On the ratification of the Agreement in the form of an exchange of Notes between the Government of the Republic of Kazakhstan and the Government of Japan on the attraction of a loan for the reconstruction of the CAREC Transport Corridor (Zhambyl region)

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On the ratification of the Agreement in the form of an exchange of Notes between the Government of the Republic of Kazakhstan and the Government of Japan on the attraction of a loan for the reconstruction of the CAREC Transport Corridor (Zhambyl region)

The Law of the Republic of Kazakhstan dated May 17, 2011 No. 436-IV

(Official website of the Ministry of Foreign Affairs of the Republic of Kazakhstan - Entered into force on July 11, 2011)

To ratify the Agreement in the form of an exchange of notes between the Government of the Republic of Kazakhstan and the Government of Japan on raising a loan for the reconstruction of the CAREC Transport Corridor (Zhambyl region), signed in Astana on August 10, 2010.

President of the Republic of Kazakhstan N. Nazarbayev

Embassy of Japan in the Republic of Kazakhstan ul. Kosmonavtov 62, 5th floor Astana Tel. 97-78-43 Fax 97-78-42

August 10th, 2010

Your Excellency, I have the honor to confirm the following Agreement recently reached between representatives of the Government of Japan and the Government of the Republic of Kazakhstan on the issue of granting a loan to Japan in order to support the economic stabilization and development process of the Republic of Kazakhstan: 1. A loan totaling six billion three hundred and sixty-one million Japanese yen (USD 6,361,000,000) (hereinafter referred to as the "Loan") will be provided to the Government of the Republic of Kazakhstan by the Japan International Cooperation Agency (hereinafter referred to as the "JICA") in accordance with the relevant laws and regulations of Japan in order to implement the Reconstruction Project of the CAREC Transport Corridor (Zhambyl region) (hereinafter referred to as the "Project"). 2. (1) The loan will be available for use in accordance with the Loan Agreement to be concluded between the Government of the Republic of Kazakhstan and the JICA. The period and terms of the Loan, as well as the procedures for its use, will be determined in accordance with the aforementioned Loan Agreement, within the framework of the Agreement reached, which will contain, among other things, the following principles: (a) The repayment period will be eighteen (18) years after the end of the grace period of seven (7) years; (b) The interest rate will be one point seven (1.7%) per annum; and (c) The Loan will be granted for a period of nine (9) years after the effective date of the aforementioned Loan Agreement; (2) The Loan Agreement referred to in subparagraph (1) of this paragraph will be concluded after a positive review by the JICA of the feasibility study of the Project, including environmental issues; (3) The Loan period referred to in subparagraph (1) (c) of this paragraph may be extended by agreement of the authorized bodies of the two Governments. 3. (1) The loan will be available to cover payments by the Kazakh Executive Agency to suppliers and/or contractors from eligible countries under contracts that may arise to them for the purchase of products and/or services necessary for the implementation of the Project, provided that such products are manufactured and/or services provided from these eligible countries. (2) The list of eligible countries mentioned in subparagraph (1) of this paragraph will be agreed upon between the authorized bodies of the two Governments. 4. The Government of the Republic of Kazakhstan will ensure that the products and/or services specified in subparagraph (1) of paragraph 3. will be purchased in accordance with the Framework Agreement for the Implementation of the Accelerated Co-Financing Scheme with ADB between the Asian Development Bank and the Japan Bank for International Cooperation, which is currently in force between the Asian Development Bank and the JICA and defines among other things, the procedures for international competitive bidding, which must be followed, except in cases where such procedures are inapplicable or inappropriate. 5. With regard to cargo and maritime transportation and insurance of products purchased under the Loan, the Government of the Republic of Kazakhstan will refrain from imposing any restrictions that may hinder fair and free competition among transport and marine insurance companies. 6. Japanese nationals whose services may be required in the Republic of Kazakhstan in connection with the supply of products and/or services referred to in subparagraph (1) of paragraph 3. will be provided with the conditions necessary for entry and residence in the Republic of Kazakhstan to perform their work. 7. The Government of the Republic of Kazakhstan will release: (a) JICA from all fiscal payments and taxes in the Republic of Kazakhstan imposed and/or in connection with the Loan, as well as interest on it; (b) Japanese companies acting as suppliers and/or contractors from all fiscal payments and taxes in the Republic of Kazakhstan imposed on them in respect of income from the supply of products and/or services provided under the Loan; (c) Japanese companies acting as suppliers and/or contractors, from all duties and taxes in the Republic of Kazakhstan with respect to the import and re-export of their own materials and equipment necessary for the implementation of the Project; and (d) employees with Japanese citizenship involved in the implementation of the Project, from all fiscal payments and taxes in the Republic of Kazakhstan imposed on them in relation to personal income received from payments from Japanese companies acting as suppliers and/or contractors. 8. The Government of the Republic of Kazakhstan will take the necessary measures to ensure that: (a) the loan will be used appropriately and exclusively for the implementation of the Project; (b) the safety of the people involved in the Project and the general population of the Republic of Kazakhstan will be ensured and maintained during the construction of facilities under the Loan and in the use of these facilities; and (c) facilities built under the Loan will be used and be maintained effectively and appropriately for the purposes described in this Agreement. 9. The Government of the Republic of Kazakhstan will, upon request, provide support to the Government of Japan and the JICA.: (a) information and progress data on the Project; and (b) any other information on the Project. 10. The two Governments will consult each other on any issues that may arise from or be related to this Agreement.

I also have the honor to propose that this note and Your Excellency's reply confirming the above agreement on behalf of the Government of the Republic of Kazakhstan constitute an Agreement between the two Governments, which will enter into force on the date of receipt by the Government of Japan of a written notification from the Government of the Republic of Kazakhstan on the completion of the necessary domestic procedures for the entry into force of such an Agreement.

I take this opportunity to express to Your Excellency the assurances of my highest consideration.

______________________ Shigeo Natsui, Ambassador Extraordinary and Plenipotentiary Ambassador of Japan to the Republic of Kazakhstan

His Excellency Nurlan Yermekbayev, Deputy Minister of Foreign Affairs of the Republic of Kazakhstan

August 10th, 2010

Your Excellency, I have the honor to confirm receipt of Your Excellency's Note dated today, which reads as follows: "I have the honor to confirm the following Agreement recently reached between representatives of the Government of Japan and the Government of the Republic of Kazakhstan on the issue of granting a loan to Japan in order to support the economic stabilization and development process of the Republic of Kazakhstan: 1. A loan totaling six billion three hundred and sixty-one million Japanese yen (USD 6,361,000,000) (hereinafter referred to as the "Loan") will be provided to the Government of the Republic of Kazakhstan by the Japan International Cooperation Agency (hereinafter referred to as the "JICA") in accordance with the relevant laws and regulations of Japan in order to implement the Reconstruction Project of the CAREC Transport Corridor (Zhambyl region) (hereinafter referred to as the "Project"). 2. (1) The loan will be available for use in accordance with the Loan Agreement to be concluded between the Government of the Republic of Kazakhstan and the JICA. The period and terms of the Loan, as well as the procedures for its use, will be determined in accordance with the aforementioned Loan Agreement, within the framework of the Agreement reached, which will contain, among other things, the following principles: (a) The repayment period will be eighteen (18) years after the end of the grace period of seven (7) years; (b) The interest rate will be one point seven (1.7%) per annum; and (c) The Loan will be granted for a period of nine (9) years after the effective date of the aforementioned Loan Agreement; (2) (the Loan Agreement referred to in subparagraph (1) of this paragraph will be concluded after a positive review by the JICA of the feasibility study of the Project, including environmental issues. (3) The Loan period referred to in subparagraph (1) (c) of this paragraph may be extended by agreement of the authorized bodies of the two Governments. 3. (1) The loan will be available to cover payments by the Kazakh Executive Agency to suppliers and/or contractors from eligible countries under contracts that may arise to them for the purchase of products and/or services necessary for the implementation of the Project, provided that such products are manufactured and/or services provided from these eligible countries. (2) The list of eligible countries mentioned in subparagraph (1) of this paragraph will be agreed upon between the authorized bodies of the two Governments. 4. The Government of the Republic of Kazakhstan will ensure that the products and/or services specified in subparagraph (1) of paragraph 3. will be purchased in accordance with the Framework Agreement for the Implementation of the Accelerated Co-Financing Scheme with ADB between the Asian Development Bank and the Japan Bank for International Cooperation, which is currently in force between the Asian Development Bank and the JICA and defines among other things, the procedures for international competitive bidding, which must be followed, except in cases where such procedures are inapplicable or inappropriate. 5. With regard to cargo and maritime transportation and insurance of products purchased under the Loan, the Government of the Republic of Kazakhstan will refrain from imposing any restrictions that may hinder fair and free competition among transport and marine insurance companies. 6. Japanese nationals whose services may be required in the Republic of Kazakhstan in connection with the supply of products and/or services referred to in subparagraph (1) of paragraph 3. will be provided with the conditions necessary for entry and residence in the Republic of Kazakhstan to perform their work. 7. The Government of the Republic of Kazakhstan will release: (a) JICA from all fiscal payments and taxes in the Republic of Kazakhstan imposed and/or in connection with the Loan, as well as interest on it; (b) Japanese companies acting as suppliers and/or contractors from all fiscal payments and taxes in the Republic of Kazakhstan imposed on them in respect of income from the supply of products and/or services provided under the Loan; (c) Japanese companies acting as suppliers and/or contractors, from all duties and taxes in the Republic of Kazakhstan with respect to the import and re-export of their own materials and equipment necessary for the implementation of the Project; and (d) employees with Japanese citizenship involved in the implementation of the Project, from all fiscal payments and taxes in the Republic of Kazakhstan imposed on them in relation to personal income received from payments from Japanese companies acting as suppliers and/or contractors. 8. The Government of the Republic of Kazakhstan will take the necessary measures to ensure that: (a) the loan will be used appropriately and exclusively for the implementation of the Project; (b) the safety of the people involved in the Project and the general population of the Republic of Kazakhstan will be ensured and maintained during the construction of facilities under the Loan and in the use of these facilities; and (c) facilities built under the Loan will be used and be maintained effectively and appropriately for the purposes described in this Agreement. 9. The Government of the Republic of Kazakhstan will, upon request, provide support to the Government of Japan and the JICA.: (a) information and progress data on the Project; and (b) any other information on the Project. 10. The two Governments will consult each other on any issues that may arise from or be related to this Agreement.

I take this opportunity to express to Your Excellency the assurances of my highest consideration.""

I also have the honor to confirm the above-mentioned agreement on behalf of the Government of the Republic of Kazakhstan and agree that Your Excellency's Note and this reply Note should constitute an Agreement between the two Governments, which will enter into force on the date of receipt by the Government of Japan of a written notification from the Government of the Republic of Kazakhstan on the completion of the necessary domestic procedures for the entry into force of such an Agreement.

I take this opportunity to express to Your Excellency the assurances of my highest consideration.

______________________ Nurlan Yermekbayev, Deputy Minister of Foreign Affairs of the Republic of Kazakhstan

His Excellency Shigeo Natsui Extraordinary and Plenipotentiary Ambassador of Japan to the Republic of Kazakhstan

The RCPI's note. The following is the text of the Agreement in English.

President

Republic of Kazakhstan

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