On the ratification of the Loan Agreement (Ordinary Operations) (Basic Education Project) between the Republic of Kazakhstan and the Asian Development Bank dated February 23, 1998

Home / RLA / On the ratification of the Loan Agreement (Ordinary Operations) (Basic Education Project) between the Republic of Kazakhstan and the Asian Development Bank dated February 23, 1998

To ratify the Loan Agreement (Ordinary Operations) (Basic Education Project) between the Republic of Kazakhstan and the Asian Development Bank dated February 23, 1998.

President of the Republic of Kazakhstan

Loan agreement

(Normal operations)

(Basic Education Project)

between

By the Republic of Kazakhstan and the Asian Development Bank

Loan Agreement dated 02/23/98 between the Republic of Kazakhstan (hereinafter referred to as the Borrower) and the Asian Development Bank (hereinafter referred to as the Bank). Taking into account the fact that (A) The Borrower has applied to the Bank for a Loan from its regular capital resources and for a Loan from the resources of a special fund for the purposes of The Project described in Appendix 1 to this Loan Agreement (Special Operations) (as defined below); (C) By agreement of the specified date between the Borrower and the Bank (hereinafter referred to as the "Loan Agreement (Special Operations)"), the Bank agreed to provide the Borrower with a loan in various currencies from its special fund resources in the amount of seven million two hundred forty-one thousand SDR (7,241,000) for the project (hereinafter referred to as the "Loan for Special Operations"). operations"); (C) The Borrower's Government has also applied to the Bank for technical assistance to strengthen the administration of education and management at the central and local government levels, and for this purpose the Bank has agreed to provide a grant equivalent to six hundred thousand dollars ($600,000) (Technical Assistance); and (D) the Bank has agreed to provide the Borrower with a loan from its ordinary capital resources under the conditions further established; The parties have hereby reached the following agreement:

Article I Loan provisions; Definitions

Section 1.01. All the provisions included in the Bank's Regulations on Ordinary Loan Transactions dated July 1, 1986, hereby apply to this Loan Agreement to the same extent as if they were fully set out in this document, subject, however, to the following amendment (the said Provisions on Ordinary Loan Transactions, thus modified, hereinafter referred to as the Loan Provisions): (a) Section 2.01(17) is omitted and amended as follows: "the term "dollar" or "dollars" or the "$" sign means the dollar or dollars of the United States of America"; (b) Sections 2.01(26) and 2.01(27) are omitted, and the new section 2.01(26) includes the following: "Dollar pool" means a pool of unpaid loans in dollars provided by the Bank for the purpose of financing payments or loans in dollars provided by the Bank from its normal capital resources"; (c) The last sentence of the first paragraph of section 3.02 is omitted; (d) Section 3.02(b)(ii) is deleted and amended as follows: "(ii) "qualified loans" in connection with the loan means unpaid loans from the Bank in the dollar pool used progressively after June 30, 1992"; (e) The last sentence of Section 3.06(a) and the words "on a date acceptable to the Bank" in Section 3.06 (b) is omitted; (f) Section 4.02 is omitted and replaced by the following: "Funds from the loan account must be withdrawn in dollars"; (g) Section 4.03(a) is deleted and replaced as follows: "The principal amount of the loan must be reimbursed in dollars"; (h) Section 4.04 is deleted and amended as follows: "Interest on any part of the loan must be reimbursed in dollars"; (i) The phrase "and the payment of any special obligation under Section 5.02" is omitted from Section 4.05.; (j) Section 4.09 is omitted and the new Section 4.09 includes the following: Regardless of any condition of these terms and conditions, except for those contrary to this agreement, funds must be withdrawn from the loan account in the event of a loan, in the exceptional case the Bank determines that it cannot pay the amount in dollars for the purpose of making such withdrawals, in a currency or currencies that the Bank considers acceptable. The specified principal amount of the loan must be reimbursed in such currency or currencies. The interest rate applied to the principal amount of the loan paid in such currency or currencies should be based on the Bank's expenses in such currency or currencies plus the difference between the interest rates at which the Bank receives funds and at which it issues them to Borrowers, set by the Bank from time to time within reasonable limits. Section 1.02. Several terms defined in the Loan Regulations, wherever used in these Loan Regulations and in Section 1.02 of the Loan Agreement (Special Operations), have their respective meanings set forth therein, unless the content requires otherwise.

Article II Loan Section 2.01. The Bank agrees to provide the Borrower with an amount of thirty-five million dollars ($35,000,000) from its usual capital resources. Section 2.02. The Borrower must pay the Bank a percentage, the amount of which is set in accordance with Section 3.02 of the Loan Regulations. Section 2.03. (a) The borrower must pay a commission at a rate of three quarters of a percent (0.75% per annum). Such commission must be accrued on loan amounts (less than the amounts withdrawn from the loan account from time to time) for consecutive periods that occur 60 days after the date of this Loan Agreement as follows: during the first twelve-month period - by $5,250,000, during the second twelve-month period - by $15,750,000., during the third twelve-month period - for $ 29,750,000 and further for the entire loan amount. (b) If any loan amount is cancelled, the amount of each part of the loan specified in paragraph (a) of this Section must be reduced in the same proportion as the entire loan amount before such cancellation. Section 2.04. Interest and other loan fees must be paid once every six months on April 1 and October 1 of each year. Section 2.05. The Borrower must repay the principal amount of the loan withdrawn from the loan account in accordance with the depreciation schedule set out in Appendix 1 to this Loan Agreement.

Article III Use of Loan funds Section 3.01. The Borrower uses the borrowed funds to finance Project costs in accordance with the provisions of this Loan Agreement.

Section 3.02. Goods and services and other expense items financed from the loan and the allocation of Loan amounts among various categories of such goods, services and other expense items comply with the provisions of Appendix 2 to this Loan Agreement, as such Appendix may be amended from time to time by agreement between the Borrower and the Bank.

Section 3.03. Except in cases where the Borrower and the Bank may agree otherwise, all goods and services financed from borrowed funds are purchased in accordance with the provisions of Appendices 4 and Appendix 5 to the Loan Agreement (Special Operations). The Bank may refuse to finance a contract for which goods or services have not been purchased in accordance with procedures agreed between the Borrower and the Bank, or where the terms of the contract do not satisfy the Bank.

Section 3.04. Except in cases where the Borrower and the Bank may agree otherwise, the Borrower shall take all measures to ensure that all goods and services financed from borrowed funds are used exclusively for the implementation of the Project.

Section 3.05. The final date for withdrawal from the loan account for the purposes of Section 8.03 of the Loan Regulations is June 30, 2003 or another date that may be agreed from time to time between the Borrower and the Bank.

Article IV Special conditions

Section 4.01. (a) The Borrower shall take all measures to carry out the Project with due diligence and efficiency, and in accordance with reasonable administrative, financial, technical practices, and taking into account environmental conditions and educational background. (b) In carrying out the Project and using the Project's capabilities, the Borrower will fulfill or contribute to the fulfillment of all obligations set out in Annex 6 to the Loan Agreement (Special Operations).

Section 4.02. The Borrower provides, as necessary, the funds, conditions, services and other resources that are necessary, in addition to the borrowed funds, for the implementation of the Project and for the purpose of operating and maintaining conditions conducive to the implementation of the Project.

Section 4.03. (a) The Borrower, during the execution of the project, ensures the hiring of competent and qualified consultants and contractors, in accordance with the terms and conditions of the Borrower and the Bank; (b) The Borrower ensures that the project is completed in accordance with plans, specifications, work schedules and design methods that satisfy the Borrower and the Bank. The Borrower must submit to the Bank or facilitate the provision of such plans, specifications and work schedules immediately after their preparation, as well as any significant amendments to these documents, in as much detail as requested by the Bank.

Section 4.04. The Borrower will ensure that the activities of its offices and agencies in relation to the implementation of the Project and the operation of the Project are carried out and coordinated in accordance with reasonable administrative policies and procedures.

Section 4.05. (a) The Borrower will prepare arrangements to the satisfaction of the Bank for insurance of equipment, materials and training materials financed from borrowed funds to the extent, against such risks and to the extent consistent with current practice. (b) Without limiting the general meaning of the above, the Borrower guarantees or takes measures to insure the goods imported for the Project and financed from borrowed funds against the risks associated with their acquisition, transportation and delivery to the place of use, or installation, and any amount in a currency freely available for such insurance is paid. used to replace or repair such goods.

Section 4.06. (a) The Borrower retains or takes measures to maintain records and accounts sufficient to identify goods and services and other expenditure items financed from borrowed funds and to disclose their use in the Project, to record the development of the Project (including its cost) and to reflect, in accordance with with the currently applied principles of accounting, operations and financial position of the Borrower's agencies responsible for the implementation of the Project and for the operation of the Project mechanisms, or any part of it. (b) The Borrower (i) maintains or takes measures to maintain separate accounts for the Project; (ii) has at its disposal such accounts and related financial statements, which are audited annually in accordance with appropriate standards by independent auditors whose qualifications, experience and contractual terms are acceptable to the Bank; (iii) to provide the Bank, to the extent possible, but in any case no later than 12 months after the end of each relevant fiscal year, certified copies of such audited accounts and financial statements and audit reports (including the auditors' conclusions on the use of borrowed funds and compliance with the terms of this Loan Agreement), all in English; and (IV) provides the Bank with such other information regarding such accounts, financial statements and audits as the Bank may request from time to time. (c) The Borrower shall authorize the Bank, upon request, from time to time to discuss with the auditors the Borrower's financial statements for the Project and its financial activities related to the Project, and shall authorize and require any representative of such auditors to participate in any such discussion requested by the Bank, provided that Any such discussion will be conducted only in the presence of an authorized official of the Borrower, unless the Borrower agrees otherwise.

Section 4.07. (a) The Borrower provides or takes measures to provide the Bank with all such reports and information that the Bank reasonably requests in relation to (i) the Loan and the expenditure of borrowed funds and maintenance funds; (ii) goods, services and other expenditure items financed from borrowed funds; (iii) The Project; (iv) the administration, operations, and financial position of the Borrower's agencies responsible for executing the Project or any part of it; (v) the financial and economic situation in the Borrower's territory, and the state of the Borrower's international balance of payments; and (vi) other issues related to the objectives and objectives The project. (b) Without limiting the general meaning of the above, the Borrower provides or takes measures to provide the Bank (quarterly) reports on the implementation of the Project and on the operation and management of the Project mechanisms. Such reports are presented in such a form, in such detail and within such time as the Bank reasonably requests, and, among other things, they indicate the success achieved and the problems encountered during the period under review, the measures taken and proposed to address these problems, the proposed action program and the expected progress during the reporting period. the next quarter. (c) Shortly after the physical completion of the Project, but in any case no later than (3) three months thereafter, or at such later date as may be agreed between the Borrower and the Bank, the Borrower shall prepare and submit to the Bank a report in such form and in such detail as the Bank may request with sufficient the basis, about the implementation and initial action of the Project, including its cost, execution The Borrower's obligations under the Loan Agreement and the implementation of the Objectives The project. Section 4.08. The Borrower provides an opportunity for the Bank's representatives to check the Project, the goods financed from borrowed funds, and any relevant reports and documents.

Section 4.09. The Borrower ensures that the Project mechanisms operate, are maintained and corrected in accordance with reasonable administrative, financial, technical practices, taking into account logistical support and the level of education.

Section 4.10. (a) It is the mutual intention of the Borrower and the Bank that no other external debt to a lender other than the Bank takes precedence over the Loan by holding the Borrower's assets for debt. To this end, the Borrower shall take measures to ensure that (i) except in cases where the Bank may agree otherwise, in the event of any retention of any assets of the Borrower for debts as a guarantee of any external debt, such retention would obviously adequately guarantee payment of the principal amount, service fees and other loan fees; and (ii) that the Borrower, when creating or facilitating the creation of any such right, would promptly ensure the effectiveness of such right. (b) The provisions of paragraph (a) of this Section do not apply to (i) any retention-of-title right at the time of purchase, solely as a guarantee of payment of the purchase price of such property; or (ii) any retention-of-title right arising from the normal course of banking transactions and guarantees of debt, the repayment date of which comes no more than one year after its maturity. (c) The term "assets of the Borrower", as used in paragraph (a) of this Section, includes the assets of any administrative unit or any organization of the Borrower, and the assets of any organization of any such administrative unit, including the NBK and other institution acting as the central bank for the Borrower.

Article V Suspension; Cancellation; Early termination

Section 5.01. The following is defined as an additional case of suspension of the Borrower's right to withdraw an amount from the loan account for the purposes of Section 8.02(1) of the Bank's Regulations on Special Loan Operations: The Borrower has indeed failed to fulfill any of its obligations under Loan agreement (Special Operations). Section 5.02. The following is defined as an additional case of early termination for the purposes of Section 8.07(d) of the Loan Regulations: the case defined in section 5.01. of this agreement must arise.

Article VI Entry into force

Section 6.01. The following condition is an additional condition for the entry into force of this loan Agreement for the purposes of Section 9.01(f) of the Loan Terms and Conditions: The Loan Agreement (Special Operations) must be duly executed and officially submitted on behalf of the Borrower, and all the conditions for its entry into force (other than the conditions that require entry into force by virtue of this Loan Agreement) must be fulfilled.

Section 6.02. A period of ninety (90) days after the date of this The Loan Agreement is defined for the entry into force of the Loan Agreement for the purposes of Section 9.04 of the Loan Regulations.

Article VII Other matters

Section 7.01. The Borrower's Minister of Finance is appointed as the Borrower's representative for the purposes of Section 11.02 of the Loan Regulations. Section 7.02. For the purposes of Section 11.01 of the Loan Regulations, the following addresses are indicated: For the Borrower 97 Ablay Khan Ave., Almaty, 480091 Republic of Kazakhstan Ministry of Finance Fax N: (7-3272) 636984/622770 For The Bank Asian Development Bank N/a 789 0980 Manila, Philippines Fax number: (632) 636-2444 (632) 636-2402. In witness whereof, the parties, acting through their representatives duly authorized, have ensured the signing of this agreement. The Agreement under their respective names and its delivery to the Bank's head office on the day and year indicated above.

Appendix 1

Depreciation schedule

(Basic Education Project) Payment date Payment of the principal amount (in US dollars) April 01, 2003 289,700 October 01, 2003 304,200 April 01, 2004 319,400 October 01, 2004 335,400 April 01, 2005 352,200 October 01, 2005 369,800 April 01, 2006 388,300 October 01, 2006 407,700 April 01, 2007 428,100 October 01, 2007 449,500 April 01, 2008 471,900 October 01, 2008 495,500 April 01, 2009 520,300 October 01, 2009 546,300 April 01, 2010 573,700 October 01, 2010 602,300 April 01, 2011 632,500 October 01, 2011 664,100 April 01, 2012 697,300 October 01, 2012 732,100 April 01, 2013 768,800 on October 01, 2013 807,200 on April 01, 2014 847,700 on October 01, 2014 889,900 on April 01, 2015 934,400 on October 01, 2015 981,100 on April 01, 2016 1,030,200 on October 01, 2016 1,081,700 on April 01, 2017 1,135,800 on October 01, 2017 1,192,600 on April 01, 2018 1,252,200 on October 01, 2018 1,314,800 on April 01 2019 1,380,600 October 01, 2019 1,449,600 April 01, 2020 1,522,100 October 01, 2020 1,598,200 April 01, 2021 1,678,100 October 01, 2021 1,762,000 April 01, 2022 1,850,100 October 01, 2022 1,942,600 Total: 35,000,000 Premium allowances for early payment The following interest rates are set as premiums payable upon repayment before the due date of any portion of the loan's principal amount in accordance with Section 3.06(b) of the Loan Regulations. Early payment time Premium The interest rate (expressed as a percentage per annum) applied to the remaining unpaid loan amount on the day of early payment, a multiple of: No more than 3 years earlier than term 0.12 From 3 to 6 years earlier than term 0.24 From 6 to 11 years earlier than term 0.44 From 11 to 16 years earlier than term 0.64 From 16 to 20 years earlier than term 0.80 From 20 to 23 years earlier than term 0.92 More than 23 years earlier than term 1.00

Appendix 2

Allocation and withdrawal of loan funds The general part

1. The table attached to this Annex contains the Categories of Goods, services and other items to be financed from the Loan, and the distribution of Loan amounts for each Category (hereinafter referred to as the Table). (The reference to "Category" or "Categories" in this Appendix refers to the Category or Categories of the Table).

2. Taxes No funds are withdrawn from the loan account in respect of any local taxes. Interest on bank financing

3. With the exception of the cases provided for in this Annex and other cases that may be agreed upon by the Bank, the Items of the Categories listed in the Table will be financed from the loan funds on the basis of the interest indicated in the Table.

4. Regardless of paragraph 5 of this Annex, any contract awarded to a local supplier after international competitive bidding or international procurement in accordance with the relevant provisions of Annex 4 to the Loan Agreement (Special Operations) shall be financed from the loan funds on the following basis: (a) if the goods purchased from a local supplier are locally made products, 100% of the cost of the ex-factory supplied products is financed (excluding any taxes); and (b) if the products purchased from a local supplier were fully imported, the currency component of the contract price is financed. Local expenses

5. (a) Loan funds in the amount of USD 5,717,000 may be withdrawn from the loan account in foreign currency for the purpose of financing local expenses. (b) Unless specifically provided for in this paragraph and specifically agreed with the Bank, no amounts will be deducted from the loan account in respect of any local Project costs. Interest and commission fee

6. The amount allocated to Category 8 is intended to pay interest and commission on the loan during the Project implementation period. The Bank has the right to withdraw from the loan account and pay itself, on behalf of the Borrower, the amounts required to pay interest and commission on time.

Redistribution

7. Despite the allocation of loan funds and interest withdrawals shown in the Table and in accordance with paragraph 5 of this annex, (a) if the loan amount allocated for any Category is insufficient to finance all agreed expenses for that Category, the Bank may, in consultation with the Borrower, (i) reallocate for that Category to the extent that required to cover the established deficit, amounts that have been allocated to another Category, but which, in the opinion of the Bank, are not required for other expenses, and (ii) if such a reallocation cannot cover the established deficit, reduce the interest deductible for such expenses so that further withdrawals in that category can continue until all expenses in that Category are covered; (b) if the loan amount previously allocated to any Category is higher than all agreed expenses in this Category, the Bank may, by notifying the Borrower, redistribute such an excess amount to any other Category. Retroactive financing

8. The loan account must be opened for disbursements of borrowed funds (Special Operations) and withdrawals from the loan account may be made for allowable expenses incurred under the Project from February 28, 1997 to the Effective Date, and related to the selection and hiring of consultants and preparatory procurement activities in the amount of the cumulative maximum amount, equivalent to two hundred thousand dollars ($200,000). Loan advance account for ordinary transactions

9. (a) Except in cases where there is another agreement between the Bank and the Borrower, the Borrower must open, immediately after the effective date, an advance loan account for ordinary transactions (in Almaty Merchant Bank) in order to accelerate the repayment of the loan funds. An advance loan account for ordinary transactions must be opened, managed, replenished and liquidated in accordance with the terms and conditions acceptable to the Bank and the Bank's "Loan Repayment Guidelines" (June 1996), as well as detailed agreements reached between the Bank and the Borrower. The initial amount to be deposited into the advance loan account (for ordinary transactions) should not exceed the equivalent of USD 50,000. (b) The Bank's expense statements (SOE) may be used to pay off related expenses and eliminate advance payments received into the advance loan account for ordinary transactions, in accordance with the Guidelines loan repayment and detailed agreements reached between the Borrower and the Bank. Individual payments that can be repaid or eliminated as part of the expense statements should not exceed the amount in

50,000 USD. (c) The Borrower must ensure that (i) the loan advance account for ordinary transactions and expenses covered under the expense statements are reviewed; and (ii) the auditors' report on this matter is included separately in the audit reports required under section 4.06(b) of this Agreement on the loan.

(Supplement to Appendix 2)

The table ________________________________________________________________________ Allocation and withdrawal of loan funds from the account (Basic Education Project) ___________________________________________________________________________ Category ! The percentage of the bank ! financing ___________________________________________________________________________ № ! The article !Distributed amount($) !A percentage! The base for removal ! ! ! !funds from the loan account ___________________________________________________________________________ 1 !Equipment! $17,505,000 ! 100 ! The percentage of foreigners !for a part ! ! ! expenses !(D)(i)(a) ! ! ! ____________________________________________________________________________ 2 !Furniture ! 736,000 ! 100 ! The percentage of foreigners !for a part ! ! ! expenses !(D) (i)(a) ! ! 60 ! Percentage of local expenses ___________________________________________________________________________ 3 !Educational ! 3,796,000 ! 100 ! The percentage of foreigners !materials ! ! ! expenses !(including ! ! ! !textbooks) ! ! ! !for a part ! ! 80 ! Percentage of local expenses !(D) (i)(a) ! ! ! ____________________________________________________________________________ 4 !Training and ! 1,210,000 ! 100 ! The percentage of foreigners !scholarships! ! ! expenses ! ! ! 50 !percentage of local expenses ___________________________________________________________________________ 5 !Consulting-! ! 100 ! The percentage of foreigners !your services ! 317,000 ! ! expenses ! ! ! 100 !Percentage of local expenses ___________________________________________________________________________ 6 !Symposia and! 818,000 ! 100 ! The percentage of foreigners ! seminars ! ! ! expenses ! ! ! 100 !Percentage of local expenses ___________________________________________________________________________ 7 !PIU expenses ! 186,000 ! 100 ! The percentage of foreigners ! ! ! ! expenses ! ! ! 60 !Percentage of local expenses ___________________________________________________________________________ 8 !Reserve for ! 7,820,000 ! 100 !a percentage of what is due !percentages and ! ! ! sums !commissions ! ! ! ___________________________________________________________________________ 9 !Not distributed! 2,612,000 ! ! !Leno! ! ! ___________________________________________________________________________ !Total: ! $35,000,000 ! ! ! ! ! ! ___________________________________________________________________________ * Local taxes are excluded

This Law establishes the rules for registering the pledge of movable property in order to realize and protect the rights of individuals and legal entities who have legitimate rights to this property.

The Law of the Republic of Kazakhstan dated June 30, 1998 No. 254.

President

Republic of Kazakhstan

Constitution Law Code Standard Decree Order Decision Resolution Lawyer Almaty Lawyer Legal service Legal advice Civil Criminal Administrative cases Disputes Defense Arbitration Law Company Kazakhstan Law Firm Court Cases