the deliverable.
4.2 If the Grantee withholds a Statement of Acceptance, the Grantee must provide a clear,
reasoned explanation.
4.3 If the Grantee does not provide such explanation within four (4) weeks, the Grantor may seek
independent confirmation whether the activities have been performed properly and make
payment of the relevant instalment to the Contractor(s).

5. Project alignment
5.1 Representatives

a. Representatives of the Grantor and the Grantee are listed in Annex 3 including functions,
contact details, authorities and powers of attorney.

b. Communication with the other signatory will be according to qualification and addresses
given in Annex 3.

5.2 Communication
a. Signatories inform each other completely and timely about issues relevant for the D2B-
project.
b. A Signatory responds to a request of the other Signatory within two weeks.

5.3 Information
a. The Grantee will supply during and after implementation of the D2B-project accurate,
detailed and complete information to the Grantor regarding the D2B-project and this Grant
Arrangement.
b. The following information is compulsory:

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Information about circumstances that cause or might cause delays in implementing


the D2B-project and other circumstances in respect of the D2B-project ;
Information on the following situations or the threat of these: moratorium on the
payment of debts, deficits, fraud, bribery;
Information about changes in the implementation of the activities as described in
contracts.
c. The Grantee will also impose this duty on the Competent Authority.

5.4 Acknowledgement
At no cost to the Grantor, the Grantee will acknowledge the Grantors funding in publications,
advertising, speeches, lectures, interviews, press releases and other similar activities, ensuring the
appropriateness and accuracy of any messages. The Grantee will use any available opportunity to
demonstrate that the D2B-project is funded by the Government of the Kingdom of the Netherlands
through the Grantor. Commented [FG19]: The Kingdom of The
Netherlands is demanding publication for their grant
5.5 Monitoring and Evaluation at our cost. What is DGHs plan?

a. The Grantee and the Competent Authority will cooperate in evaluations and monitoring
missions of the D2B-project and the D2B Grant Facility to be conducted or commissioned by
the Grantor. The Grantor will inform the Grantee of the results of such evaluations
concerning the D2B-project.
b. The Grantee will report on the indicators and issues described in the Monitoring and
Evaluation plan. Commented [FG20]: The Grantee will be responsible
to report a Monev results

6. Final Report
a. The Grantee submits a final report, within 3 months after the final deliverable.
a. The Final report consists of
-a statement of Acceptance on the final deliverable
-a description of the use of the results of the D2B-project in the shape of a detailed route
map towards a tender of the infrastructural project. Commented [FG21]: Please explain

b. If the Grantor accepts the final report, he will issue a Final Statement in which the intellectual
rights of the study will formally and exclusively be assigned to Grantee to exercise these
rights for the purpose of the implementation of the Infrastructural Project. Commented [FG22]: BAST, it is important to remain
the Netherlands to provide us with a BAST letter. It
should be included in this agreement.

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7. Amendments or termination

7.1 Amendments of the Grant Arrangement

a. Derogations from this Grant Arrangement and the appendices will only become effective in
so far as they have been expressly accepted between the Signatories.

7.2 Provisions for reducing or terminating the Grant

The Grantor may ex parte/unilaterally reduce or terminate the Grant, but only after consultation
with the Grantee;
a. if the Grantor is of the opinion that the specific way in which the D2B-project is
implemented or a change of circumstances has led to a situation in which the financing of
the D2B-project is incompatible with the Dutch governments foreign policy,
b. in the event of unforeseen circumstances or events, including i) failure to arrange the
necessary licenses, ii) a change of government policy, iii) an amendment to the applicable
legislation, iv)non-compliance with the Policy Rules, or v) decreasing financial viability that
cause the implementation of the D2B-project Plan and/or the D2B-project to be seriously
hampered or delayed or to become unfeasible;
c. if a third party has provided co-financing for the same activities without the Grantors prior
knowledge and consent.

7.3 Closing
This Arrangement will end for either of the following reasons:
All duties of the Signatories under this Grant Arrangement have been fulfilled to the
satisfaction of the other Signatory, or
The Grant has been prematurely terminated and/or reclaimed and accounts have been
settled.

7.4 Settlement of disputes


Should any dispute arise in respect of the interpretation, application or implementation of the Grant
Arrangement, that cannot be settled amicably between the Kingdom of the Netherlands on the one
hand and the Recipient Government on the other, each of the parties may invite the counterparty to
settle the dispute according to the 'Permanent Court of Arbitration Optional Conciliation Rules', as
applicable on the date of establishment of the Grant Arrangement in question. The number of
mediators will be limited to three.

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8. Final Provisions
8.1 Liability
a. The Grantor, the Kingdom of the Netherlands or the Netherlands Enterprise Agency are not
liable, under the D2B Program or this Cooperation Arrangement or any related Addenda or
arrangement between the Signatories, for any damage or loss, direct or indirect, whether
arising from defective quality, insufficient progress, failure of the D2B-project or parts
thereof, reduction, termination, suspension of the Grant or of part of it or for any other
reason. Commented [FG23]: How can it be? The one who
will sign a contract with a consultant is The
b. The Grantor does not approve activities or documents. Its acceptance of activities and Netherlands and GOI is not liable for any
information for procurement process.
documents relating to the D2B-project implied by any such statement is only of relevance to The same comment applies to 8.3 d.

the allocation of the Grant. My suggestion is to put additional clause on Special


Condition that these clauses can be accepted by
c. The Grantor, the Kingdom of the Netherlands or the Netherlands Enterprise Agency are not GOI as long as GOI.(any suggestion?)

liable for direct or indirect damage or loss as a result of the defective quality of the activities
or documents that the Netherlands Enterprise Agency has accepted as part of the
implementation of the D2B-project.
d. The Grantee indemnifies the Kingdom of the Netherlands and the Grantor at all times against
any actions, claims, liabilities, damages or expenses suffered or incurred by the Grantor as
the result of, or arising from the implementation and operation and maintenance of the
Infrastructural Project or related activities.

8.2 Declaration of integrity


a. The Grantor and the Grantee hereby declare that neither they nor anyone acting on their
behalf or on behalf of the Competent Authority, agents, consultants and/or contractors in
connection with the D2B-project , have been engaged or will be engaged in bribery or any
other illegal or unnecessary payment or act. In order to combat bribery, both Signatories will
comply with the conditions and duties set out in Annex 2.
b. No offer, gift, consideration or benefit of any kind, which constitutes an illegal or corrupt
practice, has been or will be made to anyone, either directly or indirectly, as an inducement
or reward for the award or execution of this Arrangement.
c. Any of such practice will be grounds for terminating this Arrangement or taking any other
corrective action as required.
d. Grantee guarantees these obligations when performed on his behalf by written obligation
and sufficient consequence when trespassed.

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8.3 Applicable Law


a. This document is governed by Dutch law.
b. Once this Grant Arrangement has been signed, any previous arrangements regarding this
Grant Arrangement become inoperative.
c. Any agreement by the Grantee with other organisations regarding the D2B-project will be
agreed in writing. All the relevant terms and conditions of this Grant Arrangement will be
imposed on any such organisation.

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Special Conditions

Commented [SS(24]: If you wish to make any


changes to the document please add them to the
Number of GC Amendments of, and supplements to, paragraphs in the General Conditions of the special conditions.
Paragraph Grant Arrangement
2.2 The expected end date of the D2B Project is ..
2.3 The Grant amount is maximum amount of ,,,,,,,

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Number of Overview of duly signed Addenda after the Date Source


GC - effective date
paragraph

Page 10
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For the Grantor; For the Grantee;

The Minister for Foreign Trade and


Development Cooperation, legally
represented in this matter by
., Member of the board International
Programs of the Netherlands Enterprise Location:
Agency Date:

Location: The Hague, The Netherlands


Date:

And legally represented in this matter


By Ms T. Schrofer, Program Coordinator D2B
Of the Netherlands Enterprise Agency

Location:
Date:

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Annexes

Annex 1. Definitions

Annex 2. Declaration of Integrity

Annex 3. Representatives

Annex 4. ToR D2B-Project MoM Steering Committee

Annex 5. Disbursement schedule

Annex 6. Formulation Plan

Annex 7. Policy Rules, English translation

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Annex 1:

Definitions
In this Grant Arrangement, the following shall be defined as:

Competent authority: Public organisation responsible for execution of the D2B-project on


behalf of the Grantee
Develop 2 Build (D2B): A grant facility provided by the Dutch Ministry of Foreign Affairs
under the responsibility of the Minister for Foreign Trade and
Development Cooperation and implemented by the Netherlands
Enterprise Agency
D2B-project: The development and possible tendering of an Infrastructure Project.
Formulation Plan: Plan in which the Infrastructure Project is described, and in which the
activities and related costs for the development of the Infrastructure
Project are laid down.
Development phase: The phase of development and tendering of the infrastructural
project which starts on the effective date of this Grant Arrangement
and ends with the termination of it.
Infrastructure Project: The investment in and construction of development-related public
infrastructure
ToR D2B-Project: The Terms of Reference describing the activities during the D2B-
project.
ToR Infrastructural Project: The Terms of Reference describing the activities for the Infrastructure
Project

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Annex 2: Declaration of Integrity

a. The Grantor and the Grantee will verify and notify each other whether any organisation to be
engaged in the Project is listed on the publicly available debarment list of the following international
financial institutions: World Bank Group, African Development Bank, Asian Development Bank,
European Bank for Reconstruction and Development and the Inter-American Development Bank. The
Grantor and the Grantee will ensure that any such organisation will be excluded from involvement,
or further involvement, in the Project.
b. The Grantee will disclose whether anyone acting on its behalf or on behalf of the Competent
Authority, agents, consultants and/or contractors in connection with the Project is currently under
charge in a national court or, within a five-year period preceding the Application, has been convicted
in a national court, or been subject to equivalent national administrative measures for violation of
laws against bribery of public officials of any country.
c. The Grantee will disclose, upon demand: i) the identity of persons acting on its behalf or on
behalf of the Competent Authority, agents, consultants and/or contractors in connection with the
Project, and ii) the amount and purpose of commissions and fees paid, or agreed to be paid, to such
persons.
d. The Grantor may decide to carry out enhanced due diligence if: i) any organisation engaged
in the Project appears on the publicly available debarment lists of one of the international financial
institutions referred to in a. above; or ii) the Grantor becomes aware that anyone acting on behalf of
the Grantee, Competent Authority, agents, consultants and/or contractors in connection with the
Project is currently under charge in a national court, or, within a five-year period preceding the
application, has been convicted in a national court or been subject to equivalent national
administrative measures for violation of laws against bribery of public officials of any country; or iii)
the Grantor becomes aware of child and/or forced labour in the Project; or iv) the Grantor has
reason to believe that the Project may involve bribery.
e. The Grantor may verify whether appropriate internal corrective and preventive measures
have been taken, maintained and documented in case of a conviction in a national court, or
equivalent national administrative measures, for violation of laws against bribery of public officials of
any country, of a person acting on behalf of the Grantee, Competent Authority, agents, consultants
and/or contractors in connection with the Project, within a five-year period.
f. The Grantor will disclose to the law enforcement authorities of the Netherlands any credible
evidence of bribery.
g. If there is credible evidence that bribery is involved in the award or execution of any contract
for the Development Phase of the Project, the Grantor may suspend further disbursements of the
Grant during an enhanced due diligence process or withdraw the Grant, deny further disbursements

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and/or reclaim the sums already paid. Furthermore, the Grantor may refuse approval of any further
Grant for the Implementation and the Operation and Maintenance phases of the Project.

Annex 3: Representatives
For the purpose of the execution of this Grant Arrangement, the Signatories have assigned the
representatives as mentioned in the schedule underneath:

Grantor
Representative Organisation Function Role in Power of Contact
Project Attorney Details
Mr. Dijksterhuis RVO.nl Member of Signing of Yes
the board Grant
International Arrangement
Programs
Mr. Janse RVO.nl Manager Oversight Yes joris.janse@rvo.nl
Team D2Bprogram +31 88 602 1239
Infrastructure
Ms. Schrofer RVO.nl Coordinator Coordination Yes tamar.schrofer@rvo.nl
D2B of
programme +3188 602 1158

Mr. Wouter RVO.nl Project Financial, No wouter.eisen@rvo.nl


Eisen Consultant legal and
D2B procurement +31 88 602 1915
consultant
Ms. Sylvie RVO.nl Project Project No sylvie.sprangers@rvo.nl
Sprangers Consultant Advisor +31 886025971
D2B

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Grantee Commented [SS(25]: Please fill in the names of the


people involved in the project.
Representative Organisation Function Role in Power of Contact
Project Attorney Details

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Mailing address of the Grantor:


Netherlands Enterprise Agency, ORIO
P.O. Box 93144
2509 AC The Hague
The Netherlands

Mailing address of the Grantee:


.

Mailing address of the Competent Authority: Commented [SS(26]: Please include the name and
address of both.
.

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Annex 4: Terms of Reference D2B-Project


To be added when finalised.

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Annex 5: Disbursement Schedule

To be added after contract award.

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Annex 6: Formulation Plan


To be added when finalised.

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Annex 7 Policy Rules, English translation

Government Gazette, 16 June 2015, no 16820

UNOFFICIAL TRANSLATION DISLCAIMER OF THE DUTCH POLICY RULES


This document contains an unofficial and courtesy English translation of the Dutch Policy Rules
Order of the Minister for Foreign Trade and Development Cooperation of 3 June 2015, no. MINBUZA-
2015.284092, on the establishment of policy rules for entering into Grant arrangements with the aim
of the development and tendering of development-related infrastructure projects (Develop2Build)
The Minister for Foreign Trade and Development Cooperation;

Having regard to section 32 of the Compatibility Act 2001;

Hereby decides as follows:

Article 1
The policy rules shall apply to the issuing of grants to government bodies in developing countries
with the aim of development and tendering of infrastructure projects.

Article 2
A budget of EUR 10 million will be made available through to 31 December 2016 in the application of
this order.

Article 3
The order shall become effective following the date of the Government Gazette in which it is
published, and shall expire on 15 June 2020.

This order and its appendix shall be published in the Government Gazette.

The Minister for Foreign Trade and Development Cooperation,


E.M.J. Ploumen

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APPENDIX
Paragraph 1 - Definitions
1. In these policy rules, a distinction is made between Project and Infrastructure Project. The Project
is the object of support in the framework of these policy rules. The following shall be defined as:
a. Project: the development and tendering of an Infrastructure Project.
b. Infrastructure Project: the investment in and construction of development-related public
infrastructure.

2. Furthermore, in these policy rules, the following shall be defined as:


a. Recipient Government: The central or local government in the country where an Infrastructure
Project is being developed; with which the Netherlands Enterprise Agency (RVO.nl) enters into a
grant arrangement on behalf of the Kingdom of the Netherlands, for the financing and execution of a
Project.
b. Development plan: A plan in which the Infrastructure Project is described, and in which the
activities and related costs for the development of the Infrastructure Project are laid down. The
content of the Development Plan shall, among other things, form the basis for the Terms of
Reference for the tendering and the execution of (parts of) an Infrastructure Project.
c. Grant: A grant in the form of monetary support or support in kind to the Recipient Government in
respect of a Project.
d. Grant Arrangement: An arrangement between the Kingdom of the Netherlands and the Recipient
Government in which the conditions for and the agreements relating to the grant issued on the basis
of these policy rules, are laid down.

Paragraph 2 - Objective
1. The objective of Develop2Build is to support activities that tie in with the policy for private sector
development of the Minister for Foreign Trade and Development Cooperation. The objective of
private sector development is to promote sustainable and inclusive growth in low and middle-income
countries, by improving the business climate. Accessible and well-functioning infrastructure are
essential prerequisites for the development of a private sector which enables effective
entrepreneurship, foreign trade and investment, and people in low and middle-income countries to
provide for themselves through the growth of employment opportunities and productivity.

2. Develop2Build contributes to these objectives by supporting Recipient Governments in developing


and tendering Infrastructure Projects so that they are ready for implementation on technical, social
and financial/economic levels and with a view to its impact on people, the environment and society.
Moreover, Develop2Build will focus on infrastructure that provides support to Dutch priorities in the
field of water, food security and sexual and reproductive health and rights (SRHR), and the aim of
promoting climate-relevant investments.

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3. Develop2Build will focus primarily on the poorest countries who often lack the financial resources,
administrative capacity and technical expertise to develop and tender development-related and high-
quality Infrastructure Projects.

Paragraph 3 Identification and formulation of the Project


1. In implementing these policy rules the Netherlands Enterprise Agency (RVO.nl) identifies,
formulates and supports - on behalf of the Kingdom of the Netherlands - Projects that contribute to
the objective and fulfil the requirements of these policy rules. These Projects can also relate to
already partially developed Infrastructure Projects.

2. In identifying and formulating Projects, the Netherlands Enterprise Agency (RVO.nl) collaborates
with the Recipient Government. In addition, they consult the key stakeholders such as Dutch
embassies on the ground, other (Dutch) implementing bodies, programmes and facilities, private
initiators, (local) social organisations and knowledge institutions. Specific attention will be given to
the position and interests of women and young people.

3. Projects will be identified in line with the national and/or regional priorities of the Recipient
Government, i.e. national action plans, investment plans and development plans, and the investment
plans of international financial institutions and multilateral development banks for the countries in
question. The Netherlands Enterprise Agency (RVO.nl) will aim for a balanced spread of Projects
among countries and sectors, as outlined in the annually adopted strategic plan to be published on
www.rvo.nl. Each year, the minimum number of intended Grant Arrangements will be determined.

Paragraph 4 Requirements that must be met by the Infrastructure Projects to be developed


Projects as intended in these policy rules should contribute to the development and tendering of
Infrastructure Projects that (will) eventually comply with the following requirements:
a. Country focus: The Infrastructure Project will be built in one of the countries on the list contained
in annex 1 to these policy rules.
b. Development relevance: In the framework of these policy rules, development relevance will be
assessed according to the following objectives:
The Infrastructure Project positively contributes to private sector development, in that, it
improves the business climate, leading to inclusive growth through local entrepreneurship,
more jobs and greater productivity, so that people can better provide for themselves.
The Infrastructure Project ties in with the policy objectives of the country or region
concerned and, in that regard, meets the needs of the intended end users, ensuring
ownership of and support for the project.

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The impact of building the project outweighs the costs incurred for this in terms of quantity
and quality. Value for money is key.
The project is sustainable from a technical, institutional, legal, social and ecological
standpoint and is able to withstand the effects of climate change. Local content and the
sustainable transfer of skills are also considered, with there being sufficient commitment and
capacity on the part of the relevant parties or an action plan to raise this to the appropriate
level. The use of fossil fuels in projects in the field of power supply is excluded, if in the local
context less-polluting alternatives are also available.
Programmatic coherence: The Infrastructure Project ties in with a coherent programmatic
approach based on focus and synergy:
Focus: the infrastructure to be constructed not only contributes to the development of the
private sector but will also act in support of one of the priorities in Dutch policy in the field of
food security, water and sexual and reproductive health care and rights, and the Dutch
objective of promoting climate-relevant investments;
Synergy: the infrastructure to be constructed will support or expand on the Dutch agenda for
aid, trade and investments, for example by tying in with initiatives already undertaken in the
framework of Dutch development policy.
d. International corporate social responsibility: The Infrastructure Project will be undertaken in
accordance with the IFC Environmental and Social Performance Standards and the OECD guidelines
for Multinational Enterprises. In the development of the infrastructure project, the CFS Voluntary
Guidelines on Responsible Governance of Tenure of Land, Forests and Fisheries in the Context of
National Food Security has been taken into account.
e. Additionality: The Infrastructure Project is additional to the market, and therefore not
commercially viable.
f. Tendering: the project will not be awarded on the basis of lowest price but on the basis of best
value for money and life cycle cost. Tendering based on concept design rather than detailed design,
leading to design and build; design, build and maintenance or design, build, finance and maintenance
contracts, are expressly permitted.

Paragraph 5 Grant Arrangement, Grant and Project Costs


1. The project will be supported and executed by means of a Grant to the Recipient Government. To
that end, the Netherlands Enterprise Agency (RVO.nl) will enter into a Grant Arrangement with the
Recipient Government on behalf of the Kingdom of the Netherlands.

2. The Project will only be eligible for a Grant subject to a Grant Arrangement if agreement has been
reached between the parties on a Development Plan that offers sufficient guarantees that the
Project will comply with these policy rules. The Development Plan will be enclosed as an annex to the
Grant Arrangement, and will consist of:

Initials:
Grant Arrangement - Dutch Tender - Develop2Build
D2B15RI01 Immersed Tunnel, West Kalimantan

a. a description of the Infrastructure Project including supporting arguments to demonstrate that the
Infrastructure Project does comply with these policy rules;
b. the Terms of Reference for the development of the Infrastructure Project including other activities
and products such as a feasibility study, technical studies and technical design, a procurement plan,
economic and financial studies, studies relating to social impact and environmental risks and effects;
c. a fully documented budget for the financing of execution of the Project on the basis of the Terms
of Reference as intended in Paragraph 5 2.b. The Grant amount will be determined on the basis of
this budget.

3. The budget for Develop2Build will be determined annually by the Minister for Foreign Trade and
Development Cooperation. Grant Arrangements can be entered into until the budget is exhausted.
The Kingdom of the Netherlands will carry the full costs as intended in Paragraph 5.4, according to a
Grant Arrangement, but not for any amount exceeding the Grant amount set.
4. Only those costs relating directly to the Project as outlined in annex 2 to these policy rules and the
related taxes and duties, including margins for unforeseen circumstances, risks and profit shall be
eligible for a donation. These so-called eligible project costs will be assessed by the Netherlands
Enterprise Agency (RVO.nl) for market conformity. The activities and services purchased on which the
projects costs are based will be assessed for value and necessity in relation to the Project.

5. A Grant will be issued in euros or the equivalent value in euros at the moment a grant is made in
kind. If any other currency is selected for a contract or contracts for the purchase of services funded
under the Grant Arrangement, the maximum Grant amount will be set based on the exchange rate
applicable on the day that the Grant Arrangement is signed by the Netherlands Enterprise Agency
(RVO.nl). Any shortfalls due to exchange rate fluctuations over and above the margins agreed in the
Grant Arrangement will be carried out borne by the Recipient Government. Any surplus as a
consequence of exchange rate fluctuations may be allocated to cover previously arisen shortfalls or,
in close mutual consultation, applied for additional activities, on condition they relate to permissible
project costs as intended in paragraph 5.4 and annex 2.

6. A Grant may be withdrawn, halted or return payment may be demanded in the cases outlined in
the relevant Grant Agreement and under all circumstances if evidence emerges of i) involvement by
the candidate put forward for the (partial) execution of the Project in corruption or fraudulent
practices, threatening behaviour or forbidden price-fixing agreements, child labour or forced labour
and/or ii) involvement by a representative of the Recipient Government in corruption or fraudulent
practices, threatening behaviour or forbidden price-fixing agreements, child labour or forced labour
in relation to the purchase of services for the (partial) execution of the Project in respect of which, in
the judgment of the Netherlands Enterprise Agency (RVO.nl), the Recipient Government has failed to
intervene adequately, in good time, to rectify the situation.

Initials:
Grant Arrangement - Dutch Tender - Develop2Build
D2B15RI01 Immersed Tunnel, West Kalimantan

Paragraph 6 Purchase of services and contract for Project execution

1. Depending on the specific agreements in the Development Plan, the Grant may be issued as
financial support for the local purchase of services or as support in kind provided by the Netherlands
Enterprise Agency (RVO.nl). In the first case, the services will be purchased by the Recipient
Government. The Netherlands Enterprise Agency (RVO.nl) will issue statements of no objection in
respect of the various phases of the purchasing process. In the case of support in kind, the
Netherlands Enterprise Agency (RVO.nl) will purchase the relevant services or deploy the expertise of
Dutch (Central) Government services, at the request of and in consultation with the local
government.

2. Services will be purchased in accordance with the legislation and regulations applicable for the
purchasing service, on the basis of an assignment formulated in accordance with the Development
Plan. The selected contractor must be able to provide the necessary capacity, knowledge and
expertise for execution of the Project. Wherever applicable, the Project will be executed in
accordance with the IFC Environmental and Social Performance Standards and the OECD guidelines
for Multinational Corporations. Bids will be assessed on the basis of the economically most
advantageous offer. The price will be assessed excluding any applicable taxation and duties. The
resulting contract value (as agreed upon in a contract) will include any taxation and duties payable.

3. Contracts will be entered into in consultation between the commissioning party, the contractor
and the Netherlands Enterprise Agency (RVO.nl). A model contract will be an integral part of the
tenderdocuments, and will be assessed by the Netherlands Enterprise Agency (RVO.nl). Contracts will
provide for liability that is reasonably proportionate to the nature and scope of the contract.
Contracts will also provide for an (international) arbitration settlement approved by the both parties.

4. Payments from the Grant for the services provided will be made available consecutively. Payments
will be made to the suppliers of services, following approval by the Recipient Government. Payment
conditions will be laid down in the Grant Arrangement.

Paragraph 7 Language
The working language for Develop2Build is English. The Grant Arrangement and the accompanying
annexes, and all reports and documents prepared in the framework of execution of the Project will
be drawn up in English. The purchase of services by the Netherlands Enterprise Agency (RVO.nl) may
in certain cases take place in Dutch. In that case, on request, the Netherlands Enterprise Agency
(RVO.nl) will provide an English translation for the Recipient Government.

Initials:
Grant Arrangement - Dutch Tender - Develop2Build
D2B15RI01 Immersed Tunnel, West Kalimantan

Paragraph 8 - Disputes
Should any dispute arise in respect of the interpretation, application or implementation of the Grant
Arrangement, that cannot be settled amicably between the Kingdom of the Netherlands on the one
hand and the Recipient Government on the other, each of the parties may invite the counterparty to
settle the dispute according to the 'Permanent Court of Arbitration Optional Conciliation Rules', as
applicable on the date of establishment of the Grant Arrangement in question. The number of
mediators will be limited to three.

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