Article 21. The content of the concession agreement Chapter 4. The CONCESSION AGREEMENT of the Law On Concessions - Excluded by the Law of the Republic of Kazakhstan | KR Zanymen alynyp tastaldy.

     1. The concession agreement must contain:

     1) information about the concession object, its description, including information about the composition of the property, technical condition, service life, initial, residual and replacement cost of the transferred concession object;

     2) conditions on the rights of the concessionaire to the concession object, including the rights to the unfinished construction of the concession object in the event of termination of the concession agreement, and (or) the rights to carry out a certain type of activity, conditions on property rights to the results of intellectual creative activity that arose during the fulfillment of the terms of the concession agreement;

     3) the conditions and scope of the reconstruction of the facility in order to provide the concessionaire with the required quantity and quality of services;

     4) sources of cost recovery and revenue generation of the concessionaire;

     5) the procedure for the formation and approval of tariffs (prices, rates of fees) for goods (works, services);

     6) conditions on the amount of investments, including investments in fixed assets, terms, sources and conditions of financing the concession project according to the developed business plan (work program);

     7) types of activities (works (services) performed (provided) under the terms of the concession agreement);

     8) quality standards of goods (works, services) provided by the concessionaire under the concession agreement;

     9) the term of the concession agreement;

     10) rights and obligations of the parties;

     11) environmental protection and work safety requirements;

     12) the procedure and conditions for the transfer of the concession object by the parties, including persons authorized to accept the object, and the requirements for its quality, as well as the procedure and conditions for the transfer of other property not included in the concession object, including an indication of the right on the basis of which the specified property is transferred;

     13) responsibility of the parties;

     14) conditions for modification and termination of the concession agreement;

     15) location (legal address) and bank details of the parties;

     16) the procedure for the concedent's control over the execution of the concession agreement;

     17) criteria for assessing the fulfillment of obligations assumed by the concessionaire, payment of penalties in case of non-fulfillment or improper fulfillment, and the procedure for reducing the volume of state concession obligations;

     18) types, volumes, terms and conditions of state support, if provided in accordance with Article 14 of this Law;

     19) Commitments on in-country value;

     20) the concessionaire's obligations to provide annually, no later than February 1 of the year planned for procurement, an annual program for the purchase of goods, works, and services for the coming year and information on the purchased goods, works, and services to the authorized body in the field of regulating trade activities in the form and within the time limits established by it;

     21) distribution of risks between the parties;

     22) conditions and terms of transfer of the burden of maintenance of the property transferred under the concession agreement, as well as the risks of accidental death or accidental damage to the specified property;

     23) information about authorized state bodies representing the interests of the concedent;

     24) the deadline for the creation (reconstruction) of the concession facility, its commissioning, as well as the procedure for extending this period;

     25) the rights and obligations of other persons involved in the performance of the concession agreement, in particular, giving consent to perform certain actions, collecting and distributing money under the concession agreement, making other payments in the amount and in accordance with the procedure under the concession agreement, as well as fulfilling other rights and obligations;

     26) exceptional cases of unilateral modification of the terms of the concession agreement and (or) unilateral refusal to execute it;

     27) procedure for dispute resolution under the concession agreement;

     28) the procedure for reimbursement of expenses of the parties in case of early termination of the concession agreement.

     2. The concession agreement may also provide for:

     1) ways to ensure the fulfillment of obligations of the parties to the concession agreement;

     2) distribution of income between the concessionaire and the concessionaire in connection with the implementation of activities provided for in the concession agreement;

     3) approval of the organization engaged by the concessionaire to operate the concession facility and the essential terms of the contract with it;

     4) approval of the contractor (general contractor) engaged by the concessionaire to create (reconstruct) the concession facility and the essential terms of the contract with it;

     4-1) the procedure and conditions for the conclusion by the parties of a direct agreement with the creditors of the concessionaire in the framework of the implementation of concession projects of particular importance;

     4-2) a mechanism for the settlement of currency risks in the implementation of concession projects of particular importance;

     5) other conditions that do not contradict the legislation of the Republic of Kazakhstan.

     3. The terms of the concession agreement remain in force for the entire term of its validity, except in cases when amendments to the concession agreement are made by agreement of the parties.

     4. The concession agreement must provide for the condition of the concessionaire to unilaterally change the terms or terminate the concession agreement in the interests of society and the state, while the concession agreement must include an exhaustive list of such conditions that do not contradict the legislation of the Republic of Kazakhstan, including when such actions are performed in order to ensure national and environmental safety, health and morals.

     4-1. A concession agreement for concession projects of particular importance may provide for conditions for early termination of the concession agreement unilaterally in the following cases::

      1) in case of violation by the concessionaire of the essential terms of the concession agreement defined in the concession agreement;  

      2) in case of violation by the concedent of the essential terms of the concession agreement defined in the concession agreement;  

      3) due to the occurrence of force majeure circumstances.  

     The procedure, terms and conditions for reimbursement to the concessionaire of expenses and (or) expenses and (or) losses resulting from early termination of the concession agreement upon the occurrence of the events specified in part one of this paragraph shall be determined by the concession agreement.

     5. In the event that the concessionaire exercises the right specified in paragraph 4 of this article, the concessionaire is obliged to compensate the concessionaire for additional costs associated with changing the terms of the concession agreement, as well as to compensate for losses incurred by the concessionaire in connection with the termination of the concession agreement.

     6. The concessionaire has the right to pledge his rights under the concession agreement only with the written consent of the concessionaire.

     The transfer of claims for cash receipts in the form of compensation for investment costs under the concession agreement as collateral is carried out only for the purpose of attracting debt financing for the implementation of the concession project in accordance with the terms of the concession agreement.

     The transfer by the concessionaire of his rights under the concession agreement to the creditor and the accounting of the value of these rights are carried out in accordance with the legislation of the Republic of Kazakhstan on concessions.

     For the commissioned concession facilities, the compensation of investment costs is carried out in full within the amounts and terms stipulated by the terms of the concession agreement.

     With the consent of the concessionaire, it is allowed to assign a claim or transfer a concessionaire's debt under a concession agreement, provided that the person(s) to whom the rights and obligations of the concessionaire are transferred comply with the requirements established by Article 18 of this Law.

     In case of replacement of the concessionaire at the request of the concessionaire's creditors, the assignment of the claim and (or) transfer of the concessionaire's debt under the concession agreement shall be carried out without holding a tender (auction) in accordance with the procedure determined by a direct agreement.

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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