On the ratification of the Loan Agreement (Social Health Insurance Project) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development

Home / RLA / On the ratification of the Loan Agreement (Social Health Insurance Project) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development

The Law of the Republic of Kazakhstan dated May 30, 2017 No. 67-VI.

 To ratify the Loan Agreement (Social Health Insurance Project) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development, signed in Astana on November 1, 2016.

President

Republic of Kazakhstan

N. NAZARBAYEV

LOAN No. 8617-KZ

Loan Agreement (Social Health Insurance Project) between the REPUBLIC OF KAZAKHSTAN and BY THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT on November 1, 2016

LOAN AGREEMENT

Loan Agreement dated November 1, 2016 between the Republic of Kazakhstan (the "Borrower") and the International Bank for Reconstruction and Development (the "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 in the Annex to this Agreement.

ARTICLE II - LOAN

 2.01. The Bank agrees to provide the Borrower with an amount equal to eighty million US dollars (80,000,000 US dollars), 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 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 (60) 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 during 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 interest payable by the Borrower during the Conversion Period for such amount can be determined in accordance with the relevant provisions of Article IV of the General Terms and Conditions. Notwithstanding the above, in the event that any part 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 April 15 and October 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 and conditions to be converted in order to ensure sound debt management: (i) a change in the Loan currency of all or any part of the Loan principal amount, both withdrawn and not withdrawn, to an approved currency; (ii) a change in the interest rate basis, applicable to: (A) all or any part of the withdrawn and outstanding principal amount of a variable-rate to fixed-rate Loan, 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 conversion requested in accordance with paragraph (a) of this section that is accepted by the Bank will be considered a "Conversion" as defined in the General Terms and Conditions and will take effect in accordance with the provisions of Article IV of the General Terms and Conditions and the Conversion Guidelines.

ARTICLE III - THE DRAFT

3.01. The Borrower declares his commitment to achieving the Project objective. To this end, and in accordance with the provisions of article V of the General Terms and Conditions, the Borrower implements the Project through the Ministry of Health and Social Development (MOHS) with the participation of the Social Health Insurance Fund (FSMS) under the direction and competence of the MOHS.

 3.02. Without being limited by 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 - LEGAL REMEDIES OF THE BANK

4.01. Additional conditions for suspension are as follows.

Legislation, Government regulations, or regulations related to the Borrower's compulsory social health insurance system (namely, including the functionality of the system responsible for collecting deductions and contributions and purchasing health care providers) are being amended, suspended, canceled, invalidated, or not applied, which will significantly adversely affect: (i) the implementation of the Project and/or (ii) the Borrower's ability to fulfill any part of its obligations under this Agreement.

ARTICLE V - ENTRY INTO FORCE; TERMINATION

5.01. Additional conditions for the entry into force of the Agreement are as follows:

 (a) The Borrower will officially, by order of the Ministry of Health of the Russian Federation, establish the Project Management Group (MCG), referred to in section I.A.2 of Appendix 2 to this Agreement.

(b) The Borrower, through the Ministry of Finance, will approve an RFP meeting the Bank's requirements, which should contain the community monitoring mechanism and complaint mechanism provided for in Part 3.C of the Project, as well as financial management procedures for the Project.

5.02. 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 VI - REPRESENTATIVES; ADDRESSES

 6.01. The representative of the Borrower is the Minister of Finance of the Republic of Kazakhstan.

6.02. Borrower's address:

Ministry of Finance of the Republic of Kazakhstan,

11 Pobedy Avenue,

Astana, 010000,

The Republic of Kazakhstan.

Telex: 265126 (FILIN).

Fax: (7) (7172) 717785.

6.03. Bank's address:

International Bank for Reconstruction and Development,

1818 H Street, N.W.,

Washington, DC, 20433,

United States of America.

Telex: 248423(MCI) or 64145(MCI).

Fax: 1-202-477-6391.

Agreed in Astana, Republic of Kazakhstan, on the date and year indicated above.

REPUBLIC OF KAZAKHSTAN

Whom:

___________________________________

Authorized representative

Full name: Bakhyt Sultanov _____________

Position: Minister of Finance_______

INTERNATIONAL BANK RECONSTRUCTION AND DEVELOPMENT

Whom: ___________________________________

Authorized representative

Full name: Francis Ato Brown __________

 Position: Permanent Representative

ADDENDUM 1

Project Description

The aim of the Project is to increase the accessibility, quality and cost-effectiveness of the healthcare system and reduce financial risks for the population caused by serious health problems.

The project consists of the following parts:

Part 1. Support for the implementation of the Borrower's National Social Health Insurance System (SMS)

A. Creation and strengthening of the organizational and institutional structure of the SMS system through the provision of consulting services and capacity building to support the following activities:

(i) Forecasting SMS revenue and improving revenue collection mechanisms within SMS;

 (ii) budget planning of the SMS system based on the needs of the population;

 (iii) providing institutional support for the activities of the FSMS;

(iv) improving the volume of medical care and

(v) improvement of the SMS information technology system for its integration with the e-health system created by the Borrower.

B. Strengthening procurement and payment mechanisms for suppliers within the framework of SMS through the provision of consulting services and capacity-building to support the development and piloting of the following reform areas:

(i) improvement of procurement mechanisms and payment methods for health services;

(ii) strengthening procurement mechanisms for medicines and medical technologies; and

(iii) improvement of the financial control and technical audit mechanism used within the SMS system.

Part 2. Strengthening the medical care system to support the implementation of the Borrower's SMS system

A. Development of a network of healthcare organizations, including:

(i) establishing a public health service to strengthen the promotion of healthy lifestyles and reduce risk factors for noncommunicable diseases (NCDs), strengthen the epidemiological surveillance system for disease outbreaks, and strengthen the capacity to plan public health policies and provide health services;

(ii) Assistance in improving primary and secondary prevention and strengthening primary health care, with a focus on NCDs management and results-based services;

(iii) providing support for the implementation of long-term plans for the development of a network of healthcare organizations; and

(iv) assistance in strengthening the Borrower's emergency and emergency medical care.

B. Quality management of healthcare services, including:

(i) improving clinical practice through the development of a system for implementing and monitoring the implementation of clinical protocols;

(ii) further development of medical technology assessment;

(iii) expanding disease management programs and

(iv) improvement of quality management in medical organizations and development of the accreditation program.

C. Strengthening human resources in the healthcare sector based on strategic partnerships, including:

(i) improving the principles of management and financing of medical science and education;

 (ii) improving the educational process in accordance with international standards to improve the quality of medical education for health sector workers;

 (iii) improving the system of independent assessment of knowledge and skills of graduates of medical institutions of higher education and medical professionals; and

(iv) assistance in improving human resources management in medical organizations.

Part 3. Project management, monitoring and evaluation, communication strategy

 A. Providing Project management support through:

 (i) provision of consulting services, communication services, non-consulting services, purchase of goods (equipment for state unitary enterprises) and training;

 (ii) conducting surveys to monitor and evaluate the Project; and

(iii) financing of the Operating expenses of the State Unitary Enterprise.

B. Providing support to information, educational and communication activities related to the structural reform of the health care system supported by the Project.

C. Providing support for citizen engagement activities, including:

(i) Holding annual multi-stakeholder forums to provide information and feedback on the progress of Project-related reforms;

(ii) the development of a community monitoring mechanism to monitor patient perceptions of improvements in the provision of health services; and

 (iii) the establishment of a preventive complaints mechanism to address suggestions and complaints from beneficiaries and various stakeholders.

ADDENDUM 2

Project Execution

Section I. Implementation mechanisms

A. Institutional arrangements

 1. Without being limited to the provisions of Article V of the General Terms and Conditions, except in cases where the Bank agrees otherwise, the Borrower, through the Ministry of Finance:

(a) is responsible for the overall implementation and supervision of the Project, including overseeing the implementation of sectoral policies, Project management, and coordination with relevant government and regional authorities at the working level;

 (b) ensures that the requirements, criteria, policies, procedures and organizational arrangements set out in the RFP are applied in connection with the implementation of the Project; and

(c) is not entitled to assign, amend, cancel or waive the RFP or any of its provisions, as well as to allow the assignment, amendment, cancellation or waiver of their provisions in a manner that, in the opinion of the Bank, may have significant negative consequences for the implementation of the Project, without the prior written consent of the Bank.

 2. (a) The Borrower, through the Ministry of Finance, will ensure, throughout the Project period, that the State Unitary Enterprise operates and maintains its activities in accordance with the technical specifications and functions that collectively meet the Bank's requirements, including, but not limited to: (i) coordinating the overall progress of the Project; (ii) ensuring that the requirements, criteria, policies, procedures and organizational arrangements set out in the RFP are applied during the Project implementation; (iii) implementation of the procurement process, financial management and preparation of requests for funds within the framework of the Project and (iv) monitoring and evaluation of the progress of the Project in accordance with the indicators agreed with the Bank.

 (b) The Borrower, within the competence of the Ministry of Finance, will ensure throughout the entire period of the Project that the State Unitary Enterprise is staffed with a sufficient number of qualified personnel and in accordance with technical specifications that collectively meet the requirements of the Bank.

 3. No later than within 30 days from the date of entry into force of this Agreement, the Borrower will officially establish and ensure, by order of the Ministry of Health of the Russian Federation, the functioning of a Permanent Coordination Group (PKG) for the Project throughout the entire period of the Project, consisting of employees of the Ministry of Health of the Russian Federation, the Federal Migration Service and the State Unitary Enterprise, as well as, if necessary, representatives of other organizations and government agencies), with the level of resource availability and in accordance with technical specifications that collectively meet the Bank's requirements, who will be responsible for overseeing the implementation of the sectoral policy within the framework of the Project and Project management, as well as coordinating work with relevant government agencies and regional authorities at the working level.

 4. The Borrower, through the Ministry of Health and Social Development, will ensure the functioning of the Joint Commission on the Quality of Medical Services (JCC) for the Project throughout the entire period of the Project, with a level of resource availability and in accordance with the regulations that collectively meet the Bank's requirements and are necessary, among other things, to develop recommendations for improving medical education standards, clinical protocols, provision of medicines, control over the quality and accessibility of healthcare services.

 5. The Borrower will: (a) ensure that, throughout the entire Project implementation period, the National Coordinating Council for Public Health is functioning with a level of resource availability and in accordance with the regulations that collectively meet the Bank's requirements and are necessary to fulfill the responsibilities for coordinating intersectoral policy within the framework of the Project; and (b) ensure that the said council consists of representatives of all interested authorities and regional authorities of the Borrower.

6. The Borrower will create and then ensure, throughout the entire period of the Project, the functioning and maintenance of the FSMS in composition, with the level of availability of resources and in accordance with the regulations, which together meet the requirements of the Bank, for the implementation of the Project.

7. In the event that the Borrower is no longer the sole shareholder of the FSMS:

(a) The Borrower, represented by the Ministry of Finance, will enter into an ancillary agreement with the FSMS on terms approved by the Bank, which will include: (i) the obligation of the FSMS to cooperate with the Ministry of Finance in the implementation of the Project in accordance with the applicable provisions of this Agreement and the Anti-Corruption Guidelines, and (ii) the conditions for the FSMS to benefit from the activities carried out under the Project and

(b) The Borrower, represented by the Ministry of Finance, shall exercise its rights and fulfill its obligations under the aforementioned subsidiary agreement in such a way as to protect the interests of the Borrower, represented by the Ministry of Finance and the Bank, and achieve the objectives of the Loan. Unless otherwise agreed by the Bank, the Borrower may not assign, amend, cancel, waive, terminate, or fail to enforce the ancillary agreement or any of its provisions.

8. No later than within 45 days from the date of entry into force of this Agreement, the Borrower, through the Ministry of Health, will ensure the development and implementation of a module within its existing automated accounting software with the ability to generate interim financial reports that have not been audited and collect data from the Project accounts that collectively meet the Bank's requirements.

B. Countering corruption

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

Section II. Monitoring, reporting and evaluation of the Project

A. Project Reports

 1. The Borrower, through the Ministry of Finance, will monitor and evaluate the progress of the Project and 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 45 days after the end of the period covered by such report.

B. Financial management, financial reports and audits

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 being limited to the provisions of Part A of this section, the Borrower, through the Ministry of Health of the Russian Federation, will prepare and submit to the Bank, as part of each Project report, interim financial reports on the Project that have not been audited for the relevant calendar quarter, meeting the Bank's requirements 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 audited financial statements for each such period must be submitted to the Bank no later than six months after the end of the relevant period.

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 in accordance with the provisions of this section.

 2. Consulting services. All consulting services required for the Project and financed from the Loan funds 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 in accordance with the provisions of this section.

 3. Definitions. The capitalized terms used in this section below to describe individual procurement methods or the Bank's review methods for 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 procurement of goods and non-consulting services

 1. International competitive bidding. Unless otherwise provided in paragraph 2 below, goods and non-consulting services must be procured 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, to which additional provisions specified in the Annex to this Appendix 2 will apply; (b) free trade procurement; and (c) direct contracting.

C. Selected methods of procurement of consulting services

 1. Selection based on quality and cost. Unless otherwise provided in paragraph 2 below, consulting services should be procured under contracts awarded in accordance with a selection procedure based on quality and cost.

 2. Other methods of purchasing consulting services. In addition to selection based on quality and cost, the following methods of procurement of consulting services may be used for those contracts specified in the procurement plan: (a) selection with a fixed budget; (b) selection at the lowest cost; (c) selection based on consultant qualifications; (d) selection of consulting firms from a single source in accordance with paragraph 3.8 of the Guidelines for the Selection and Hiring of Consultants; and (e) selection of individual consultants from a single source.

D. Review of procurement decisions by the Bank.

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 specified by the Bank in the notification to the Borrower (including the "World Bank Guidelines for the Disbursement of Project Funds" dated May 1, 2006, periodically reviewed by the Bank and applicable to this Agreement in accordance with such instructions), to finance eligible expenses according to the table given in paragraph 2 below.

2. The table below shows the categories of eligible expenses that can be financed from the Loan (the "Category"), the Loan amounts allocated for 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, not including taxes

(1) Non-consulting, consulting and Training services for Part 1 of the Project

14 678 000

100%

(2) Goods, non-consulting services, consulting services and Training for Parts 2 and 3 of the Project, as well as Operating Expenses for Part 3 of the Project

65 322 000

100%

TOTAL AMOUNT

80 000 000

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;

 (b) for payments made prior to the date of conclusion of this Agreement;

 (c) for payments related to Category (1) for Part 1 of the Project, until the Borrower provides evidence acceptable to the Bank that the Borrower has officially established the FSMS in accordance with the provisions of section I.A.6 of Appendix 2 to this Agreement.

2. The closing date is June 30, 2021.

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 December 4, 2015 No. 434-V "On Public Procurement"; provided that the provisions of section I and paragraphs 3.3 and 3.4 of the Procurement Manual will apply to such procedures, and also, the following additional provisions:

(a) Eligibility: The eligibility of bidders to participate in the procurement process and receive the award of a Bank-funded contract should 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 which are listed in section I of the Procurement Manual. Foreign bidders are allowed to participate in national competitive bidding procedures and are not required to enter into partnerships with local bidders in order to participate in the procurement process.;

(b) Registration: Competitive bidding should not be limited to pre-registered firms, nor is it required for foreign bidders to 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; and/or any other preference programs;

(d) Tender documents: procurement organizations should use the appropriate standard package of tender documents, including contract provisions that meet the requirements of the Bank;

(e) Estimated costs: Estimated costs are confidential information and should not be disclosed to potential bidders;

(f) period of validity of the bid: an extension of the validity of bids, if due to exceptional circumstances, may be requested in writing from all bidders prior to the expiration of the 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) Submission and opening of bids: Potential bidders will be given at least thirty (30) days from the date of publication of the invitation to bid or from the date when the tender documents are ready, 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 the criteria specified there, 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 the circumstances (iii) conformity of construction and/or production facilities;

(i) 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 the bidders necessary to evaluate the bids submitted by them, but he may not ask or allow the bidders to change the content or price of their bids after the bids are opened.;

(j) Contracts must be awarded to a qualified bidder whose bid is defined as: (i) substantially meeting the requirements of the tender documentation and (ii) offering the lowest estimated value. There should be no negotiations regarding the price or content of the tender application.;

(k) 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 the bidders have received less than two bids) 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.;

(l) Guarantees: Guarantees for bids and performance of contracts must be provided in the format and have the required validity period specified in the tender documentation referred to in paragraph (d) above. If necessary, the security of the tender application can be expressed in the form of 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.;

(m) Confidentiality: The process of evaluating bids should be kept confidential until information about the award of the contract is published;

 (n) e-procurement systems: e-procurement systems may be used, provided that the Bank is satisfied with the parameters of the systems, including, but not limited to, their security and ensuring the integrity, confidentiality and authenticity of submitted applications;

(o) Fraud and corruption: According to the Procurement Manual, all tender documents and contracts must include provisions regarding the Bank's policy of sanctioning firms or individuals found to be engaged in fraudulent, corrupt activities, collusion or obstructive practices as defined in the Procurement Manual;

 (p) 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 They will allow the Bank to inspect its accounts, accounting and other documentation related to the submission of bids and the execution of contracts, as well as 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 to conduct inspections and audits provided for in the Procurement Manual are an obstructive practice as defined by the Procurement Manual.;

 (q) publication of information on the award of contracts: the bidder must publish on public web resources or in other sources acceptable to the Bank the following information on the award of contracts: (i) the name of each tenderer who submitted the bid; (ii) the prices indicated in the bids and announced as part of the opening procedure; (iii) the name of the bidders and the estimated value of each bid that has passed the evaluation procedure; (iv) the names of the bidders whose bids were rejected, indicating the reasons for such rejection; (v) the name of the winning bidder, the price offered by him, as well as the duration and content of the contract concluded with him.

ADDENDUM 3

Repayment schedule

1. The following table shows the repayment dates of the principal debt and the percentage of the total Loan amount to be repaid on each repayment date of the principal debt (the "Repayment Share"). If the Loan funds are fully withdrawn on the first repayment date of the principal debt, the principal amount of the Loan that will be repaid by the Borrower on each such repayment date will be determined by the Bank by multiplying: (a) the Loan amount withdrawn on the first repayment date of the principal debt and (b) the repayment share on each date repayment of the principal debt [the amount to be repaid will be adjusted, if necessary, to deduct any amounts referred to in paragraph 4 of this addendum to which currency conversion applies].

Repayment date of the main debt

Repayment rate (in percentage terms)

Every April 15th and October 15th, starting from October 15th, 2021 to April 15th, 2031

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 have been withdrawn on the first repayment date of the principal debt, the Borrower will 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, the numerator of which is the initial amount of the repayment share specified in the table in paragraph 1 of this supplement for that repayment date. debt ("The initial amount of the repayment share"), and the denominator of which is the sum of all remaining initial amounts of the repayment share of payments on or after the repayment of the principal debt on such date; the amount to be repaid, if necessary, will be adjusted to deduct any amounts referred to in paragraph 4 of this addendum to which currency conversion applies.

3.(a) Loan amounts withdrawn during the two calendar months preceding any repayment date of the principal debt, solely for the purpose of calculating the amounts of the principal debt payable on any repayment date, will be considered withdrawn and outstanding on the second repayment date of the principal debt following the withdrawal date, and will be repaid on each the repayment date of the principal debt, starting from the second repayment date of the principal debt following the withdrawal date.

 (b) Notwithstanding the provisions of subparagraph (a) of this paragraph, if at any time the Bank implements a billing system based on payment dates, in which invoices are issued on or after the relevant repayment date, the provisions of this subparagraph will not apply to any withdrawals made after the introduction of such billing system.

 4. Notwithstanding the provisions of paragraphs 1 and 2 of this Addendum, after the currency conversion 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 of its denominations immediately prior to conversion to any of the following: (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 the conversion, or (ii) the currency component of the screen rate, if the Bank decides accordingly in accordance with the Conversion Guidelines.

5. If the withdrawn Loan balance is denominated in more than one Loan currency, the provisions of this addendum shall apply separately to the amount expressed 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 Suppression of Fraud and Corruption in the Implementation of Projects Financed by IBRD Loans and IDA Loans and Grants" dated October 15, 2006, as amended and supplemented in January 2011.

 2. "Category" means the category specified in the table in section IV of Appendix 2 to this Agreement.

3. "Guidance on the Selection and Hiring of Consultants" means the "Guidance on the Selection and Hiring of Consultants by World Bank Borrowers on IBRD Loans and IDA Loans and Grants" dated January 2011 (with amendments and additions dated July 2014).

 4. "Permanent Coordination Group" means the permanent coordination group of the Project specified in section I.A.3 of Appendix 2 to this Agreement, or any successor or successors of such group acceptable to the Bank.

5. "E-health system" means the system defined in the Order of the Ministry of Health dated September 3, 2013 No. 498 "On Approval of the Concept of e-Health Development of the Republic of Kazakhstan for 2013-2020".

application

Section I. Definitions

 2. "Category" means the category specified in the table in section IV of Appendix 2 to this Agreement.

 6. "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.

 7. "Joint Commission on the Quality of Medical Services" or "JCC" means the Joint Commission on the Quality of Medical Services established in accordance with the Order of the Ministry of Health of the Russian Federation dated November 30, 2015 No. 926 "On the Establishment of the Joint Commission on the Quality of Medical Services" and referred to in Section I.A.4 of Appendix 2 to this Agreement, or any its legal successor or legal successors acceptable to the Bank.

 8. "The Law on Compulsory Social Health Insurance" or "the Law on Compulsory Social Health Insurance" means the Law of the Borrower dated November 16, 2015 No. 405-V SAM "On Compulsory social health insurance", which establishes the system of compulsory social health insurance of the Borrower.

9. "Ministry of Finance" means the Ministry of Finance of the Borrower or any of its legal successors or assigns.

10. "Ministry of Health and Social Development" or "Ministry of Health and Social Development" means the Ministry of Health and Social Development of the Borrower or any of its legal successors or assigns.

 11. "National Coordinating Council for Public Health Protection" means the government-level policy council specified in Section I.A.5 of Appendix 2 to this Agreement, or any of its legal successors or successors acceptable to the Bank.

 12. "Operating expenses" means the operating costs directly incurred by the Ministry of Health of the Russian Federation in the process of Project implementation, management and monitoring, including the following items, collectively based on budgets acceptable to the Bank from time to time: (a) expenses for the maintenance of employees of the State Unitary Enterprise (which will not be considered as consulting services under Part 3.A (i) of the Project); (b) expenses for training, conferences, study trips and seminars for employees of the State Unitary Enterprise; (c) Project information dissemination costs; (d) Office space rental and utility costs; (e) insurance, maintenance and repair costs for office equipment; (f) vehicle maintenance and repair costs; (g) Travel expenses; (h) Security expenses; (i) communication costs; (j) banking costs; and (k) other costs directly related to the Project.

13. "Procurement Manual" means the "Guidelines for the Procurement of Goods, Works and Non-Consulting Services by World Bank Borrowers under IBRD Loans and IDA Loans and Grants" dated January 2011 (as amended in July 2014).

14. "Procurement Plan" means the Borrower's procurement plan for the Project dated March 24, 2016, specified in paragraph 1.18 of the Procurement Manual and in paragraph 1.25 of the Guidelines for the Selection and Hiring of Consultants and subject to periodic updating in accordance with the provisions of these paragraphs.

 15. "Project Management Group" or "MCG" means the Project management group specified in Section I.A.2 (a) of Appendix 2 to this Agreement, or any of its assignees or assignees acceptable to the Bank.

16. "Project Implementation Guide" or "RRP" means a Project implementation guide acceptable to the Bank, which sets out, among other things, institutional arrangements, reporting and oversight mechanisms, disbursement of funds, procurement, environmental and social management for the implementation of the Project, including a community monitoring mechanism and a grievance mechanism, as indicated in Part 3.C (ii) and (iii) of the Project, as well as the financial management procedures for the Project, with possible changes made periodically with the consent of the Bank; this concept includes any annexes to the RFP.

 17. "Social Health Insurance" or "SMS" means the Borrower's compulsory social health insurance provided in accordance with the Law on Compulsory Medical Insurance.

 18. "Social Health Insurance Fund" or "FSMS" means a non-profit joint stock company provided for in the OSMS Law and Section I.A.6 of Appendix 2 to this Agreement, or any of its legal successors or successors acceptable to the Bank.

19. "Training" means expenses (not related to consulting costs) incurred for Project-related study trips, training courses, seminars, trainings and other training activities not included in contracts with suppliers of goods or services, including expenses for (a) training materials, (b) rental of premises and equipment related to training, (c) travel, accommodation and daily expenses of students and teachers, (d) faculty fees and (e) other tuition-related expenses, based in each case on the annual budget agreed with the Bank.

Section II. Changes to the General Terms and Conditions

The following modifications are hereby made to the General Terms and Conditions:

1. The Content links to sections, their names and numbering are changed to reflect the changes outlined in the paragraphs below.

 2. The following changes are made to section 3.01. (One-time commission):

 "Section 3.01. One-time commission; Reservation fee

(a) The Borrower pays a one-time fee to the Bank for the Loan amount at the rate stipulated in the Loan Agreement (the "One-Time Fee").

(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 60 days after the date of the Loan Agreement until the corresponding dates when the amounts are withdrawn or cancelled by the Borrower from the Loan Account. The reservation fee is payable every six months 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, "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 word "Loan Payment" has been changed to read 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 early repayment penalty, any transaction fee for conversion or early termination of conversion, variable spread fixing fee (if any), what- or a bonus, payable after setting a fixed upper or lower limit on the interest rate, and any amounts related to changes in the terms payable 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".

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