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 "Environmental Restoration of the city of Ust-Kamenogorsk"
Decree of the President of the Republic of Kazakhstan dated December 19, 2007 No. 494
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 Ust-Kamenogorsk Environmental Restoration project.
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 Ust-Kamenogorsk Environmental Restoration project.
3. This Decree shall enter into force on January 1, 2008.
President of the Republic of Kazakhstan
European Community Grant N TF058070APPLICATION
Article I General conditions; Definitions
1.01. General Terms and Conditions. The General Terms and Conditions for grants provided by the World Bank from various Sources, as amended on July 20, 2006 (General 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 General Terms and Conditions or this Agreement.
Article II Project Implementation
2.01. Objectives and description of the Project. The objectives of the Project are: (a) to prevent groundwater pollution and further migration of toxic waste plumes towards residential areas, drinking water sources in the city and, ultimately, the Irtysh River; and (b) to strengthen institutional mechanisms for monitoring water quality in order to control current groundwater pollution from local municipal and industrial sources. sources. The project consists of the following components: Part A: Assistance to the Recipient Government in establishing a groundwater quality monitoring system, supplying leak detection and repair equipment, and implementing a leak reduction and control program focused on eliminating leaks in pipes located near control and intake wells to ensure more accurate monitoring of groundwater contamination and reducing the operating costs of the water treatment plant. Part B: Providing assistance to the Recipient's Government in carrying out activities to prepare for the implementation of the monitoring and design phase of the Project, along with strengthening institutional capacity.
2.02. The implementation of the Project as a whole. (a) The Recipient declares his commitment to the objectives of the Project. To this end, the Recipient, through the Committee on Water Resources (CVR) of the Ministry of Agriculture of the Republic of Kazakhstan, undertakes to implement the Project in accordance with the provisions of Article II of the General Terms and Conditions and the provisions of this Article II. (b) As part of the Project implementation, the Recipient is required to maintain a Project Management Group (MCU) at the CFS, whose composition, competence, and resources must meet the requirements of the World Bank. The State Unitary Enterprise is responsible for the qualified management of project activities, financial management, procurement, contract execution supervision, monitoring and reporting. (c) The Recipient will ensure that any proposals on the recruitment or dismissal of employees and consultants of the State Unitary Enterprise are submitted to the World Bank for consideration and approval.
2.03. Monitoring, reporting and evaluation of the Project. (a) The Recipient, through the CVR, monitors and evaluates the progress of the Project and prepares Project Reports in accordance with the provisions of Section 2.06 of the General Terms and Conditions and based on the indicators set out in paragraph (b) of this Section. Each such Project Report covers a period of one (1) calendar quarter and is provided to the World Bank within forty-five (45) days of the end of the period covered by such report. (b) The above-mentioned indicators referred to in paragraph (a) are: (i) Strengthening the capacity of local institutions to reduce water leakage in the Project area; and (ii) Strengthening the capacity of local institutions to implement the objectives of the monitoring program. (c) The Recipient, through the CVR, will prepare a Report on the completion of the Project in accordance with the provisions of Section 2.06 of the General Terms and Conditions. The Project Completion Report must be submitted to the World Bank within six (6) months of the Closing Date. To assist the Recipient in preparing the Project Completion Report, the Recipient will involve consultants whose qualifications, experience and competence will meet the requirements of the World Bank.
2.04. Financial management . (a) The Recipient, through the CVR, will ensure the operation of the financial management system in accordance with the provisions of Section 2.07 of the General Terms and Conditions. (b) The Recipient, through the CVR, will ensure that interim, unaudited, financial reports on the Project for that quarter are prepared and submitted to the World Bank within forty-five (45) days from the end of each calendar quarter, the form and content of which must meet the requirements of the World Bank. (c) The Recipient, through the CVR, is required to audit its financial statements in accordance with the provisions of Section 2.07 (b) of the General Terms and Conditions. Each audit of financial statements should cover a period of one (1) financial year of the Borrower. The audited financial statements for each such period must be submitted to the World Bank within six (6) months of the end of each such period.
2.05. Purchases . (a) General provisions: All goods and services required for the Project, which must be financed from the Grant funds, are procured 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 (Guidelines for procurement) - in the case of the purchase of goods; (ii) Sections I and IV of the "Guidelines for the Selection and Hiring of Consultants by Borrowers of the World Bank", published in May 2004 (Guidelines for the Selection 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 terms, which are capitalized and are used in the following paragraphs of this Section to describe private procurement methods or the World Bank's review of individual contracts, correspond to the definitions prescribed by its Procurement Manual or Consultant Selection Manual, as appropriate. (c) Private methods of procurement of goods (i) Unless otherwise provided in subparagraph (ii) below, the purchase of goods is based on International Competitive Bidding. (ii) The following methods, other than International Competitive bidding, may be used to purchase goods under contracts specified in the Procurement Plan: (A) Free trade procurement; (B) Direct contracting. (d) Private methods of procurement of consultants' services (i) Unless otherwise provided in subparagraph (ii) below, consultants' services are procured under contracts awarded based on Selection based on price and quality criteria. (ii) The following methods may be used to purchase consultant services for the contracts specified in the Procurement Plan, including training services: (A) Lowest cost selection; (B) Selection based on the qualifications of consultants; (C) Selection of individual consultants; and (D) 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. All other contracts are subject to Further review by the World Bank.
Article III Withdrawal of Grant funds
3.01. Eligible expenses. The Recipient may select Grant funds in accordance with (a) the General Terms and Conditions, (b) this Section, and (c) additional instructions that the World Bank may provide by notifying the Recipient (including the World Bank's Project Disbursement Guidelines, as amended in May 2006, which are periodically reviewed by the World Bank and applicable to this Agreement on the basis of 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.:
Download
Category
The amount of the allocated grant (in euros)
% of expenditures to be financed
(1) Products
1 912 643
85 %
(2) Consultant services, including audit
1 444 241
85 %
(3) Training
73 116
85 %
total
3 430 000
For the purposes of this paragraph, the term "training" means expenses incurred for Project-related internships, training courses, seminars, practical exercises and other training activities, including the cost of textbooks, rental of premises, travel and daily expenses of instructors and students.
For the purposes of this paragraph, the term "training" means expenses incurred for Project-related internships, training courses, seminars, practical exercises and other training activities, including the cost of textbooks, rental of premises, travel and daily expenses of instructors and trainees.
3.02. Withdrawal conditions. Notwithstanding the provisions of Section 3.01 of this Agreement, withdrawals from the Grant Account are not permitted: (a) to finance payments made prior to the date of signature by the Recipient of this Agreement; and (b) to pay for any taxes levied by the Recipient or in the Recipient's territory in respect of purchased goods or services.
3.03. The withdrawal period from the Grant Account. The closing date referred to in paragraph (c) of Section 3.06 of the General Terms and Conditions is February 28, 2010.
Article IV Additional remedies; Cancellation
4.01. Additional events of suspension of rights. Additional suspension events referred to in paragraph (i) of Section 4.02 of the General Terms and Conditions are as follows: (a) Ineligibility. The IBRD announces that it is ineligible to conclude an IBRD-funded contract with the Recipient. (b) The amendment, suspension, invalidation, cancellation or indefinite postponement of a law, decree, charter or other constituent documents of the KVR, including any regulations or legal acts on which the listed legal instruments are based, which significantly and negatively affects the ability of the KVR to fulfill any of its obligations, provided for by this Agreement.
4.02. The deadline for the entry into force of this Agreement is March 31, 2008, or a later date, which may be set by the World Bank by notifying the Recipient.
Article V Entry into force; Termination
5.01. An additional condition for the entry into force of this Agreement is as follows: registration and conclusion of a Loan Agreement (loan No. 4848 KZ) between the Recipient and the World Bank for the Ust-Kamenogorsk Environmental Restoration Project approved by the World Bank on February 1, 2007, and fulfillment of all the prerequisites for the entry into force of such Loan Agreement or granting the Recipient the right to withdraw funds on the basis of such a Loan Agreement without the entry into force of this Agreement.
Article VI Recipient's representative; Addresses
6.01. The Recipient's representative. The representative of the Recipient referred to in Section 7.02 of the General Terms and Conditions is the Chairman of the Committee on Water Resources of the Ministry of Agriculture of the Republic of Kazakhstan.
6.02. Recipient's address. The Recipient's address referred to in Section 7.01 of the General Terms and Conditions:
Committee on Water Resources of the Ministry of Agriculture of the Republic of Kazakhstan 31 Pobedy Avenue Astana, 010000 Republic of Kazakhstan Fax number: (7) (3172) 32 19 04
6.03. Address of the World Bank. The Recipient's address referred to in Section 7.01 of the General Terms and Conditions:
International Bank for Reconstruction and Development, 1818 N.W. St. Washington, DC, 20433 United States of America
Telegraphic address: Telex: Fax: INDEVAS 248423 (MCI) or 1-202-477-6391 Washington, D.C. 64145 (MCI)
President
Republic of Kazakhstan
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