On the ratification of the Loan Agreement between the Republic of Kazakhstan and the Islamic Development Bank for the Almaty-Gulshad Road Project

Home / RLA / On the ratification of the Loan Agreement between the Republic of Kazakhstan and the Islamic Development Bank for the Almaty-Gulshad Road Project

The Law of the Republic of Kazakhstan dated December 30, 1999 No. 28-II

To ratify the Loan Agreement between the Republic of Kazakhstan and the Islamic Development Bank for the Almaty-Gulshad road project, signed in Almaty on May 19, 1999. President of the Republic of Kazakhstan Loan Agreement between the Republic of Kazakhstan and the Islamic Development Bank for the Almaty-Gulshad road project

This Agreement was drawn up on May 19, 1420 AH, which corresponds to May 19, 1999, between the Republic of Kazakhstan (hereinafter referred to as the "Borrower") and the Islamic Development Bank (hereinafter referred to as the "Bank"). Whereas, (A) The Borrower requested the Bank to assist in financing a portion of the cost in foreign currency of the Almaty-Gulshad Road Project (hereinafter referred to as the "Project"), described in Annex II to this Annex, by providing a Loan, as described below; (B) One of the objectives of the Bank is to provide assistance to its member countries.

by providing loans to members to finance constructive projects and programs; (C) The Project is considered technically sound, economically and financially sound; (D) The Bank has agreed, based on, inter alia, the above, to provide a Loan to the Borrower on the terms and conditions set out below. Based on the above, the Parties to this Agreement have agreed as follows:

Article I General Terms and Definitions Section 1.01 General terms and conditions

The Parties to this Agreement accept all the provisions of the General Terms and Conditions applicable to the Loan and Guarantee Agreements of the Bank dated 11/8/1976 (hereinafter referred to as the "General Terms and Conditions") with the same force and effect as if they were fully set forth in this Agreement. Section 1.02 Definitions Each time used in this Agreement, unless the context requires otherwise, a number of terms defined in the General Terms and Conditions have the meanings specified in them, respectively, and the following additional terms have the following meanings: (a) "Effective Date" means the day on which the Agreement is declared effective by the Bank, which is communicated to the Borrower by the Bank; (b) "Implementing Agency" means the Ministry of Transport, Communications and Tourism, which is the Implementing Organization responsible for the execution, work on and management of the Project; (c) "Project" and references to its "parts" means the Project and its parts described in Annex II to this Agreement.

Article II Loan Section 2.01 Amount The Bank agrees to provide the Borrower with an amount from its usual funds, in terms of Islamic dinars, not exceeding 7,000,000 (seven million Islamic dinars) in total. The Islamic dinar, as defined in Article 4 (1) (a) of the Agreement Establishing the Bank, is equivalent to One Special Drawing Right of the International Monetary Fund. Section 2.02 Unless otherwise decided by the Bank, contracts for goods and services financed from this Loan are acquired in accordance with the procedures established by the Bank. The Borrower gives the Bank an obligation to comply with these procedures.

Article III Repayment of the loan in installments, service fees and place of payment Section 3.01 Repayment of the Loan in installments The Borrower shall repay the principal amount of the Loan over a period of twenty-five (25) years, including a grace period of seven (7) years beginning on the date of this Agreement, in thirty-six (36) equal and consecutive semi-annual installments, as it appears in Appendix 1 (A) to this Annex. Section 3.02 (a) The Borrower shall pay the Bank for Services in the amount initially estimated at 365,165 Islamic dinars (three hundred and sixty-five thousand one hundred and sixty-five Islamic dinars) in total in the manner described in Annex I (B) to this Agreement. (b) It is understood and agreed between the parties in this Agreement that the initial amount of the Service Fee referred to in Subsection 3.02 (a) of this Agreement does not exceed the estimate based on the assumption of the completion date and the repayment period of the full Loan amount, as provided for in this Agreement. In addition, it is agreed that the actual amount of the Service Fee will be calculated after the completion of the Project, provided that the actual amount calculated in this way does not exceed 2.5% (two point five percent) of the Loan amount per year. (c) Service Fees will be charged from the date of this Agreement. Section 3.03 Place of payment Any payment involving repayment of the principal amount is considered to have been duly made if the funds making up such payments are credited to an account designated by the Bank for such purpose. Section 3.04

Without prejudice to the provisions of Section 3.03, any payments under this Agreement shall be deemed to have been duly made: (a) If such payment is made in US dollars, if any of the following banks confirms to the Islamic Development Bank that the amount of such payment has been deposited with the Islamic Development Bank; (i) Account N 001591.11 Account N 001591.11 Saudi International Bank Saudi International Bank 99, Bishopsgate, London 99, Bishopsgate, London EC 2M 3TB EU 2M 3TB Telex Nuambers: 8812261, Telex Numbers: 8812261, 8812262 8812262 (ii) Account N At 10507 Account N At 10507 Arab Banking Corporation Arab Banking Corporation of R.O. Vox: 5698, Mapama, Bahrain Postal Subscription Box: 5698, Manama Bahrain Telex Numbers: 9385, Telex numbers: 9385, 9431/2/3, 9442 ABCBAH BN 9431/2/3, 9442 ABCBAH BN b) If such payment is made in French francs - If the following bank confirms to the Islamic Development Bank that it has received the amount of such payment to the account of the Islamic Development Bank.: Account N 96965.9.001.00 Account N 96965.9.001.00 Union De Banques Arabes Et Union of Arab and French Banks Francaises (U.V.A.F) 190 Avenue Charles De Gaulle 190 Avenue Charles De Gaulle 92523 Neuilly SEDEX, France 92523 Neuilly SEDEX, France Telex number: 610334 UBAFRA Telex Partner: 610334 UBAFRA c) If such payment is made in pounds sterling - If the following bank confirms to the Islamic Development Bank that it has received the amount of such payment to the account of the Islamic Development Bank.: Account N 708372 Account N 708372 Gulf International Bank Gulf International Bank 2-6 Canon Street Canon Street 2-6 London EC 4M 6HR London EU 4M 6HR Telex Nuber: 8813326, 8812889 Telex numbers: 8813326, 8812889

Article IV Withdrawal and Use of Loan Funds Section 4.01 Withdrawal of funds The Loan amount may be withdrawn by the Borrower in accordance with Annex III and other provisions of this Agreement, the General Terms and Procedures Payments by the Bank for the purposes set out in this Agreement for expenses that occur in relation to the corresponding cost of goods and services required and financed in accordance with this Agreement. By agreement. Section 4.02 Date of the first payment request If within 180 days from the Effective Date or such

If the Borrower has not submitted a request to the Bank to make the first payment at a later date agreed between the Borrower and the Bank, the Bank may terminate this Agreement upon the first proper notification by the Bank to the Borrower. Section 4.03 Final date December 31, 2002 or such later date as agreed between the Borrower and the Bank is the final date of withdrawal of the Loan for the purposes of Section 6.03 (c) of the General Terms and Conditions. Section 4.04 Use of loan funds All amounts withdrawn by the Borrower from the Loan Account are used exclusively for the purposes of the Bank-funded Project.

Article V Project execution Section 5.01 The borrower undertakes: (a) To carry out the Project and conduct their work and business through An implementing organization in compliance with the relevant requirements and achieving the intended results in accordance with sound administrative, financial, engineering and economic practices under the supervision of qualified and experienced managers and specialists and in accordance with the investment schedule, cost estimates, plans and specifications related to the Project submitted to the Bank and approved by it; (b) Submit to the Bank for its approval, in such details as the Bank may reasonably request, any planned significant changes to the cost estimates, plans and specifications of the project, as well as any significant changes to any contract about services or purchases of goods related to the implementation of the project. Section 5.02 Without any limitation or derogation of any of its other obligations under this Agreement, the Borrower shall provide the Bank with the time necessary to comment on any significant changes or any extension of the stipulated period in any contract for services or procurement of goods related to the implementation of the project.

Article VI Additional Prerequisites for payment of funds by the Bank Section 6.01 The Borrower, prior to submitting the first application for withdrawal of Loan funds, specifies the procedure that he proposes to comply with or ensure compliance with in connection with competitive bidding in accordance with Section 2.02 of this Agreement and receives its approval from the Bank. Article VII Special Conditions Section 7.01 The Borrower shall immediately provide, as required, all amounts, including amounts in local currency and amounts in excess of the cost, that are required to complete the Project on terms and conditions acceptable to the Bank. Section 7.02 Except in cases where the Bank has decided otherwise, the Borrower enters into all contracts financed from the funds of this Loan in order to fulfill Through international competitive bidding, in which only the Bank's member countries participate. The Borrower applies to the Bank for its prior approval regarding the conclusion of any contract, the value of which exceeds the amount, in terms of Islamic dinars, amounting to one hundred and fifty thousand (150,000). Section 7.03 The Borrower submits to the Bank, immediately upon their approval by the Borrower, the study materials and plans and technical conditions of the Project, its schedule and any significant changes made to them subsequently in such details as the Bank periodically requests. Section 7.04 The Borrower establishes and maintains accounting documents that meet the established requirements to identify the goods financed from the Loan funds in order to disclose their use in the Project, record the progress of the Project and reflect, in accordance with regularly applied sound reporting practices, the activities and financial situation of the Implementing Organization. Section 7.05 The Borrower provides all appropriate opportunities for authorized representatives of the Bank to travel for purposes related to the Loan and to verify the Project, goods and related records and documents; and provides the Bank with all such information that the Bank reasonably requests related to the expenditure of the Loan funds, the Project, goods and activities and the financial situation of the Executing Organization. Section 7.06 The Borrower undertakes, for the purposes of executing and working on the Project, to take appropriate measures to ensure that the Executing Organization continuously operates in accordance with the rules and regulations, in a form and content acceptable to the Bank, and has such authority, management, and conduct business in a manner necessary for proper and successful execution The project. Section 7.07 The Borrower insures or secures insurance from recognized insurers for all goods financed from the Loan funds. Such insurance covers maritime, transit and other risks associated with the purchase and import of goods into the Borrower's territory and their delivery to the Project site, and its amount is such that it is consistent with reasonable commercial practices. Such insurance will be provided in accordance with the Legislation of the Insurer, based on the fact that the goods will be reinsured in a Company that will pay the insurance funds in foreign currency. Section 7.08 The Borrower shall take all such measures as are deemed necessary to provide, in this manner and when necessary, any such land plot and rights in respect of the land plot that are required for the implementation of the Project and shall provide the Bank, upon request, with confirmation acceptable to the Bank that such land plot and rights in respect of regarding the land available for the purposes related to the Project. Section 7.09 The Borrower shall take all measures that are necessary on his part in order to enable the Executing Organization to perform The Project and does not accept or allow any measures to be taken that would hinder or hinder the implementation or work on the Project or the implementation of any of the provisions of this Agreement. Section 7.10 All documents, records, messages and similar materials are considered confidential by the Bank and the Borrower.

Article VIII Reports Section 8.01 (a) The Borrower and the Bank cooperate fully to ensure that the loan objectives are met. To this end, each of them provides the other with all such information that he reasonably requests regarding the general condition of the Loan. On the part of the Borrower, such information includes information regarding the financial and economic situation in the Borrower's territory and th Article VIII Reports Section 8.01 (a) The Borrower and the Bank cooperate fully to ensure that the loan objectives are met. To this end, each of them provides the other with all such information that he reasonably requests regarding the general condition of the Loan. On the part of the Borrower, such information includes information regarding the financial and economic situation in the Borrower's territory and the state of its balance of payments. (b) The Borrower and the Bank, at the request of either of them, periodically exchange views through their representatives on issues related to the purposes of the Loan, its servicing and the fulfillment by the Borrower of its obligations under this Agreement. Section 8.02 (a) The Borrower undertakes to submit or ensure that the following reports are submitSection 8.02 (a) The Borrower undertakes to submit or ensure that the following reports are submitted to the Bank within the time limits specified for each of them, in a form acceptable to the Bank: i - Within 45 (forty-five) days after the end of each calendar quarter or within such other period as the parties may agree, reports on the implementation of The Project in a manner that the Bank may periodically determine; ii - Such other reports as the Bank may reasonably request relating to the investment of the Loan amounts that are being paid and the progress of the Project; iii - Immediately after the completion of the Project, but in any case not later than within six months after the Closing Date or such later date as may be agreed for this purpose. Between the Borrower and the Bank, the Borrower prepares and submits to the Bank a report to the extent and in such detail as the Bank reasonably requests, on the completion and initial work on the Project. (b) The documents described in this Section are certified, at the Bank's discretion, in a manner that the Bank may reasonably require.

Article IX Entry into force This Agreement will enter into force only after: (A) (1) confirmation acceptable to the Bank has been provided., that the drafting and transmission of this Agreement on behalf of the Borrower has been duly approved or ratified by the Parliament of Kazakhstan; (2) The Borrower will submit a Legal Opinion acceptable to the Bank, given by the Ministry of Justice of Kazakhstan, stating that The Loan Agreement has been approved and duly signed on behalf of the Borrower. The Legal Opinion states that the Agreement is a binding obligation of the Borrower in accordance with its terms. (B) A Letter of Authorization will be issued by the Ministry of Finance or any other duly authorized body of the Government to the Central Bank or the institution that performs the functions of the Central Bank, instructing the aforementioned Bank that payments from the Government in accordance with this Agreement and the payment of contributions in respect of loan fees and services are made by the Central Bank or an institution that performs the functions of the Central Bank upon the due date of their payment. A copy of this Authorization Letter, together with confirmation from the Central Bank or the institution that performs the functions of the Central Bank, indicating that it has received the aforementioned Authorization Letter and that it will comply with the instructions contained in the Authorization Letter, is transmitted by the Government to the Bank. Article X Termination of the Agreement due to its

Non-entry into force If the Agreement has not entered into force within 12 (twelve) months from the date of signing the Agreement, all obligations of the parties under it shall terminate unless the Bank, after considering all the reasons for the delay, sets a later date for the purposes of this Article. The Bank will immediately notify the Borrower of such a later date. Article X Other provisions Section 11.01 Authorized Representatives The Minister of Transport, Communications and Tourism of the Borrower and such person or persons as he appoints in writing are designated as authorized representatives of the Borrower for the purposes of Section 10.03 of the General Terms and Conditions. Section 11.02 Date of Agreement For all purposes of this Agreement, its date is the date indicated in the Introductory Part to it. Section 11.03 Addresses Borrower's Address: Ministry of Finance Ministry of Finance Astana Astana Kazakhstan Kazakhstan Fax: 264126 (FILIN) Telex: 264126 (FILIN) Fax: 007-3272-280321 Fax: 007-3272-280321 Address of the Islamic Development Bank: R.O. Vox: 5925 Postal Subscription Box: 5925 Jeddah 21432 Jeddah 21432 Kingdom of Saudi Arabia Kingdom of Saudi Arabia Telex: 601137 ISDB SJ Telex: 601137 ISDB SJ Sable: BANK1SLAMI JEDDAH Telegraphic Address: BANK1SLAMI JEDDAH Telex: 6366871 JEDDAH Fax: 6366871 JEDDAH In certifying which, the Bank and the Borrower, each acting through their authorized representatives, signed this Agreement in English on the date and year indicated above. Appendix I (A) Repayment of the principal amount Country: Republic of Kazakhstan Project: Almaty-Gulshad Highway project Loan Amount: 7,000,000/-Islamic dinars Loan Period: 25 years Grace Period: 7 years Service Fee: 365,165/- Islamic dinars __________________________________________________________________________ Ordinal | Term | The Principal Amount (in Islamic Terms | | dinar) ___________|______________________________|_______________________________ 1 31 December 2006 194,444 2 June 30, 2007 194,444 3 December 31, 2007 194,444 4 June 30, 2008 194,444 5 31 December 2008 194,444 6 June 30, 2009 194,444 7 December 31, 2009 194,444 8 June 30, 2010 194,444 9 December 31, 2010 194,444 10 June 30, 2011 194,444 11 December 31, 2011 194,444 12 June 30, 2012 194,444 13 December 31, 2012 194,444 14 30 June 2013 194,444 15 31 December 2013 194,444 16 30 June 2014 194,444 17 31 December 2014 194,444 18 30 June 2015 194,444 19 31 December 2015 194,444 20 30 June 2016 194,444 21 31 December 2016 194,444 22 30 June 2017 194,444 23 31 December 2017 194,444 24 30 June 2018 194,444 25 31 December 2018 194,444 26 30 June 2019 194,444 27 31 December 2019 194,444 28 30 June 2020 194,444 29 31 December 2020 194,444 30 30 June 2021 194,444 31 31 December 2021 194,444 32 June 30 , 2022 194,444 33 December 31, 2022 194,444 34 June 30, 2023 194,444 35 December 31, 2023 194,444 36 June 30 , 2024 194,460 _______________________________________________________________________ Total: 7,000,000 Appendix I (B) Service fee Country: Republic of Kazakhstan Project: Almaty-Gulshad Highway project Loan Amount: 7,000,000/-Islamic dinars Loan Period: 25 years Grace Period: 7 years Service Fee: 365,165/- Islamic dinars __________________________________________________________________________ Ordinal | Term | The Principal Amount (in Islamic Terms | | dinar) ___________|______________________________|_______________________________ 1 31 December 1999 14,607 2 June 30, 2000 29,213 3 December 31, 2000 29,213 4 June 30, 2001 29,213 5 31 December 2001 29,213 6 June 30, 2002 29,214 7 December 31, 2002 20,449 8 June 30, 2003 20,449 9 December 31, 2003 20,449 10 June 30, 2004 20,449 11 December 31, 2004 20,449 12 June 30, 2005 20,449 13 December 31, 2005 20,449 14 June 30, 2006 20,449 15 December 31, 2006 20,449 16 June 30, 2007 20,451 ________________________________________________________________________ Total: 365,165

Annex II

Project Description Project objective The main objective of the project is the reconstruction of 88 km of the Almaty-Gulshad Highway (from 509 to 597 km), which are part of the Almaty-Gulshad Highway (597 km). The reconstruction of the Highway will increase the efficiency of transportation along it, reduce the cost of operating vehicles and the number of road vehicles and will contribute to the development of the Republic, in particular, the new capital, Astana, as this segment is an important link. Highways Almaty-Astana. Project Components and Cost (a) Project Components include Detailed Development and Preparation of Tender Documents, Engineering and Construction Work, Supervision, and a Management Team. Project execution. (b) The estimated cost of the project is USD 12.32 million,

Of which, US$ 10.06 million represents expenses in foreign currency (82%) and the remainder, amounting to US$ 2.26 million, represents expenses in local currency (18%). The project is jointly financed by the Borrower ($2.75 million) and the Islamic Development Bank (ISDB) - 7.0 million Islamic dinars (approximately $9.57). The project is expected to be completed by March 20, 2000. Annex III Withdrawal of loan funds Financing plan and Contribution of the Republic of Kazakhstan Amounts in millions. US dollars ________________________________________________________________________ Source | Islamic | Republic | Total | Financing | Development Bank | Kazakhstan | | in % ____________________|______________|____________|_______|_______________ Detailed Development| - | 0.15 | 0.15 | 1.2 ____________________|______________|____________|_______|_______________ Engineering- | 8.60 | 1.8 | 10.40 | 84.5 Construction Works | | | | ____________________|______________|____________|_______|_______________ Supervision | - | 0.55 | 0.55 | 4.4 ____________________|______________|____________|_______|_______________ Implementation Group| 0.10 | - | 0.10 | 0.8 The project | | | | ____________________|______________|____________|_______|_______________ Unforeseen | 0.87 | 0.25 | 1.12 | 9.1 Expenses | | | | ____________________|______________|____________|_______|_______________ Total | 9.57 | 2.75 | 12.32 | 100.0 ____________________|______________|____________|_______|_______________ Financing in % | 78 | 22 | - | 100 ____________________|______________|____________|_______|_______________ * * *

President

Republic of Kazakhstan

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