On the Ratification of the Loan Agreement (Routine Operations) (CAREC Corridor 1 [Taraz Bypass] [Western Europe–Western People's Republic of China International Transit Corridor] Project) between the Republic of Kazakhstan and the Asian Development Bank

The Law of the Republic of Kazakhstan dated February 11, 2013 No. 76-V

     To ratify Loan Agreement (Routine Operations) (CAREC Corridor 1 [Taraz Bypass] [Western Europe–Western People's Republic of China International Transit Corridor] Project) between the Republic of Kazakhstan and the Asian Development Bank, signed in Astana on June 19, 2012.

     President of the Republic of Kazakhstan N. NAZARBAYEV

  LOAN AGREEMENT (Normal operations)

     LOAN AGREEMENT dated June 19, 2012 between the REPUBLIC OF KAZAKHSTAN (hereinafter referred to as the Borrower) and the ASIAN DEVELOPMENT BANK (hereinafter referred to as ADB).

     TAKING INTO ACCOUNT THE FOLLOWING

     (A) The Borrower has applied to ADB for a loan for the Project purposes described in Appendix 1 of this Loan Agreement; and

     (C) ADB will provide the Borrower with a loan from ADB's regular capital resources on the terms and conditions set forth in this document.

     TAKING INTO ACCOUNT THE ABOVE, the parties to this Agreement have agreed on the following:

  ARTICLE I

  Loan rules; Definitions

     Section 1.01. All loan provisions for ordinary operations applicable to loans at the London Interbank Rate allocated from ADB's Ordinary Capital Resources dated July 1, 2001 (hereinafter referred to as the Loan Terms) are hereby deemed to apply to this Loan Agreement with the same force and effect as if they were set forth in the text of this Agreement. however, subject to the following changes: (a) Section 3.03 has been deleted and replaced by the following:

     Reservation Fee; Loan (a) The Borrower undertakes to pay the reservation fee for the unclaimed loan amount at the rate and conditions stipulated by  (b) ADB undertakes to provide the Borrower with a loan at the rate stipulated in this Loan Agreement, and such loan will remain fixed until the end of the Loan term. ADB undertakes to apply the loan amount to the interest payable by the Borrower.       (b) Section 3.06 has been deleted and replaced by the following:       (a) Upon each notification to ADB that the fixed spread applicable to new loans will be reduced, ADB undertakes to provide refunds to each Borrower with an unclaimed loan to which a higher fixed spread applies. The amount of the refund will be determined by multiplying (i) the difference between the fixed spread applicable to the unclaimed loan and the fixed spread applicable to new loans (expressed as an annual percentage value) by (ii) the principal amount of the unclaimed loan, on which the Borrower undertakes to pay interest for all interest periods starting from and after the effective date of the reduced fixed spread applicable to new loans.       (b) Upon each notification from ADB that its calculations of the financing margin in respect of any loan currency (or approved currency) in any half-year have resulted in savings for ADB, ADB undertakes to reimburse the Borrower. The amount of the refund will be determined by multiplying (i) the margin of the cost of financing (expressed as an annual percentage) by (ii) the principal amount of the loan, for which the Borrower undertakes to pay interest during the interest period beginning immediately after the half-year for which the margin of the cost of financing was calculated, ADB undertakes to apply the amount of the refund to interest, payable by the Borrower during the interest period beginning immediately after the half-year for which the financing margin was calculated.       (c) Section 3.07 has been deleted and replaced by the following:       (a) After each notification to ADB that the fixed spread applicable to new loans will be increased, and if the fixed spread applicable to this loan is less than the increased fixed spread, the Borrower will pay an additional amount to ADB. The amount of this additional amount will be determined by multiplying (i) the difference between the fixed spread applicable to new loans and the fixed spread applicable to unclaimed loans (expressed as an annual percentage value) by (ii) the principal amount of the unclaimed loan, on which the Borrower undertakes to pay interest for all interest periods starting from from and after the effective date of the increased fixed spread applicable to new loans.       (b) Upon each notification to ADB that its calculations of the financing margin in respect of any loan currency (or approved currency) in any half-year resulted in additional costs incurred by ADB, the Borrower undertakes to pay the additional amount to ADB. The amount of this additional amount will be determined by multiplying (i) the financing cost margin (expressed as an annual percentage) by (ii) the principal amount of the loan, for which the Borrower undertakes to pay interest during the interest period beginning immediately after the half-year for which the financing cost margin was calculated. ADB undertakes to add the amount of the additional payment to the interest payable by the Borrower during the interest period beginning immediately after the half-year for which the financing margin was calculated.       Section 1.02. In each case of use in this Loan Agreement, unless otherwise required by the context, the following terms, defined in the Loan Terms, have the corresponding meanings set forth in them. The following terms have the following meanings:       (a) "TSAREC" means the Central Asian Regional Economic Cooperation; (b) "TSAREC Transport Corridor 1" means the Western Europe–Western People's Republic of China International Transit Corridor running from the state border with the People's Republic of China at Khorgos through Almaty and Shymkent to the western border with the Russian Federation;       (c) "EIA" means the environmental impact assessment of the Project, including any changes made to it, prepared and submitted by the Borrower and approved by ADB; (d) "EMP" means the Environmental Management Plan included in the Environmental Impact Assessment (EIA); (e) "Environmental Policy environment" means the principles and requirements set out in Chapter V, Annex 1, and Annex 4 (if applicable) Permanent residence;       (f) "Involuntary resettlement Policy" means the principles and requirements set out in Chapter V, Annex 2, and Annex 4 (if applicable) PHP; (g) "PHP" means the Land Purchase and Resettlement Plan for the Project; including any changes made to it, prepared and submitted by the Borrower and approved by ADB; (h) "Loan Disbursement Handbook" means the ADB Loan Disbursement Handbook (dated 2007, as amended periodically); (i) "MTK" means the Ministry of Transport and Communications of the Borrower, and any of its legal successors;        (j) "region" means the territorial administrative unit of the Borrower; (k) "RUP" means the Project management Manual for the Project dated October 28, 2011, agreed between the Borrower and ADB, with periodic updates in accordance with the relevant administrative procedures of the Borrower (through the ITC) and ADB; (l) "Procurement Manual" means the ADB Procurement Manual (dated 2010, with periodic amendments);       (m) "Procurement Plan" means the procurement plan for the Project dated October 28, 2011, agreed between the Borrower and ADB, with periodic updates in accordance with the procurement guidelines and other activities agreed with ADB; (n) "Project Executing Agency" for the purposes and within the framework of the definition of the Loan Terms means MTK, responsible for the execution of the Project;         (o) "Project Road" means the section of road to be reconstructed and the bypass road to be built as part of the Project, each case is described in more detail in paragraph 2 (a) of Annex 1 to this Loan Agreement; (p) "PMZ" means the ADB Protection Policy (dated 2009); (q) "Monitoring Results Reporting Policy" means that each report is prepared and submitted by the ADB Borrower, which outlines the results of the work on the implementation and compliance of the EMP and PRSP, including any corrective and preventive actions; and (r) "Works" means construction or civil engineering works financed with loan funds, including services such as drilling or mapping, and Project-related services provided as part of a single commitment or turnkey construction contract, with the exception of consulting services.

  ARTICLE II

  Loan

Section 2.01. (a) ADB agrees to provide a loan to the Borrower from ADB's ordinary capital resources in the amount of ninety-five million US dollars ($95,000,000), and this amount may be converted periodically as part of the Conversion in accordance with the provisions of section 2.06 of this Loan Agreement. (b) The Loan assumes a principal repayment period of twenty (20) years, and the grace period specified in paragraph (c) of this section.       (c) The definition of "grace period" used in paragraph (b) of this section means the period preceding the first payment date for repayment of the principal amount of the loan in accordance with the repayment schedule set out in Annex 2 of this Loan Agreement, Section 2.02. The borrower undertakes to pay interest to ADB on the principal amount of the loan, demanded and unclaimed, periodically at the rate of each interest period equal to the amount of the London Interbank Rate and 0.60% per year in accordance with Section 3.02 of the Loan Terms, minus the loan of 0.20% per year in accordance with Section 3.03 of the Loan Terms.       Section 2.03. The Borrower undertakes to pay a reservation fee in the amount of 0.15% annually. This commission is charged on the full loan amount (minus amounts withdrawn periodically), starting from the date sixty (60) days after the date of signing this Loan Agreement. Section 2.04. Interest and other loan payments are payable semi-annually on May 15 and November 15 of each year.       Section 2.05. The Borrower undertakes to pay the principal amount of the loan claimed from the loan account in accordance with the provisions of Appendix 2 of this Loan Agreement.         Section 2.06. (a) The Borrower may at any time request any of the following loan conversions in order to ensure sound debt management: (i) A change in the loan currency of the full or partial loan amount, paid and unclaimed or unpaid, to the approved currency; (ii) A change in the base interest rate applicable to the full or partial loan amount, in-demand and unclaimed, from floating to fixed interest rates and vice versa; and (iii) Setting limits on the floating interest rate applicable to the full or partial principal amount of the loan, claimed or unclaimed, by setting a fixed maximum interest rate or minimum of any specified floating interest rate. (b) Any conversion request, in accordance with paragraph (a) of this section, approved by ADB, should to be considered a "Conversion" as defined in section 2.01(6) of the Loan Rules, and effective in accordance with the provisions of article V of the Loan Rules and the Conversion Guidelines.

  ARTICLE III

  Use of loan funds

     Section 3.01. The Borrower undertakes to use the loan funds to finance the Project costs in accordance with the provisions of this Loan Agreement. Section 3.02. All loan funds must be distributed and withdrawn in accordance with the provisions of Annex 3 of this Loan Agreement, with periodic changes to this annex permitted by agreement between the Borrower and ADB. Section 3.03. Unless otherwise specified by ADB, the Borrower shall conduct or arrange for all items of expenditure to be conducted in accordance with the applicable provisions of Annex 4 of this Loan Agreement. ADB has the right to refuse to finance a contract for which all such items have not been substantially procured under the procedures agreed upon by the Borrower and ADB, or if the terms and conditions of the contract do not meet the requirements of ADB. Section 3.04. Unless ADB agrees otherwise, the Borrower undertakes to ensure that all expenditure items financed from the loan are used solely for the purpose of executing the Project.       Section 3.05. The closing date for withdrawal of funds from the loan account for the purposes set out in Section 9.02 of the Loan Terms is June 30, 2015, or such other date as may be agreed between the Borrower and ADB.

  ARTICLE IV

  Special conditions

     Section 4.01. (a) The Borrower undertakes to ensure that the Project is executed with due responsibility and efficiency and in accordance with sound engineering, financial, economic and social practice requirements.       (b) During the implementation of the Project and the operation of the project facilities, the Borrower undertakes to fulfill or ensure the fulfillment of all obligations set out in Appendix 5 of this Loan Agreement. Section 4.02. The Borrower undertakes to immediately, as necessary, provide, in addition to the loan funds, funds, facilities, services, land and other resources necessary for the execution of the Project and the operation and maintenance of the Project Facilities.       Section 4.03. (a) During the implementation of the Project, the Borrower undertakes to ensure the hiring of competent and qualified consultants and contractors acceptable to ADB, to the extent and for the duration and on terms that meet the requirements of the Borrower and ADB.       (b) The Borrower undertakes to ensure that the Project is implemented in accordance with plans, design decisions, specifications, work schedules and construction methods acceptable to ADB. The Borrower undertakes to provide or ensure the provision to ADB, immediately after their preparation, of these plans, design decisions, specifications and work schedules, as well as any significant changes to these documents made subsequently with the degree of detail that ADB reasonably requires. Section 4.04. The Borrower undertakes to ensure that all actions of its departments and organizations in relation to Project execution and operation of Project Facilities are carried out and coordinated in accordance with sound administrative policies and procedures.        Section 4.05. (a) The Borrower undertakes (i) to maintain or ensure that separate records are maintained for the Project; (ii) conduct annual audits of these accounts and related financial statements in accordance with the strict application of relevant auditing standards, by independent auditors whose qualifications, work experience and area of competence meet the requirements of ADB; (iii) provide ADB, upon receipt, but in no case later than nine (9) months after the end of each relevant fiscal year, certified copies of these audited accounts and financial statements and the relevant auditors' report (including the auditors' opinion on the use of the loan funds and compliance financial terms of this Loan Agreement), in English; and (iv) provide ADB with other information relevant to these accounts and financial statements and the audit, upon ADB's periodic reasonable request.         (b) The Borrower undertakes to grant ADB the right, at the request of ADB, to discuss the Borrower's financial statements for the Project and its financial affairs related to the Project with auditors hired by the Borrower in accordance with the above subsection (a) and undertakes to authorize and require any representative of the auditors to participate in this discussion during such audits, at the request of ADB, provided that any such discussion will be conducted only in the presence of an authorized representative of the Borrower, unless the Borrower has agreed otherwise.          Section 4.06. The Borrower undertakes to provide an opportunity for ADB representatives to inspect the Project and Project Facilities, as well as any relevant records and documents.          Section 4.07. The Borrower undertakes to ensure that all Project Facilities are operated, maintained and repaired in accordance with environmental, rational engineering, financial, economic and social safety measures, as well as in accordance with procedures for the operation and maintenance of roads.  

  ARTICLE V

  Entry into force

     Section 5.01. The date sixty (60) days after the date of signing this Loan Agreement is considered to be the effective date of the Loan Agreement for the purposes set out in Section 10.04 of the Loan Terms.

  ARTICLE VI

  Other provisions

     Section 6.01. The Borrower's Minister of Finance acts as the Borrower's representative for the purposes set out in Section 12.02 of the Loan Rules.       Section 6.02. The following details are provided for the purposes set out in Section 12.01 of the Loan Terms:

       For the Borrower

     Ministry of Finance       11 Pobedy Avenue       Astana, 010000 Republic of Kazakhstan       Fax number:       +7 (7172) 71 77 85

       For the ADB

     Asian Development Bank       6 ADB Avenue        Mandaluyong City         1550 Metro Manila        Philippines       Fax number:       (632) 636–2444       (632) 636–2428.

       IN SUPPORT OF THE ABOVE, the parties to this Agreement, represented by their authorized representatives, have ensured that this Loan Agreement is signed with appropriate signatures and delivered to ADB headquarters on the date and year indicated above.      

REPUBLIC OF KAZAKHSTAN  

____________________________ [Authorized representative]

ASIAN DEVELOPMENT BANK

____________________________ [Authorized representative]

  APPENDIX 1

  Project Description

1. The aim of the Project is to promote the sustainable economic development of the Borrower by improving the efficiency of the transport network in the Zhambyl region on the Taraz bypass section of the CAREC Corridor 1 (International Transit Corridor Western Europe – Western People's Republic of China).       2. The project should include the reconstruction of the existing 7.7 km long technical category II road section with two lanes, with conversion to the I–b technical category with cement-concrete pavement and four-lane traffic, as well as the construction of a new 57.4 km long Taraz bypass section of the II technical category with asphalt pavement and two-lane traffic within the framework of the CAREC Transport Corridor 1. 3. The Project is expected to be completed on December 31, 2014.

  APPENDIX 2

  Loan repayment schedule

  (CAREC Transport Corridor 1 [Taraz City Bypass] Project) [Western Europe–Western Europe International Transit Corridor People's Republic of China]

     1. The following table shows the repayment dates of the loan principal and the percentage of the total loan principal payable on each Repayment Date of the loan principal (regular installment). If the loan funds have been fully withdrawn at the time of the first repayment date for the repayment of the principal amount of the loan, the principal amount of the loan to be repaid by the Borrower on each payment date of the principal amount of the loan will be determined by ADB by multiplying: (a) the total principal amount of the loan claimed and unclaimed at the time of the first repayment date for the repayment of the principal amount loans; (b) the next installment for each payment date for repayment of the principal loan, such repayment amount will be modified as necessary to deduct any amounts described in paragraph 4 of this annex to which currency conversion applies.

Payment date

The next installment (expressed in %)

May 15th, 2016

2.500 000

November 15th, 2016

2.500 000

May 15th, 2017

2.500 000

November 15th, 2017

2.500 000

May 15th, 2018

2.500 000

November 15th, 2018

2.500 000

May 15th, 2019

2.500 000

November 15th, 2019

2.500 000

May 15th, 2020

2.500 000

November 15th, 2020

2.500 000

May 15th, 2021

2.500 000

November 15th, 2021

2.500 000

May 15th, 2022

2.500 000

November 15th, 2022

2.500 000

May 15th, 2023

2.500 000

November 15th, 2023

2.500 000

May 15th, 2024

2.500 000

November 15th, 2024

2.500 000

May 15th, 2025

2.500 000

November 15th, 2025

2.500 000

May 15th, 2026

2.500 000

November 15th, 2026

2.500 000

May 15th, 2027

2.500 000

November 15th, 2027

2.500 000

May 15th, 2028

2.500 000

November 15th, 2028

2.500 000

May 15th, 2029

2.500 000

November 15th, 2029

2.500 000

May 15th, 2030

2.500 000

November 15th, 2030

2.500 000

May 15th, 2031

2.500 000

November 15th, 2031

2.500 000

May 15th, 2032

2.500 000

November 15th, 2032

2.500 000

May 15th, 2033

2.500 000

November 15th, 2033

2.500 000

May 15th, 2034

2.500 000

November 15th, 2034

2.500 000

May 15th, 2035

2.500 000

November 15th, 2035

2.500 000

Total

100.000.000

     2. If the loan funds were not fully claimed at the time of the first payment date for repayment of the main loan, the principal amount of the loan payable by the Borrower on each payment date for repayment of the main loan will be determined as follows:       (a) to the extent that any loan funds that should have been claimed at the time of the first payment date in repayment of the principal loan, the Borrower undertakes to pay the amount claimed and unclaimed at the time of that date in accordance with paragraph 1 of this annex;       (b) any withdrawal made after the first repayment date of the principal loan is due to be repaid on each repayment date of the principal loan falling after the date of the withdrawal in amounts determined by ADB by multiplying the amount of each withdrawal by a fraction, the numerator of which is the initial installment indicated in the table in paragraph 1. This application is for the above-mentioned payment date for repayment of the main loan (initial regular installment), and the denominator of which is the sum of all remaining initial regular contributions for the repayment dates of the main loan due on or after this date, these payment amounts will be modified, if necessary, to deduct the amounts specified in paragraph 4 of this annex, to which currency conversion applies.        3. Withdrawals made within two calendar months prior to any of the repayment dates of the main loan, solely for the purpose of calculating the principal amounts payable on any day of the main repayment, should be considered claimed and unclaimed at the time of the second repayment date of the main loan after the withdrawal date, and this amount is payable on each date. repayment of the main loan, starting from the second payment date for repayment of the main debt after the withdrawal date.        4. Regardless of the provisions of paragraphs 1 and 2 of this annex, when converting currencies in full or in part of the required funds of the loan principal amount into an approved currency, the amount of funds converted into the aforementioned approved currency, which is due to be repaid on any of the repayment dates of the principal amount during the conversion period, will be determined by ADB by multiplying this amount by the currency of the denomination immediately prior to the aforementioned conversion to either: (i) a currency exchange rate reflecting the principal amounts in the specified approved currency, payable to ADB as part of a double currency conversion related to the aforementioned conversion; or (ii) as decided by ADB in accordance with the guidelines for conversion to a component of the exchange rate of the established rate. 5. If the principal amount of a loan, claimed and unclaimed, is periodically denominated in more than one loan currency, the provisions of this annex should be applied separately to the amounts denominated in each loan currency in order to develop a separate repayment schedule for each of these amounts.  

  APPENDIX 3

  Allocation and withdrawal of loan funds

     General provisions

     1. The table in this annex sets out the categories of expenditure items financed from the loan, as well as the distribution of loan amounts for each such Category (hereinafter referred to as the table). (References to the concepts of "Category" in this Appendix refer to the category of the table).

     Percentage values of ADB financing

     2. Unless otherwise agreed by ADB, each of the cost items will be financed from the loan funds based on the percentage values shown in the table.

     Redistribution

     3. Regardless of the allocation of the loan funds and withdrawal percentages shown in the Table, (a) if the loan amount allocated to any category is insufficient to finance all agreed expenses of that Category, ADB may, by notifying the Borrower, (i) reallocate funds for that Category to the extent necessary to fill the shortfall from the funds allocated to another category, but in the opinion of ADB, not necessary to finance other expenses, and (ii) if this reallocation cannot fully fill the calculated deficit, reduce the percentage of withdrawals for these expenses so that further withdrawals for this category are made until all expenses have been covered; and (b) if the loan amount allocated to any category exceeds all agreed expenses in this Category, ADB may, by notifying the Borrower, redistribute such amount an excess amount in favor of another category.

     Loan repayment procedure

     4. Unless otherwise agreed by the ADB, the loan funds are payable in accordance with the ADB Loan Disbursement Handbook.

  table

LOAN ALLOCATION AND WITHDRAWAL (CAREC Transport Corridor 1 [Taraz City Bypass] Project) [Western Europe – Western People's Republic of China International Transit Corridor]

category

THE BASIS OF ADB FINANCING

Number

Name

Total amount allocated for ADB financing ($) Category

Percentage of ADB financing from the loan account

1

Works

95 000 000

85 percent of the total requested cost

Total

95 000 000

  APPENDIX 4

  Procurement of works

     General provisions

     1. All work purchases are subject to execution and control in accordance with the Procurement Guidelines.        2. All terms used in this Appendix and not otherwise defined in this Loan Agreement have the meanings set out in the Procurement Manual.  

     Purchase of works

     3. The works will be purchased on the basis of international competitive bidding.       4. The procurement procedure, among other conditions, is subject to execution in accordance with the detailed arrangements and thresholds specified in the Procurement Plan. The borrower has the right to modify the procurement procedure or threshold costs only subject to prior agreement with ADB, and all changes should be reflected in the additions to the procurement plan.

     Conditions for the award of the contract

     5. The Borrower should not award contracts for work involving environmental impacts until: (a) the completed EIA has been approved by the Borrower's relevant authorities; and (b) until the Borrower has incorporated the relevant provisions from the EIA into the work contracts.        6. The Borrower must not enter into contracts for work that include forced relocation until the Borrower has prepared and submitted to ADB a final PRA based on a working draft and has received ADB approval for such PRA.  

     Industrial and intellectual property rights

7. (a) The Borrower undertakes to ensure that the purchased works (including, but not limited to, all computer hardware and software, computer systems purchased either separately or as part of other goods and services) do not infringe or infringe on any third-party industrial or intellectual property right or claim;       (b) The borrower undertakes to ensure that all contracts for the procurement of works contain appropriate representations, guarantees and, if necessary, guarantees of damages from the contractor or supplier in respect of the cases specified in subparagraph (a) of this paragraph.

     ADB review of procurement decisions

     8. All contracts acquired in accordance with international competitive procedures are subject to prior review by ADB. 9 The borrower must obtain approval from the ADB before:       (a) grant an extension of the prescribed period for the completion of work under the contract; (b) agree to any changes or waivers to the terms of work under the contract, including any changes to the procedure based on paragraphs (c) and (d) set out below;       (c) issues of changes in the order of work under the contract, which will increase the total amount of the original contract price (for the avoidance of doubt, such a total amount should take into account any previous or simultaneous changes in the order or orders under such an agreement), or (d) issues of changes in the volume of work under the contract, which will change by more than 15% of the original contract price (either by increasing or decreasing), even if the cumulative effect of such a change in the total amount will not increase the original contract price. For the avoidance of doubt, such a total amount should take into account any previous or simultaneous changes in the procedure or orders under such an agreement.       10. ADB must respond to each request for approval in accordance with paragraph 9 above, within 7 business days (in Manila) after receiving such request from ADB. Such a response will mean that the request has (a) been approved, (b) rejected, (c) a decision on it has been postponed until further information and documentation are available, or (d) a decision on it has been postponed until it is reviewed by the ADB Procurement Committee, in each case as determined by ADB. If ADB does not respond within 7 business days (in Manila) after ADB receives such a request, the request (except if the request is subject to review by the ADB Procurement Committee) is considered approved by ADB. In case (c), the Borrower must immediately provide the requested information or documentation to ADB, and ADB must respond to the request within 7 business days (in Manila) upon receipt of the requested information or documentation satisfying ADB. In case (d), ADB must notify the Borrower of the procurement committee's decision within 7 business days (in Manila) after the procurement committee makes such a decision.       11. The borrower is obligated or obligated to ensure that the MTK:       (a) submit to ADB, within 7 days, a copy of all documents on extensions, changes and cancellations of contracts (including changes in order) after approval by ADB in accordance with paragraph 9 above and additional agreements to contracts, and (b) keep records of all changes in the order of all work under contracts that do not require prior approval. approved by ADB in accordance with paragraph 9 above, and submit such a report to ADB for review every 6 months.

  APPENDIX 5

  Project execution; financial issues

     Implementation procedure

     1. The Borrower and the MTK are required to ensure that the Project is implemented in accordance with certain measures outlined in the RUP. Any subsequent changes to the RUP will take effect only after approval of such changes by the Borrower (through the ITC) and the ADB. In the event of any inconsistency between the RUP and this Loan Agreement, the provisions of this Loan Agreement will prevail.

     Environment

       2. The Borrower must instruct the ITC to ensure that the preparation, design, construction, implementation, operation and decommissioning of the Project comply with: (a) all applicable laws and regulations of the Borrower related to the environment, health and safety, (b) Environmental Policy and (c) all measures and requirements, as outlined in the EIA and EMP, and any corrective or preventive actions outlined in the Monitoring Results Reporting Policy. The borrower is obligated to instruct the ITC to submit an updated version of the EMP to the ADB prior to the start of work.  

     Land purchase and resettlement

     3. The borrower will instruct the MTC to ensure that:       (a) all land and right-of-way required for the Project are available for performance of work under the contract in accordance with the agreed schedule in the relevant work contract; and (b) all acquired land and resettlement activities are carried out in accordance with: (i) all applicable laws and regulations of the Borrower related to the acquisition of land and forced resettlement, and (ii) the policy on forced resettlement, as provided for in the measures and requirements of the GDPR, and any corrective or preventive actions, as set out in the monitoring results reporting policy.       4. Without limiting the application of the involuntary Resettlement Policy or IDP, the Borrower will instruct the ITC to ensure that neither physical nor economic resettlement takes place in connection with the Project until: (a) the Borrower receives ADB approval for the final IDP and this IDP is disclosed to affected persons; and (b) compensation and other payments were provided to the victims in accordance with the GDPR; (c) the total income program and livelihood were established in accordance with the GDPR; and (d) The Borrower has submitted to ADB a report, validated by an independent expert appointed by the Borrower and ADB, on the implementation of the requirements of this paragraph, and ADB has approved this report.

     Local population

     5. The Borrower must instruct the ITC to ensure that the Project does not have any impact on the local population within the meaning of the PHC. If such an impact occurs, the Borrower must instruct the MTC to prepare, disclose and implement a plan for the local population in accordance with all applicable laws and regulations of the Borrower related to the local population and the MTC.

     Human and financial resources to implement policy requirements

     6. The borrower must instruct the ITC to provide the necessary budgetary and human resources for the full implementation of the EMP and PRA. 7. The borrower must instruct the ITC to ensure that all tender documents and work contracts contain provisions that oblige contractors:       (a) comply with the contractor-related measures set out in the EIA and EMP and PRSP, and any corrective or preventive actions set out in the monitoring results reporting policy; (b) provide budgetary funds for all these environmental and social measures; and (c) provide written notification to the ITC of any unforeseen risks related to the environment, resettlement (including temporary acquisition of land and resettlement activities, as well as agreements concluded with affected persons) or the local population, and impacts that arise during the construction, implementation or operation of the Project and that are not The EIA, EMP, and PRSP were reviewed.

     Monitoring results reporting policy

     8. The borrower must instruct the MTK to do the following:       (a) submit to ADB a policy regarding monitoring reports (i) semi-annually during construction and (ii) annually during operation, and disclose relevant information from such reports to affected individuals immediately upon submission;       (b) if, at any stage during the construction, implementation and operation of the Project, environmental risks and/or impacts arise that are not provided for in the EIA, EMP and PRSP, it is necessary to immediately inform ADB of the occurrence of such risks and impacts, with a detailed description of the events and a proposed corrective action plan.;       (c) no later than the date of the conclusion of the work contract, appoint qualified and experienced external experts (these experts will be funded from the project management budget under loan No. 2503 between the Borrower and ADB) as part of the selection process and terms of reference acceptable to ADB, verify information obtained through Project monitoring, and facilitate any verification activities of such external experts; and (d) report any actual or potential violations of compliance with the measures and requirements set out in the EMP or PRSP as soon as such violations become known.  

     List of prohibited investments

     9. The borrower must ensure that no loan funds are used to finance any activity included in the list of prohibited investment activities provided for in Appendix 5 of the PMZ.

     Labor protection

     10. The borrower will instruct the ITC to ensure that provisions are included in the work contracts in order to ensure that construction contractors comply with: (a) applicable basic labor standards, labor laws, and the application of appropriate workplace safety standards; (b) equal pay for men and women for equal work; (c) Non-use of child labour in road construction and maintenance activities; (d) maximize the employment of the local poor and disadvantaged population for the construction purposes of the Project, provided that work and efficiency requirements are adequately met; and (e) promote the employment of experienced and inexperienced working women.

Health protection

       11. The borrower will instruct the ITC to ensure that information about the risks of sexually transmitted diseases, including HIV, is disseminated./AIDS, among employees of contractors involved in the Project and among local residents living in close proximity to the project road.  

     Co-financing

     12. Without limiting the general meaning of Section 4.02 of this Loan Agreement, the Borrower undertakes to ensure the availability of all co-financing funds necessary for the timely and effective execution of the Project in the form of annually allocated budgetary funds for the ITC, and undertakes to ensure that the necessary resources are provided in a timely manner. The Borrower undertakes to ensure that the MTK includes all modified financing needs for the Project in its annual development programs. The Borrower undertakes and agrees (i) to finance any cost overruns related to the implementation of this Project and (ii) that ADB will not request additional financing for cost overruns related to this Project.

     Construction quality

       13. The Borrower will instruct the ITC to ensure that the Project is executed in accordance with applicable technical specifications and plans, and that construction supervision, quality control and Project management are carried out in accordance with applicable standards and international best practices.  

     Preventing illegal trade  

     14. The borrower will fully ensure that the project road implements reliable and strict measures provided for by law to detect and prevent illegal trafficking in humans, wild animals, rare animal species and controlled substances.

     Fight against corruption

     15. The Borrower and the ITC commit to: (a) follow ADB's Anti-Corruption Policy (dated 1998, as amended) and agree that ADB has the right to investigate, directly or through its agents, all alleged cases of corruption, fraud, collusion or coercion related to the Project; and (b) To cooperate fully and facilitate any such investigation to the extent necessary to provide support for the satisfactory conclusion of any such investigation.       16. The Borrower will instruct the ITC to ensure that anti-corruption provisions acceptable to ADB are included in the tender documents and contracts, including provisions defining ADB's right to audit and verify the records and accounts of all contractors, suppliers, consultants, and service providers related to the Project.

     RCPI's note!       The following is the text of the Agreement in English.

President    

Republic of Kazakhstan     

© 2012. RSE na PHB "Institute of Legislation and Legal Information of the Republic of Kazakhstan" of the Ministry of Justice of the Republic of Kazakhstan  

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