Article 18-1. Provision of competitive (auction) bids The Law On Concessions is excluded by the Law of the Republic of Kazakhstan | Kyrgyz Republic Zanymen alynyp tastaldy.

     1. The provision of a competitive (auction) application is made by a potential concessionaire as a guarantee that he:

     1) does not withdraw or modify and/or supplement its competitive (auction) application after the deadline for submitting such competitive (auction) applications expires;

      2) excluded by the Law of the Republic of Kazakhstan dated 03.12.2013 No. 150-V (effective from 01.01.2014);

     3) if it is determined by the winner of the tender (auction), it will conclude a concession agreement.

      2. The security of the tender (auction) application for participation in the tender (auction) is paid in the amount of one tenth of one percent of the value of the proposed investments under the concession agreement.

     The value of the proposed investments under the concession agreement is determined in the tender (auction) documentation.

     3. A potential concessionaire does not provide security for a competitive (auction) application if it participates in the first stage of a tender (auction) at the concessionaire's choice using two-stage procedures.

     4. A potential concessionaire has the right to choose one of the following types of collateral for a competitive (auction) application:

     1) a guaranteed monetary contribution, which is paid to the account provided for by the budget legislation of the Republic of Kazakhstan for the organizers of tenders (auctions), which are state bodies;

     2) a bank guarantee.

     It is not allowed for a potential concessionaire to commit actions that give rise to the right of third parties to claim, in whole or in part, a guaranteed monetary contribution before the expiration of his tender (auction) application.

     The organizer of the tender (auction) may not use the guaranteed monetary contribution made by the potential concessionaire, except for the actions specified in paragraphs 6 and 7 of this article.

      5. The security of the tender (auction) application is not returned by the organizer of the tender (auction) in the event of one of the following cases::

     1) the potential concessionaire has withdrawn or modified and (or) supplemented the tender (auction) application after the deadline for submission of tender (auction) applications has expired;

     2) the potential concessionaire, determined by the winner of the tender (auction), evaded the conclusion of the concession agreement.

     6. Upon the occurrence of one of the cases provided for in paragraph 5 of this article, the amount of collateral for the tender (auction) application shall be credited to the income of the relevant budget.

      7. The organizer of the tender (auction) returns to the potential concessionaire the security provided by him for the tender (auction) application within three working days from the date of occurrence of one of the following cases:

     1) withdrawal by this potential concessionaire of its competitive (auction) application before the deadline for submission of competitive (auction) applications expires;

     2) signing of the protocol on admission to participate in the tender (auction). This case does not apply to potential concessionaires recognized as participants in the tender (auction);

     3) signing of the protocol on the results of the tender (auction) at the concessionaire's choice. This case does not apply to the participant of the tender (auction), determined by the winner of the tender (auction);

     4) entry into force of the concession agreement;

     5) expiration of the tender (auction) application of the potential concessionaire.

The Law of the Republic of Kazakhstan dated July 7, 2006 No. 167.

     This Law defines the legal conditions of the concession, the types of state support for the concessionaire, and regulates public relations arising in the process of concluding, executing, and terminating concession agreements.

President    

Republic of Kazakhstan     

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