On the ratification of the Loan Agreement (KAZSTAT: Project to strengthen the national statistical system) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development

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On the ratification of the Loan Agreement (KAZSTAT: Project to strengthen the national statistical system) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development

Law of the Republic of Kazakhstan dated December 27, 2011 No. 520-IV

To ratify Loan Agreement (KAZSTAT: Project to strengthen the National statistical system) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development, signed on August 26, 2011 in Astana.

President of the Republic of Kazakhstan N. NAZARBAYEV

Loan Agreement (KAZSTAT: Project to strengthen the national statistical system) between the REPUBLIC OF KAZAKHSTAN and the INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

Date August 26, 2011

LOAN AGREEMENT

Agreement dated August 26, 2011 between the REPUBLIC OF KAZAKHSTAN (the Borrower) and the INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (The Bank). The Borrower and the Bank hereby agree on the following:

ARTICLE I - GENERAL CONDITIONS; DEFINITIONS

1.01. The General Terms and Conditions (defined in the Addendum to this Agreement) are an integral part of this Agreement. 1.02. Unless the context otherwise requires, the terms beginning with capital letters used in the Agreement have the meanings assigned to them in the General Terms and Conditions or in the Addendum to this Agreement.

ARTICLE II - LOAN

2.01. The Bank provides the Borrower with an amount of twenty million US Dollars ($20,000,000) (Loan) for the term and conditions set forth or specified in this Agreement to support the financing of the Project described in Appendix 1 to this Agreement (Draft). 2.02. The Borrower has the right to withdraw the Loan funds in accordance with Section IV of Appendix 2 to this Agreement. 2.03. The Borrower pays the Bank a commission for reserving Loan funds equal to a quarter of one percent (0.25%) of the Loan amount. 2.04. The Borrower pays remuneration during each Interest Period at a rate equal to the reference rate for the Loan Currency plus a Floating Spread; provided that upon Conversion of all or any part of the principal amount of the Loan, the remuneration to be paid by the Borrower during the Conversion Period for such amount must be determined in accordance with the terms Article IV of the General Terms and Conditions. Notwithstanding the above, in the event that any part of the Loan withdrawal remains unpaid on time and is not paid within thirty days, the amount of remuneration payable by the Borrower must be calculated in accordance with the provisions of Section 3.02 (e) of the General Regulations. 2.05. Payment Dates: April 15th and October 15th every year. 2.06. The Borrower repays the principal amount of the Loan in accordance with the repayment schedule in Appendix 3 to this Agreement. 2.07. (a) The Borrower may at any time request any of the following Loan Terms Conversions in order to ensure sound debt management: (i) changing the Loan Currency of all or any part of the Loan Principal amount, both withdrawn and not withdrawn, to an Approved Currency; (ii) changing the interest rate basis applied to all or any part of the withdrawn and outstanding principal amount of the Loan from a Floating Interest Rate to a Fixed Interest Rate and vice versa, or a Floating Interest Rate based on a floating spread to a Floating Interest Rate based on a fixed spread, and (iii) determining the limits of the Floating Interest Rate applicable to all or any part of the withdrawn and outstanding principal amount of the Loan by setting an Upper Limit on the Interest Rate or Upper and Lower Limits on the Floating Rate Interest Rate. (b) Any modification requested pursuant to subparagraph (a) of this paragraph, which is accepted by the Bank, will be considered a "Conversion" as defined in the General Terms and Conditions and will take effect in accordance with the provisions of Articles IV of the General Terms and Conditions and Conversion Guidelines.

ARTICLE III - THE DRAFT

3.01. The Borrower declares its commitment to the objectives of the Project and for this purpose implements the Project through the Agency of the Republic of Kazakhstan for Statistics in accordance with the provisions of Article V of the General Terms and Conditions. 3.02. Without prejudice to the provisions of paragraph 3.01 of this Agreement and, unless otherwise agreed between the Borrower and the Bank, the Borrower shall ensure the implementation of the Project in accordance with Annex 2 to this Agreement.

ARTICLE IV - ENTRY INTO FORCE OF THE LOAN; TERMINATION

4.01. Additional conditions for entry into force are as follows: (a) The hydraulic fracturing was created by the Borrower through the ARCS, the composition, resources and technical specifications of which are acceptable to the Bank. (b) The KRG is established by the Borrower, the composition, resources and technical specifications of which are acceptable to the Bank. (c) The Borrower has adopted Project Implementation Guidelines that are satisfactory to the Bank. 4.02. The deadline for entry into force is the date following the expiration of 180 (one hundred and eighty) days after the date of this Agreement.

ARTICLE V - REPRESENTATIVE OF THE BORROWER; ADDRESSES

5.01. The borrower's representative is the Minister of Finance. 5.02. Borrower's address:

Ministry of Finance 11 Pobedy Avenue Astana, 010000 Republic of Kazakhstan

Telex: Fax: 265126 (FILIN) 7-7172-717785

5.03. Bank Address:

International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America

The Telegraph: Telex: Fax: INTBAFRAD 248423(MCI) or 1-202-477-6391 Washington, D.C. 64145(MCI)

AGREED _____________, __________, on the day and year specified above.

FOR THE REPUBLIC OF KAZAKHSTAN Authorized Representative FOR THE INTERNATIONAL BANK RECONSTRUCTION AND DEVELOPMENT Authorized Representative

APPENDIX 1

Project Description

The aim of the Project is to improve the efficiency and effectiveness of the national statistical system in order to provide necessary, timely and reliable data in accordance with international methodologies and best practices.

The project consists of the following components:

Component 1: Improving the institutional environment and operational support of the statistical system

Provision of goods, consulting services, and training programs for the following purposes: (a) improvement of the legislative framework coordinating interaction between government agencies involved in the production of statistical data; (b) rationalization of the ARCS institutional structure; (c) improvement of strategic planning procedures and methodology; (d) development and implementation of a staff workload management system; (e) implementation of a quality management program; (f) improvement of furniture and equipment.

Component 2: Improving information and communication systems and physical infrastructure

Provision of goods, consulting services, and training programs for the following purposes: (a) improvement of the integrated data processing system; (b) professional development of the ICT department staff; (c) updating the ARCS computer hardware and software in order to speed up the data processing process; and (d) improving the existing ARCS corporate communications network.

Component 3: Human resources development

Provision of goods, consulting services, and training programs for the following purposes: (a) introduction of new management methods, career development, and appointment practices at ARCS; (b) Development and implementation of a learning strategy in ARCS; (c) the development and implementation of the ARCS training program for its staff abroad; and (d) the review of existing recruitment procedures and policies at ARCS.

Component 4: Improvement of statistical infrastructure, standards and methodologies

Provision of goods, consulting services, and training programs for the following purposes: (a) updating the Business Register; (b) improving the population register; (c) improving the housing register; (d) improving the agricultural register; (e) improvement of classifiers and standards; (f) development of statistical tools; (g) improvement of sampling methods for surveys; (h) formation of time series and implementation of seasonal smoothing methods; and (i) strengthening of the analytical function of the ARCS.

Component 5: Improving user and respondent engagement

Provision of goods, consulting services, and training programs for the following purposes: (a) improvement of user relations policy; (b) improvement of dissemination and marketing of statistical information; (c) improving the policy on working with respondents; and (d) improving the ARCS web portal.

Component 6: Improving methodology and practice in specific areas of statistics

Provision of goods, consulting services, and training programs for the following purposes: (a) improvement of macroeconomic statistics; (b) improvement of microeconomic statistics, including industry, energy, construction, investment, foreign and domestic trade, and service statistics; (c) improvement of agricultural statistics; (d) Improvement of social statistics; (e) improvement of labor statistics; and (f) development of environmental statistics.

Component 7: Project Management

Provision of goods, consulting services, training programs, and operating expenses to ARCS for Project management, implementation, monitoring, and evaluation.

APPENDIX 2

Project Implementation

Section I. Implementation mechanisms

A. Organizational arrangements

The Borrower implements the Project in accordance with the following organizational and other measures: 1. The KRG will have overall responsibility for Project oversight, interagency coordination, and strategic management in accordance with the requirements, criteria, organizational arrangements, and operational procedures specified in the Project Implementation Guidelines. 2. The Borrower, through the ARCS and with the support of the PKK, implements the Project in accordance with the requirements, criteria, organizational mechanisms and operational procedures specified in the Project Implementation Manual, and must not transfer, amend, cancel or abandon any provisions of the Project Implementation Manual without prior approval by the Bank. The KP coordinates the Project's activities on a daily basis, including responsibility for reporting, procurement, and financial management within the Project. 3. For the entire period of the Project implementation, the Borrower provides the ARCS, hydraulic fracturing and CRG with a composition, resources and technical specifications satisfactory to the Bank. 4. The Borrower, no later than December 20 of each Project implementation year and starting from December 20, 2011, submits to the Bank an Annual Project Implementation Plan for the next year, defining project activities by components and sub-components, as well as related costs and financial resources, and coordinates with the Bank the planned project activities for the next year and the appropriate budget. 5. The Borrower selects and hires an independent auditor no later than December 31, 2011, based on the Terms of Reference acceptable to the Bank.

B. Anti-corruption measures

The Borrower will ensure the implementation of the Project in accordance with the provisions of the Bank's Anti-Corruption Guidelines.

Section II. Monitoring reporting and Project evaluation

A. Project Reports

1. The Borrower monitors and evaluates the progress of the Project, and prepares Project Reports in accordance with the provisions of Section 5.08 of the General Terms and Conditions and based on indicators agreed with the Bank. Each Project Report must cover a period of one calendar half-year and be submitted to the Bank no later than forty-five (45) days after the end of the period covered by this report. 2. In accordance with Section 5.08 (c) of the General Terms and Conditions, the Project implementation report and the corresponding plan provided for in this section will be sent to the Bank no later than 6 (six) months after the Closing Date of the Project. 3. No later than 30 months from the Effective Date, the Borrower, together with the Bank, will conduct a mid-term review, which, among other things, will assess the overall success of the Project. 4. The Borrower will submit to the Bank, no later than 6 (six) weeks before the Mid-Term Review, a separate report describing the progress of each component of the Project and a summary report on the overall implementation of the Project.

B. Financial management, financial reporting and audit

1. The Borrower is required to maintain or monitor the financial management system in accordance with the provisions of Section 5.09 of the General Terms and Conditions. 2. Without prejudice to the provisions of Part A of this Section, the Borrower prepares and submits to the Bank, no later than 45 (forty-five) days after the end of each calendar quarter, interim unaudited financial reports on the Project for the quarter, in form and content satisfactory to the Bank. 3. The Borrower shall audit its Financial Statements in accordance with the provisions of Section 5.09 (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 are submitted to the Bank no later than 6 (six) months after the end of each such period. 4. Prior to the start of the Project, the Borrower selects and hires a financial management consultant with qualifications and terms of reference acceptable to the Bank to assist the Chief Accountant and be responsible for the financial management of the Project.

Section III. Purchases

A. General provisions

1. Products. All goods required for the Project and financed from the Loan funds are purchased in accordance with the requirements contained or referenced in Section I of the Procurement Manual, as well as in accordance with the provisions of this Annex. 2. Consulting services. All consultant services required for the Project and financed from the Loan funds are purchased in accordance with the requirements contained or referenced in Sections I and IV of the Guidelines for the Selection and Hiring of Consultants by Borrowers of the World Bank" (Consultant Guidelines), as well as in accordance with the provisions of this Section. 3. Definitions. The terms beginning with capital letters used below in this Section to describe certain procurement methods or the Bank's review methods for certain contracts correspond to the definitions prescribed by it in the Procurement Manual or the Consultant Manual, as appropriate.

B. Specific methods of purchasing goods

1. International competitive bidding. Unless otherwise provided in paragraph 2 below, the purchase of goods is carried out under contracts concluded in accordance with the procedures of International Competitive Bidding. 2. Other methods of purchasing goods. The table below shows the procurement methods, except for International Competitive Bidding, that can be used in relation to goods. The procurement plan must contain the circumstances in which a particular method is used.

Purchasing method

(a) National competitive bidding, subject to the provisions of the Annex to this Annex 2

(b) Free trade purchases (Shopping)

C. Specific methods of purchasing consultants' services

1. Selection based on quality and cost. Unless otherwise provided in paragraph 2 below, the procurement of consulting services is carried out within the framework of contracts awarded in accordance with the selection procedure based on quality and cost. 2. Other methods of purchasing consultants' services. The table below shows the procurement methods, other than Selection based on quality and cost, that can be used to purchase consultant services. The procurement plan should contain the circumstances in which a particular method was used.

Purchasing method

(a) Quality-based selection

(b) Lowest cost selection

(d) Selection based on the qualifications of consultants

(e) Single-source procurement

(f) The procedures set out in paragraphs 5.2, 5.3 and 5.4 of the Consultant Guidelines for the selection of individual consultants

D. The Bank's review of procurement decisions

The Procurement Plan specifies a list of contracts that are subject to Preliminary review by the Bank. All other contracts are subject to Subsequent review by the Bank.

Section IV. Withdrawal of Loan funds from the account

A. General provisions

1. The Borrower may withdraw the Loan funds in accordance with the provisions of Article II of the General Terms and Conditions, this Section and those additional instructions specified by the Bank in the notification to the Borrower (including the "World Bank Guidelines for the Disbursement of Project Funds" dated May 2006, periodically reviewed by the Bank and applicable to this Agreement in accordance with such instructions), to finance Eligible Expenses, as set out in the table in paragraph 2 below. 2. The table below identifies the categories of Eligible Expenses that can be financed from the Loan (the "Category"), the allocated Loan amounts for each Category, and the percentage of expenses to be financed as Eligible Expenses for each Category.

Category

Allocated Loan amount (in dollar terms)

Share of expenses to be financed (including taxes)

(1) Goods, consulting services, operating expenses and training for the Project

20,000,000

100 %

Total amount

$20,000,000

Explanation of the table:

B. Withdrawal conditions; withdrawal period

1. Regardless of the provisions of Part A of this Section, funds should not be withdrawn: (a) from the Loan account until the full amount of the Loan reservation fee is paid to the Bank; or (b) for payments made prior to the date of this Agreement. 2. The closing date is April 30, 2017.

Addendum to Appendix 2

The Borrower's national competitive bidding procedures can be used to purchase goods under the Project, provided the following conditions are met: 1. The admission of bidders is determined in accordance with Section I of the Procurement Guidelines for IBRD Loans and IDA Loans. Therefore, no participant can be denied participation in the competition for contracts financed by the Association on the basis of conditions that are not specified in Section I of the IBRD Loan and MAR.2 Loan Procurement Guidelines. Procurement organizations should use standard tender documentation acceptable to the Bank. 3. The extension of the Tender Application, in exceptional circumstances, is requested in writing from all bidders before the date of completion of their validity period, and for the minimum period necessary to complete the evaluation of proposals and award the contract. 4. State-based preferences are not applied. 5. Organizations with state-dominated participation do not participate in tenders conducted by the Government, unless it is proved that they are financially and legally independent and operate within the framework of commercial law. 6. The following qualification criteria apply only to the effectiveness of past contracts and the financial and technical potential of the bidders. 7. The partners of joint ventures are jointly and individually responsible. 8. Bids are opened publicly immediately after the deadline for accepting bids. No application may be rejected at the opening stage, except for those received after the deadline for submitting applications. 9. A tender application may not be rejected solely on the basis of exceeding the estimated cost. 10. When evaluating applications, the qualification criteria are used according to the "passed/failed" principle. 11. Contracts are awarded to qualified bidders who offer the lowest estimated value, and there are no price negotiations.

APPENDIX 3

Repayment schedule

1. The following table shows the Repayment Dates of the principal debt and the percentage of the total principal amount of the Loan to be repaid on each Repayment Date of the Principal debt (the "Repayment Share"). If the Loan funds are fully withdrawn on the first Repayment Date of the Principal debt, the principal amount of the Loan that will be repaid by the Borrower on each such Repayment Date will be determined by the Bank by producing: (a) the amount of the Loan withdrawn on the first Repayment Date of the principal debt and (b) the Repayment Share for each The repayment date of the principal debt. This amount to be paid will be adjusted as necessary in order to deduct the amounts provided for in paragraph 4 of this Annex and to which Currency Conversion applies.

The date of payment of the principal debt

Repayment rate (in percentage terms)

April 15 and October 15 of each year, starting from April 15, 2016 to October 15, 2025.

5.0 %

2. If the Loan funds are not fully withdrawn on the first Repayment Date of the principal debt, the principal amount of the Loan that will be repaid by the Borrower on each such Repayment Date will be determined as follows: (a) To the extent that any Loan funds were withdrawn on the first Repayment Date of the Principal debt, the Borrower must repay the Loan Amount withdrawn on that date in accordance with paragraph 1 of this Annex. (b) Any amounts withdrawn after the first Repayment Date of the principal debt must be repaid on each Repayment Date of the principal debt after the date of such withdrawal in the amounts determined by the Bank by multiplying the amount of each such withdrawal by a fraction, the numerator of which is the initial amount of the Repayment Share indicated in the table in paragraph 1 of this Annex for that Repayment Date. The Initial Amount of the Repayment Portion of the Payment ("The Initial Amount of the Repayment Portion"), and the denominator of which is the sum of all remaining Initial Amounts of the Repayment Portion of Payments on or after the Repayment Date of the Principal debt. This amount to be paid will be adjusted as necessary in order to deduct the amounts provided for in paragraph 4 of this Annex and to which Currency Conversion applies. 3. (a) Loan amounts withdrawn within two calendar months prior to any Repayment Date of the Principal solely for the purpose of calculating the amounts of the principal debt payable on any Repayment Date of the principal debt will be considered withdrawn and outstanding on the second Repayment Date of the principal debt after the withdrawal date and will be repaid on each Repayment Date of the Principal debt; starting from the second Repayment Date of the principal debt after the withdrawal date. (b) Notwithstanding the provisions of subparagraph (a) of this paragraph, if at any time the Bank adopts a payment billing system in which invoices are issued on or after the relevant Principal Repayment Date, the provisions of this subparagraph will not apply to such withdrawals made after the adoption of such billing system. 4. Notwithstanding the provisions of paragraphs 1 and 2 of this Annex, when Converting the currency of all or any part of the Loan into an Approved Currency, the amount thus converted into the Approved Currency, which is due on any Repayment Date of the Principal debt occurring during the Conversion Period, must be determined by the Bank by multiplying such amount in the currency of its denomination directly before conversion to: (i) an exchange rate that reflects the amounts of the principal debt in an Approved Currency payable by the Bank under Currency Hedging Transactions related to the Conversion; or (ii) the currency component of the Interest Rate, if the Bank decides to do so in accordance with the Conversion Guidelines. 5. If the Loan is denominated in more than one Loan Currency, the provisions of this schedule apply separately to the amounts in each of the Loan currencies, as well as to calculate separate repayment schedules for each of the amounts.

addition

Section I. Definitions

1. "Anti-Corruption Guidelines" means "Guidelines for the Prevention and Combating of Fraud and Corruption in Projects Financed from IBRD Loans and IDA Loans and Grants" dated October 15, 2006 and updated in May 2010 and January 2011. 2. "ARKS" means the Agency of the Republic of Kazakhstan for Statistics, approved by Resolution of the Government of the Republic of Kazakhstan No. 1460 dated December 31, 2004, or any of its successors or successors, and which, together with the Hydraulic Fracturing Company, is responsible for the implementation of the Project. 3. "Consultant Guide" means the "Guidance on the Selection and Recruitment of Consultants by World Bank Borrowers", published by the Bank in May 2004 and revised in October 2006 and May 2010. 4. "Coordination Working Group" or "KRG" is an interdepartmental coordination working group established in accordance with subparagraph (b) of paragraph 4.01 of Article IV of this Agreement for the purpose of supervision and monitoring of the Project implementation. 5. "General Conditions" - "General conditions for loans of the International Bank for Reconstruction and Development" dated July 31, 2010. 6. "Project Implementation Team" or "PIU" means the Project implementation team established by the Agency for Statistics of the Republic of Kazakhstan in accordance with subparagraph (a) of paragraph 4.01 of Article IV of this Agreement for Project implementation and daily Project management, and which, among other things, consists of (i) a Project coordinator; (ii) a specialist 7. "Procurement Manual" means the "Procurement Manual for IBRD Loans and IDA Loans", published by the Bank in May 2004 and revised in October 2006 and May 2010. 8. "Procurement Plan" means the Borrower's procurement plan for the Project dated February 16, 2011, referred to in paragraph 1.16 of the Procurement Manual and paragraph 1.24 of the Consultant Manual, which may be adjusted periodically in accordance with the provisions of these paragraphs. 9. "Project Implementation Manual" means the manual adopted by the Borrower in accordance with subparagraph (c) of paragraph 4.01 of Article IV of this Agreement, defining the operational and administrative responsibilities, procedures and rules for the implementation of the Project, including the financial management procedures manual, which sets out the procedures for accounting, reporting and auditing, expenses, movement of funds and management of special the Project Account, which may be amended from time to time in consultation with the Bank.

I hereby certify that this translation corresponds to the text of the Loan Agreement (KAZSTAT: The project on strengthening the national Statistical system) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development in English, signed in Astana on August 26, 2011.

Head of the Department of Personnel Coordination and Control of the Ministry of Finance of the Republic of Kazakhstan B. Akhmetzhanova

President

Republic of Kazakhstan

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