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. 8156-KZ (East-West Highway Development Project (Almaty–Khorgos section): Western Europe–Western China International Transit Corridor (CAREC 1b) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development
The Law of the Republic of Kazakhstan dated December 27, 2018 No. 206-VI SAM.
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. 8156-KZ (East-West Highway Development Project (Almaty–Khorgos section): Western Europe–Western China International Transit Corridor (CAREC 1b) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development, committed in Astana on May 23, 2018.
President Republic of Kazakhstan
N. NAZARBAYEV
to Mr. Bakhyt Sultanov, Minister of Finance, Ministry of Finance, Astana, Republic of Kazakhstan
Regarding: East–West Highway Development Project
(Almaty - Khorgos section):
Western Europe - Western China International Transit Corridor
(CAREC - 1b)
(Loan No. 8156-KZ)
Amendment to the Loan Agreement
Dear Mr. Sultanov:
We refer to the 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 October 10, 2012 (hereinafter referred to as the Loan Agreement). We also refer to the letter from the Borrower's Ministry of Finance dated February 10, 2017 requesting the Bank to restructure the Project and make certain amendments to the Loan Agreement in connection with the proposed restructuring.
We are pleased to inform you that, after due consideration, the Bank proposes to amend the Loan Agreement as follows::
1. The purpose of the Project provided for in Annex 1 to the Loan Agreement should be stated as follows:
"The purpose of this Project is to increase transportation efficiency and improve road management on selected road sections of the Western Europe-Western China highway corridor and the Center-South corridor."
2. Component 1 of the Project, provided for in Annex 1 to the Loan Agreement, should be worded as follows:
"Component 1: Reconstruction and construction of selected road sections
(a) Providing consulting services and performing reconstruction and construction work, including related bypass roads, bridges, transport interchanges and auxiliary structures on selected road sections as part of the Western Europe-Western China highway corridor and the Center-South corridor.";
(b) providing consulting services for the management and supervision of construction works within the framework of the Project.".
3. The title of component 2 of the Project, provided for in Annex 1 to the Loan Agreement, should read as follows (the changes are in italics):
"Component 2: Improving road management in sections of the Western Europe-Western China highway corridor and the Center-South corridor.".
4. Section I.B.1 (b) in annex 2 to the Loan Agreement should be worded as follows (the changes are in italics):
"(b) ensures that the Project is implemented in accordance with the provisions of the EIA, OVOS2 and all applicable EPOS; and".
5. Section I.B.4 in annex 2 to the Loan Agreement should be worded as follows, with the addition of a new paragraph (d):
"(d) ensure that procedures for accidental finds are followed in cases where tangible cultural resources are found during the implementation of the Project. The Borrower will also ensure that the provisions of the accidental finds procedures are included in the construction contracts and that such provisions are applied during the implementation of the Project.".
6. Paragraph 6 in Section I of the Addendum to the Loan Agreement should read as follows:
"Environmental and social management Plans" or "EMPS" means documents on specific facilities accepted by the Borrower and satisfactory to the Bank in accordance with the EIA, ESIA 2 and paragraph 1 of Section I. B Annexes 2 to this Agreement with respect to the work performed by the Borrower within the framework of the Project, which define, in particular: (i) detailed measures to manage potential environmental risks and measures to mitigate, reduce and/or compensate for negative environmental impacts caused by the implementation of Project activities, along with adequate institutional mechanisms, monitoring and reporting mechanisms capable of ensuring proper implementation and regular information on their compliance; (ii) potential impacts on natural habitats and related mitigation measures for contractors during Project work; and (iii) tangible cultural resources and management plans prepared in accordance with the Borrower's legislation, which may be periodically adjusted and supplemented with the prior written consent of the Bank; and "EMP" refers to one of those PUOSS.".
The definitions of "Environmental Protection Plans" and "Environmental Management Plans" should be replaced by "Environmental and Social Management Plans" and "EMPs", and each reference to Environmental Protection Plans or EMPs is considered a reference to Environmental and Social Management Plans or EMPs.
7. Paragraph 11 in Section I The amendments to the Loan Agreement should be worded as follows, and each reference to the ITC or the Ministry of Transport and Communications in the Agreement is considered a reference to the WORLD:
"MIR" means the Ministry of Investment and Development of the Borrower or any of its legal successors.".
8. Paragraph 20 in Section I The amendments to the Loan Agreement should be worded as follows:
"Resettlement Policy Framework" or "RPP" means a document prepared, approved and published by the Borrower on May 1, 2008, updated and published on March 18, 2009 (published via Infoshop Of the Bank on March 25, 2009), revised and published on April 29, 2016 (published via Infoshop May 9, 2016), satisfactory to the Bank, establishing the resettlement procedure, institutional mechanisms, qualification criteria, rights and compensation, including the procedure for conducting cost assessments, public consultations and public participation, monitoring and evaluation, information disclosure criteria used in the preparation of a Resettlement Action Plan for specific facilities and all necessary tasks to mitigate the negative social impact of the Project.".
9. Hereby in Section I The following definitions are added to the Loan Agreement in alphabetical order, while the numbering of the remaining definitions in the Addendum is changed accordingly:
(i) "Center-South Corridor" means the existing road corridor between the cities of Astana and Almaty.";
(ii) "Accidental discovery procedures" means procedures that must be followed in cases where tangible cultural resources are discovered during the course of the project, which require the Borrower to take appropriate security measures, including temporarily suspending activities at the site and reporting to the government agency responsible for cultural property.";
(iii) "Environmental and Social Impact Assessment 2" or "ESIA 2" means an Environmental and Social Impact Assessment for the Balkhash-Burylbaytal section of the Center-South corridor, prepared and published by the Borrower on May 26, 2017 (published on the Bank's external website on May 26, 2017), satisfactory to the Bank, containing among other things: (i) a detailed description of the facilities where the Project activities will be carried out; (ii) the potential and actual negative environmental and social impacts of the activities referred to in paragraph (i) higher; and (iii) procedures for the development of EMP for specific facilities, indicating the measures to be taken during the implementation and operation of the Project aimed at mitigating, eliminating or otherwise compensating for negative environmental impacts within the Project.";
(iv) "Selected Road Sections" means the Almaty-Khorgos section and the Balkhash-Burylbaytal section of the Astana-Karaganda-Balkhash-Kurty-Kapshagai-Almaty road of the Center-South corridor within the Borrower's territory and any other section that may be selected by the Borrower and approved by the Bank on the basis of an agreed technical, environmental, social and economic analysis.".
All other provisions of the Loan Agreement, which are not amended here, remain unchanged and have full legal force.
Please confirm your acceptance of the above amendment on behalf of the Borrower by signing, dating and returning the attached copy of this letter to us. The Amendment will enter into force upon receipt by the Bank of a notification indicating that the execution and transmission of this amendment on behalf of the Borrower has been duly authorized or ratified by all necessary government procedures.
Sincerely, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Signature ______________________________ Lilia Burunchuk Regional Director Central Asia
AGREED: REPUBLIC OF KAZAKHSTAN Signature:________________________ Bakhyt Sultanov Position: Minister of Finance of the Republic of Kazakhstan Date: May 23, 2018 Copies: Mr. Timur Suleimenov, Minister of National Economy Mr. Marat Beketayev, Minister of Justice Mr. Kairat Abdrakhmanov, Minister of Foreign Affairs Mr. Zhenis Kassymbek, Minister of Investment and Development Mr. Ruslan Beketayev, Vice Minister of Finance Mr. Mereke Pshembayev, Chairman of the Committee of Highways Mr. Werner Gruber, Executive Director, World Bank Mr. Cyril Prissette, Senior Advisor to the Executive Director, World Bank Ms. Aynur Yertlesova, Advisor to the Executive Director, World Bank
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. 8156-KZ (East-West Highway Development Project (Almaty-Khorgos section): Western Europe-Western China International Transit Corridor (CAREC 1b) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development in English, done on May 23, 2018 in Astana.
Head of the Document Editing and Linguistic Expertise Department of the Document Management Department 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
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