On the ratification of the Memorandum on Financing between the Republic of Kazakhstan and the European Union

Home / RLA / On the ratification of the Memorandum on Financing between the Republic of Kazakhstan and the European Union

Law of the Republic of Kazakhstan dated July 20, 1999 No. 449-I

To ratify the Memorandum on Financing between the Republic of Kazakhstan and the European Union, signed in Almaty on September 20, 1997. President of the Republic of Kazakhstan 1996-1997 Tacis Program Memorandum of financing Sides: The Commission of the European Communities, hereinafter referred to as the "Commission", acting on behalf of the European Community, hereinafter referred to as the "Community" on the one hand, and

The Government of the Republic of Kazakhstan, hereinafter referred to as the "Government," acting for and on behalf of the Republic of Kazakhstan, hereinafter referred to as "Kazakhstan," on the other hand. In view of the fact that both sides have agreed on an Indicative The Tacis Program in Kazakhstan for the implementation of technical assistance for 1996-1999. Both sides have agreed on the following:

1. Subject and type of activity In this agreement, the parties agreed that, within the framework of the Tacis program for the 1997 financial year, the community will provide technical assistance through subsidy financing, as set forth in the 1996-1997 Action Program for Kazakhstan, and attached in Annex 1 and forming an integral part of the Financial Memorandum. For the sake of convenience of the specified program, it was defined: Program NCA9701 Title: Technical assistance to Kazakhstan

2. Implementation The activities to be undertaken and referred to in article 1 and financed from the community budget in accordance with the provisions set out in this and in the General Rules applicable to the Financial Memorandum attached in Annex 2 are an integral part of this financial memorandum. Amendments to this Financial Memorandum, as well as to the 1996-1997 Action Program for Kazakhstan and the General Rules applicable to the Financial Memorandum, must be expressed in writing and can be agreed upon through an exchange of letters between the parties.

3. Obligations of the Union The Community undertakes the implementation of the 1996-1997 Action Program for Kazakhstan, allocating the amount of 19,000,000 ECUs (nineteen million). 4. Duration. The present Agreement on the terms of financing will enter into force from the time of its signing by both parties. The end of the term of this Agreement under the terms of financing is December 31, 2000. After this deadline, any financing balance under the KA 9701 program will cease. An extension of the duration of this Agreement on the terms of financing and the corresponding KA 9701 program may be agreed upon by submitting a reasoned written request from the Government. 5. Addresses Any and all information related to this Agreement on the terms of financing will be addressed to: for the Commission for the Government of the European Commission Mr. Umirzak Shukeev Tacis Program Tacis National Coordinator Mr. F. Lameureux EU Tacis Coordination Office AN 88 5/31 Zheltoksan Street (formerly Mira) 115 Rue de Loi 200 Room 514-517 B-1049 Brussels 480091, Almaty Kazakhstan 6. Number of copies This Agreement on the terms of financing is signed in two copies in English and in two copies in Russian, both languages are considered original. For and on behalf of and on behalf of the European Commission Government of Kazakhstan Name: Mr. den Brook Name: Mr. Umirzak Shukeev Position: Member of the Commission Position: Deputy Prime Minister - Minister of Economy and Trade of the Republic of Kazakhstan Date: 24.10.1997 Date: 20.09. 97 Place: Location: Almaty General rules applicable to the financing memorandum

The Commission of the European Communities, hereinafter referred to as the "Commission", acting for and on behalf of the European Economic Community, hereinafter referred to as the "Community", on the one hand, and The Government of the Republic of Kazakhstan, hereinafter referred to as the "Government", acting for and on behalf of the Republic of Kazakhstan, on the other hand, collectively referred to as the "Contracting Parties". Due to the fact that the Republic of Kazakhstan is a country receiving assistance in the form of Community technical assistance program Activities, as provided for in Community Council Instructions No. 2157/91 of July 15, 1991 and No. 2053/93 of July 19, 1993. Due to the fact that general technical, legislative and administrative rules must be approved for the implementation of activities funded in the Republic of Kazakhstan under the technical assistance program Communities. We have agreed on the following:

Article 1 In order to promote cooperation between the Contracting Parties in order to support the process of economic and social reform in the Republic of Kazakhstan, the Contracting Parties have agreed to implement measures as specified in the above-mentioned instructions, which will be funded and implemented within the framework of the technical, legislative and administrative structures approved in these General Rules applicable to the Memorandum on Financing. The individual details of each of the activities (or set of activities) will be set out in a Financing Memorandum to be adopted by the Contracting Parties (hereinafter referred to as the "Financing Memorandum"). The Contracting Parties shall take all necessary steps to ensure the proper implementation of all measures. The Contracting Parties may modify a separate measure by mutual agreement in the interests of its effective implementation. Such a modification cannot lead to: a) a change in the distribution of the various quantitative components of the programs by more than 15% of the amount indicated in the breakdown by the cost of the Financing Memorandum; b) an impact on the implementation of the program under initially defined conditions by significantly changing the content or technical elements of the program.

Article 2 Each Activity covered by these General Rules applicable to the Financing Memorandum will be carried out in accordance with the general provisions set out in the annex to this document, which should be included in each Financing Memorandum. The Financing Memorandum may, however, modify and supplement these General Rules, if necessary, for the implementation of the Event.

Article 3 The terms of these General Rules will also apply to activities funded under the Community technical assistance program, including interstate events in the region that are of interest to the Republic of Kazakhstan and other countries receiving assistance, but which are not covered by a separate Financing Memorandum.

Article 4 For matters related to events funded under these General Rules, the Commission may send a submission to its representative office accredited in the Republic of Kazakhstan (if any), which will ensure, on behalf of the Commission and in close cooperation with the relevant authorities of the Republic of Kazakhstan, that the event is carried out in accordance with legitimate financial and technical management practices..

Article 5 Any dispute concerning these General Rules will be the subject of consultations between the Contracting Parties, who will thus make every possible effort to resolve the problem, taking into account the objectives of these General Rules.

Article 6 These General Rules will enter into force on the day they are signed by both parties. They will apply to all activities carried out under the Community technical assistance program, as provided for in Community Council Regulations No. 2157/91 of July 15, 1991 and No. 2053/93 of July 19, 1993.

Article 7 These General Rules, applicable to the Financing Memorandum, replace and cancel the Protocol signed by the European Economic Community and the Union of Soviet Socialist Republics on August 2, 1991. Compiled in Brussels on 4.2.1994, duplicates in English and Russian in two original copies, each text has the same validity. The Commission of European Government of the Republic Communities Kazakhstan Sir Leon BRIArticle 7 These General Rules, applicable to the Financing Memorandum, replace and cancel the Protocol signed by the European Economic Community and the Union of Soviet Socialist Republics on August 2, 1991. Compiled in Brussels on 4.2.1994, duplicates in English and Russian in two original copies, each text has the same validity. The Commission of European Government of the Republic Communities Kazakhstan Sir Leon BRITTAN D. SEMBAEV Vice-President of the Commission First Deputy of the European Communities Prime Minister of the Republic of Kazakhstan

Application

General rules applicable to the financing memorandum Chapter I - Financing of events Article 1 - Planned financial allocations of the community The planned financial allocations of the Community, hereinafter referred to as the "EEC subsidy", the amount of which is set in each Financing Memorandum, will determine the limit of investments and payments based on duly approved contracts or work programs.

Article 2 - Payments 1. Payments will be made by the Commission directly to the contractor or, in the case of formalities based on work programs, in the form of advances to a bank account designated specifically for the project, from which payments are made by contractors on behalf of the Commission or the organization responsible for the implementation of the Event, under the supervision of the Commission. Whenever activities need to be implemented based on work programs, advance payments to the account will be made based on appropriate cash flow plans. The contracts will comply with international models, such as standard contracts and general provisions for contracts applied By the Commission of the European Communities. Chapter II - Logistics

Article 3 - General The procedure to be applied for the conclusion of technical cooperation and supply contracts will be set out in the Financing Memorandum, adhering to the principles set out below.

Article 4 - Source Except as specifically authorized by the Commission, the materials, resources and services required for the performance of contracts must originate from the Community or the beneficiary countries specified in Instructions No. 2157/91 of July 15, 1991 and No. 2053/93 of July 19, 1993. The list of beneficiary countries at the time of signing this agreement is attached. In individual cases, and with the special approval of the Commission, the source can be expanded to the beneficiary countries of the PHARE program, the Mediterranean countries and, in the case of co-financing, to other relevant third countries. The list of beneficiary countries of the PHARE program at the time of signing these General Rules is attached. Grouping, consortium, and subcontracting agreements between firms of the same or different national origin are subject to this source rule.

Article 5 - Departure from standard procedures In cases where the urgency of the issue is recognized or where justification is found due to the nature, secondary importance or special characteristics of the Event (for example, a two-stage financing operation, multi-phase operations, separate technical specifications, etc.), the Commission may, as an exception, authorize: - the placement of supply contracts after a limited announcement of a project tender; - the conclusion of contracts by direct agreement.

Article 6 - Conditions of participation in supply contracts Under the terms of article 5, equal conditions for participation in supply contracts will be guaranteed, in particular, by publishing an invitation to participate in a project competition in due course. Since the ad Communities will usually be published in the Official Journal. The European Communities and the relevant mass media for the Republic of Kazakhstan and other interested States.

Article 7 - Provision of contracts The Commission will ensure that for each operation the selected proposal is the most cost-effective, especially in terms of the qualifications and guarantees provided by the applicants, the cost and quality of supplies and services, the nature and conditions for implementation, disposal costs and technical value. The results of the competition for draft supply contracts will be published in the Official Journal of the Community.

Article 8 - Technical assistance contracts 1. Technical assistance contracts will generally be concluded following a limited announcement of a project tender or, when justified for technical, economic or financial reasons, through a direct agreement procedure, in accordance with the financial regulations applicable to the general budget of the Community. 2. The contracts will be drawn up, discussed and concluded either by the Commission or, where provided for in the Financing Memorandum, by the recipient of the assistance or the legal entity acting on its behalf, after approval. The Commission or its representative office accredited in the Republic of Kazakhstan, if any. 3. Within the framework of the limited announcement of the project competition, the Commission or, where provided for in the Financing Memorandum, the recipient of the assistance or the legal entity acting on its behalf, with the approval of the Commission, will prepare a final list of potential contractors who will be invited to participate. 4. As part of the direct agreement procedure, the Commission or, where provided for in the Financing Memorandum, the recipient of the assistance or the legal entity acting on its behalf, with the approval of the Commission, selects the candidate and concludes the contract.

Chapter III - Provision of benefits

Article 9 - General privileges The staff involved in the Events funded by the Commission will receive the status of seconded experts, and the Government will provide these experts and their family members who come to the Republic for this purpose. Kazakhstan, rights and privileges no less than those of other expatriates whose services are required in the Republic of Kazakhstan for the same or similar purposes.

Article 10 - Establishment, accommodation, entry and possibility of residence In the case of supply and service contracts, persons interested in participating in the contracts will have the right to visit the Republic of Kazakhstan and temporary accommodation and accommodation, if the importance of the contract requires it. This right will be obtained only after the contract has been announced, or the invitation to participate in the project competition has been issued and reviewed by the staff involved in conducting research to prepare the contract; it will expire one month after the contractor is named. The Government will issue multiple-entry visas to staff engaged in Community-funded service contracts and their family members, as specified in article 9, and ensure that visas in the Republic are extended. Kazakhstan. In addition, the Government will allow the above-mentioned seconded experts to obtain a residence permit, work there and leave, as required by the nature of the contract and within the period necessary to fulfill it, and in accordance with the relevant laws and regulations in the Republic of Kazakhstan. Upon arrival of the experts, the Government will provide them and their families with a permit and a visa for free movement throughout the Republic and residence in any city without the need to obtain any additional special permit.

Article 11 - Import and re-export of equipment The Government will issue the permits necessary for the import of professional equipment necessary for the implementation of the event, and, in particular, cars. The seconded experts will register the vehicles imported for the purpose of the project in a list indicating that these vehicles were supplied for the agreed projects and are under management. The Community or the organization that has duly entered into a contract with the Community to fulfill this agreed contract. In addition, the Government will provide individuals and legal entities that have fulfilled supply and service contracts with the permits necessary for the re-export of the above-mentioned equipment and vehicles in accordance with the existing legislation of the Republic of Kazakhstan.

Article 12 - Control over the import and exchange of currency For the implementation of measures, the Government undertakes the issuance of permits for the import and purchase of foreign currency and the application of rules for the control of currency exchange, without distinguishing between members Communities. The Government will issue the permits necessary for the seconded experts and their families to import and store foreign currency in the Republic of Kazakhstan during the term of the technical assistance contract. In addition, seconded experts and their family members will have the right to export unused foreign currency at their own discretion.

Article 13 - Taxation and Customs 1. Taxes and customs duties will not be financed from the EU subsidy. 2. Goods, including equipment and cars, imported into the Republic Kazakhstan, as part of the implementation of contracts financed or jointly financed from EU subsidies, will not be subject to import duties, taxes or fiscal charges of a similar nature established by By the Government or any of its bodies. - At the request of the Commission, the Government will ensure that the imported goods in question will be passed on time from the checkpoint to the recipient, as required for the normal performance of the contract, regardless of any disputes about the settlement of the above-mentioned taxes, duties and charges. - In cases where a supply contract funded by an EU subsidy includes products originating from the Republic of Kazakhstan, the contract will be concluded on the basis of a price that does not include domestic taxes or fiscal charges applied in the Republic of Kazakhstan to this type of supply, and will provide a list of these taxes and charges separately. 3. Contracts financed from an EU subsidy will not be subject in the Republic of Kazakhstan to the requirement of document stamping or registration fees or fiscal charges having the same effect, regardless of whether such fees exist or should be introduced. 4. Individuals and legal entities, including expatriate employees working under technical cooperation contracts funded by EU subsidies, will be exempt from paying taxes levied in the Republic of Kazakhstan. By the Government or any body subordinate to it: - social insurance contributions; - business tax and income tax or fees of a similar nature on income received from the Community or an organization with which the Community has concluded a contract. 5. Personal and household items, as well as food imported for personal use by individuals (and their family members) - other than those employed in the area - working on tasks defined in technical cooperation contracts, will be exempt from import duties, taxes and other equivalent fiscal charges levied in The Government of the Republic of Kazakhstan or any body subordinate to it. These personal and household items may be either re-exported or donated in the Republic of Kazakhstan in accordance with the rules in force in the Republic of Kazakhstan after the completion of the contract. Customs duty-free import of one motorized mobile vehicle per family into the Republic of Kazakhstan is permitted, subject to compliance with existing rules and instructions, provided that this vehicle is used only during the period of the relevant contract and is re-exported at the end of this period. Experts and their family members can obtain a local driver's license by presenting the driver's license they already have. 6. Individuals and legal entities importing professional equipment, as referred to in Article 11, will receive, upon their request, temporary import privileges, as defined by the legislation of the Republic of Kazakhstan in respect of the said equipment. Upon import and export, all of this equipment will not be subject to customs duties, taxes and fees or charges of a similar nature levied by the Government or any subordinate authority.

Chapter IV - Payment procedures

Article 14 - Payment procedures 1. Applications for contracts financed or jointly financed from an EU subsidy will normally be drawn up and payments made in ECU. For special reasons, the use of other currencies will be allowed by the Commission in individual cases. 2. After the contract applications are drawn up in ECU, the corresponding payments will be made, as they should be, in the currency indicated in the contract, based on the equivalent of the ECU value at the exchange rate on the day preceding the payment.

Chapter V - Cooperation between the Contracting Parties

Article 15 - Information and assistance 1. The Commission will immediately inform the Government about the identities of the experts and their dependents, if any, about the agreed project they will be working on, the date of their arrival, their location in the Republic of Kazakhstan and the estimated duration of their work. 2. The Government will provide any administrative assistance that is required to facilitate the implementation of the agreed projects and to comply with the terms of these General Rules.

Article 16 - Inspection and audit 1. The Commission, together with the Control Commission of the European Communities, will have the right to send their proxies or duly authorized representatives to carry out such technical and financial mission or audit as they deem necessary for the implementation of the event. However, the Commission and the Control Commission will give advance warning about such missions and may request the authorities of the Republic of Kazakhstan to participate in these audits. The Government will make all relevant information and documents available to them, as required by it, and will take all necessary measures to facilitate the work of those who have been instructed to conduct audits or inspections. 2. In cases where a Financing Memorandum provides funds for the implementation of an event by the recipient or a legal entity acting on its behalf, with the approval of the commission, the Government must ensure that: (a) Records and records sufficient to establish the authenticity of supplies and services financed under the Financing Memorandum are maintained in accordance with appropriate procedures. accounting procedures; (b) The aforementioned authorized persons or representatives of the Commission and the Control Commission have the right to verify all documentation and reports related to items that were funded under the Financing Memorandum.

Article 17 - Measures taken to develop The Parties may, where appropriate, in accordance with the schedule specified in the Financing Memorandum, monitor the follow-up activities and conduct a retroactive assessment of the implementation of the activity and inform each other of the results. Chapter VI - General and final provisions

Article 18 - Consultations - Disputes 1. Any issue related to implementation or interpretation The Financing Memorandum or these General Rules will be the subject of consultations between the Contracting Parties leading, where necessary, to the creation of an amendment to the Financing Memorandum. 2. In cases where the obligation referred to in the Financing Memorandum or these General Rules is not fulfilled, which has not been subject to corrective measures taken in due course, the commission may suspend or terminate the financing of the event after consultation with the Government. 3. The Government may refuse to hold the event in whole or in part. The Contracting Parties will discuss the details of such a waiver through an exchange of letters.

Article 19 - Notices - Addresses Any notice and any agreement between the parties submitted in this case must be the subject of correspondence, with reference to the number and name of the Event. Such notices or agreements will be expressed in a letter sent to the party that received permission for the same event and sent to the address indicated by that party. In case of emergency, messages via fax, telegraph or telex will also be allowed and will be considered valid provided that they are immediately confirmed by letter. The addresses are indicated in the Financing Memorandum.

President

Republic of Kazakhstan

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