On the ratification of the Loan Agreement (The second Phase of the Irrigation and Drainage System Improvement Project) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development

Home / RLA / On the ratification of the Loan Agreement (The second Phase of the Irrigation and Drainage System Improvement Project) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development

On the ratification of the Loan Agreement (The second Phase of the Irrigation and Drainage System Improvement Project) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development

The Law of the Republic of Kazakhstan dated December 26, 2014 No. 268-V SAM

To ratify Loan Agreement (The second phase of the Irrigation and Drainage System Improvement Project) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development, signed in Astana on April 29, 2014.

President of the Republic of Kazakhstan N. NAZARBAYEV

LOAN No. 8277-KZ

LOAN AGREEMENT

(Second phase of the Irrigation and Drainage System Improvement Project) between the REPUBLIC OF KAZAKHSTAN and the INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT dated April 29, 2014

LOAN AGREEMENT

Agreement dated April 29, 2014 between the REPUBLIC OF KAZAKHSTAN (the "Borrower") and the INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ("Bank"). The Borrower and the Bank have hereby agreed on the following:

ARTICLE I - GENERAL CONDITIONS; DEFINITIONS

1.01. The General Terms and Conditions (defined in the Addendum to this Agreement) are an integral 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 in the Addendum to this Agreement.

ARTICLE II - LOAN

2.01. The Bank agrees to provide the Borrower with an amount equal to one hundred two million nine hundred two thousand four hundred and forty US dollars (102,902,440 US dollars), which may be converted periodically by currency conversion in accordance with the provisions of Section 2.07 of this Agreement (the "Loan"), for the term and conditions set forth in this Agreement, 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 pays the commission no later than 60 days after the effective date of the Loan Agreement. 2.04. The interest payable by the Borrower for each interest period will be calculated at a rate equal to the reference rate for the Loan currency plus a variable spread; provided that, upon Conversion of all or any part of the principal amount of the Loan, the amount of remuneration payable by the Borrower during the conversion period for this amount may be determined in accordance with the provisions of article IV of the General Terms and Conditions. Notwithstanding the above, in the event that any portion of the withdrawn outstanding Loan balance remains unpaid on time and is not paid within thirty (30) 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. 2.05. The payment dates are June 15th and December 15th of each year. 2.06. The principal amount of the Loan is repaid in accordance with the repayment schedule specified in Appendix 3 to this Agreement. 2.07. (a) The Borrower may at any time request any of the following Loan terms conversions in order to ensure sound debt management: (i) changing the Loan currency of all or any part of the Loan principal amount, whether withdrawn or not, to an approved currency; (ii) changing the interest rate basis applicable to all or any part of the withdrawn and outstanding principal amount of the Loan from a variable rate to a fixed rate and vice versa, or 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, applicable to all or 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. (b) Any modification requested in accordance with subparagraph (a) of this Section and approved 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 objectives of the Project. To this end, the Borrower implements the Project through the CVR in accordance with the provisions of Article V of the General Terms And Conditions. 3.02. Without restrictions in accordance with the requirements of the regulations Section 3.01 of this Agreement, and except where the Borrower and the Bank may agree otherwise, the Borrower shall ensure the implementation of the Project in accordance with Annex 2 to this Agreement.

ARTICLE IV - ENTRY INTO FORCE; TERMINATION

4.01. Additional conditions for entry into force are as follows: (a) acceptance by the Borrower of the Project Management Guidelines satisfactory to the Bank. (b) the establishment of a State unitary Enterprise by the Borrower, under the Water Resources Committee, with resources and technical specifications satisfactory to the Bank, including the selection of specialists in financial management and disbursement of funds. (c) the signing of a contract by the Borrower, with technical specifications satisfactory to the Bank, for the installation of a fully automated financial reporting system for the project, which will be able to generate interim unaudited financial reports. 4.02. The deadline for the entry into force of this Agreement is the date following the expiration of one hundred and eighty (180) days after the date of signing this Agreement.

ARTICLE V - REPRESENTATIVES; ADDRESSES

5.01. The Borrower's representative is the Minister of Finance. 5.02. Borrower's address: Ministry of Finance Pobedy Avenue, 11 Astana, 010000 Republic of Kazakhstan

Telex Fax number:

265126 (FILIN) (7)(3172) 717785

5.03. Bank 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) or 1-202-477-6391 Washington, D.C. 64145(MCI)

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

For THE REPUBLIC OF KAZAKHSTAN Whom: ___________________________________ Authorized Representative Full name: Bakhyt Sultanov Position: Deputy Prime Minister - Minister of Finance

For the INTERNATIONAL BANK RECONSTRUCTION AND DEVELOPMENT

Whom: ___________________________________ Authorized representative

Full name: Shebnem Akkaya

Position: Permanent Representative

APPENDIX 1 Project Description

The aim of this Project is to improve the quality of irrigation and drainage systems to support farmers in the project areas.

The project consists of the following components:

Component 1: Rehabilitation and modernization of irrigation and drainage system infrastructure.

(a) Rehabilitation and modernization of existing irrigation and drainage infrastructure on an area of approximately 113,000 hectares. (b) Design and control support during rehabilitation and modernization of irrigation and drainage infrastructure, including preparation of Dam Safety Plans for specific sites.

Component 2: Sustainable management. operation and maintenance of irrigation and drainage systems.

(a) To develop and strengthen rural consumer cooperatives and other water management organizations by: (i) facilitating the establishment and organization of support and training groups; (ii) facilitating joint development and management of the irrigation system, including the study of relevant water sector issues and access to credit and leasing resources; (iii) improvements to the management, operation and maintenance system, including water monitoring tools. (b) To promote the modernization and strengthening of the system of on-farm water resources management at the level of rural consumer cooperatives. (c) Support the modernization and strengthening of the management, operation and maintenance of the main irrigation and drainage system.

Component 3: Agricultural development

(a) Strengthening farmers' capacities through: (i) improving agricultural management and land use practices; (ii) knowledge transfer in the field of agrotechnical innovations; (iii) support for rural cooperatives, including the establishment and strengthening of farmer service centers. (b) Support the mechanization of irrigation systems and agricultural production through: (i) the development of water-saving technologies; (ii) the promotion of access to machinery for on-farm irrigation systems; (iii) the further development of relevant advisory organizations.

Component 4: Project management, technical support and training

Support to the State Unitary Enterprise in project management, administration, coordination, procurement and financial management, including Project impact monitoring and assessment, preparation and implementation of EO, audit.

APPENDIX 2 Project Execution

Section I. Implementation mechanisms

A. Institutional arrangements

The Borrower carries out operational activities for the Project through the CFS in accordance with the following institutional and other mechanisms:

1. The Borrower implements the Project in accordance with the requirements, criteria, organizational mechanisms and operational procedures specified in the Project Implementation Manual and may not transfer, amend, cancel or waive any provisions of the Project Implementation Manual without prior approval by the Bank. 2. Throughout the entire Project implementation period, the Borrower ensures that the composition, resources and technical specifications of the State Unitary Enterprise at the KVR in Astana meet the requirements of the Bank. 3. No later than ninety (90) days after the effective date, the Borrower establishes and maintains the work of the State Unitary Enterprise in Shymkent with a staff, resources and technical specifications that meet the Bank's requirements throughout the entire Project implementation period. 4. Prior to awarding the contract for the work on the relevant irrigation and drainage system, the Borrower prepares and submits to the Bank for preliminary review and approval a report on the development of a technical project for each irrigation and drainage system under Component 1 of the Project, which should include: (a) a description of the current state of the irrigation and drainage system, (b) a description, statements scope of work, estimated costs and economic analysis of proposed rehabilitation and modernization of irrigation and drainage systems, (c) information about rural consumer cooperatives that are located within the subproject areas, including information about their institutional and financial situation, implementation opportunities, their operation and maintenance plans, as well as estimated fees for irrigation services, and (d) other information that the Bank may reasonably request.

B. Anti-Corruption Measures

The Borrower ensures that the Project is carried out in accordance with the provisions of the Anti-Corruption Guidelines.

C. Ensuring security

1. The Borrower implements the Project in accordance with the requirements, criteria, organizational mechanisms and operational procedures set out in the EMP Framework, Facility-specific EA, Dam Safety Plan and applicable Dam Safety Plans for specific facilities, and does not transfer, amend, cancel or waive any provisions of the EMP Framework, Facility-specific EA, Dam Safety Plan, or applicable Dam Safety Plans for specific facilities without prior approval by the Bank. 2. Prior to the start of any construction work under Component 1 of the Project, the Borrower prepares an EA for each facility in a form satisfactory to the Bank. 3. Prior to the commencement of any construction work under Component 1 (a) of the Project, if applicable in accordance with the guidelines set out in the Project Implementation Guide, the Borrower develops a Dam Safety Plan for specific facilities in a manner satisfactory to the Bank. 4. The borrower ensures the timely implementation of all measures defined and described in the EA for specific Facilities and Dam Safety Plans for specific facilities. 5. For the implementation of Component 1 of the Project, the withdrawal of land within the framework of the Project with subsequent resettlement is not envisaged.

Section II. Monitoring reporting and Project evaluation

But. 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 covers a period of one calendar quarter and will be provided to the Bank no later than forty-five (45) days after the end of the period covered by this report. 2. Within three years after the entry into force, the Borrower, together with the Bank, conducts a mid-term review of the progress of the Project (hereinafter referred to as the "Mid-term Review"). The mid-term reviews will include, among other things, the following: (a) progress towards achieving the Project objective; and (b) overall Project effectiveness in accordance with the Project performance indicators. 3. The Borrower prepares no later than 4 (four) weeks before the Mid-Term Review and submits to the Bank a separate report describing the status of implementation of each component of the Project and a summary report on the implementation of the Project as a whole.

B. Financial management, financial reporting and audit

1. The Borrower is required to maintain or monitor the financial management system in accordance with the provisions of Section 5.09 of the General Terms and Conditions. 2. Without prejudice to the provisions of Part A of this Section, the Borrower 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 satisfactory 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 covers 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, works, and non-consulting services. All goods, works and non-consulting services required for the implementation of the Project and financed by the Loan are purchased in accordance with the requirements set out 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 funded by the Loan are procured in accordance with the requirements set out 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 terms beginning 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 definitions assigned to them in the Procurement Manual or the Consultant Selection and Recruitment Manual, as appropriate.

V. Specific methods of purchasing goods, works, and non-consulting services

1. International competitive bidding. Unless otherwise provided in paragraph 2 below, the purchase of goods, works and non-consulting services is carried out under contracts concluded in accordance with the procedures of International Competitive Bidding. 2. Other methods of purchasing goods, works, and non-consulting services. The table below shows the procurement methods, other than International Competitive Bidding, that can be used to purchase goods, works, and non-consulting services. A procurement plan indicating the conditions under which a particular method is used.

Purchase method

(a) National competitive bidding, subject to the additional conditions provided for in the Appendix to this Annex 2

(b) Shopping

With. 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 reflects the circumstances in which a particular method was used.

Purchase method

(a) Quality-based selection

(b) Selection with a fixed budget

(d) Selection based on the qualifications of consultants

(e) Single-source purchases

(f) The procedures set out in paragraphs 5.2 and 5.3 of the Guidelines for the Selection of Individual Consultants

(g) Single-source procedures for the selection of individual consultants

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 review by the Bank after the fact.

Section IV. Withdrawal of Loan funds

But. General questions

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 (including taxes)

(1) Work under Component 1 of the Project

93 000 000

30%

(2) Goods, consulting services, non-consulting services, training and operating costs under Components 1, 2, 3 and 4 of the Project

9 902 440

30%

TOTAL AMOUNT

102 902 440

30%

TOTAL AMOUNT

102 902 440

"Operating costs" means the incremental operating costs incurred by CVR in connection with the implementation, management and monitoring of a Project approved by the Bank on the basis of budgets acceptable to the Bank that would not have been incurred in the absence of the Project, and includes, among others: (i) salaries of employees of the State Unitary Enterprise, (ii) maintenance and maintenance of equipment and vehicles purchased or used for Project management, (iii) transportation and travel expenses, (iv) office supplies, (v) communications, printing and publications, (vi) interpretation and translation, (vii) operating costs of the farmer service centers, (viii) operating costs of the demonstration sites established under Part 3 (a)(i) of the Project, (ix) operating costs of equipment for the maintenance of irrigation systems under Part 3 (b) of the Project, (x) bank fees; and other expenses that may be periodically agreed with the Bank. "Training" means training activities (other than consulting services) that must be carried out within the framework of the Project with the approval of the Bank on the basis of annual training and internship plans acceptable to the Bank, including reasonable and necessary expenses for domestic and international travel and visas incurred by participants during training seminars, as well as expenses for accommodation, meals, travel expenses for domestic and international trips in accordance with the rules of the Borrower, registration, tuition fees and curatorial services, non-essential organizational expenses (including the cost of stationery, handouts, and educational materials), translation and interpretation costs, rental costs, and other expenses directly related to training seminars and internships, as agreed with the Borrower.

V. Withdrawal conditions; withdrawal period

1. Regardless of the provisions of Component A of this Section, funds cannot be withdrawn: (a) from the Loan Account until the full loan reservation fee is paid to the Bank; or (b) for payments made prior to the date of this Agreement; or (c) under Category 1, until the Borrower has prepared an EA and, where appropriate, a Collateral Plan dam safety for the site in respect of which a withdrawal request has been submitted. 2. The closing date is December 31, 2021.

Addition TO APPENDIX 2

The procurement procedure performed within the framework of National Competitive Bidding is "Public procurement through bidding", established in the Borrower's Law "On Public Procurement" No. 303-III dated July 21, 2007, as amended on January 8, 2013 for No. 63-V, however, provided that these procedures comply with the provisions of Section I, paragraphs 3.3 and 3.4 of Section III and Annex 1 of the Procurement Manual, as well as the additional provisions listed below: (a) Eligibility: The eligibility of bidders to participate in the procurement process and award them a Bank-funded contract is determined by Section I of the Procurement Manual; therefore, a bidder or potential bidder is not considered ineligible to receive a Bank-funded contract, except as set out in Section I of the Procurement Manual. Foreign bidders are allowed to participate in national competitive bidding, and foreign bidders may not be required to cooperate with local bidders to obtain the right to participate in the procurement process. (b) Registration: Participation in competitive bidding may not be open only to pre-registered companies, and foreign participating companies may not be required to register with local authorities as a condition for submitting bids. (c) Preferences: During the evaluation of bids, no preferences based on the nationality of the bidder, origin of goods, services or labor, local content, degree of citizen participation, and/or any other preferential programs are provided. (d) Tender documents: Procurement organizations use the relevant standard tender documents, including contract provisions that meet the requirements of the Bank. (e) Cost estimates: The cost estimates for procurement are confidential information and are not subject to disclosure to potential bidders. (f) Duration of the tender offer: All bidders may request in writing an extension of the validity of the tender offer, if justified by exceptional circumstances, before the expiration date and for the minimum period necessary to complete the evaluation or award of the contract, provided that the period is extended only for a minimum period, required to complete the evaluation and/or award of the contract, and it does not exceed four (4) weeks. Further requests for an additional extension of the deadline are not allowed without the prior written consent of the Bank. (g) Submission of bids and opening of envelopes: potential bidders are given at least thirty (30) days from the date of publication of the invitation to bid or from the date of receipt of the tender documents, whichever is later, to prepare and submit bids. Envelopes with bids are opened publicly immediately after the deadline for submitting applications. A copy of the envelope opening protocol is provided in a timely manner to all bidders who have submitted their bids, as well as to the World Bank, taking into account contracts subject to preliminary analysis by the Bank. (h) Qualifications: The qualification criteria are clearly defined in the tender documents. All the criteria specified in the tender documentation and only these criteria are used to determine whether the bidder has the appropriate qualifications. Qualifications are assessed according to the "meets/does not meet" principle, and the point system is not applied. Such an assessment is based solely on the ability and resources of the bidder or potential bidder to effectively execute the contract, taking into account objective and measurable factors, including: (i) relevant general and field-specific experience, as well as satisfactory performance after the execution of the contract and the successful completion of similar contracts over a specified period; (ii) the financial situation; and, where appropriate, (iii) the ability to carry out construction work and/or production facilities. (i) Prequalification procedures and documentation that meet the requirements of the World Bank are applied in the case of large, complex and/or specialized work contracts. Verification of the information on the basis of which the bidder has passed the prequalification, including the current obligations and capabilities of the participant in relation to personnel and equipment, is carried out at the time of awarding the contract. (j) In cases where the prequalification procedure is not applied, the qualifications of the bidder with whom the contract is recommended are evaluated during postqualification, using the qualification criteria specified in the tender documentation. (k) Evaluation of the tender offer: the evaluation criteria are clearly defined in the tender documents. The evaluation of bids is carried out in strict accordance with the quantifiable criteria set out in the tender documentation. The evaluation criteria, with the exception of price, are quantified in monetary terms. When evaluating bids, the point system and grouping are not applied, and neither the minimum nor percentage value is assigned to the price value. Bidders are not excluded due to minor and insignificant deviations. (l) Contracts are awarded to a qualified bidder whose bid is: (i) substantially consistent with the tender documents, and (ii) offers the lowest estimated value. There is no discussion of the price or the essence of the tender offer. (m) Rejection or request for new bids: Bids are not rejected just because they are below or above the estimated value or fall outside the established range or "group" of bid prices. It is not possible to reject all bids (or a single bid, if only one has been received), cancel the procurement process, or request new bids without the prior written consent of the World Bank. (n) Guarantees: The format and required duration of guarantees are specified in the tender documents. (o) Confidentiality: The process of evaluating bids is confidential until the announcement of the award of the contract. (p) Electronic procurement systems: Electronic procurement systems can be used provided that they meet the requirements of the World Bank. (q) Fraud and corruption: In accordance with the Procurement Manual, each tender document and contract contains provisions reflecting the World Bank's policy on the application of sanctions against firms or individuals whose involvement in fraudulent and or corrupt activities is established in accordance with the Procurement Manual. (r) The right to control and audit: In accordance with the Procurement Guidelines, each tender document and contract contains provisions reflecting the World Bank's policy on monitoring and auditing accounts, reports and other documents related to the submission of bids and the execution of contracts.

APPENDIX 3 Repayment schedule

1. The following table shows the repayment dates of the principal debt and the percentage of the total principal amount of the Loan 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 for each the repayment date of the principal debt. This amount to be paid will be adjusted as necessary in order to deduct the amounts provided for in paragraph 4 of this Annex and to which currency conversion applies.

Date of payment of the principal amount

The next installment (in %)

Every June 15th and December 15th Starting from December 15, 2021 to June 15, 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 Annex. (b) Any amounts withdrawn after the first repayment date of the principal debt shall 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 indicated in the table in paragraph 1 of this Annex for that repayment date ("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 date of the principal debt. This amount to be paid will be adjusted as necessary in order to deduct the amounts provided for in paragraph 4 of this Annex and to which currency conversion applies. 3. (a) Loan amounts withdrawn within two calendar months prior to any repayment date of the principal solely for the purpose of calculating the amounts of the principal debt payable on any repayment date of the principal debt will be considered withdrawn and outstanding on the second repayment date of the principal debt after the withdrawal date and will be repaid on each repayment date of the principal debt; starting from the second repayment date of the principal debt after the withdrawal date. (b) Notwithstanding the provisions of subparagraph (a) of this paragraph, if at any time the Bank adopts a payment billing system in which invoices are issued on or after the relevant principal repayment date, the provisions of this subparagraph will not apply to such withdrawals made after the adoption of such billing system. 4. Notwithstanding the provisions of paragraphs 1 and 2 of this Annex, when converting the currency of all or any part of the loan into an approved currency, the amount thus converted into the approved currency, which is due 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 denomination immediately before the conversion (i) the exchange rate that reflects the amounts of the principal debt in the approved currency payable by the Bank under currency hedge transactions related to the conversion; or (ii) the currency component of the interest rate, if the Bank decides to do so in accordance with the Conversion Guidelines. 5. If the loan is denominated in more than one Loan Currency, the provisions of this schedule apply separately to the denominated amounts in each of the loan currencies, as well as to calculate separate repayment schedules for each of the amounts.

application

Section I. Definitions

1. "Anti-Corruption Guidelines" means "Guidelines for the Prevention and Control of Fraud and Corruption in Projects Funded by IBRD Loans and IDA Loans and Grants" dated October 15, 2006 and updated in January 2011. 2. "Category" means the category described in the table in Section IV of Annex 4 to this Agreement. 3. "Consultant Selection Guide" means "Guidance: Selection and hiring of consultants under IBRD loans and IDA loans and grants from the World Bank by Borrowers", issued in January 2011. 4. "KVR" means the Committee on Water Resources established by the Ministry of Environment and Water Resources of the Borrower in accordance with Presidential Decree No. 466 of January 16, 2013 and Government Decree No. 172 of February 25, 2013, or any of its successors. 5. "Dam Safety Plan" means a detailed plan dated December 1, 2007, which describes the priority safety measures to be implemented during the rehabilitation of each irrigation dam under Component 1 of the Project, including a detailed study of their characteristics and safety issues, as well as the institutional mechanisms for the operation and maintenance of each such dam. 6. "Site-specific Dam Safety Plan" means a facility-specific plan drawn up by the Borrower and satisfactory to the Bank, confirming that all dam safety measures have been properly implemented by the Borrower. 7. "EA", or environmental assessment, means an inspection of a specific facility satisfactory to the Bank, which must be carried out by the Borrower in accordance with Section I.C of Annex 2 to this Agreement in relation to the work to be carried out by the Borrower under Part 1 of the Project, and which, inter alia, includes: (i) a description of the site where the Project activities will be conducted, (ii) the potential and actual adverse social and environmental impacts of the activities referred to in paragraph (i) above, and (iii) the EMP for the site, which describes environmental mitigation measures, monitoring, and institutional measures that need to be carried out at the site in accordance with the EA and the EMP framework; and "EA" means more than one EA. 8. "EMP" means an environmental management plan satisfactory to the Bank, which must be prepared by the Borrower as part of EO for a specific facility in accordance with Section I.C of Annex 2 to this Agreement; and "EMP" means more than one EMP. 9. "Framework EMP" prepared by the Borrower means the framework plan for environmental and social management, entitled "Environmental Management Plan", satisfactory to the Bank dated December 1, 2007, as amended on May 27, 2013 and re-published on the CVR website on July 10, 2013 and on the Bank's Infoshop website on June 7, 2013, contains guidelines and procedures for environmental impact assessment, reduction or compensation of negative environmental impacts associated with the implementation of Project activities together with adequate institutional mechanisms, monitoring and reporting mechanisms capable of ensuring proper compliance with conditions and regular reporting on their compliance. The Plan may be amended and supplemented from time to time with the prior written consent of the Bank. 10. "General Terms and Conditions" means the "General Terms and Conditions of the International Bank for Reconstruction and Development for the Provision of Loans" dated March 12, 2012. 11. "Project Implementation Guide" means a guide that is satisfactory to the Bank, prepared by the Borrower in accordance with Section 4.01 (a) of this Agreement, and sets out the functional and administrative responsibilities, procedures and standards for the implementation of the Project, including a guide to financial procedures and an implementation plan, criteria for the selection of sub-projects and a chart of accounts, consistent with the provisions of this The Agreement and the Borrower's national legislation, which may be amended and supplemented from time to time with the prior written consent of the Bank. 12. "GUP" means the Project Management Group that will be established under the CFS in accordance with Section 4.01 (b) of this Agreement and will be responsible for the operational management of 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" issued in January 2011. 14. "Procurement Plan" means the Borrower's procurement plan for the Project dated May 15, 2013, which is referred to in paragraph 1.18 of the Procurement Manual and paragraph 1.25 of the Consultant Selection Manual, which is periodically updated in accordance with the provisions of these paragraphs. 15. "Ministry of Environment and Water Resources" means the Ministry of Environment and Water Resources of the Borrower or any of its legal successors. 16. "Relocation" means (i) the forced removal of land, including everything that grows on it or has been constructed without the possibility of dismantling, such as buildings and crops, resulting in: (A) relocation or loss of shelter; (C) loss of property or loss of access to property; or (C) loss of a source of income. income or means of livelihood, regardless of the need for the affected persons to change their place of residence; or (ii) compulsory restriction of access to legally established parks and conservation areas, which has a negative impact on the livelihoods of affected persons, and includes restrictions on the use of resources for persons living outside the park or conservation areas, or those who live in the park or conservation areas during and after the Project.

I hereby certify that this translation corresponds to the text of the Loan Agreement (The Second Phase of the Irrigation and Drainage Systems Improvement Project) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development in English, signed on April 29, 2014 in Astana.

Head of the State Language and Editing Department of the Document Management and Control Department, State Language Development of the Ministry of Finance of the Republic of Kazakhstan B. Akhmetzhanova

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

President

Republic of Kazakhstan

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