On the ratification of the Letter of Agreement between the Republic of Kazakhstan and the International Bank for Reconstruction and Development regarding amendments to the Loan Agreement No. 7681-KZ (South-West Highway Development Project: Western Europe-Western China International Transit Corridor (TSAREC 1b and 6b) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development
Law of the Republic of Kazakhstan dated May 23, 2013 No. 99-V
To ratify the Letter of Agreement between the Republic of Kazakhstan and the International Bank for Reconstruction and Development regarding amendments to the Loan Agreement No. 7681-KZ (South-West Highway Development Project: Western Europe-Western China International Transit Corridor (TSAREC 1b and 6b) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development, signed in Astana on 12 October 2012.
President of the Republic of Kazakhstan N. NAZARBAYEV
July 26, 2012
To Mr. B.B. Zhamishev, Minister of Finance of the Republic of Kazakhstan Pobedy Avenue, 11 Astana, Republic of Kazakhstan
Regarding: Amendments to the Loan Agreement No. 7681-KZ (South–West Highway Development Project: Western Europe–Western China International Transit Corridor (TSAREC 1b and 6b)) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development
Your Excellency:
We hereby refer to the aforementioned Loan Agreement between the Republic of Kazakhstan (hereinafter referred to as the Borrower) and the International Bank for Reconstruction and Development (hereinafter referred to as the Bank) dated June 13, 2009 (hereinafter referred to as the Loan Agreement). We also refer to your letter dated November 19, 2011 about the possibility of amending the Loan Agreement. We are pleased to inform you that the Bank approves your request and agrees to make the following changes to the text of the Loan Agreement: 1. Appendix 1 contains a description of the project, and the first paragraph is amended to include a new section of road that will be built outside the original Project location. Accordingly, the description of the purpose of this Project in the first paragraph of Appendix 1 should read as follows:: "The aim of the Project is to increase the efficiency of transport on road sections from the border of Aktobe and Kyzylorda regions to the border of South Kazakhstan and Zhambyl regions, and to improve road management and improve road safety in Kazakhstan.». 2. In Part 2 of Appendix 1, changes are being made to include a section of road in the South Kazakhstan region from Shymkent to the border of the Zhambyl region. Accordingly, Part 2 of the Project Description should be worded as follows: "Part 2: Modernization and reconstruction of highway sections in the South Kazakhstan region (from the border of the Kyzylorda region to the border of the Zhambyl region, including bypass roads to the cities of Kyzylorda and Shymkent). Construction works to support the modernization and reconstruction of highway sections in the South Kazakhstan region, including bypass roads to the cities of Kyzylorda and Shymkent.". 3. The table given in subparagraph 2 of paragraph A of section IV in Annex 2 to the Loan Agreement is amended in order to redistribute eligible expenses, and it is set out as follows:
Category
Allocated Loan amount (in dollar terms)
Share of expenses to be financed (including taxes)
(1) Work on Part 1 of the Project
936,000,000
85 %
(2) Work on Part 2 of the Project
944,850,000
85 %
(3) Consultant services for Part 3 of the Project
7,582,000
85 %
(4) Consultant services for Part 4 of the Project
3,140,000
85 %
(5) Consulting services for Part 5 of the Project
52,004,000
85 %
(6) Products for Part 4 of the Project
900,000
85 %
(7) Unallocated expenses
180,524,000
TOTAL AMOUNT
2,125,000,000
4. In subparagraph 2 of paragraph B of section IV in Annex 2 to the Loan Agreement, an amendment is made in order to extend the closing date of the Project, which is set out in the following wording: "2. The closing date is June 30, 2015.". 5. As a result of the restructuring of the Project, Addendum Letter No. 2 to the Loan Agreement, performance monitoring indicators should be changed to reflect changes in key indicators. The revised Addendum Letter No. 2 has been attached to this notification. If you agree with the changes, please date and sign the addendum letter and return it to the World Bank office in Astana. All other provisions of the Loan Agreement, with the exception of the amendments listed here, remain uncorrected and ratified, in full force and effect.
Please confirm your acceptance of the above changes on behalf of the Borrower by signing, dating and returning this Letter of Agreement to us. The above changes will take effect upon receipt by the Bank of this letter signed by you and an opinion satisfactory to the Bank indicating that the execution and transfer of this Letter of Agreement on behalf of the Republic of Kazakhstan have been duly authorized or ratified by all necessary government procedures in accordance with Sections 9.01 and 9.02 of the General Terms and Conditions applicable to the Loan Agreement.
Sincerely yours,
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
Shebnem Akkaya Acting Regional Director Central Asia Regional Office European and Central Asian region
CONFIRMED AND AGREED: REPUBLIC OF KAZAKHSTAN
By whom: Authorized Representative
Position: Minister of Finance of the Republic of Kazakhstan
Date: October 12, 2012
I hereby certify that this translation corresponds to the text of the Letter of Agreement between the Republic of Kazakhstan and the International Bank for Reconstruction and Development regarding amendments to the Loan Agreement No. 7681-KZ (South-West Highway Development Project: Western Europe–Western China International Transit Corridor (CAREC 1b and 6b)) between the Republic of Kazakhstan and By the International Bank for Reconstruction and Development in English, done in Astana on October 12, 2012.
Head of the Department of Personnel Coordination and Control of the Ministry of Finance of the Republic of Kazakhstan B. Akhmetzhanova
RCPI's note! The following is the text of the Letter of Agreement in English.
President
Republic of Kazakhstan
© 2012. RSE na PHB "Institute of Legislation and Legal Information of the Republic of Kazakhstan" of the Ministry of Justice of the Republic of Kazakhstan
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