On the ratification of the Loan Agreement (Technical and Vocational Education Modernization Project) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development

Home / RLA / On the ratification of the Loan Agreement (Technical and Vocational Education Modernization Project) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development

Law of the Republic of Kazakhstan dated July 2, 2011 No. 450-IV

To ratify the Loan Agreement (Technical and Vocational Education Modernization Project) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development, signed in Astana on November 24, 2010.

President of the Republic of Kazakhstan N. Nazarbayev

LOAN NUMBER 7931-KZ

Loan Agreement (Technical and Vocational Education Modernization Project) between the REPUBLIC OF KAZAKHSTAN and the INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Date November 24, 2010

LOAN NUMBER 7931-KZ

LOAN AGREEMENT

Agreement dated November 24, 2010, between the REPUBLIC OF KAZAKHSTAN (the Borrower) and the INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (The Bank). The Borrower and the Bank hereby agree on the following:

ARTICLE I — GENERAL CONDITIONS; DEFINITIONS

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

ARTICLE II — LOAN

2.01. The Bank agrees to provide the Borrower with an amount equal to twenty-nine million two hundred and thirty thousand US dollars ($29,230,000) (Loan), for the term and conditions set forth or specified in this Agreement, to support the financing of the project described in Appendix 1 to this Agreement (Draft). 2.02. The Borrower has the right to withdraw the Loan funds in accordance with Section IV. Appendices 2 to this Agreement. 2.03. The Borrower pays the Bank a commission for reserving loan funds equal to a quarter of one percent (0.25%) of the Loan amount. The borrower pays the commission no later than 60 days after the effective date of the Loan Agreement. 2.04. The Borrower pays remuneration during each Interest Period at a rate equal to the LIBOR rate for the Loan Currency plus a Variable Spread. Notwithstanding the above, if any part of the loan withdrawal remains unpaid on time and is not paid within thirty days, the amount of remuneration payable by the Borrower must be calculated in accordance with the provisions of Section 3.02 (d) of the General Terms and Conditions. 2.05. The payment dates are January 15th and July 15th of each year. 2.06. The Borrower repays the principal amount of the Loan in accordance with the repayment schedule specified in Appendix 3 to this Agreement.

ARTICLE III — THE DRAFT

3.01. The Borrower declares its commitment to the objectives of the Project and for this purpose implements the Project through the Ministry of Education and Science of the Republic of Kazakhstan 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 and unless otherwise agreed between the Bank and the Borrower, the Borrower shall ensure the implementation of the Project in accordance with the provisions of Appendices 2 to this Agreement.

ARTICLE IV — ENTRY INTO FORCE OF THE LOAN; TERMINATION

4.01. Additional conditions for the entry into force of the loan are as follows: (a) The State Unitary Enterprise was established by the Borrower through the Ministry of Education and Science of the Republic of Kazakhstan, the composition, resources and technical specifications of which are acceptable to the Bank. (b) The Advisory Board was established by the Borrower, whose composition, resources and technical specifications are acceptable to the Bank. (c) The Operational Management of the Project, acceptable to the Bank, has been approved by the Borrower. 4.02. The deadline for entry into force is the date following the expiration of one hundred and eighty (180) days after the date of this Agreement.

ARTICLE V - REPRESENTATIVE OF THE BORROWER; ADDRESSES

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

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

Telex: Fax number:

265126 (FILIN) 7-7172-717785

5.03. Bank's Address:

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

The Telegraph: Telex: Fax number:

INTBAFRAD 248423(MCI) 1-202-477-6391 Washington, D.C. 64145(MCI)

AGREED in Astana, Kazakhstan, on the day and year indicated above.

FOR THE REPUBLIC OF KAZAKHSTAN

Authorized representative

FOR THE INTERNATIONAL BANK RECONSTRUCTION AND DEVELOPMENT

Authorized representative

APPENDIX 1 Project Description

The aim of the Project is to increase the relevance, quality and effectiveness of technical and vocational education (VET) by improving policy mechanisms and institutional capacity.

The project consists of the following components:

Component 1: Professional standards and assessment of technical and vocational education

Provision of goods, consulting services and training for the following purposes: (a) establishment of a national qualifications framework and a national qualifications framework; (b) development of professional standards and revision of the qualifications assessment system; (c) Development and implementation of methods and procedures for independent institutional accreditation.

Component 2: Modernization of management and financing of technical and vocational education

Provision of goods, consulting services, training and financing of additional operational costs for the following purposes: (a) modernization of policy mechanisms in the field of governance and management system, as well as procedures and institutional structures of the VET system; (b) implementation of a per capita financing system for VET institutions in selected areas; (c) establishment and implementation of an effective mechanism for monitoring and evaluating VET; (d) Support the Project coordination, implementation and management process.

Component 3: Strengthening the capacity of technical and vocational education institutions

(a) Provision of goods and consulting services for the development of educational standards and standard competency-based curricula at the State level; (b) provision of sub-grants to beneficiaries for the implementation of sub-projects for the development of on-the-job teacher training programs for the implementation of modular competency-based programs in selected regional training centers teachers; and (c) providing sub-grants to beneficiaries for the implementation of sub-projects for the development and implementation of Institutional Development Plans (IAPs).

APPENDIX 2 Project Execution

Section I. Implementation mechanisms

A. Institutional arrangements.

The Borrower must implement the Project in accordance with the following institutional and other arrangements: 1. The Project Coordination Committee (CCP) will have overall responsibility for Project oversight and strategic management in accordance with the requirements, criteria, organizational arrangements and operational procedures specified in the Project Operational Manual (PRM). 2. The Borrower, through the State Unitary Enterprise, with the technical support of the Project Advisory Board (PCB), must implement the Project in accordance with the requirements, criteria, organizational mechanisms and operational procedures specified in the Project's Operational Manual and Environmental Management Strategy (Environmental Management System), and must not transfer, amend, cancel or abandon any the provisions of the Operational Management of the Project or the Environmental Management System without prior approval by the Bank. 3. Throughout the entire implementation of the Project, the Borrower must ensure the functioning of the Project Coordination Committee, the Project Management Group and the Project Advisory Board, the composition, resources and technical specifications that are satisfactory to the Bank. 4. No later than thirty (30) days after the Effective Date of the loan, the borrower, through the Ministry of Education and Science of the Republic of Kazakhstan, will update the accounting system of the State Unitary Enterprise in a form acceptable to the Bank.

B. Anti-corruption measures

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

C. Sub-projects

1. In order to implement components 3 (b) and 3 (c) of the Project, the Borrower, through the Ministry of Education and Science of the Republic of Kazakhstan, provides sub-grants to beneficiaries in accordance with the selection criteria and procedures stipulated in the Operational Guidelines of the Project, which include the following: (a) Proposals for sub-projects will be selected, implemented and evaluated in accordance with principles and procedures stipulated in the Project's Operational Manual, Procurement Manual, Consultant Recruitment Manual, Anti-Corruption Manual, and QMS; and (b) ensure that the selection criteria for sub-projects prohibit land acquisition or Resettlement. 2. The Borrower, through the Ministry of Education and Science of the Republic of Kazakhstan, provides each Sub-grant to each Beneficiary under a Sub-Grant Agreement on terms approved by the Bank, which should include the following: (a) Sub-grants will be denominated in Tenge or US Dollars; and (b) The Borrower will receive appropriate rights to protect himself and the Bank's interests, including the right to: (i) suspend or revoke the Beneficiary's right to use the sub-grant funds, or request reimbursement of all or part of the sub-grant amount, in case the Beneficiary fails to fulfill any obligations under the Sub-Grant Agreement; and (ii) require each Beneficiary to: (A)(1) properly and effectively implement its sub-project in accordance with appropriate technical, economic, financial, managerial, environmental and social standards and practices acceptable to the Bank, including the provisions of the Anti-Corruption Guidelines applicable to recipients of borrowed Funds other than the Borrower; (2) prohibit repair and/or restoration of existing facilities; and (3) for sub-projects that require an Environmental Management Plan (EMP) or that require an EMP and an Environmental Impact Assessment (EIA) for a specific work site, as specified in the EMP and PRU, timely prepare the necessary EMP or EMP and Environmental Impact Assessment (EIA) for a specific in order to comply with environmental standards acceptable to the Bank, which will include appropriate information on the implementation of the relevant EMP and EIA for a particular work site in the progress reports specified in Section II.A. of this Annex 2; (B) provide timely resources required for a specific purpose; (C) procure goods, works and services funded by the sub-grant in accordance with the provisions of this Agreement; (D) maintain appropriate policies and procedures to enable monitoring and evaluation in accordance with acceptable indicators. for the Bank, the progress of the sub-project and the achievement of its objectives; (E) (1) maintain a financial management system and prepare financial statements in accordance with consistently applied accounting standards acceptable to the Bank, which appropriately reflect the transactions, resources and expenses under the sub-project; and (2) at the request of the Bank or the Borrower, perform an independent audit of these financial statements acceptable to the Bank, and provide timely audited reports to the Borrower and the Bank; (F) allow the Borrower or the Bank to review the sub-project, its progress, and any records or documents; and (G) prepare and provide the Borrower and the Bank with all reasonably requested information regarding the above. 3. The Borrower exercises its rights under each Sub-Grant Agreement in such a way as to protect the interests of the Borrower and the Bank, as well as to achieve the objectives of the Loan. Except in cases where the Bank agrees otherwise, the Borrower must not transfer, amend, cancel or withdraw from any Sub-Grant Agreement or any of its provisions.

Section II. Monitoring reporting and Project evaluation

A. Project Reports

1. The Borrower monitors and evaluates the progress of the Project, and prepares Project Reports in accordance with the provisions of Section 5.08 of the General Terms and Conditions and based on indicators agreed with the Bank. Each Project Report must cover a period of one calendar quarter and be submitted to the Bank no later than forty-five (45) days after the end of the period covered by this report. 2. No later than fifteen (15) months after the Effective Date of the Loan, the Borrower, together with the Bank, conducts a mid-term review of the progress made during the implementation of the Project (hereinafter referred to as the "Mid-term Review"). The Mid-term review should, among other things, describe: (a) progress towards achieving the Project objective; and (b) the overall results of the Project compared to the Project performance indicators mentioned in paragraph 1 of this Section. 3. The Borrower submits to the Bank, at least four (4) weeks before the Mid-Term Review, a separate report describing the progress of each component of the Project and a summary report on the overall implementation of the Project.

B. Financial management, financial reporting and audit

1. The Borrower maintains or ensures the maintenance of a financial management system in accordance with the provisions of Section 5.09 of the General Terms and Conditions. 2. The Borrower prepares and submits 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 quarter, in a form and content acceptable to the Bank. 3. The Borrower shall audit its Financial Statements in accordance with the provisions of Section 5.09 (b) of the General Terms and Conditions. Each audit of Financial Statements should cover a period of one (1) financial year of the Borrower. The audited financial statements for each such period are submitted to the Bank no later than six (6) months after the end of each such period.

Section III. Purchases

But. General provisions

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

B. Specific methods of purchasing goods and works

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

Purchasing method

(a) National competitive bidding is subject to the additional conditions specified in the Supplementary Appendix to this Annex 2

(b) Free trade procurement

C. Specific methods of purchasing consultants' services

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

Purchasing method

(a) Selection with a fixed budget

(b) Lowest cost selection

(d) Single-source procurement

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

(f) Selection of individual consultants on a non-competitive basis

D. The Bank's review of procurement decisions

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

Section IV. Withdrawal of Loan funds from the account

A. General provisions

1. The Borrower may withdraw the Loan funds in accordance with the provisions of Article II of the General Terms and Conditions, this Section, and those additional instructions 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, according to the table in paragraph 2 below. 2. The table below identifies the categories of Eligible Expenses that can be financed from the Loan (the "Category"), the allocated Loan amounts for each Category, and the percentage of expenses to be financed as Eligible Expenses for each Category.

Category

Allocated Loan amount (in dollar terms)

Share of expenses to be financed (not including taxes)

(1) Goods and works, consulting services, additional operating expenses and Project training

[3,600,000]

100 %

(2) Sub-grants within the framework of Component 3 (b) and Component 3 (c) The project

[25,630,000]

100 %

Total amount

$ 29,230,000

For the purposes of the above table: (a) the term "Additional Operating expenses" means reasonable expenses incurred during the implementation of the Project by the Project Management Group for office space rental, utilities, transportation, stationery, photocopying, printing, advertising, bank payments, communication services, travel and daily expenses, and support staff, except for salaries of government employees; and (b) "Training" means training tours within the framework of the Project, training courses, seminars and other training activities not included in the list of contracts for the purchase of goods and services, including the cost of training materials, rental of premises and equipment, domestic travel, daily student fees and teacher fees, as well as translation services.

B. Withdrawal conditions; Withdrawal period

1. Regardless of the provisions of Part A of this Section, funds should not be withdrawn.: (a) from the Loan account until the full amount of the loan reservation fee is paid to the Bank; or (b) for payments made prior to the date of this Agreement. 2. The closing date is December 31, 2013.

Addendum to APPENDIX 2

The procedures of the Borrower's National Competitive Bidding can be used to purchase goods and works within the framework of the Project, provided that the following provisions are observed:

But. Participation of State-owned enterprises

State-owned enterprises in the Borrower's territory are entitled to participate in competitive bidding only if they confirm that they are legally and financially independent, operate in accordance with commercial law and are not an independent agency of the customer. Further, state-owned enterprises participate on similar competitive terms and security requirements as other participants.

B. Competition documents

Procurement organizations use appropriate tender documents for the purchase of goods and works acceptable to the Bank.

With. Opening and evaluation of proposals

(a) the proposals will be publicly disclosed immediately after the deadline for submission of bids; (b) the evaluation of the proposals will be carried out in strict accordance with the monetary criteria specified in the tender documents; (c) benefits for domestic manufacturers and suppliers do not apply; and (d) contracts will be awarded to participants who have passed the tender selection by submitting the lowest fully appropriate price offer without any negotiations.

D. Price adjustment

Prolonged construction work (more than eighteen (18) months) will include an appropriate price adjustment provision. Short-term construction contracts (eighteen (18) months or less) do not require an appropriate price adjustment provision.

E. Cancellation of the auction

Non-recognition of the tender or attraction of new proposals can be carried out only with prior approval from the Bank.

F. Rejection of a specific offer

A separate proposal may be rejected only in the following cases: (a) The Bidder does not meet the competitive requirements; (b) The Bidder does not accept the correction of an arithmetic error in its bid by the customer's Tender Commission; and (c) the Bidder does not meet the requirements for the tender documents.

APPENDIX 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 main debt.

The date of payment of the principal debt

Repayment rate (in percentage terms)

Every January 15th and July 15th starting from July 15th, 2014 to July 15th, 2024

4,55 %

as of January 15, 2025

4,55 %

2. If the Loan funds are not fully withdrawn on the first Repayment Date of the principal debt, the principal amount of the Loan that will be repaid by the Borrower on each such Repayment Date will be determined as follows: (a) To the extent that any Loan funds were withdrawn on the first Repayment Date of the Principal debt, the Borrower must repay the Loan Amount withdrawn on that date in accordance with paragraph 1 of this Annex. (b) Any amounts withdrawn after the first Repayment Date of the principal debt must be repaid on each Repayment Date of the principal debt after the date of such withdrawal in the amounts determined by the Bank by multiplying the amount of each such withdrawal by a fraction, the numerator of which is the initial amount of the Repayment Share indicated in the table in paragraph 1 of this Annex for that Repayment Date. The Initial Amount of the Repayment Portion of the Payment ("The Initial Amount of the Repayment Portion"), and the denominator of which is the sum of all remaining Initial Amounts of the Repayment Portion of Payments on or after the Repayment Date of the Principal debt. 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, 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 the principal debt starting from the second Repayment Date of the principal debt after the withdrawal date. (b) Notwithstanding the provisions of subparagraph (a) of this paragraph, if at any time the Bank adopts a payment billing system in which invoices are issued on or after the relevant Principal Repayment Date, the provisions of this subparagraph will not apply to such withdrawals made after the adoption of such billing system.

addition

Section I. Definitions

1. "Anti-Corruption Guidelines" means the "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 in Section III of this Annex. 2. "Beneficiary" means the recipient of a sub-grant under Component 3 (b) or 3 (c) of the Project, as specified in the Operational Guidelines; and "Recipients" means more than one recipient. 3. "Category" means the category specified in the table of Section IV of Annex 4 to this Agreement. 4. "Consultant Guide" means the "Guidance on the Selection and Recruitment of Consultants by World Bank Borrowers", published by the Bank in May 2004 and revised in October 2006 and May 2010. 5. "Environmental Management System" means an environmental management strategy prepared by the Borrower and acceptable to the Bank, published internally on February 12, 2010 and posted on the Bank's Infoshop website on February 26, 2010, describing rules, guidelines and procedures for environmental impact assessment, as well as defining measures to reduce, mitigate or eliminate adverse impacts. related to the implementation of Project activities, along with appropriate institutional and monitoring and reporting mechanisms, able to ensure proper implementation and regular feedback on compliance with the terms, which may be amended and supplemented from time to time, subject to prior written consent from the Bank. 6. "EMP" means an environmental management plan for a specific work site acceptable to the Bank, prepared by the Beneficiary, along with an Environmental Impact Assessment for a specific Work site, for Category B subprojects in accordance with the requirements of the Environmental Management System, in relation to the activities carried out by the Beneficiary under Components 3 (b) and 3 (c) and "Environmental Management Plans" means more than one EMP. 7. "General Terms and Conditions" - "General Terms and Conditions for Loans of the International Bank for Reconstruction and Development" dated July 1, 2005 (as amended until February 12, 2008), taking into account the changes presented in Section II of this Annex. 8. "Ministry of Education and Science of the Republic of Kazakhstan" means the Ministry of Science and Education of the Republic of Kazakhstan of the Borrower or any of its legal successors or assigns. 9. "Project Operational Manual" means the manual, which is subject to approval by the Borrower in accordance with Section 4.01 (c) of this Agreement, defining the operational and administrative responsibilities, procedures and rules for the implementation of the Project, including the Environmental Management System, financial procedures manual, selection criteria and procedures, conditions of sub-projects under Component 3 (b) and Component 3 (c) of the Project, which may be supplemented or modified from time to time, subject to the prior written consent of the Bank. 10. "GUP" is a Project Management Group under the Ministry of Education and Science of the Republic of Kazakhstan, established in accordance with Section 4.01 (a) of this Agreement, whose responsibilities include day–to-day Project management, which include: (i) the project director; (ii) a procurement specialist; (iii) a financial management specialist; (iv) a coordinator for the Components Projects 1 and 2; (v) coordinator for Component 3 of the Project; and (v) Administrative Assistant/translator. 11. "Procurement Manual" means the "Procurement Manual for IBRD Loans and IDA Loans", published by the Bank in May 2004 and revised in October 2006 and May 2010. 12. "Procurement Plan" means the Borrower's procurement plan for the Project dated May 12, 2010, referred to in paragraph 1.16 of the Procurement Manual and paragraph 1.24 of the Consultant Manual, which may be adjusted periodically in accordance with the provisions of these paragraphs. 13. "Project Advisory Board" means the board of technical experts, which is established in accordance with Section 4.01 (b) of this Agreement, responsible for providing expert advice to the GUP in accordance with the Operational Guidelines. 14. “Project Coordination Committee" means the committee within the Ministry of Education and Science of the Republic of Kazakhstan, the project responsible for Project supervision, strategic management, and overall Project coordination, chaired by the Executive Secretary of the Ministry of Education and Science of the Republic of Kazakhstan, or his designated representative, which should include key stakeholders from the private sector and relevant government agencies. 15. "Relocation" means (i) the involuntary seizure of land, including everything that grows or is permanently anchored on the land, including buildings and crops, resulting in: (A) displacement or loss of shelter; (B) loss of property or access to property; or (C) loss of sources of income or means of livelihood, whether or not affected persons need to move to another location; or (ii) involuntary restriction of access to legally designated parks or protected areas, resulting in adverse effects on the livelihoods of affected persons, encompassing restrictions on the use of resources in relation to people living outside the park or protected area, or those who continue to live in the park or protected area during and after the Project. 16. "Site-specific EIA" means a site-specific Project impact assessment acceptable to the Bank, which is prepared by the Beneficiary, in accordance with the requirements of the Environmental Management System for activities carried out by the Beneficiary under Component 3 (b) or Component 3 (c) of the Project, as appropriate, including, but not limited to: (i) a description of the work site/area where the project activities will be carried out; (ii) potential and actual adverse social and environmental impacts of the activities referred to in paragraph (i) above; and (iii) a description of mitigation, monitoring, and institutional measures required by the CMA. 17. “Sub-grant” means a grant granted or offered to a Beneficiary to finance goods, works, and consultant services under a sub-project under Component 3 (b) or 3 (c) of the Project. 18. "Sub-Grant Agreement" means an agreement entered into between the Borrower and the Beneficiary to finance a Sub-Project under Component 3 (b) or Component 3 (c) of the Project. 19. "Sub-project" means a specific Project implemented by the Beneficiary under Component 3 (b) or 3 (c) of the Project using the funds of the sub-grant. 20. "Tenge" means the legal currency of the Borrower.

Section II. Amendments to the General Terms and Conditions

The following changes have been made to the General Terms and Conditions: 1. Paragraph (a) of Section 2.07 reads as follows: "Section 2.07. Advance payment for preparation for refinancing; Capitalization of the Loan Opening fee and remuneration (a) If the Loan Agreement provides for the payment of an Advance from the Loan funds provided by the Bank or the Association ("Preparation Advance"), the Bank, on behalf of the Party to the Loan Agreement, must withdraw from the Loan Account on or after the Effective Date such amount as is necessary for repayment the withdrawn and outstanding advance amount on the day of withdrawal of this amount from the Credit Account and pay all accrued and unpaid fees for the amount of the advance accrued on that date, if applicable. The Bank will pay this amount, withdrawn in this way, in its favor or in favor of the Association, depending on the circumstances, and must cancel the outstanding amount of the advance." 2. Paragraph (1) of Section 7.02 reads as follows: "Section 7.02. Suspension of the Agreement by the Bank... (1) Non-compliance with the requirements. The Bank or Association has declared a Borrower (other than a Member State) or a project implementation organization ineligible to receive any financing from the Bank or Association or otherwise participate in the preparation or implementation of any project funded in whole or in part by the Bank or Association as a result of: (i) the determination by the Bank or Association that the Borrower or is the project implementation organization involved in fraudulent, corrupt, coercive actions or collusion in connection with the use of funds of any kind, provided by a Bank or Association; and/or a statement by another financial institution that the Borrower (other than the Member State) or the project implementation organization is not entitled to receive financing from this financial institution, or participate in the preparation or implementation of any project funded in whole or in part by this financial institution as a result of the determination by this financial institution that the Borrower or the project implementation organization participates in fraudulent, corrupt, coercive actions or collusion in connection with the use of funds of any kind, provided by this financial institution."

Section III. Amendments to the Anti-Corruption Guidelines

The amendments to the Anti-Corruption Guidelines are as follows:: 1. Section 5 is renumbered as Section 5 (a) and a new section 5 (b) is added as follows: "...(b) These Guidelines also provide for sanctions and appropriate measures imposed by the Bank on the Borrower (other than the Member State) or all other persons or entities that are recipients of the Loan funds if the Borrower or individual or entity has been suspended by another financial institution as a result of that institution's determination that the Borrower or an individual or a legal entity participated in fraudulent, corrupt, forced actions or collusion in connection with the use of funds provided by this financial institution." 2. Section 11 (a) has been amended as follows: "...(a) Apply sanctions in accordance with the Bank's existing policies and procedures for imposing sanctions (fn13) on a Borrower (other than a Member State) (fn14) or a natural or legal person, including (but not limited to) publicly declaring that Borrower, natural or legal person ineligible, either indefinitely or for a specific period of time: (i) to obtain a financing contract from the Bank; (ii) either serve as a beneficiary of a Bank-funded contract, financially or otherwise, for example, as a subcontractor; and (iii) participate in the preparation or implementation of a project or any other project partially or fully financed by the Bank, in the event that at any time the Bank determines (fn15) that the Borrower, individual or legal entity involved in fraudulent, corrupt, coercive actions or collusion in connection with the use of financing funds, or if another financial institution with which the Bank has entered into an agreement for the purpose of mutual enforcement of decisions on exclusion has declared this person or legal entity ineligible to receive funds for financing, provided by this financial institution, or participation in the preparation or implementation of a project partially or fully financed by this financial institution as a result of the establishment by this financial institution that the Borrower, an individual or a legal entity participated in fraudulent, corrupt, coercive actions or collusion in connection with the use of financing funds provided by this financial institution."

Footnotes:

“13. An individual or legal entity may be identified as ineligible to award a Bank-funded contract after the completion of sanctions procedures in accordance with the Bank's rules and procedures, or as part of temporary suspension or early suspension procedures in connection with the ongoing imposition of sanctions or after sanctions imposed by another financial institution with which the Bank has entered into a cross-agreement on preventing, as a result of the establishment by this financial institution, that a firm or a specific person participated in fraudulent, corrupt, forced actions or collusion in connection with the use of funds provided by this financial institution.“"14. A Member State includes officials and employees of the national Government or its political or administrative divisions and government agencies and agencies that are not eligible to participate in competitive bidding under paragraph 1.8 (b) of the Procurement Manual or participate under paragraph 1.11 (c) of the Consultant Manual.” “15. The Bank has established a Sanctions Council, as well as appropriate procedures for making such decisions. The procedures of the Sanctions Council define the full set of sanctions used in the Bank. In addition, the Bank has adopted an internal protocol outlining the process to be followed when implementing suspensions made by other financial institutions, as well as explaining how cross-exclusions will be published on the Bank's website and communicated to employees and other stakeholders.”

I hereby certify that this translation corresponds to the text of the Loan Agreement (Project for the Modernization of Technical and Vocational Education) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development in English, signed in Astana on November 24, 2010.

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

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

President

Republic of Kazakhstan

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