On the signing of a Letter of Agreement between the Republic of Kazakhstan and the International Bank for Reconstruction and Development on the allocation of a grant to finance the project "Public Administration and Sustainable livelihoods of enterprises of the Aral Sea fisheries"

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On the signing of a Letter of Agreement between the Republic of Kazakhstan and the International Bank for Reconstruction and Development on the allocation of a grant to finance the project "Public Administration and Sustainable livelihoods of enterprises of the Aral Sea fisheries"

Decree of the President of the Republic of Kazakhstan dated March 4, 2008 No. 551

To be published in the Collection of Acts of the President and Government of the Republic of Kazakhstan

In accordance with the Law of the Republic of Kazakhstan dated May 30, 2005 "On International Treaties of the Republic of Kazakhstan", I HEREBY DECREE:

1. To approve the attached draft Letter of Agreement between the Republic of Kazakhstan and the International Bank for Reconstruction and Development on the allocation of a grant to finance the project "Public Administration and sustainable livelihoods of enterprises of the Aral Sea fisheries".

2. To authorize the Minister of Agriculture of the Republic of Kazakhstan, Akhmetzhan Smagulovich Yessimov, to sign on behalf of the Republic of Kazakhstan a Letter of Agreement between the Republic of Kazakhstan and the International Bank for Reconstruction and Development on the allocation of a grant to finance the project "Public Administration and Sustainable Livelihoods of enterprises of the Aral Sea fisheries".

3. This Decree shall enter into force from the date of signing.

President of the Republic of Kazakhstan

project

Grant from the Japanese Government's Social Development Fund (JSDF)N TF056801APPLICATION

Article I Standard conditions; Definitions

1.01. Standard conditions. The Standard Terms and Conditions for Grants paid by the World Bank from various funds, as amended on July 20, 2006 (Standard Terms and Conditions), form an integral part of this Agreement. 1.02. Definitions. Unless otherwise indicated in the context, the capitalized terms used in this Agreement have the corresponding meanings assigned to them by the Standard Terms or this Agreement.

Article II Project Implementation

2.01. Objectives and description of the Project. The objectives of the Project are to improve the living conditions of unprotected, isolated fishing communities in the North Aral Sea region by developing local capacities, improving and ensuring sustainable management of existing facilities, expanding entrepreneurial opportunities, and supporting access to basic social infrastructure facilities and services. This Project supports Phase I of the Project "Regulation of the Syrdarya Riverbed and the Northern Aral Sea", funded by the World Bank on the basis of a Loan Agreement. Agreement (Loan No. 4609 KZ) dated October 22, 2001 between the Republic of Kazakhstan and the International Bank for Reconstruction and Development. This Project consists of the following components:

Part A : Developing the capacity to ensure sustainable living through improved management of existing facilities.

(a) drawing up local development plans, including a pilot project to strengthen public control and improve access to single-lake fisheries; (b) enhancing the capacity of local governments to support decentralized governance and ensure transparency in the process of granting small lakes to private use.; (c) training of fishing brigade workers, fishing enterprises and officials, local authorities on key aspects of community development and technical subjects, including assessment of community resources and principles of joint resource management, small business, sale of fish products, waste disposal, ship safety, ship repair and engine maintenance; and (d) development and field testing of training materials on fish processing and marketing, ship safety, ship repair and engine maintenance, small business management and microfinance, and assessment and collaborative management of community resources.

Part B : Local investments in improving living conditions and reducing environmental degradation.

(a) providing remote villages with a technical water filtration system, a water-filling vessel and an all-wheel-drive ambulance; (b) developing the construction of mobile fishing camps to improve the health and living conditions of fishermen; (c) restoring small sections of impassable roads and building pontoons to bring fish ashore in order to expand access to markets and increase the number of the benefits of grant funding, as well as improved monitoring of fish landing on shore; (d) provision of radiotelephone communications to the main villages and fishing camps, pilot testing of equipment systems for exchanging electronic mail via radio or satellite communications between the three communities, including the creation of a community radio program lasting 1-2 hours per day; (e) pilot testing of efficient wood-burning stoves for smoking fish and alternative heating of villages and fishing camps (in particular in particular, through the use of liquefied natural gas); (f) Equipping schools and kindergartens with equipment and furniture, creation of nurseries; and (h) establishment of hotels for travelers at the Aral Tenisi railway station in the city of Aralsk.

Part C : Small businesses to diversify income and improve livelihoods.

(a) improvement of the fish distribution system and modernization of the existing cold storage infrastructure, ice generators for containers and large thermally insulated cold storage chambers for fish storage, so that fishing crews can store fish in fishing camps; (b) training in fish processing and the formation of an information service for issuing certificates on fish sales; (c) the improvement of smoking technology (using more economical wood-burning or gas stoves) and the formation of organizations for the sale of manufactured products in order to increase income and improve the sources of funds for women sellers; and (d) the payment of 400,000 US dollars in the form of competitive grants (up to 25,000 US dollars for each of approximately 16 communities) for the development of a small business in accordance with the selection criteria, principles and procedures set out in the Operational Project Manual (PIU), which will have to be compiled and approved by the Recipient.

Part D : Support of Project implementation, management, monitoring and evaluation services.

(a) capacity building and hiring of additional staff in Aral Tenisi, a local non-governmental organization operating in the Aral Sea region, which will implement project activities together with the Project Management Group (MCG) established under the Committee on Water Resources (CVR) of the Ministry of Agriculture of the Republic of Kazakhstan within the framework of Phase I The project "Regulation of the Syrdarya Riverbed and the Northern Aral Sea", funded by the World Bank (Loan N 4609 KZ); (b) Hiring rural activists who will work closely with fishermen and community members as part of the implementation of project activities; (c) training of Aral Tenisi employees and rural activists in the principles of project management, resource management of project participants, accounting and accounting, procurement procedures at the village level, and assessment of villages with the participation of stakeholders; (d) development and implementation of a monitoring and evaluation system; and (e) provision of advisory services, including Grant audits.

2.02. General conditions of the Project implementation. The Recipient declares his commitment to the objectives of the Project. The Recipient, within the framework of the World Bank-funded Project "Regulation of the Syrdarya Riverbed and the Northern Aral Sea" (Loan N 4609 KZ) through the State Unitary Enterprise KVR of the Ministry of Agriculture of the Republic of Kazakhstan, will ensure the implementation of the Project in accordance with the provisions of Article II of the Standard Conditions and this Article II.

2.03. Institutional and other measures . The recipient, through the CVR, will support the State Unitary Enterprise until the completion of the Project by providing personnel whose qualifications and competence meet the requirements of the World Bank.

2.04. The Recipient, through the CVR, will ensure: (a) that the GUP is responsible for: (i) Project management, implementation, coordination and monitoring, including Project evaluation and reporting; (ii) preparation of Grant withdrawal requests; (iii) management of the Special Account of the Project; (iv) administration of competitive grants provided for in paragraph (d) of Part C of Section 2.01 of this Annex; (v) procurement of goods, works and services for the Project; (vi) maintenance of accounting documents and accounts related to the Project, organization of audits; (vii) preparation of reports on the Project and the work program for the year; and (b) the implementation of project activities by the State Unitary Enterprise in close cooperation with the NGO Aral Tenisi and rural activists who will be hired under Part D of the Project referred to in Section 2.01 of this Annex.

2.05. The Recipient, through the CVR, will ensure that all appropriate measures are taken to implement paragraph (d) of Part C of Section 2.01 of this Annex in accordance with the PRU, and will not transfer, amend, cancel or cancel any provisions of the PRU without prior approval by the World Bank.

2.06. The recipient, through the CVR, will provide:

(a) selection, examination, implementation and evaluation of proposals for subprojects provided for in paragraph (d) of Part C of Section 2.01 of this Annex, in accordance with the principles, procedures and criteria set out in the PRU;

(b) granting the World Bank the right to review proposals for subprojects provided for in paragraph (d) of Part C of Section 2.01 of this Annex for the purpose of awarding grants at any time during the Project implementation process; in case of disagreement with the grounds used for approving or rejecting such proposals for subprojects, the World Bank has the right to request changes in the selection results; and

(c) award of sub-grants by the State Unitary Enterprise for sub-projects provided for in paragraph (d) of Part C of Section 2.01 of this Annex, in accordance with the standard form of Sub-grant agreements included in the PRU, which: (i) sufficiently describes the proposals for sub-projects for the implementation of the allocated sub-grants; (ii) sub-grant recipients will be required to implement such subproject proposals in accordance with the description and within the budgets specified in the sub-grant agreements, and will be required to purchase the goods and services required for the implementation of subproject proposals in accordance with the procedures set out in the sub-grant agreement; (iii) the amount of each sub-grant should be based on based on data on the estimated cost of goods, works and services and operating expenses that will be required for the subproject, and should not exceed the limit specified in the PRU for each sub-grant.; and (iv) the use of the subproject and the allocation of costs must be carried out by the recipient of the subgrant in relation to the financing of the subproject, in accordance with the requirements set out in the PRU.

2.07. Financial management. (a) The Recipient will ensure that the financial management system operates in accordance with the provisions of Section 2.07 of the Standard Terms.

(b) The Recipient will ensure that interim, unverified financial statements for the Project are prepared and sent to the World Bank within one month of the end of each calendar quarter, with each such report covering the relevant quarter, and the form and content of such report must comply with the requirements of the World Bank.

(c) The Recipient will ensure that its financial statements for the Project are audited in accordance with the provisions of Section 2.07 (b) of the Standard Terms and Conditions. The audit of the financial statements should cover a period of one fiscal year of the Recipient. Audited financial statements must be submitted to the World Bank within six months of the end of the relevant period.

2.08. Purchases

(a) General provisions : All goods, works and services necessary for the implementation of the Project, which must be financed from the Grant funds, are purchased in accordance with the requirements set out or mentioned in:

(i) Section I of the "Procurement Guidelines for IBRD Loans and MAP Loans", published by the World Bank in May 2004 and revised in October 2006 (Procurement Guidelines) - in the case of procurement of goods and works;

(ii) Sections I and IV of the Guidelines for the Selection and Recruitment of Consultants by World Bank Borrowers, published in May 2004 and revised in October 2006 (Guidelines for the Selection of Consultants) in the case of the recruitment of consultants; and

(iii) The provisions of this Section, which may be specified in the procurement plan prepared and periodically updated by the Recipient for this Project in accordance with paragraph 1.16 of the Procurement Manual and paragraph 1.24 of the Consultant Selection Manual (Procurement Plan).

(b) Definitions . The capitalized terms used in the following paragraphs of this Section to describe private procurement methods or the World Bank's review of individual contracts refer to the relevant methods described in the Procurement Manual or the Consultant Selection Manual, as appropriate.

(i) Unless otherwise provided in subparagraph (ii) below, the purchase of goods and works will be carried out under contracts concluded on the basis of the results of International Competitive Bidding.

(ii) In addition to International Competitive Bidding, the following methods may be used to purchase goods and works under contracts specified in the Procurement Plan: (A) Limited international bidding; (C) National competitive bidding, which is subject to the following additional provisions:

I. Participation of state-owned enterprises State-owned enterprises of the Republic of Kazakhstan are allowed to participate in auctions only if they can confirm their legal and financial independence, act on the basis of trade law, and are not dependent agencies of the customer. In addition, they will be subject to the same requirements regarding bids and collateral as other bidders.

II. Procurement documentation Procurement organizations are required to use the relevant standard tender documentation when purchasing goods that meet the requirements of the IBRD.

III. Opening and evaluation of applications

(a) Bids are opened publicly, immediately after the deadline for submitting bids; (b) Bids are evaluated in strict compliance with the criteria stated in the tender documents, which are measurable in monetary terms; (c) Preference for domestic goods and contractors is not allowed; and (d) The contract is concluded with a qualified bidder who submitted the relevant According to the established requirements, an application with the lowest cost is not allowed to negotiate.

IV. Price adjustment

Long-term construction contracts (for example, lasting more than eighteen (18) months) must include an appropriate price adjustment clause.

V. Cancellation of the application process

Non-recognition of the results of the tender and acceptance of new applications may be made only by prior agreement with the Association.

VI. Rejection of an individual application

An individual application is rejected only in the following cases:

(a) The Applicant does not meet the established requirements; (b) The Applicant does not accept the correction of an arithmetic error in the application indicated by the Procurement Commission of the procuring entity; and (c) the Applicant does not meet the requirements of the tender documents.

(d) Private methods of procurement of consultants' services

(i) Unless otherwise provided in subparagraph (ii) below, the procurement of consultants' services will be based on contracts concluded based on the selection of consultants based on quality and cost criteria. (ii) The following methods may be used to purchase the services of consultants involved in the performance of assignments specified in the Procurement Plan: (A) Lowest cost selection; (C) Selection of individual consultants; and (C) Procedures for selecting individual consultants from a single source.

(e) Review of procurement decisions by the World Bank. The Procurement Plan should specify those contracts that are subject to preliminary review by the World Bank. The remaining contracts are subject to subsequent review (in fact) by the World Bank.

Article III Withdrawal of Grant funds

3.01 Acceptable expenses . The Recipient may select Grant funds in accordance with the provisions of: (a) Article III of the Standard Terms; (b) this Section; and (c) additional instructions that the World Bank may provide by notification to the Recipient (including the "World Bank Guidelines for Project Disbursements" as amended in May 2006, periodically reviewed by the World Bank and applicable to this Agreement based on such instructions) to finance eligible expenditures set out in the following table. The table shows the Categories of expenditures that can be funded from the Grant (Categories), the amounts allocated to each category from the Grant, as well as the percentages of expenditures to be funded as eligible expenditures for each Category.:

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