On the ratification of the Loan Agreement (Project on the development of labor skills and Job Promotion) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development

Home / RLA / On the ratification of the Loan Agreement (Project on the development of labor skills and Job Promotion) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development

On the ratification of the Loan Agreement (Project on the development of labor skills and Job Promotion) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development

The Law of the Republic of Kazakhstan dated February 5, 2016 No. 451-V SAM

To ratify Loan agreement (A project to develop labor skills and stimulate jobs) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development, signed in Astana on July 20, 2015.

President of the Republic of Kazakhstan N. NAZARBAYEV

LOAN No. 8490-KZ

Loan agreement (A project to develop labor skills and stimulate jobs) between the REPUBLIC OF KAZAKHSTAN and BY THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT dated July 20, 2015

LOAN AGREEMENT (Project on the development of labor skills and job promotion) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development

Agreement dated July 20, 2015 between the REPUBLIC OF KAZAKHSTAN (the "Borrower") and the INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ("Bank"). The Borrower and the Bank have hereby agreed on the following:

ARTICLE I — GENERAL CONDITIONS; DEFINITIONS

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

ARTICLE II - LOAN

2.01. The Bank agrees to provide the Borrower with an amount equal to one hundred million US dollars (US$ 100 million), which may be converted from time to time by currency conversion in accordance with the provisions of Section 2.08 of this Agreement (the "Loan"), for the term and conditions set forth in this Agreement, or referenced therein, in order to to assist in financing the project described in Appendix 1 to this Agreement (the "Project"). 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 one-time commission payable by the Borrower is one quarter of one percent (0.25%) of the Loan amount. The Borrower shall pay a one-time commission no later than sixty days after the effective date of this Agreement. 2.04. The reservation fee payable by the Borrower is one quarter of one percent (0.25%) per annum of the outstanding Loan balance. 2.05. The interest payable by the Borrower for each interest period will be calculated at a rate equal to the reference rate for the Loan currency plus a variable spread; provided that upon conversion of all or any part of the principal amount of the Loan, the amount of remuneration payable by the Borrower during the conversion period for this amount can be determined in accordance with the provisions of Article IV General Terms and Conditions. Notwithstanding the above, in the event that any portion of the withdrawn outstanding Loan balance remains unpaid on time and is not paid within thirty days, the amount of remuneration payable by the Borrower will then be calculated in accordance with the provisions of section 3.02 (e) of the General Terms and Conditions. 2.06. The payment dates are March 15 and September 15 of each year. 2.07. The principal amount of the Loan is repaid in accordance with the repayment schedule set out in Appendix 3 to this Agreement. 2.08. (a) The Borrower may at any time request any of the following Loan terms conversions in order to ensure sound debt management: (i) a change in the Loan currency of all or any part of the Loan principal, whether withdrawn or not, to an approved currency; (ii) a change in the interest rate basis applicable to: (A) all or any part of the withdrawn and outstanding Loan principal from a variable rate to a fixed rate, or vice versa; or (B) to all or any part of the Loan principal withdrawn and outstanding, from a variable rate based on a reference rate and a variable spread, to a variable rate based on a fixed reference rate and a variable spread, or vice versa; or (C) to the entire Loan principal withdrawn and outstanding, from a variable rate based on a variable spread to a variable rate based on a fixed spread; and (iii) determining the limits of the variable rate or reference 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 a lower limit on the interest rate for the variable rate or reference rate. (b) Any modification requested in accordance with paragraph (a) of this section, which is accepted by the Bank will be considered a "Conversion" as defined in the General Terms and Conditions, and will enter into force in accordance with the provisions of article IV of the General Terms and Conditions and the conversion Guidelines.

ARTICLE III — THE DRAFT

3.01. The Borrower declares his commitment to the objectives of the Project. To this end, the Borrower implements the Project through the Ministry of Health and Social Development (MOHS) in accordance with the provisions of article V of the General Terms and Conditions. 3.02. Without prejudice to the provisions of Section 3.01 of this Agreement, unless otherwise agreed between the Borrower and the Bank, the Borrower will ensure the implementation of the Project in accordance with the provisions of Appendix 2 to this Agreement.

ARTICLE IV - ENTRY INTO FORCE; TERMINATION

4.01. Additional conditions for the entry into force of the Agreement are as follows: (a) The Operational Guidance for the Project, satisfactory to the Bank, has been accepted by the Borrower through the Ministry of Finance. (b) The Borrower through the Ministry of Finance will issue an order to establish a State Unitary Enterprise, as specified in section I.A.3. Appendix 2 to this Agreement. 4.02. The deadline for the entry into force of this Agreement is the date following the expiration of one hundred and eighty (180) days after the date of signing this Agreement.

ARTICLE V - REPRESENTATIVE; ADDRESSES

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

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

Telex: Fax: 265126 (FILIN) (7) (7172) 717785 5.03. Bank's address: International Bank for Reconstruction and Development, 1818 H Street, N.W. Washington, DC, 20433 United States of America Telegraphic address: 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 BY whom _____________________________________ Authorized representative Full name: ______________________________ Post: ___________________________

FOR THE INTERNATIONAL BANK RECONSTRUCTION AND DEVELOPMENT BY Whom _____________________________________ Authorized representative Full name: ______________________________ Post: __________________________

ADDENDUM 1

Project Description

The aim of the project is to improve the employment outcomes and work skills of the target beneficiaries and to increase the relevance of technical and vocational education, training and higher education programs. The project consists of the following parts:

Part 1: Formation of the basis for the National Qualifications System

Strengthening the Borrower's institutional capacity to increase the relevance of technical and vocational education and training, higher education, and in-service professional development through the following activities: (a) improvement of professional standards, including their updating and harmonization processes; (b) development and implementation of a system for reviewing and updating educational and training standards and programs of technical and vocational education, training and higher education; and (c) develop a roadmap for the establishment of an independent assessment and qualification system through the provision of technical support to pilot industry testing and professional certification centers.

Part 2: Improving skills to improve employment and productivity outcomes

Provision of in-demand training for the unemployed, unproductively self-employed and employed persons in need of training, who will be identified and selected according to the criteria specified in the PRU through the following activities: (a) Improving public employment services for the unemployed and unproductively self-employed by: i. develop and implement an action plan to improve and expand public employment services through employment centers or departments based on an assessment of existing opportunities carried out in accordance with the PRR; and ii. enhance the capacity of employment centers and departments to better support users by (A) implementing a profiling tool, (B) strengthening the Borrower's existing labor market information system to improve the quality of information available to employees of employment centers and departments, and (C) training employees to take a more proactive approach to the provision of public services for employment opportunities. (b) Increasing the relevance of workforce training through: i. review of the regulatory framework related to the provision of training services; ii. expanding the base of training service providers; iii. Assessment of the relevance of the training and, based on this assessment, drawing up a list of pre-qualified training service providers eligible to conduct training under Part 2 (c) below; iv. Provide the necessary support to selected training service providers to enhance the relevance of the training services, including the training provided under Part 2 (c) below. (c) The establishment and implementation of a skills development training program consisting of the provision of training to (a) unemployed and unproductively self-employed persons; and (b) employed employees in need of training, in accordance with the criteria set out in the PRA.

Part 3: Project management, monitoring and evaluation

(a) Support in Project management, monitoring and evaluation activities, and operational costs. (b) Develop and implement an awareness campaign for the project, a feedback and problem resolution mechanism, and an achievement award program in accordance with the criteria set out in the PRA.

ADDENDUM 2

Project Execution

Section I. Implementation mechanisms

A. Institutional arrangements

1. Without prejudice to the provisions of Section 3.01 of this Agreement, the Borrower, through the Ministry of Health, implements the Project in accordance with the requirements, criteria, organizational mechanisms and operational procedures provided in the PIU. 2. The Borrower is not entitled to assign, amend, cancel or waive any provisions of the PIU without prior agreement with the Bank. 3. The Borrower, through the Ministry of Finance, will a) establish and continue to implement and support the activities of the Project Management Group (MCG) throughout the Project period with functions and responsibilities (including the responsibility to carry out day-to-day activities related to the Project) that meet the requirements of the Bank; and b) ensure that the members of the MCG are qualified and experience that meets the Bank's requirements, so that throughout the entire Project, the work of the GUP is led by a Project coordinator and includes at least the following employees: (i) a financial management specialist; (ii) an accountant; (iii) one or more procurement specialists (as required); (iv) a monitoring and evaluation specialist; (v) an environmental/social protection compliance specialist (as required); (vi) a national qualifications framework specialist; (vii) service specialists in the field of employment (one for employment services and one for the labor market information system); (viii) a labor training specialist; and (ix) administrative and support staff, including an assistant and translators, as required. 4. Regardless of the provisions of paragraph 3 of this section, no later than forty-five (45) days from the date of entry into force of this Agreement, the Borrower, through the Ministry of Health, will hire a Project coordinator, a financial management specialist, at least one procurement specialist and an accountant to the State Unitary Enterprise. 5. The Borrower will ensure the functioning of a working group on the development of labor skills and job incentives that meets the requirements of the Bank, which is a national interdepartmental project coordination group, as provided for in the Operational Guidelines for the Project, which includes representatives of senior management of relevant ministries and agencies. 6. The Borrower will establish and continue to maintain a Project working committee during the project implementation period, consisting of the members defined in the Operational Guidelines for the Project (including, among others, representatives of the Ministry of Health, Ministry of Education and Science, and NPP) with functions and responsibilities acceptable to the Bank, including, among others, the following responsibilities: (i) implementation of overseeing Project management; and (ii) providing strategic and technical guidance to the Ministry of Health for the overall implementation of the Project. 7. No later than sixty (60) days from the date of entry into force of this Agreement, the Borrower, through the Ministry of Health of the Russian Federation, will provide the Project with functioning software for the preparation of financial statements and accounting for the Project acceptable to the Bank.

B. Anti-corruption measures

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

With. Security measures

1. The Borrower will implement the Project in accordance with the Checklist of the Environmental Management Plan (and any local environmental action plans prepared under such Plan) and will not assign, amend, suspend, cancel, cancel or abandon any of its provisions without the prior consent of the Bank. 2. The Borrower will ensure that no activities related to the implementation of the Project will entail forced relocation of people or have a significant negative impact on the environment, characterized by sensitivity, heterogeneity or unprecedented, as may be determined by the Bank.

Section II. Monitoring, reporting and evaluation of the Project

A. Project Reports

The Borrower, through the Ministry of Finance, will monitor and evaluate the progress of the Project, as well as prepare Project reports in accordance with the provisions of section 5.08 of the General Terms and Conditions and based on indicators acceptable to the Bank. Each Project report must cover a period of one calendar quarter and be submitted to the Bank no later than forty-five (45) days after the end of the period covered by such report.

B. Financial management, financial reports and audit

1. The Borrower, through the Ministry of Finance, will maintain or ensure the maintenance of a 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, through the Ministry of Finance, will prepare and submit to the Bank, no later than forty-five (45) days after the end of each calendar quarter, interim unaudited financial reports on the Project for the relevant calendar quarter, acceptable to the Bank in form and content. 3. The Borrower will ensure that its financial statements are audited in accordance with the provisions of section 5.09 (b) of the General Terms and Conditions. Each audit of financial statements should cover the period of one financial year of the Borrower. The financial statements for each such period, which have been audited, must be submitted to the Borrower and the Bank no later than six months after the end of the relevant period and made available to the public in a timely manner in a form acceptable to the Bank.

Section III. Purchases

A. General provisions

1. Goods and non-consulting services. All goods and non-consulting services required for the Project and financed from the Loan funds must be procured in accordance with the requirements contained or referenced in section I of the Procurement Manual, as well as the provisions of this section. 2. Consulting services. All consulting services required for the Project and funded by the Loan must be procured in accordance with the requirements contained or referenced in sections I and IV of the Consultant Selection and Recruitment Guidelines, as well as the provisions of this section. 3. Definitions. Capitalized terms used later in this section to describe individual procurement methods or the Bank's review of individual contracts refer to the relevant method described in sections II and III of the Procurement Manual or sections II, III, IV and V of the Consultant Selection and Recruitment Manual, as appropriate.

B. Selected methods of purchasing goods and non-consulting services

1. International competitive bidding. Unless otherwise provided in paragraph 2 below, the procurement of goods and non-consulting services will be carried out under contracts awarded in accordance with international competitive bidding procedures. 2. Other methods of purchasing goods and non-consulting services. In addition to international competitive bidding, the following methods of procurement of goods and non-consulting services may be used for those contracts specified in the procurement plan: (a) national competitive bidding, which is governed by additional provisions specified in the annex to this appendix 2; (b) procurement on the open market; (c) direct contracts.

C. Selected methods of procurement of consulting services

1. Selection based on quality and cost. Unless otherwise provided in paragraph 2 below, the procurement of consulting services will be carried out within the framework of contracts awarded in accordance with the selection procedure based on quality and cost. 2. Other methods of procurement of consulting services. In addition to selection based on quality and cost, the following methods of procurement of consulting services can be used for those contracts specified in the Procurement Plan: (a) quality-based selection (b) fixed budget selection (c) lowest cost selection (d) consultant-based selection (e) procurement of consulting firms from a single source (f) procedures, The Guidelines for the Selection and Hiring of Consultants set out in paragraphs 5.2 and 5.3 for the selection of individual consultants (g) procedures for the selection of individual consultants from a single source

D. The Bank's review of procurement decisions

The Procurement Plan should specify those contracts that are subject to preliminary review by the Bank. All other contracts are subject to review by the Bank after the fact.

Section IV. Withdrawal of Loan funds

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 that the Bank specifies in the notification to the Borrower (including the World Bank's "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 indicated in the table in paragraph 2 below. 2. The table below shows the categories of Eligible Expenses that can be financed from the Loan (the "Category"), the allocation of Loan amounts to each Category, and the percentage of expenses to be financed as Eligible Expenses for each Category.

Category

Loan amount allocated (expressed in US dollars)

Share of expenses to be financed

(1) goods, non-consulting services, consulting services, operating expenses and training within the framework of the Project

100000000

73%

TOTAL AMOUNT

100000000

For the purposes of this table: "Operating expenses" means reasonable and additional expenses incurred by the Ministry of Health of the Russian Federation within the framework of the Project for the purchase of stationery and other supplies, rental of premises, Internet connection and communication costs, information system support, translation costs, utilities, reasonable travel expenses, transportation costs, daily subsistence allowance, living expenses (with the exception of tuition-related expenses), and other reasonable expenses, directly related to the implementation of the Project as agreed between the Borrower and the Bank on the basis of semi-annual budgets acceptable to the Bank.

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 Bank receives the full amount of the One-Time Fee; or (b) for payments made prior to the date of conclusion of this Agreement. 2. The closing date is June 30, 2020.

Appendix to APPENDIX 2

The procurement procedures to be used in conducting national competitive bidding will be the competitive bidding procedures specified in the Law of the Republic of Kazakhstan dated July 21, 2007 No. 303-III "On Public Procurement", as amended by the Law of the Republic of Kazakhstan dated September 29, 2014 No. 239-V.; provided that such procedures are conducted in accordance with the provisions of section I and paragraphs 3.3 and 3.4 of the Procurement Manual, as well as the following additional provisions: (a) Eligibility: The eligibility of bidders to participate in the procurement process and award a contract funded by the Bank will be determined in accordance with Section I of the Procurement Manual; Accordingly, no bidder or potential bidder may be declared ineligible to enter into Bank-funded contracts for reasons other than those specified in Section I of the Procurement Manual. Foreign bidders are allowed to participate in the CNT procedures, and they are not required to enter into partnerships with local bidders to participate in the procurement process. (b) Registration: Competitive bidding should not be limited to pre-registered firms, nor is it required that foreign bidders register with local authorities as a condition for submitting bids. (c) Preferences: No preferences of any kind should be applied in evaluating bids based on the nationality of the bidder; origin of goods, services, or labor; local content; local ownership interest; and/or any other preference programs. (d) Tender documents: procurement organizations should use an appropriate standard package of tender documents, including contract provisions acceptable to the Bank. (e) Estimated costs: Estimated costs are confidential information and should not be disclosed to potential bidders. (f) Period of validity of the tender application: an extension of the period of validity of bids, if due to exceptional circumstances, may be requested in writing from all bidders before the expiration of the period of validity of bids and for the minimum period necessary to complete the evaluation or award of the contract, provided that such extension will cover only the minimum period required to complete the evaluation and/or award of the contract, and should not exceed four (4) weeks. No additional extensions should be requested without the prior written consent of the Bank. (g) Opening of bids: Potential bidders will be given at least thirty (30) days from the date of publication of the invitation to bid or the readiness of the tender documentation, whichever is later, to prepare and submit bids. Applications are opened publicly, immediately after the deadline for their submission. A copy of the tender opening protocol must be immediately provided to all bidders who submitted bids and to the Bank in respect of contracts subject to preliminary review by the Bank. (h) Qualifications: The qualification criteria should be clearly stated in the bidding documents. All criteria specified in such documentation, and only these specified criteria, should be used to determine the qualifications of the bidder. Qualifications should be assessed using the "passed or failed" method, and no points should be used. Such assessments should be based entirely on the capabilities and resources of the bidder or potential bidder necessary to effectively execute the contract, taking into account objective and measurable factors, including: (i) relevant general and specific experience and a satisfactory track record of successful execution of such contracts over a specified period; (ii) financial situation; and, depending on (iii) availability of construction and/or production facilities. (i) Prequalification procedures and documents satisfactory to the Bank should be used for large, complex and/or specialized work contracts. Verification of the information on the basis of which the bidder has been prequalified, including the current obligations and capabilities of the bidder regarding personnel and equipment, should be carried out at the time of awarding the contract. (j) In cases where prequalification is not used, the qualifications of the bidder who is recommended for the award of the contract will be evaluated during the postqualification process using the qualification criteria specified in the tender documents. (k) Evaluation of bids: The evaluation criteria should be clearly stated in the bidding documents. The evaluation of bids should be carried out in strict accordance with the quantifiable criteria stated in the tender documentation. Evaluation criteria other than price should be quantified in monetary terms. No points or the method of extremes should be used, and no minimum points or percentages should be used to determine the importance of price in evaluating bids. Bidders should not be excluded on the basis of minor, insignificant deviations. The bidder may request clarifications from bidders necessary to evaluate their bids, but he may not ask or allow bidders to change the nature or price of their bids after opening the bids. (l) Contracts should be awarded to a qualified bidder whose bid: (i) substantially meets the requirements of the bidding documents; and (ii) and offers the lowest estimated value. There should be no negotiations regarding the price or the nature of the bid. (m) Rejection and resubmission of bids: no bids should be rejected solely because their price is lower or higher than the estimated value, falls outside the range or beyond the limits of the cost of bids. All bids (including cases where less than two bids have been received) should not be rejected, the procurement process should not be canceled, and the invitation to submit new bids should not be published without the prior written consent of the Bank. (n) Guarantees: Guarantees of bids and performance of contracts must be submitted in the format and have the required validity period specified in the tender documentation. If necessary, the security of the tender application can be expressed as a fixed amount and should not exceed two percent (2%) of the estimated contract value. No advance payments should be made to contractors without an appropriate advance payment guarantee. (o) Confidentiality: The process of evaluating bids should be kept confidential until information about the award of the contract is published. (p) E-procurement systems: e-procurement systems may be used, provided that the Bank is satisfied with the parameters of the systems, while, among other things, the system must be secure and maintain the integrity, confidentiality and authenticity of submitted bids. (q) Fraud and corruption: According to the Procurement Manual, all tender documents and contracts must include provisions of the Bank's policy on the application of sanctions against firms or individuals found to be engaged in fraudulent and/or corrupt activities, as defined in the Procurement Manual. (r) Inspection and audit rights: According to the Procurement Manual, each package of tender documents and each loan-funded contract must contain provisions stating that bidders, suppliers and contractors, as well as their subcontractors, agents, employees, consultants, service providers or suppliers The Bank will be allowed to inspect its accounts, accounting and other documentation related to the submission of bids and the execution of contracts, as well as to allow auditors appointed by the Bank to audit accounts and accounting documents. Actions aimed at creating significant difficulties in the Bank's exercise of its rights during inspections and audits provided for in the Procurement Manual are an obstructive practice as defined by the specified Manual. (s) Publication of information on the award of contracts: the bidder must publish the following information on the award of contracts on a free website with open access or using other means of publication acceptable to the Bank: (a) the name of each bidder who submitted an application; (b) the prices of the bids that were announced during the opening of the envelopes with the bids; (c) the names of the participants and the estimated value of each bid that was evaluated; (d) the names of the bidders whose bids were rejected and the reasons for rejecting these bids; (e) the name of the winner of the bid and the proposed bid They include the price, as well as the duration and a brief overview of the coverage of the awarded contract.

ADDENDUM 3

Repayment schedule

1. The following table shows the repayment dates of the principal debt and the percentage of the total Loan amount payable 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 multiplying: (a) the loan amount withdrawn on the first Repayment Date by (b) the Repayment Share on each Repayment Date. repayment of the principal debt and, if necessary, the amount to be repaid may be changed to exclude any amounts specified in paragraph 4 of this Addendum to which currency conversion applies.

Repayment date of the main debt

Repayment rate (in percentage terms)

Every March 15 and September 15, starting from September 15, 2020 to September 15, 2033

3,57%

March 15, 2034

3,61%

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 Addendum. (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 amounts determined by the Bank by multiplying the amount of each such withdrawal by a fraction whose numerator is the initial Repayment Percentage indicated in the table in paragraph 1 of this Addendum for that Repayment Date. debt (the "Initial Repayment Share"), and the denominator of which is the sum of all remaining Initial Repayment Shares as of the Repayment Dates of the Principal debt on or after such date and, if necessary, The amounts to be redeemed may be changed to exclude any amounts specified in paragraph 4 of this Addendum to which currency conversion applies. 3. (a) Loan amounts withdrawn within two calendar months prior to any Repayment Date of the Principal debt, 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 any withdrawals made after the adoption of such billing system. 2. Regardless of the provisions of paragraphs 1 and 2 of this Addendum, when converting the currency of all or any part of the withdrawn Loan balance into the approved currency, the amount thus converted into the approved currency, which is repayable on any Repayment Date of the principal debt occurring during the conversion period, will be determined by the Bank by multiplying such amount in the currency its denominations immediately prior to conversion to: (i) an exchange rate that reflects the amounts of the principal debt in an Approved Currency payable by the Bank as part of currency hedging transactions, related to conversion; or to (ii) the currency component of the screen rate, if the Bank decides accordingly in accordance with the Conversion Guidelines. 3. If the withdrawn Loan balance is denominated in more than one Loan Currency, the provisions of this Addendum shall apply separately to the amount denominated in each Loan Currency in order to establish a separate repayment schedule for each such amount.

application

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, as amended and amended in January 2011. 2. "Category" means the category specified in the table in section IV of Appendix 2 to this Agreement. 3. "Guidelines for the Selection and Hiring of Consultants" means "Guidelines for the Selection and Hiring of Consultants under IBRD Loans, IDA Loans and Grants Provided to World Bank Borrowers dated January 2011 (as amended in July 2014). 4. "Employment Center" means a state institution established by the local executive body of a district, cities of regional and republican significance, and the capital, in order to implement active measures to promote employment, in accordance with the Borrower's Law of January 23, 2001 No. 149 "On Employment of the Population" (at the same time, such a Law may be amended from time to time), or any of its legal successors. 5. "Employment Department" means an authorized body, which is a structural subdivision of local executive bodies of a district, cities of regional and republican significance, and the capital, providing employment promotion and social protection from unemployment at the regional level, in accordance with the Borrower's Law of January 23, 2001 No. 149 "On Employment of the Population" (in such a case The law may be amended from time to time), or any of its legal successors. 6. "Environmental Management Plan Checklist" means a Borrower's document dated December 19, 2014, prepared by the Ministry of Health and Acceptable to the Bank, describing the Project and possible environmental impacts associated with the rehabilitation, including a list of possible mitigation measures posted on the Ministry of Health and the Bank's InfoShop website on December 19, 2014. 7. "General Terms and Conditions" means the "General Terms and Conditions for Loans of the International Bank for Reconstruction and Development" dated March 12, 2012, as amended in section II of this annex. 8. "Involuntary resettlement" means the impact of forced land acquisition within the framework of a Project, the implementation of which has the following consequences for the affected persons: (i) negative impact on their standard of living; or (ii) acquisition and possession, temporary or permanent, of rights, ownership rights or shares in a house, land (in including premises, agricultural and pasture lands) or any other immovable or movable property; or (iii) adverse effects, temporary or permanent, on access to productive assets; or (iv) a negative impact, temporary or permanent, on a business, profession, job, or place of residence or "habitat." 9. "MHSD" means the Ministry of Health and Social Development of the Borrower or any of its legal successors. 10. "Ministry of Education and Science" means the Ministry of Education and Science of the Borrower or any of its legal successors. 11. "NPP" means the National Chamber of Entrepreneurs, a non-profit, self-regulating organization, which is a union of business entities, established in order to ensure favorable legal, economic and social conditions for the implementation of entrepreneurial initiatives and the development of mutually beneficial partnership between the business community and government authorities of the Republic of Kazakhstan., as well as stimulating and supporting the activities of associations of individual entrepreneurs and (or) legal entities in the form of an association (union) in accordance with the Law of the Borrower dated July 4, 2013 No. 129-V "On the National Chamber of Entrepreneurs" (at the same time, such a Law may be amended from time to time), or any of its legal successors. 12. "GUP" means the Project Management Group referred to in Section I.A.3 of Appendix 2 to this Agreement. 13. "PIU" means the Borrower's Operational Project Manual prepared by the Ministry of Finance and meeting the requirements of the Bank, describing and outlining the Project implementation procedures and institutional arrangements in accordance with the provisions of this Agreement, including, but not limited to, schedules of activities required within the framework of the Project.; description of the relevant roles and responsibilities of the Borrower's agencies involved in the Project implementation process, selection criteria and list of training service providers in accordance with Part 2 (b) of the Project, selection criteria for training recipients in accordance with Part 2 (c) of the Project staffing table, fiduciary, technical and operational aspects and procedures for the implementation of the Project, including procedures financial management (budgeting, accounting and internal control, disbursement and cash flow, financial reporting, annual reports, procedures, regulatory mechanisms for internal and external audit, including a special scheme of Project accounts), procurement procedures, monitoring and evaluation mechanisms, and other fiduciary and administrative mechanisms and necessary technical specifications, which may be amended from time to time in consultation with the Bank. 14. "Procurement Manual" means the January 2011 "Guidelines for the Procurement of Goods, Works and Non-Consulting Services for IBRD Loans, IDA Loans and Grants by World Bank Borrowers" (as amended in July 2014). 15. "Procurement Plan" means the Borrower's procurement plan prepared by the Ministry of Health for the Project dated February 19, 2015 and specified in paragraph 1.18 of the Procurement Manual and paragraph 1.25 of the Guidelines for the Selection and Hiring of Consultants, and it will be updated periodically in accordance with the provisions of these paragraphs. 16. "Project Working Committee" means the committee referred to in section I.A.5 of Appendix 2 to this Agreement. 17. "Training" means expenses (not related to consulting costs) incurred during the implementation of the Project based on a regular budget review acceptable to the Bank, namely (i) reasonable travel, accommodation, meals and daily subsistence allowance incurred by the teaching staff and participants in connection with the training; (ii) tuition fees; (iii) rental of training/seminar facilities and equipment; and (iv) expenses for the preparation, purchase, reproduction and distribution of educational materials not otherwise provided for under this paragraph. 18. "Working Group" means the group referred to in section I.A.4 of Appendix 2 to this Agreement.

Section II. Changes to the General Terms and Conditions

The following changes are hereby made to the General Terms and Conditions: 1. The content of the links to the sections, their names and numbering are changed to reflect the changes indicated in the paragraphs below. 2. The following amendment is made to Section 3.01. (One-time Commission): "Section 3.01. One-time Commission; Reservation Fee (a) The Borrower pays the Bank a one-time commission in respect of the Loan amount at the rate stipulated in the Loan Agreement (the "One-Time Commission"). (b) The Borrower pays the reserve fee to the Bank in respect of the outstanding Loan balance at the rate stipulated in the Loan Agreement (the "Reserve Fee"). The reservation fee is charged from the date sixty days after the Date of the Loan Agreement to the corresponding dates when the amounts are withdrawn or cancelled by the Borrower from the loan account. The reservation fee is payable on a semi-annual basis at the end of each period on each Payment Date." 3. In the Definitions Appendix, all relevant references to section and paragraph numbers are changed as necessary to reflect the changes provided for in paragraph 2 above. 4. The Annex is being amended by including a new paragraph 19 with the following definition of "Reservation Fee" with a corresponding renumbering of all subsequent paragraphs.: "19. "Reservation Fee" means the reservation fee provided for in the Loan Agreement for the purposes of Section 3.01(b)." 5. In the renumbered paragraph 49 (originally paragraph 48) of the Annex, the definition of "One-time Commission" was changed by replacing the reference from section 3.01 to section 3.01 (a). 6. In the renumbered paragraph 68 (originally paragraph 67) of the Annex, the definition of the term "Loan payment" has been changed as follows: «68. "Loan Payment" means any amount payable by the Parties to the Loan to the Bank in accordance with Legal Agreements or these General Terms and Conditions, including (but not limited to) any amount of Loan funds withdrawn, remuneration, One-time Fee, Reservation Fee, late payment interest rate (if any), any penalty for early repayment, any transaction fee for conversion or early termination of conversion, variable spread fixing fee (if any), what- or a bonus, payable after the establishment of a fixed upper or lower limit of the interest rate and any costs associated with the change in terms to be paid by the Borrower. " 7. In the renumbered paragraph 73 (originally paragraph 72) The definition of "Payment date" has been changed by deleting the word "is" and inserting the words "and Reservation Fee" after the word "percentage".

I hereby certify that this translation corresponds to the text of the Loan Agreement (Project for the Development of Labor Skills and Job Promotion) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development in English, signed on July 20, 2015 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 text of the Agreement in English is attached below.

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