On the ratification of the Loan Agreement (The Second loan for financing the development Policy "Inclusive and Sustainable Economic Growth") between the Republic of Kazakhstan and the International Bank for Reconstruction and Development
The Law of the Republic of Kazakhstan dated July 14, 2026 No. 348-VIII SAM.
To ratify the Loan Agreement (The Second loan for financing the development policy "Inclusive and Sustainable Economic Growth") between the Republic of Kazakhstan and the International Bank for Reconstruction and Development, signed in Astana on May 20, 2026.
President of the Republic of Kazakhstan
K. TOKAEV
Unofficial translation
LOAN NUMBER 99390-KZ
Loan agreement
The second loan to finance the development policy "Inclusive and sustainable economic growth")between
BY THE REPUBLIC OF KAZAKHSTAN
and
BY AN INTERNATIONAL BANK
RECONSTRUCTION AND DEVELOPMENT
Loan agreement
"Agreement" in force on the date of signature between the Republic of Kazakhstan (the "Borrower") and the International Bank for Reconstruction and Development (the "Bank") for the purpose of providing financing in support of the Program (as defined in Appendix 1 to this Agreement). The Bank decided to provide this financing, in particular, based on: (i) the actions that the Borrower has already taken under the Program, which are described in section I.A of Annex 1 to this Agreement; and (ii) the Borrower's compliance with an adequate macroeconomic policy framework. Thus, the Borrower and the Bank hereby agree on the following:
Article I
General terms and conditions. Definitions
1.01. The General Terms and Conditions (as defined in the addendum to this Agreement) apply to and form part of this Agreement.
1.02. Unless the context otherwise requires, the terms used in this Agreement starting with capital letters have the meanings attributed to them in the General Terms and Conditions or the addendum to this Agreement.
Article II
Loan
2.01. The Bank agrees to provide the Borrower with an amount of ¥ 92316000000 (ninety-two billion three hundred and sixteen million) Japanese yen, the specified amount may be converted periodically by Currency Conversion (hereinafter referred to as the Loan).
2.02. The one-time Loan fee is one quarter percent (0.25%) of the Loan amount.
2.03. The commission for reserving Loan funds is one quarter of a percent (0.25%) per year of the outstanding Loan balance.
2.04. The interest rate is equal to the sum of the reference rate and the variable spread or such rate as may be applied after conversion; it is determined in accordance with Section 3.02 (e) of the General Terms and Conditions.
2.05. The payment dates are April 15 and October 15 of each year.
2.06. The principal amount of the Loan is repaid in accordance with Section 3.03 of the General Terms and Conditions and Appendix 2 to this Agreement.
2.07. Without limiting the provisions of Section 5.05 of the General Terms and Conditions, the Borrower must promptly provide the Bank with such information regarding the provisions of Article II as the Bank may reasonably request from time to time.
Article III
Program
3.01. The Borrower declares his commitment to the Program and its implementation. For this purpose and on the basis of section 5.05 of the General Terms and Conditions:
(a) The Borrower and the Bank should periodically, at the request of either party, exchange views on the Borrower's macroeconomic policy and progress made in implementing the Program.;
(b) prior to each such exchange of views, the Borrower must provide the Bank with a progress report on the Program for review and comment, with such details as the Bank may reasonably request; and
(c) without prejudice to paragraphs (a) and (b) of this section, the Borrower must promptly inform the Bank of any situation that will result in a significant change in the objectives of the Program or any action taken under the Program, including any action specified in section I of Annex 1 to this Agreement.
Article IV
Bank's legal protection measures
4.01. An additional case of suspension includes the following: the occurrence of a situation in which the implementation of the Program or a significant part of it becomes unlikely.
4.02. An additional acceleration event is as follows, namely, that the event specified in Section 4.01 of this Agreement occurs and continues for 30 (thirty) days after the Bank has notified the Borrower of the event.
Article V
Entry into force. Termination
5.01. An additional condition for entry into force is as follows: The Bank is satisfied with the progress made by the Borrower in the implementation of the Program and the correctness of the Borrower's macroeconomic policy.
5.02. The effective date is 180 (one hundred and eighty) days after the date of signature.
Articles VI
Representative. Addresses
6.01. The Borrower's representative is his Minister of Finance. 6.02. For the purposes of Section 10.01 of the General Terms and Conditions: (a) address of the Borrower: Ministry of Finance of the Republic of Kazakhstan, Republic of Kazakhstan Astana, 010000 Mangilik El Avenue, 8; and (b) e-mail address of the Borrower: Fax: 7(7172)750201 6.03. For the purposes of Section 10.01 of the General Terms and Conditions: (a) address of the Bank: International Bank for Reconstruction and Development United States of America, Washington, DC, 20433 St. 1818 N.W.; and (b) the Bank's e-mail address: Telex: Fax: 248423(MS1) or 1-202-477-6391 64145(MS1)
AGREED on the date of signing
FOR THE REPUBLIC OF KAZAKHSTAN______________________________Authorized representative
First and last name: Madi Takievolution: Minister of Finance Date: May 20, 2026
FOR THE INTERNATIONAL BANK
RECONSTRUCTION AND DEVELOPMENT_______________________________Authorized representative
First and last name: Andrey Mikhnev
Position: Permanent Representative in Kazakhstan Date: May 20, 2026
APPENDIX 1
Program actions. Availability of loan funds
Section I. Actions within the framework of the Program
But. Actions taken under the Program Actions taken by the Borrower under the Program include the following:
Component I: Development of greener and more efficient energy
1. To further develop renewable energy in the country, the Borrower provided third parties with transparent and competitive access to private distributed energy production from renewable sources, as evidenced by Law No. 96-VIII and Orders No. 328. 349 and 350.
2. In order to eliminate energy subsidies and strengthen the tariff base, the Borrower has introduced systematic adjustments to electricity tariffs in accordance with the new methodology to achieve full cost recovery, as evidenced by the letter from the Committee on Regulation of Natural Monopolies.
3. In order to eliminate energy subsidies and strengthen the tariff base, the Borrower has introduced systematic adjustments to heating tariffs in accordance with the new methodology to achieve full cost recovery, as evidenced by the letter from the Committee on Regulation of Natural Monopolies.
4. To improve energy efficiency, the Borrower has adopted stricter standards and requirements for energy conservation, tightening energy efficiency targets for first-tier consumers with the highest energy intensity, as evidenced by Order No. 322.
5. In order for the emissions trading system to contribute to the implementation of the nationally determined contribution (ONUV), the Borrower: (a) announced a set of emission limits for 2026-2030 that meet the ONUV target, as evidenced by Government Decree No. 1209; and (b) updated regulations to strengthen the verification of emission measurements and reporting as evidenced by Order No. 49.
Component II: Improving competitiveness in digital and financial markets and promoting transparent procurement practices
6. To improve the efficiency of telecommunications infrastructure for the provision of broadband access services and increase trust in digitalization. The borrower: (a) has committed to the joint use of infrastructure for broadband access networks in apartment buildings, as evidenced by Law No. 86-VIII "On Communications"; (b) has introduced the right for personal data owners and operators to report personal data violations and obliges authorized authorities to inform the affected personal data owners, as evidenced by Law No. 44-VIII; and (c) obliges owners and operators of artificial intelligence systems to inform data users about automated data processing and provide an opportunity to object to such processing, as evidenced by Law No. 231-VIII.
7. To reduce distortions in the credit market and stimulate productive lending. The borrower has issued Government Decree No. 400 on restructuring interest rate subsidies under government financial support programs, while maintaining targeted support for "green" projects.
8. To enhance transparency in public procurement practices, the Borrower: (a) amended the Public Procurement Rules to require disclosure of information about the beneficial owners of firms that win public procurement contracts through the e-procurement system, as evidenced by Order No. 687 and the E-Procurement Manual version 243; and (b) adopted sustainable practices climate-sensitive procurement, as well as increased private sector participation, through the adoption of a new Law on Public Procurement.
Component III: Protection of the poor and support for regional development
9. In order to expand the coverage, inclusiveness and targeting of social protection systems, the Borrower: (a) simplified the procedures for applying for social protection programs for housing and communal enterprises, including through the transition to digital technologies, as evidenced by Order No. 97; and (b) expanded access to the targeted social assistance program for low-income households by expanding the selection criteria to take into account regional differences in income, as evidenced by Order No. 473.
10. For the development of agglomeration zones, the Borrower: (a) established existing agglomeration councils and approved comprehensive development plans in 3 (three) agglomeration zones (Astana. Almaty and Karaganda), as evidenced by Government Resolutions No. 486, 71, 136 and 1226; and (b) amended the Budget Code to grant cities and adjacent territories greater autonomy in using budget resources to finance agglomeration projects, as evidenced by the Budget Code for 2025.
11. To improve water conservation and support adaptation to climate change, the Borrower has put into effect the Water Code, which allows for the management of water resources based on regulatory permits, as evidenced by the Water Code.
Section II. Availability of loan funds
But. General provisions. The Borrower may withdraw the Loan funds in accordance with the provisions of this section and those additional instructions specified by the Bank by notifying the Borrower.
V. Allocation of Loan funds. The loan is allocated as a one-time tranche from which the Borrower can withdraw borrowed funds. The allocation of Loan amounts for this purpose is indicated in the following table:
Download
Allocation of funds
The amount of the allocated loan (expressed in Japanese yen)
One-time tranche
92316000000
Total amount
92316000000
With. Conditions for allocation of the tranche. Funds in the form of a one-time tranche cannot be withdrawn until the Bank is satisfied with: (a) the Program implemented by the Borrower; (b) the appropriate macroeconomic policy of the Borrower.
D. Closing date. The closing date is August 31, 2027.
APPENDIX 2
A repayment schedule linked to obligations
The borrower is required to repay the principal amount of the loan in accordance with the following table, which shows the repayment dates of the principal debt on the loan and the percentage of the total loan amount payable on each repayment date (the "Share of Payment").
Repayment of the principal amount in equal shares
Download
The date of payments due to repayment of the principal amount
Payment percentage
Every April 15th and October 15th, starting from April 15th, 2031 to April 15th, 2036
8,33%
October 15th, 2036
8,37%
addition
Section 1. Definitions
1. "Budget Code for 2025" means the Budget Code of the Republic of Kazakhstan dated March 15, 2025 No. 171-VIII.
2. "E-Procurement Manual version 243" means the Government E-Procurement Manual, updated on June 20, 2025.
3. "General Terms and Conditions" means the "General Terms and Conditions of the International Bank for Reconstruction and Development for Financing the Development Policy of the International Bank for Reconstruction and Development" dated December 14, 2018 (last revised on July 1, 2025).
4. ""Government Resolution No. 71" means Resolution of the Government of the Republic of Kazakhstan dated February 14, 2025 No. 71 "On Approval of the Comprehensive Development Plan of the Karaganda Agglomeration for 2025-2029".
5. ""Government Resolution No. 136" means Resolution of the Government of the Republic of Kazakhstan dated February 29, 2024 No. 136 "On Approval of the Comprehensive Plan for the Development of the Astana Agglomeration for 2024-2028 and Invalidation of Resolutions of the Government of the Republic of Kazakhstan dated September 21, 2021 No. 649 "On Approval of the Comprehensive Plan for the Socio-Economic Development of Settlements Adjacent to the City Astana, ""until 2025" and dated January 25, 2023 No. 37 "On Amendments to the Resolution of the Government of the Republic of Kazakhstan dated September 21, 2021 No. 649 " (On approval of the Comprehensive Plan for Socio-economic Development of settlements adjacent to the city of Nur-Sultan, until 2023".
6. ""Government Resolution No. 1226" means Resolution of the Government of the Republic of Kazakhstan dated December 28, 2023 No. 1226 "On approval of the Comprehensive Development Plan of the Almaty Agglomeration for 2024-2028".
7. ""Government Resolution No. 486" means the Resolution of the Government of the Republic of Kazakhstan dated June 19, 2023 No. 486 "On approval of the list and composition of agglomerations".
8. ""Government Resolution No. 1209" means Resolution of the Government of the Republic of Kazakhstan dated December 31, 2025 No. 1209 "On Approval of the nationally determined contribution of the Republic of Kazakhstan to the global response to climate change by 2035".
9. ""Government Resolution No. 400" means Resolution of the Government of the Republic of Kazakhstan dated June 2, 2025 No. 400 "On Amendments to Resolution of the Government of the Republic of Kazakhstan dated September 17, 2024 No. 754 "On Certain Measures of State support for Private Entrepreneurship".
10. ""Law No. 44-VIII" means the Law of the Republic of Kazakhstan dated December 11, 2023 No. 44-VIII "On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Information Security, Informatization and Digital Assets".
11. ""Law No. 231" means the Law of the Republic of Kazakhstan dated November 17, 2025, No. 231-VIII "On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on artificial Intelligence and Digitalization".
12. ""Law No. 96- VIII" means the Law of the Republic of Kazakhstan dated June 19, 2024 No. 96-VIII "On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on support for the use of renewable energy sources and the Electric Power industry."
13. ""Law No. 86-VIII" means the Law of the Republic of Kazakhstan dated May 21, 2024 No. 86-VIII "On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on communications, digitalization, improvement of the investment climate and elimination of excessive Legislative regulation."
14. "Letter of the Committee for Regulation of Natural Monopolies" means a letter signed by the Deputy Chairman of the Committee for Regulation of Natural Monopolies of the Ministry of National Economy of the Republic of Kazakhstan dated January 27, 2026, supplemented by a letter dated January 30, 2026.
15. ""Order No. 117" means Order No. 97 of the Minister of Industry and Construction of the Republic of Kazakhstan dated March 13, 2024 "On Amendments to Order No. 117 of the Minister of Industry and Construction of the Republic of Kazakhstan dated December 8, 2023 "On Approval of the Rules for the Provision of Housing Assistance".
16. ""Order No. 322" means Order No. 322 of the Acting Minister of Industry and Construction of the Republic of Kazakhstan dated September 10, 2024 "On Amendments to Order No. 663 of the Acting Minister of Industry and Infrastructure Development of the Republic of Kazakhstan dated November 29, 2022 "On Setting Target Indicators for Energy Efficiency for Subjects of the State Energy Register Consuming energy resources in the amount equivalent to fifty thousand or more tons of conventional fuel per year."
17. ""Order No. 473" means Order No. 473 of the Minister of Labor and Social Protection of the Republic of Kazakhstan dated December 20, 2024 "On Amendments to Order No. 160 of the Minister of Labor and Social Protection of the Republic of Kazakhstan dated May 19, 2023 "On Determining the Size of the Poverty Line".
18. ""Order No. 49" means Order No. 49 of the Minister of Ecology and Natural Resources of the Republic of Kazakhstan dated February 28, 2024 "On Amendments and Additions to Order No. 12 of the Minister of Ecology, Geology and Natural Resources of the Republic of Kazakhstan dated January 14, 2022 "On Approval of the Rules for Validation and Verification".
19. ""Order No. 633" means the order of the Acting Minister of Industry and Infrastructure Development of the Republic of Kazakhstan dated November 29, 2022 No. 663 "On setting target indicators for energy efficiency for subjects of the State Energy Register consuming energy resources in the amount equivalent to fifty thousand or more tons of conventional fuel per year."
20. ""Order No. 687" means the Order of the Minister of Finance of the Republic of Kazakhstan dated October 9, 2024 No. 687 "On Approval of the Rules for Public Procurement".
21. "Orders No. 328, 349 and 350" means orders of the Minister of Energy of the Republic of Kazakhstan:
(a) dated September 19, 2024 No. 328 "On Amendments to the Order of the Minister of Energy of the Republic of Kazakhstan dated July 8, 2016 No. 309 "On Approval of the Rules for the Purchase and Sale of Electricity from Net Consumers";
(b) No. 349 dated September 30, 2024 "On Approval of the Rules for Connection to Electric Networks and Operation of Small-scale Facilities"; and
(c) No. 350 dated September 30, 2024 "On Approval of a Model Contract for the Purchase and Sale of electric Energy from net Consumers".
22. "Program" means a program of goals, policies and actions that are defined or referenced in the Borrower's letter to the Bank dated February 9, 2026, where the Borrower declares to the Bank its obligations to implement the Program and requests the Bank's assistance in supporting its implementation, and which includes the actions taken, including those specified in section I of Annex 1 to this Agreement, and actions to be taken in accordance with the objectives of the Program.
23. "Law on Public Procurement" means the Law of the Republic of Kazakhstan dated July 1, 2024 No. 106- VIII "On Public Procurement".
24. "Date of Signature" means the later of the two dates on which the Borrower and the Bank signed this Agreement, and this definition applies to all references to the "date of the Loan Agreement" in the General Terms and Conditions.
25. ""One-time tranche" means the Loan amount allocated under the "One-time Tranche" category in the table given in Part B of section II of Annex 1 to this Agreement.
26. "Water Code" means the Water Code of the Republic of Kazakhstan dated April 9, 2025 No. 178-VIII.
I hereby certify that this translation corresponds to the text of the Loan Agreement (The Second Loan for financing the development Policy "Inclusive and Sustainable Economic Growth") between the Republic of Kazakhstan and the International Bank for Reconstruction and Development in English, signed on May 20, 2026 in Astana.
Vice Minister
D. Temirbekov
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