On the ratification of the Grant Agreement (Energy Efficiency Improvement Project) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development (acting as the administrator of the Trust Fund of one donor for the Energy Efficiency Improvement Program and the development of youth associations)

The Law of the Republic of Kazakhstan dated March 19, 2015 No. 296-V SAM

     To ratify The grant agreement (Energy Efficiency Improvement Project) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development (acting as the administrator of the Trust Fund of one donor for the program on energy efficiency improvement and development of youth associations), signed in Astana on June 18, 2014.

     President of the Republic of Kazakhstan N. NAZARBAYEV

TRUST FUND GRANT No. TF014185

  Single Donor Trust Fund for the Energy Efficiency and Youth Association Development Program GRANT AGREEMENT (Energy Efficiency Project) between the REPUBLIC OF KAZAKHSTAN and the INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (acting as the administrator of the Single Donor Trust Fund for the Energy Efficiency and Youth Association Development Program)

TRUST FUND GRANT No. TF014185

A SINGLE DONOR'S TRUST FUND FOR AN ENHANCEMENT PROGRAM ENERGY EFFICIENCY AND DEVELOPMENT OF YOUTH ASSOCIATIONS

  GRANT AGREEMENT

     AGREEMENT from ___________________ 2014 the year is concluded between:

The REPUBLIC OF KAZAKHSTAN (hereinafter referred to as the Recipient) and the INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (hereinafter referred to as the World Bank), acting as the administrator of the Trust Fund of one donor for the Energy Efficiency and Youth Development Program (hereinafter referred to as the Trust Fund).

     The Recipient and the World Bank have hereby agreed as follows:

  Article I Standard conditions; Definitions

     1.01. The Standard Terms and Conditions for Grants allocated by the World Bank from Various Funds dated February 15, 2012 (hereinafter referred to as the Standard Terms and Conditions) are an integral part of this Agreement.       1.02. Unless otherwise provided by the context, the terms used in this Agreement and capitalized have the meanings assigned to them based on The Standard Terms or this Agreement.

Article II Project

     2.01. The Recipient declares his commitment to the project objectives presented in the Appendix 1 to this Agreement (hereinafter referred to as the Draft). In this regard, the Recipient ensures the implementation of the Project by the Project's Executive Agency in accordance with the provisions of Article II of the Standard Terms and Conditions and an Agreement dating from the same date as this Agreement between the World Bank and the Project's Executive Agency (hereinafter referred to as the Project Agreement), subject to possible amendments from time to time.       2.02. Without limitation of provisions Section 2.01 of this Agreement and, except in other cases agreed between the Recipient and the World Bank, the Recipient shall ensure the implementation of the Project in accordance with the provisions of Appendices 2 to this Agreement.

  Article III Grant

     3.01. The World Bank agrees to allocate to the Recipient, in the manner and on the terms set forth or mentioned in this Agreement, a grant in the amount of twenty–one million seven hundred and sixty-three thousand US dollars ($21,763,000) (hereinafter referred to as the grant) to assist in financing the Project.        3.02. The Recipient may withdraw the grant funds in accordance with Section IV of Annex 2 to this Agreement.       3.03. The grant is financed from the funds of the Trust Fund, for which the World Bank receives periodic contributions from the donor of the Trust Fund. In accordance with Section 3.02 of the Standard Terms, the payment obligations of the World Bank in connection with this Agreement are limited to the amount of funds allocated to the World Bank by the donor within the framework of the Trust Fund, and the Recipient's right to withdraw grant funds depends on the availability of these funds.

  Article IV Additional legal remedies

     4.01. Additional cases of suspension of this Agreement, as specified in Section 4.02. (k) of the Standard Terms, are presented below: (a) The Recipient has taken or received permission to take any action that prevents or prevents the Project's Executive Agency from fulfilling its obligations under the Project Agreement.       (b) The Project's Implementing Agency has not fulfilled any of its obligations under the Project Agreement.       (c) The World Bank has declared the Project's Executive Agency ineligible to receive funds funded by the World Bank or otherwise participate in the preparation or implementation of any project funded in whole or in part by the World Bank (including as administrator of funds provided by another funding organization), as a result of: (i) the establishment by the World Bank of The Bank of Facts of involvement of the Executive Agency of the Project in fraudulent, corrupt, violent practices, as well as practices of secret agreements regarding the use of funds, received as a result of financing from the World Bank, and/or (ii) a statement made by another funding organization stating that the Project's Executive Agency is not eligible to receive funds funded by that organization or otherwise participate in the preparation or implementation of any project fully or partially funded by that funding organization, as a result of the identification investigation of the facts of involvement of the Executive Agency of the Project in fraudulent, corrupt, violent practices, as well as practices of secret agreements in connection with the use of funds, provided by this financing organization.       (d) As a result of events that have occurred since the signing of this Agreement, an emergency situation has arisen that makes it unlikely that the Project's Executive Agency will fulfill its obligations under the Project Agreement.        (e) The founding Documents of the Project Executive Agency, according to which it was established and operates, have been changed, cancelled, invalidated or suspended, which may significantly and negatively affect the ability of the Project Executive Agency to fulfill its obligations under the Project Agreement.       (f) After the effective date of the Agreement referred to in Section 5.03. The World Bank has determined that before this date, but after the date of signing this Agreement, an event occurred that would give the World Bank the right to suspend the Recipient's right to withdraw funds from the grant account if this Agreement entered into force on the date when such an event occurred.

  Article V Entry into force; Termination of the Agreement

5.01. This Agreement will not enter into force until the World Bank has been provided with documentary evidence satisfying the requirements of the World Bank that the following conditions have been met.       (a) The conclusion and execution of this Agreement on behalf of the Recipient and the Project Agreement on behalf of the Project's Executive Agency are duly authorized or ratified through the necessary domestic procedures and corporate actions.       (b) If, at the request of the World Bank, the status of the Project's Executive Agency, as presented or guaranteed to the World Bank on the date of the conclusion of the Project Agreement, has not undergone any significant negative changes since that date.       (c) The Supplementary Agreement referred to in Section I.D of Annex 2 to this Agreement was signed on behalf of the Recipient and the Project's Executive Agency.       (d) Recipient with the assistance of the Ministry of Industry and New Technologies of the Republic of Kazakhstan (hereinafter – MINT) Approved and secured the approval of the Project's Operational Guidance by the Project's Executive Agency in a form acceptable to the World Bank in accordance with Section I.B of Annex 2 to this Agreement.       (e) The Recipient has established a Project Management Committee, defined the working procedure and functions of the Committee, as well as authorized representatives meeting the requirements of the World Bank, in accordance with Section I.A.2 of Annex 2 to this Agreement.       (f) The Recipient has ensured that the Project's Executive Agency has established a Project Implementation Team with developed technical specifications, staffed and resourced to meet the requirements of the World Bank, in accordance with Section I.A.3 of Annex 2 to this Agreement.       5.02. As part of the certificates that must be submitted in accordance with Section 5.01. (a) The World Bank is provided with an opinion satisfactory to the World Bank or a legal expert opinion acceptable to the World Bank or, if such a requirement is put forward by the World Bank, a confirmation satisfactory to the World Bank by a competent official of the Recipient, indicating the following:       (a) on behalf of the Recipient, that this Agreement has been duly authorized through the necessary domestic procedures or has been ratified, It is also signed and executed on behalf of the Recipient and is legally binding for him in accordance with the terms of this Agreement.       (b) on behalf of the Project Executive Agency, that the Project Agreement has been duly authorized or ratified, as well as signed and executed on behalf of the Project Executive Agency and is legally binding on it in accordance with the terms of the Project Agreement.       (c) The Supplementary Agreement referred to in Section I.D of Annex 2 to this Agreement is duly authorized or ratified by the Recipient and the Executive Agency of the Project and is legally binding on each of the parties in accordance with the terms of the Supplementary Agreement.       5.03. Unless otherwise agreed between the Recipient and the World Bank, this Agreement shall enter into force on the date on which the World Bank sends to the Recipient a notification of acceptance by the World Bank of the documentary evidence to be provided in accordance with Section 5.01. (hereinafter referred to as the effective date). If an event occurs prior to the effective date that authorizes the World Bank to suspend the Recipient's right to withdraw funds from the Grant Account, the World Bank may delay sending the notification referred to in this Section until such event(s) has concluded.

  Article VI Recipient's representative; Legal addresses

     6.01. The representative of the Recipient mentioned in Section 7.02 of the Standard Conditions is MINT.       6.02. The Recipient's legal address mentioned in the Section 7.01. Standard Conditions:       Ministry of Industry and New Technologies of the Republic of Kazakhstan Pr. Kabanbai Batyr 32/1       Astana 010000 Republic of Kazakhstan       Fax: +7-7172-24-12-31 6.03. The legal address of the World Bank, which is referenced in Section 7.01. Standard Terms:       International Bank for Reconstruction and Development       1818 H Street, N.W.       Washington, D.C. 20433 United States of America Telegraph:            Telex:                 Fax: INDEVAS 248423 (MCI) or 1-202-477-6391 Washington, D.C. 64145 (MCI)

     AGREED ______________, __________, for the day and year of the initial compilation.

REPUBLIC OF KAZAKHSTAN

_____________________________________  Authorized representative Full name: _____________________________ Post: __________________________

The INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (acting as the administrator     A single donor's Trust Fund for energy efficiency improvement and youth association development programs)    

_____________________________________ Authorized Representative          

Full name.: _____________________________

Post: __________________________      

  APPENDIX 1

  Project Description

     The objectives of the Project are to improve: (i) the energy efficiency of public and socially significant facilities and (ii) an enabling environment for sustainable energy financing.

     The project includes the following components:

     Part 1: Preparation and implementation of demonstration subprojects in government and socially significant facilities

     Implementation of eligible subprojects to reduce energy consumption in public buildings in accordance with the criteria set out in the Operational Guidelines for the Project.

     Part 2: Technical assistance to the Recipient and the Executive Agency of the Project

     (a) Strengthen the capacity of MINT and the Project's Executive Agency to coordinate, implement, monitor, evaluate and manage.       (b) Conducting technical research in the field of energy efficiency.       (c) Conducting awareness-raising and information campaigns related to subprojects funded under Part 1 of the Project.       (d) Development of legal, institutional and regulatory documents to support the creation of sustainable energy financing mechanisms.       (e) Develop detailed financing mechanisms and economically sound financing schemes for energy efficiency investments, including the creation of a list of energy efficiency investment projects ready for financing.

  APPENDIX 2

  Project Implementation

     Section I. Institutional and other mechanisms

     A. Institutional arrangements 1. MINT, on behalf of the Recipient, ensures overall coordination and control of Project activities throughout the entire Project implementation period.       2. The Recipient undertakes to ensure the functioning of the Project Management Committee, headed by MINT and representatives of MINT, the Project Executive Agency and representatives of other ministries on the part of the Recipient, with operational procedures and functions that meet the requirements of the World Bank, and which are detailed in the Operational Manual for the Project, and which should be responsible for the strategic management of the Project in accordance with the national policies and strategies, and monitoring progress towards achieving Project objectives.       3. The Recipient ensures that the Project's Executive Agency establishes and operates a Project Implementation Group throughout the entire Project implementation period with developed technical specifications, staffed and resourced to meet the requirements of the World Bank, which is responsible for daily execution, financial management, procurement, monitoring and evaluation of Project activities. The Team should include, among others, a project manager, a financial management specialist, a procurement specialist, and an environmental specialist.

     B. Operational Guidelines for the Project 1. The Recipient undertakes to ensure that the Project is executed by the Project's Executive Agency in accordance with the provisions of the guidelines that meet the requirements of the World Bank (hereinafter referred to as the Operational Guidelines for the Project), which, among other things, should include the following:       (a) implementation mechanisms, procurement procedures, and financial management aspects of the Project; (b) operational and administrative procedures for the implementation of the Project;       (c) criteria and procedural requirements for the selection, evaluation, implementation and control of subprojects; (d) procedural requirements for the implementation of Environmental Management Plans for the execution of subprojects in accordance with the Framework Document on Environmental Management; (e) monitoring, evaluation, management and reporting mechanisms for the implementation of the Project; and (f) Operational procedures and functions of the Project Management Committee.       2. In the event of a conflict between the terms of the Operational Guidelines for the Project and the terms of this Agreement, the terms of this Agreement shall prevail.

     C. Anti-corruption measures       The Recipient undertakes to ensure the implementation of the Project in accordance with the provisions of the "Guidelines for the Prevention and Suppression of Fraud and Corruption in the implementation of projects Financed by IBRD Loans and IDA Loans and Grants" dated October 15, 2006 and the updated version of the document in January 2011 ("Anti-Corruption Guidelines").

D. Supplementary Agreement 1. To facilitate the implementation of the Project, the Recipient undertakes to provide the grant funds to the Project's Executive Agency under an Additional Agreement concluded between the Recipient and the Project's Executive Agency on terms that meet the requirements of the World Bank.       2. The Recipient undertakes to exercise his rights and fulfill his obligations in accordance with the Supplementary Agreement in such a way that the interests of the Recipient and the World Bank are protected and the objectives of the grant are achieved. Except in cases where otherwise agreed with the World Bank, the Recipient has no right to assign, modify, cancel, withdraw from or fail to comply with the Supplementary Agreement or any of its provisions.       3. In the event of a conflict between the terms of the Supplementary Agreement and the terms of this Agreement, the provisions of this Agreement shall prevail.

     E. Subprojects 1. For the execution of Part 1 of the Project and prior to the implementation of any subprojects in any region, the Recipient, through the MINT, signs a memorandum of understanding with the relevant region (hereinafter referred to as the MOU) in order to take all necessary administrative measures with the specified region that meet the requirements of the World Bank to ensure appropriate support for the region during the implementation of these subprojects.       2. For the execution of Part 1 of the Project and prior to the implementation of any subprojects in any region, the Recipient ensures that the Selected Administrative Unit signs a Subproject Agreement with the Project's Executive Agency and the relevant eligible beneficiary meeting the requirements of the World Bank to ensure the commitment of the Selected Administrative Unit to provide support during the implementation of the above-mentioned subprojects.       3. In order to implement Part 1 of the Project, the Recipient ensures that the Project's Executive Agency performs the following: (a) selects, evaluates, and approves subprojects in accordance with criteria and procedures that meet the requirements of the World Bank and are detailed in the Project Operations Manual.       (b) procurement of goods, works, consulting and non-consulting services necessary for the implementation of the relevant subproject.       (c) the proper and effective implementation of the relevant subproject in accordance with duly developed technical, economic, financial, managerial, environmental and social standards and practices that meet the requirements of the World Bank.       (d) the implementation of the relevant subproject in accordance with the applicable provisions of the Subproject Agreement, the Operational Guidelines for the Project, the Environmental Management Framework Document and the Anti-Corruption Guidelines.       (e) concluding a Subproject Agreement with the relevant eligible beneficiary and the relevant Selected Administrative Unit on terms satisfactory to the World Bank.       (f) obtaining rights to adequately protect their interests and those of the Recipient and the World Bank, including, but not limited to, requiring each eligible beneficiary to: (A) grant the Recipient, the Project Executive Agency, and the World Bank the right to inspect the relevant subprojects, their implementation, and related documentation, and (B) prepare and submit to the Recipient, The Executive Agency of the Project and the World Bank all the information that the Recipient, the Executive Agency of the Project or the World Bank may reasonably require in connection with the above.       4. In the event of a conflict between the terms of the Subproject Agreement and the terms of this Agreement, the terms of this Agreement shall prevail.

     F. Enforcement of Protection Policy Measures 1. The Recipient shall ensure that the Project is executed by the Project's Executive Agency in accordance with the Environmental Management Framework Document, and the Project's Executive Agency may not assign, modify, cancel, cancel or derogate from any provision of the Environmental Management Framework Document without the prior written consent of the World Bank.       2. The Recipient ensures that guarantees are provided by the Project's Executive Agency that all measures necessary to monitor compliance with the provisions of the Environmental Management Framework Document and the Environmental Management Plan are being taken in a timely manner.       3. The Recipient ensures that the Project's Executive Agency guarantees that an Environmental Management Plan that complies with the provisions of the Environmental Management Framework Document and the requirements of the World Bank has been properly prepared and submitted prior to the start of any work under the subproject, for which the submission of such a Plan is mandatory.

     Section II Monitoring, reporting and evaluation of Project activities

     A. Project Progress Report; Project Completion Report 1. The Recipient monitors and evaluates the progress of the Project and prepares a Project Implementation Report in accordance with the provisions Section 2.06 of the Standard Terms and Conditions and based on indicators that meet the requirements of the World Bank. Each Project Implementation Report covers a period of one calendar semester and is submitted to the World Bank no later than forty-five days after the end of the period covered by the Report.       2. The Recipient draws up a Report on the completion of the Project in accordance with the provisions Section 2.06. Standard Conditions. The Project completion Report is submitted to the World Bank no later than six months after the completion date of the project.

     B. Financial Management; Financial Reports; Audits 1. The Recipient ensures that the Project's Executive Agency creates a financial management system for the Project that meets the requirements of the World Bank, in accordance with the provisions of Section 2.07. Standard Conditions.       2. The Recipient undertakes to ensure that quarterly interim unaudited financial reports on the Project are prepared and submitted to the World Bank no later than forty-five days after the end of each calendar quarter in a form and content that meets the requirements of the World Bank.       3. The Recipient shall organize an audit of the financial statements of the Project in accordance with the provisions of Section 2.07. (b) of the Standard Terms. Each audit of the financial statements covers the period of one financial year of the Recipient. The financial statements that have been audited for each period are submitted to the World Bank no later than six months after the end of the audited period.

     Section III. Making purchases

     A. General provisions 1. Guidelines for procurement and consulting services. All goods, works, non-consulting and consulting services required for the implementation of the Project and funded by the grant are procured in accordance with the requirements set out or mentioned in: (a) Section I "Guidelines for the Procurement of Goods, Works and Non-consulting Services by World Bank Borrowers under IBRD Loans and IDA Loans and Grants", published in January 2011 (hereinafter – Procurement Guidelines) for goods, works and non–consulting services, and Sections I and IV of the "Guidelines for the Selection and Hiring of Consultants by World Bank Borrowers on IBRD Loans and IDA Loans and Grants", issued in January 2011 (hereinafter referred to as the Guidelines for the Selection and Hiring of Consultants), for the services of consultants; and also (b) in the provisions of this Section III also detailed in the Procurement Plan.        2. Definitions. The capitalized terms used in this Section below to describe specific procurement methods or the World Bank's review of individual contracts refer to the relevant method described in Sections II and III of the Procurement Manual or in Sections II, III, IV and V of the Consultant Selection and Recruitment Manual, depending on the available case.

     B. Certain 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 on the basis of contracts awarded as a result of International Competitive Bidding.       2. Other methods of purchasing goods, works, and non-consulting services. In addition to international competitive bidding for the purchase of goods, works and non-consulting services under the contracts specified in the Procurement Plan, such methods may be used as: (a) national competitive bidding, taking into account the additional provisions set out in the Appendix to Annex 2 of this Agreement, (b) the purchase of goods, and (c) the conclusion of direct contracts.

     C. Certain methods of procurement of consulting services 1. The selection is based on the ratio of price and quality. Unless otherwise provided in paragraph 2 below, the procurement of consulting services is carried out within the framework of contracts awarded based on selection for quality and cost.       2. Other methods of purchasing consulting services. In addition to quality and cost selection, methods such as (a) quality selection, (b) lowest cost selection, (c) fixed budget selection, (d) consultant-based selection may be used to purchase consulting services within the scope of the assignments specified in the Procurement Plan, (e) selection from a single source, and (f) selection of individual consultants.

D. World Bank Review of Procurement Solutions        The procurement plan defines those contracts that are subject to preliminary review by the World Bank. All other contracts are subject to subsequent review by the World Bank.  

     Section IV. Withdrawal of grant funds

     A. General provisions 1. The Recipient may withdraw grant funds in accordance with the provisions of: (a) Article III of the Standard Terms, (b) this section, and (c) additional instructions that the World Bank may specify in the notification to the Recipient (including the World Bank Guidelines for the Provision of Funds for Projects issued in May 2006, subject to periodic amendments by the World Bank and application under this Agreement in accordance with such instructions), to finance eligible expenses, which are presented in the table in paragraph 2 below. 2. The table below shows the categories of eligible expenses that can be funded from the grant (hereinafter referred to as the Category), the distribution of grant amounts for each Category, as well as the percentage of expenses funded under eligible expenses in each Category.:

Category

The amount allocated from the grant (USD)

Percentage of funded expenses (including taxes)

(1) Goods, works, non-consulting services, consulting services within the framework of the implementation of the subprojects of Part 1 of the Project

17 700 000

100%

(2) Goods, works, non-consulting services, consulting services, training and operating expenses within the framework of the execution of Part 2 of the Project

4 063 000

100%

Total amount

21 763 000

     (a) The term "operating expenses" means reasonable and additional expenses incurred by the Recipient and/or the Project's Executive Agency in connection with the implementation of the Project, maintenance and rental of vehicles and equipment, payment for fuel, stationery and other supplies, insurance of vehicles and equipment, office rent, payment of Internet and communications, support of information systems, payment of expenses related to the transfer of documentation, payment of bank fees, utilities, as well as travel and transportation expenses, daily subsistence allowance and living expenses, and other reasonable expenses directly related to the implementation of Project activities. The additional costs do not include the salaries of officials in the public service of the Recipient or the Project's Executive Agency.       (b) The term "training" means expenses (not related to consulting or non-consulting services) incurred during the implementation of the Project in connection with: (i) the reasonable costs of travel, accommodation, meals and daily subsistence allowance incurred by the trainers and trainees in connection with the training, (ii) the cost of the course, ((iii) with rent for training/seminar facilities and equipment, (iv) with expenses related to the preparation, receipt, reproduction and distribution of training materials not provided for in this paragraph.

     B. Withdrawal conditions; Withdrawal period

     1. Regardless of the provisions of Part A of this section, withdrawal of grant funds is not possible for payments made prior to the signing of this Agreement.       2. The closing date according to Section 3.06. (c) of the Standard Terms and Conditions is considered to be June 30, 2017.

     Section V. Other obligations

     A. The Recipient undertakes to ensure that the Executive Agency of the Project hires a financial management specialist within 30 days from the date of entry into force of this grant.       B. The Recipient undertakes to ensure that the Project's Executive Agency installs and uses accounting software that meets the requirements of the World Bank within 30 days of the effective date of this grant.

  ADDENDUM TO APPENDIX 2 NATIONAL COMPETITIVE BIDDING - CHANGES

The procurement procedure, which is followed within the framework of national competitive bidding, is the "Public Procurement through tender" procedure, set out in the Recipient's Law "On Public Procurement" dated January 6, 2013 No. 63-V.; however, provided that such a procedure must comply with the provisions of Section I, paragraphs 3.3 and 3.4 of Section III and Annex 1 of the Procurement Manual and the following additional provisions:       (a) Eligibility: the eligibility of bidders to participate in the procurement process and award them a World Bank-funded contract in accordance with Section I of the Procurement Manual; Consequently, a bidder or potential bidder cannot be declared ineligible to be awarded contracts funded by the World Bank, except as provided in Section I of the Procurement Manual. Foreign bidders are allowed to participate in national competitive bidding, and foreign bidders are not required to cooperate with local bidders to qualify for the procurement process.       (b) Registration: Competitive bidding is not limited to the participation of pre-registered firms, and foreign participants are not required to register with local authorities as a prerequisite for submitting bids.       (c) Preferences: during the evaluation of bids, the facts of preferential treatment based on the nationality of the bidder, the origin of goods, services and labor, local content, the degree of citizen participation, and/or any other preferential programs are excluded.       (d) Tender documents: Procurement organizations use the relevant standard tender documents, including contract provisions that meet the requirements of the World Bank.       (e) Cost estimation: Cost estimation is confidential information and is not subject to disclosure to potential bidders. It is not allowed to reject a competitive offer based on a comparison with the cost estimate and/or the budget ceiling without obtaining the prior written consent of the World Bank.       (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. No further requests for additional extensions are allowed without the prior written consent of the World 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 in respect of contracts subject to preliminary review by the World 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 capabilities of the construction and/or production equipment.       (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 documents.       (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 the price, are expressed in monetary terms. The point system and grouping are not applied, and neither a minimum point nor a percentage value is assigned to the price value when evaluating bids. Contestants are not excluded due to insignificant, minor 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) Applications are not rejected just because they are lower or higher than the estimated value or fall outside the established range or "group" of the value of the proposals. 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 they meet the requirements of the World Bank.       (q) Fraud and corruption: In accordance with the "Procurement Guidelines", 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 Guidelines".       (r) Right to control and audit: In accordance with the Procurement Manual, 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.

  ADDITIONAL APPLICATION

  Definitions

(a) "Eligible beneficiary" means a recipient who is eligible for investments in subprojects in accordance with the basic eligibility criteria, such as, namely, State ownership, structural strength of the building and the absence of plans for closure, downsizing or privatization, as indicated in the Operational Guidelines for the Project.       (b) "Environmental Management Framework Document" – the Recipient's framework document on environmental management, meeting the requirements of the World Bank, dated January 9, 2013, information on which was submitted on January 11, 2013 in the Infoshop of the World Bank. The document sets out the principles, rules, guidelines and procedures for assessing the environmental and social impacts resulting from the implementation of the project and measures to mitigate negative impacts, monitoring, as well as measures that are taken during the implementation and operation of the Project to avoid or reduce adverse environmental and social impacts.       (c) "Environmental Management Plan" is an environmental management plan for a specific Project area prepared in accordance with the parameters set out in the Environmental Management Framework Document that meets the requirements of the World Bank. An Environmental Management Plan is developed and adopted by the Project's Executive Agency for each subproject, for which the existence of such a Plan is a necessary requirement in accordance with the provisions of the Environmental Management Framework Document.; includes measures to mitigate negative impacts, monitoring, and activities undertaken during the implementation and operation of a subproject to prevent negative environmental and social impacts, reduce their impact, or reduce such impacts to an acceptable level.       (d) "MINT" means the Ministry of Industry and New Technologies of the Recipient or its legal successor.       (e) "Region" is one of the Recipient's 16 regions, including Almaty and Astana.       (f) "Procurement plan" means the procurement plan for the implementation of the Project dated January 9, 2013 and referred to in paragraph 1.16 "Procurement Guidelines" and paragraph 1.24 "Guidelines for the Selection and Hiring of Consultants", which may be amended from time to time in accordance with these paragraphs.       (g) "Project Agreement" means an agreement between the World Bank and the Project's Executive Agency concluded on the date of signing this Agreement, and this term includes all annexes and agreements that supplement the Project Agreement.       (h) "Project Executive Agency" means the state–owned joint-stock company "Institute for the Development of Electric Power Industry and Energy Conservation (Kazakhenergoexpertiza)", established in accordance with the Founding Documents of the Project Executive Agency under the Ministry of Industry and New Technologies of the Republic of Kazakhstan, responsible for the implementation of the Project, or its legal successor.       (i) "The Founding Documents Of The Project's Executive Agency" – (A) Resolution of the Government of the Republic of Kazakhstan No. 1065 dated July 26, 1999, as amended, which establishes and manages the Project's Executive Agency and (B) the Charter of Kazakhenergoexpertiza Joint Stock Company, approved by Order No. 73-p of the State Energy Supervision Committee of the Ministry of Energy; (C) Resolution of the Government of the Republic of Kazakhstan No. 1294 dated November 30, 2013, according to which the current name of the Project's Executive Agency is approved.       (j) "Project Implementation Group" or "PIU" is a unit that is referred to in Section I.A.3. of Annex 2 to this Agreement with the developed technical specifications, staffing table and resources meeting the requirements of the World Bank.       (k) "Operational Project Manual" – the manual referred to in Section I.B. of Annex 2 to this Agreement, meeting the requirements of the World Bank and accepted by the Recipient and the Executive Agency of the Project, subject to possible periodic amendments previously agreed with the World Bank.       (l) "Public building" means an object on the territory of an administrative unit that (i) is state–owned (that is, it is state-owned and not controlled by an individual or corporation), (ii) is structurally sound, and (iii) plans for closure, downsizing, or privatization are not being considered..       (m) "Selected administrative unit" means the "region", "district" or "city" in the Recipient's territory where the subprojects are to be implemented.       (n) "Project Management Committee" means the committee referred to in Section I.A.4 of Annex 2 to this Agreement, as well as any of its legal successors.       (o) "Subproject" – an activity or series of activities carried out or planned to be carried out by the Project's Executive Agency for the benefit of the eligible beneficiary, in accordance with Part 1 of the Project, in respect of public buildings selected in accordance with the criteria (including, but not limited to, environmental and social considerations) and eligibility requirements set out in the Project's Operational Guidelines, and subject to environmental and social impact assessment as a result of the implementation of the subproject (including Environmental Management Plans), if such an assessment is required by the World Bank.       (p) "Subproject Agreement" is an agreement between the Executive Agency of the Project, the selected administrative unit and the eligible beneficiary, which sets out the conditions for the implementation of the subproject for the benefit of the eligible beneficiary under Part 1 of the Project.       (q) "Supplementary Agreement" is an agreement that is referred to in Section I.D of Annex 2 to this Agreement, according to which the Recipient provides the grant funds to the Executive Agency of the Project.       (r) "Trust Fund" is a single donor's Trust Fund for energy efficiency Improvement and Youth association Development programs, which is funded from funds provided by the Government of the Swiss Confederation, represented by the Swiss Agency for Development and Cooperation.

  Standard terms of grants provided By the World Bank from various funds Date: February 15, 2012

  ARTICLE I Introductory provisions

       Section 1.01. Application of Standard Conditions. These Standard Terms and Conditions set out some of the terms and conditions generally applicable to grants provided by the IBRD and IDA from various funds (other than IDA resources). They are applied to the extent provided for in the Grant Agreement.        Section 1.02. Non-compliance with the Grant Agreement. If any provision of the Grant Agreement does not comply with the provision of these Standard Terms, the provision of the Grant Agreement shall apply.        Section 1.03. Definitions. Unless otherwise provided in the Grant Agreement, in all cases where capitalized terms are used in these Standard Terms and Conditions or in the Grant Agreement, they are used in the meaning defined for them in these Standard Terms and Conditions.        Section 1.04. Links; headings. References to Articles and Sections contained in these Standard Terms refer to Articles and Sections of these Standard Terms. Their headings are provided in these Standard Terms and Conditions for reference only and should not be taken into account when interpreting these Standard Terms and Conditions.

  ARTICLE II Project Execution

Section 2.01. General principles of Project execution. The recipient provides:        (a) executing the Project (i) with due diligence and efficiency; (ii) in accordance with applicable administrative, technical, financial, economic, environmental, and social norms and practices; and (iii) in accordance with the terms of the Grant Agreement, including these Standard Terms; and (b) operationally provision of financial resources, facilities, services and other resources for the Project as needed.         Section 2.02. Insurance. The recipient ensures that sufficient funds are allocated to insure any goods that are necessary for the Project and are funded by the grant against the risks associated with the purchase, transportation and delivery of goods to their place of use or installation. Any compensation for such insurance is paid in a freely usable currency for the replacement or repair of such goods.        Section 2.03. Acquisition of land. The Recipient ensures that all actions are taken to acquire, if necessary, all land and all land rights required for the Project, and immediately submits to the World Bank, upon request, a confirmation satisfactory to the World Bank that such land and such rights are available for the Project.        Section 2.04. Use of goods, works and services; maintenance of facilities. The recipient provides:        (a) unless the World Bank agrees otherwise, the use of all goods, works and services funded by the grant is solely for the purposes of the Project; and (b) the continued proper operation and maintenance of all facilities related to the Project and the immediate implementation of all necessary repairs and reconstruction of such facilities as needed.         Section 2.05. Documents; accounts. The recipient provides:        (a) promptly submit to the World Bank, upon request, all Project-related documents with the level of detail that the World Bank reasonably requires; (b) maintain sufficient accounting records to record the progress of the Project (including related costs and deliverables), identify goods, works, and services funded by the grant, as well as disclosure of information about their use within the framework of the Project; such accounts are immediately provided to the World Bank upon request; (c) storage of all records confirming Project expenditures for at least: (i) for two years after the Closing Date of the Grant Account; or (ii) if the World Bank requires an audit of the Recipient's Financial Statements in accordance with Section 2.07 (b) below, before the later of the following dates: (A) before the expiration of one year after the World Bank receives the audited Financial Statements covering the period during which the last withdrawal was made from the Grant Account(C) before the expiration of two years after the Closing Date of the Grant Account; and (d) the opportunity for representatives of the World Bank to review all accounting materials referred to in paragraphs (b) and (c), as well as to provide them with all information regarding such accounting materials that they may reasonably request as necessary.         Section 2.06. Project Monitoring, Project Reporting and Project Evaluation. Recipient:       (a) ensures that the rules and procedures are maintained sufficiently to enable it to monitor and evaluate on an ongoing basis the progress of the Project and the achievement of its objectives in accordance with indicators acceptable to the World Bank; and (b) if required by the terms of the Grant Agreement: (i) (A) ensure that one or more project reports ("Project Reports") that satisfy the World Bank in form and content are prepared and submitted to the World Bank, summarizing the results of such monitoring activities; and The evaluation and outlines the measures recommended by the Recipient to ensure the continued effective and efficient execution of the Project and the achievement of its objectives.; at the same time, each Project Report should cover the period stipulated in the Grant Agreement; and (C) provide the World Bank with sufficient opportunity to exchange views with the Recipient on such a report and then implement the recommended measures, taking into account the views of the World Bank on this issue.; and (ii) ensures that one or more Project completion reports ("Project Completion Reports") are prepared and submitted to the World Bank no later than the date specified in the Grant Agreement for this purpose: (A) of such volume and with such degree of detail as the World Bank may reasonably request; containing information on the implementation of the Project, the fulfillment by the Recipient and the World Bank of their respective obligations under the Grant Agreement and the achievement of the grant objectives; and (C) a plan aimed at ensuring the sustainability of the Project's achievements.        Section 2.07. Financial management; financial reporting; audit. The recipient provides:        (a) maintaining a financial management system and preparing financial statements ("Financial Statements") in accordance with consistently applied accounting standards acceptable to the World Bank, so that both adequately reflect the operations, resources and costs associated with the Project;         (b) if required by the terms of the Grant Agreement: (i) periodic audit of the Financial Statements by independent auditors acceptable to the World Bank, in accordance with consistently applied auditing standards acceptable to the World Bank; and (ii) the submission of Financial Statements that have been audited to the World Bank no later than the date specified in the Grant Agreement for this purpose, together with such other information regarding audited Financial Statements and such auditors as the World Bank may reasonably request, as appropriate; and (c) timely publicly available Financial Statements that have been audited in accordance with paragraph (b) of this Section in a manner acceptable to the World Bank.         Section 2.08. Interaction and consultations. The Recipient and the World Bank cooperate fully to ensure the fulfillment of the grant's objectives and the achievement of the Project's objectives, and to this end throughout the entire duration of the Project and for ten years thereafter.:       (a) at the request of either party, periodically exchange views on the Project, the Grant and the fulfillment of their respective obligations under the Grant Agreement and provide the other party with all information related to such matters that it may reasonably request.;        (b) immediately inform each other of any circumstances that interfere or may potentially interfere in such matters.         Section 2.09. Sessions. Throughout the entire period of the Project and for ten years after its completion, the Recipient:        (a) if it is a Member State, it shall provide an opportunity for representatives of the World Bank to visit any part of its territory for purposes related to the grant;         (b) if it is not a Member State, take all necessary measures on its part to allow representatives of the World Bank to visit any part of the territory of the Member State for purposes related to the grant; and (c) provide an opportunity for representatives of the World Bank to: (i) visit any facilities and sites, included in the Project; and (ii) review the goods funded by the grant, as well as any documents related to the fulfillment of the Recipient's obligations under the Grant Agreement.         Section 2.10. Disputed territory       In the case of a Project in a territory that is or becomes a disputed territory, neither the financing of the Project by the World Bank nor any designation of such territory or reference to it in the Grant Agreement is an expression of the judgment of the World Bank on the relative legal or other status of such territory and does not infringe anyone's rights in the settlement of claims in regarding such a territory.

  ARTICLE III Withdrawal of grant funds

Section 3.01. Grant Account; General principles of withdrawal; Withdrawal currency (a) The World Bank credits the grant amount in the currency in which the grant is denominated to the Grant Account. The Recipient may, as necessary, request the withdrawal of grant amounts from the Grant Account in accordance with the provisions of the Grant Agreement and these Standard Terms.         (b) The withdrawal of grant amounts from the Grant Account is carried out in the currency in which the grant is denominated. At the request of the Recipient, the World Bank, acting as its agent, and subject to conditions determined by the World Bank, may purchase in the currency withdrawn from the Grant Account such other currencies as the Recipient may reasonably request to pay Acceptable Expenses. In all cases where, for the purposes of the Grant Agreement or these Standard Terms, it becomes necessary to determine the value of one currency denominated in another currency, such value is reasonably determined by the World Bank.         Section 3.02. Insufficient funds. Despite the provisions of Section 3.01, withdrawals are not allowed if, as a result of such withdrawal, the total amount of the grant withdrawn from the Grant Account exceeds the amount available to the World Bank from the resources of trust funds provided to it for the purpose of implementing the grant by other funding organizations. The risk associated with any such shortage of funds is borne by the Buyer, and the World Bank assumes no liability to the Recipient or any third parties for any costs or obligations arising from the Grant Agreement that exceed the amount of funds available to the World Bank for the purposes of the grant..        Section 3.03. Special Commitment of the World Bank. At the request of the Recipient and on terms agreed between the Recipient and the World Bank, the World Bank may make special commitments in writing to pay amounts for Eligible Expenses, regardless of any subsequent suspension or cancellation of any grant amount (the "Special Commitment").        Section 3.04. Applications; Confirmations (a) If the Recipient wishes to withdraw the amount from the Grant Account or apply to the World Bank for a Special Commitment, the Recipient submits to the World Bank a corresponding written application, the form and content of which are reasonably determined by the World Bank (the "Application").         (b) Either before or after the World Bank has authorized any withdrawal requested in the Application, the Recipient shall submit to the World Bank: (i) a confirmation to the satisfaction of the World Bank of the authority of the person or persons authorized to sign each Application, as well as a certified signature sample of each of these persons; and (ii) such documents and other confirmations for each Application, which will be indicated by the World Bank ("Confirmations").         (c) Each Application for a grant amount and its Confirmations must be sufficient in form and content to enable the World Bank to verify that the Recipient has the right to withdraw such amount from the Grant Account and that it will be used only for the purposes specified in the Grant Agreement.. Applications for Eligible Expenses must be submitted immediately.         (d) The World Bank pays the amounts withdrawn by the Recipient from the Grant Account only to the Recipient or by his order.         Section 3.05. Dedicated Accounts (a) The Recipient may open and hold one or more dedicated accounts to which the World Bank may, at the Recipient's request, deposit the amounts withdrawn from the Grant Account for upcoming Project disbursements ("Dedicated Accounts"). All Designated accounts are opened in a financial institution acceptable to the World Bank and on terms acceptable to the World Bank.        (b) Funds are deposited into and paid from any Designated Accounts in accordance with the Grant Agreement and these Standard Terms and Conditions, as well as in accordance with additional instructions that the World Bank may notify the Recipient of at an appropriate time. The World Bank may terminate the deposit of funds to any of these accounts in accordance with the Grant Agreement and such instructions, notifying the Recipient accordingly. In this case, the World Bank notifies the Recipient of the procedures that will be used for the subsequent withdrawal of funds from the Grant Account.        Section 3.06. Acceptable expenses. Except in cases where the Grant Agreement provides otherwise, the Recipient ensures that the grant funds are used exclusively to finance expenses that meet the following requirements ("Eligible Expenses"):        (a) the payment is intended to finance the reasonable cost of goods, works or services required for the Project and to be financed from the grant funds, the purchase of which is carried out in full accordance with the provisions of the Grant Agreement;         (b) payment is not prohibited by a decision of the United Nations Security Council taken in accordance with Chapter VII of the UN Charter; and (c) payment: (i) is made no earlier than the date set for these purposes in the Grant Agreement; and (ii) unless the World Bank agrees to otherwise, it is intended to pay for expenses incurred before the Closing Date of the Grant Account.         Section 3.07. (a) The grant Agreement may specify that withdrawal of grant funds is not permitted for the payment of Taxes levied by or in respect of Eligible Expenditures, or on their importation, production, purchase or supply, by a Member State or in its territory. In such a case, if the amount of any such Taxes is reduced or increased, the World Bank may, by notifying the Recipient, adjust the percentage of such Eligible Grant-Funded Expenses specified in the Grant Agreement to the extent necessary to ensure compliance with the specified withdrawal limit.         (b) In the absence of such an indication, the use of any grant funds for the payment of such taxes is nevertheless determined by the World Bank's policy, which requires economical and efficient use of the funds provided by its loans and grants. In this regard, if at any time the World Bank decides that the amount of any such Tax is excessive, or that such a Tax is discriminatory or unjustified for other reasons, the World Bank may, by notifying the Buyer accordingly, adjust the percentage of such Eligible Expenses specified in the Grant Agreement. to the extent necessary to ensure compliance with the World Bank's policy.         Section 3.08. Reallocation of funds. If, in the opinion of the World Bank, any grant amount intended for a certain category of Eligible Expenses in accordance with the Grant Agreement will not be sufficient to finance the expenses of this category, the World Bank may, by notifying the Recipient accordingly, implement the following:        (a) redistribute to such category any other grant amount that, in the opinion of the World Bank, is not required for other Eligible Expenses, to the extent necessary to cover the estimated shortfall in funds; and (b) if such a reallocation does not cover the estimated shortfall in full, reduce the percentage of Eligible Expenditures funded under such a category so that further withdrawals for such expenses can continue until all such expenditures are completed.  

  ARTICLE IV Cancellation; suspension; grant refund

Section 4.01. Cancellation by the Recipient. The Recipient may, by notifying the World Bank, cancel any outstanding grant amount, but the Recipient may not cancel any amount that is the subject of a Special Obligation.        Section 4.02. Suspension by the World Bank. The World Bank may, by notifying the Recipient, suspend the Recipient's right to withdraw funds from the Grant Account if any of the following events occur and continue to occur. Such suspension continues until the World Bank notifies the Recipient that the right to withdraw funds has been restored.        (a) Creating obstacles. If the grant is provided to a Recipient who is not a Member State, and the Member State: (i) has carried out or permitted any action that would impede or hinder the execution of the Project or the Recipient's fulfillment of its obligations under the Grant Agreement; or (ii) did not provide a realistic opportunity for representatives of the World Bank to visit any part of its territory for purposes related to the grant or Project.         (b) Non-fulfillment of an obligation. The recipient has not fulfilled any of its obligations under the Grant Agreement.         (c) Deception and corruption. At any time, the World Bank determines that any representative of the Recipient (or a Member State, if the Recipient is not a Member State, or another recipient of any grant funds) has resorted to corruption, deception, collusion or coercion in connection with the use of grant funds, and the Recipient (or the State-a member or other such recipient) failed to take timely and appropriate measures to the satisfaction of the World Bank to prevent such actions at the time of their implementation.         (d) Cross-suspension. The IBRD or IDA has fully or partially suspended the Recipient's (or a Member State's, if the Recipient is not a Member State) right to withdraw funds under any agreement with the IBRD or IDA as a result of the Recipient's (or the Member State's) failure to fulfill any of its obligations under such agreement or under any other agreement with the IBRD or IDA.         (e) An emergency situation. As a result of events that occurred after the date of the Grant Agreement, an emergency situation arose that makes it unlikely that the Project will be implemented or that the Recipient will fulfill its obligations under the Grant Agreement.         (f) An unreliable statement. A statement made by the Recipient under or in connection with the Grant Agreement, or any statement or declaration provided by the Recipient for the World Bank to rely on in providing the grant, was not substantially true.         (g) Assignment of obligations; disposal of assets. The Recipient (or any other organization responsible for any part of the Project) has, without the consent of the World Bank: (i) assigned or transferred, in whole or in part, any of its obligations arising from or assumed under the Grant Agreement; or (ii) sold, leased, transferred, assigned or otherwise alienated any property or assets funded in whole or in part from the grant funds; provided that the provisions of this paragraph do not apply to transactions carried out in the ordinary course of business that, in the opinion of the World Bank: (A) do not have a material or adverse effect on the Recipient's (or such other organization's) ability to fulfill any of its obligations arising from the Grant Agreement; or adopted in accordance with it, or to ensure the achievement of the objectives of the Project; (C) if the grant is provided to a Recipient who is not a Member State, it does not have a significant and adverse impact on the financial situation or functioning of the Recipient (or such other organization).         (H) Membership. A Member State: (i) finds itself in a situation where its membership in the IBRD or IDA has been suspended or terminated; or (ii) has ceased to be a member of the International Monetary Fund.        (i) The Recipient's position. If the grant is provided to a Recipient who is not a Member State:        (i) Any action has been taken to dissolve, disband, or suspend the activities of the Recipient (or any other organization responsible for any part of the Project).         (ii) The Recipient (or any other organization responsible for any part of the Project) has ceased to exist in the legal form in which it existed on the date of the Grant Agreement.        (iii) In the opinion of the World Bank, the legal nature, ownership, or control of the Recipient (or any other organization responsible for any part of the Project) has changed from the position that existed at the date of the Grant Agreement, in such a way that it has had a significant and adverse impact on the Recipient's ability (or such other organization) to fulfill any of its obligations arising from or in accordance with the Grant Agreement, or to ensure the achievement of the Project objectives.        (j) Non-compliance with the established requirements. The IBRD or IDA has announced that the Recipient (who is not a Member State) is not eligible to receive funds from any financing provided by the IBRD or IDA, or otherwise participate in the preparation or implementation of any project funded in whole or in part by the IBRD or IDA, due to the fact that (i) the IBRD or IDA has established that the Recipient has resorted to corruption, deception, collusion or coercion in connection with the use of funds from any financing provided by the IBRD or IDA; and/or (ii) another funding organization has declared that the Recipient is not eligible to receive funds from any financing provided by such a financing organization or otherwise participate in the preparation or implementation of any project funded in whole or in part by such an organization, due to the fact that it has established that the Recipient has resorted to corruption, deception, collusion, or coercion in connection with the use of funds from any financing provided by such a financing organization.        (k) An additional case. Any other event provided for in the Grant Agreement for the purposes of this Section has occurred ("Additional Case of Suspension").        Section 4.03. Cancellation by the World Bank. The World Bank may, by notifying the Recipient, terminate the Recipient's right to withdraw funds in respect of the outstanding grant amount and cancel such amount if one of the following events occurs in respect of such amount:        (a) Suspension. The Recipient's right to withdraw funds from the Grant Account in respect of any grant amount is suspended for thirty days continuously.         (b) No need for an amount. After consulting with the Recipient, the World Bank decides that there is no need for any grant amount to finance Eligible Expenses.         (c) Deception and corruption. At any time, the World Bank determines, with respect to any amount of the grant funds, that representatives of the Recipient (or a Member State, if the Recipient is not a Member State, or any other recipient of the grant funds) have resorted to corruption, deception, collusion or coercion, and the Recipient (or a Member State or another the recipient of the grant funds) did not take timely and appropriate measures to the satisfaction of the World Bank to prevent such actions at the time of their occurrence.         (d) Violation of the procurement procedure. At any point in time, the World Bank: (i) determines that the procurement of any contract that is expected to be funded by the grant does not comply with the procedures set out or mentioned in the Grant Agreement; and (ii) determines the amount of costs under such a contract that would otherwise be acceptable to financing at the expense of the grant.         (e) The closing date of the Grant Account. After the Closing Date of the Grant Account, the outstanding Grant amount remains on it.         Section 4.04. The amounts that are the subject of a Special Obligation are not affected by cancellation or suspension. No cancellation or suspension by the World Bank shall apply to amounts that are the subject of any Special Commitment, except where this is explicitly stipulated in the relevant Special Commitment.       Section 4.05. Grant refund (a) If the World Bank determines that any amount of the grant has been used in a manner that does not comply with the terms of the Grant Agreement or these Standard Terms, the Recipient, upon receipt of notification from the World Bank, shall immediately reimburse the amount to the World Bank. Such misuse includes, without limitation, the following: (i) the use of such an amount to pay for an expense that is not an Acceptable Expense; or (ii) (A) the use of corruption, deception, collusion or coercion in connection with the use of such an amount, or (C) the use of such an amount to finance a contract in the course of procurement for which or during the execution of which representatives of the Recipient (or a Member State, if the Recipient is not a Member State, or otherwise the Recipient of such a grant amount) has resorted to such practices, and in any of these cases, the Recipient (or the Member State or other such recipient) has failed to take timely and appropriate measures to the satisfaction of the World Bank, to prevent such practices at the time of their use.        Section 4.06. Validity of the provisions after cancellation, suspension or refund. Regardless of any cancellation, suspension or refund in accordance with this Article, all provisions of the Grant Agreement remain in full force and effect, except as specifically provided in these Standard Terms.

  ARTICLE V Enforcement; arbitration

       Section 5.01. Enforcement. The rights and obligations of the Recipient and the World Bank under the Grant Agreement are valid and subject to enforcement in accordance with their terms, regardless of any other provisions in the legislation of any State or any of its political subdivisions. Neither the Recipient nor the World Bank has the right, under any procedure provided for in this Article, to assert that any provision of these Standard Terms or the Grant Agreement is invalid or unenforceable by virtue of any provision of the Articles of the IBRD or IDA Agreement, as appropriate.        Section 5.02. Non-exercise of rights. No delay in the exercise or non-exercise of any right, authority or remedy arising from any party to the Grant Agreement as a result of any non-performance of obligations shall detract from any of these rights, powers or remedies and shall not be considered a waiver of them or tacit acceptance of such non-performance. No action by such party with respect to any non-performance or its acquiescence to any non-performance of obligations shall affect or detract from any rights, powers or remedies of such party with respect to any other or subsequent non-performance of obligations.        Section 5.03. Arbitration. Any dispute between the parties under the Grant Agreement and any claim by either party against the other party that has arisen in connection with the Grant Agreement and has not been resolved by agreement between the parties shall be referred to an arbitration body (the "Arbitration Body") in accordance with the provisions set out below.        (a) The parties to such arbitration proceedings are the World Bank, on the one hand, and the Recipient, on the other.         (b) The arbitral tribunal shall consist of three arbitrators appointed as follows: (i) one arbitrator shall be appointed by the World Bank; (ii) the second arbitrator shall be appointed by the Recipient; (iii) the third arbitrator ("Super Arbitrator") shall be appointed by agreement between the parties or, if they do not reach an agreement, by the President of the International Court of Justice or, if The appointment of the above-mentioned Chairman will not take place by the UN Secretary-General. If either party does not appoint an arbitrator, such an arbitrator shall be appointed by the Super Arbiter. In the event of the resignation, death or incapacity of any arbitrator appointed in accordance with this Section, a successor arbitrator shall be appointed in the same manner as provided for in this Section for the appointment of the original arbitrator, and such successor shall have all the powers and duties of such originally appointed arbitrator.         (c) An arbitration procedure may be initiated in accordance with this Section by sending a notification to the other party by the party initiating such procedure. Such notification must contain a statement setting out the nature of the dispute or claim being submitted to arbitration, the nature of the satisfaction required, and the name of the arbitrator appointed by the party initiating the arbitration. Within thirty days of such notification, the other party must inform the party initiating the arbitration of the name of the arbitrator appointed by the other party.         (d) If, within sixty days of the notification initiating the arbitration, the parties do not agree on the nomination of a Super Arbitrator, either party may request that a Super Arbitrator be appointed in accordance with paragraph (b) of this Section.         (e) The time and place of the convening of the Arbitration Body shall be determined by the Super Arbiter. After that, the Arbitration Body determines where and when it will hold its meetings.         (f) The arbitral tribunal shall decide on all matters within its competence and, in accordance with the provisions of this Section and except where otherwise agreed between the parties, shall determine its rules of procedure. All decisions of the Arbitration Body are made by a majority vote.        (g) The arbitral tribunal shall provide the parties with an opportunity for fair proceedings and shall make its decision in writing. Such a decision may be made in the absence of the failed party. The decision signed by the majority of the members of the Arbitration Body is the decision of the Arbitration Body. A signed copy of the decision is sent to each party. Any such decision made in accordance with the provisions of this Section is final and binding on the parties to the Grant Agreement. Each party must comply with and comply with any such award made by the Arbitral Tribunal in accordance with the provisions of this Section.       (H) The Parties shall determine the amount of remuneration for the arbitrators and other persons who are required to be involved in the arbitration proceedings. If the parties do not agree on such an amount before the convening of the Arbitration Body, the Arbitration Body shall determine such an amount within reasonable limits based on the existing circumstances. Each party shall bear its own costs of the arbitration proceedings. The costs of the Arbitration Body are distributed equally between the parties and are paid by them. Any issue concerning the allocation of the costs of the Arbitration Body or the procedure for paying such costs shall be resolved by the Arbitration Body.       (i) The arbitration provisions set out in this Section supersede any other dispute resolution procedure between the parties to the Grant Agreement, or settlement of any claim by one party against the other party arising out of the Grant Agreement.       (j) If, within thirty days after the copies of the award are delivered to the parties, the award is not executed, either party may: (i) obtain an award or initiate appropriate proceedings against any other party to enforce the award in any court of competent jurisdiction; (ii) enforce such award. decisions based on enforcement proceedings; or (iii) use any other appropriate remedy against such other party to enforce the award and the provisions of the Grant Agreement. Notwithstanding the foregoing, if the Recipient is a Member State, this Section does not grant the right to obtain a judgment or enforcement of an arbitral award against the Recipient, except in cases where such a procedure is permitted on grounds other than the provisions of this Section.       (k) The service of any notice or document in connection with any procedure under this Section, or in connection with any procedure for enforcement of an arbitral award made under this Section, may be carried out in accordance with the procedure provided for Section 7.01. The Parties to the Grant Agreement waive any and all other requirements regarding the delivery of any such notification or document.

  ARTICLE VI Entry into force; termination

       Section 6.01. Entry into force. Unless otherwise provided in the Grant Agreement, the Grant Agreement shall enter into force from the date of its execution by all parties to the Grant Agreement.        Section 6.02. Termination. The Grant Agreement and all obligations of the parties under it shall be terminated immediately upon full fulfillment of all such obligations.

  ARTICLE VII Other provisions

Section 7.01. Notifications and Requirements. Any notification (request) in accordance with the Grant Agreement must be made in writing. Such notification (request) is considered to be duly submitted (declared) when it is delivered by courier or by mail, telex or fax (or, if permitted by the Grant Agreement, by other electronic means) to the party to whom such notification (or request) is sent (the "Addressee"), at the address of such party specified for these purposes in the Grant Agreement (or at another address that the Addressee will notify the party submitting such notification or making such request) (the "Address"). Delivery made by fax must also be confirmed by mail.        Section 7.02. Actions on behalf of the Recipient. The representative designated by the Recipient in the Grant Agreement for the purposes of this Section (or any person authorized in writing by such representative for these purposes) (the "Recipient's Representative") may perform any actions required or authorized under the Grant Agreement and execute any documents required or it is allowed to apply on behalf of the Recipient in accordance with the Grant Agreement.        Section 7.03. Confirmation of credentials. The Recipient provides the World Bank with: (a) sufficient confirmation of the authority of the Recipient's Representative; and (b) a certified sample signature of such representative.        Section 7.04. Registration in several copies. The grant agreement can be executed in several copies, each of which is an original.        Section 7.05. Disclosure of information. The World Bank may publish the Grant Agreement and any information related to the Grant Agreement in accordance with its disclosure policy in force at the time of such disclosure.

  application Definitions

     1. "Additional suspension case" - any suspension case stipulated in the Grant Agreement for the purposes of Section 4.02 (k). 2. "Address" is the address of the Addressee mentioned in Section 7.01 to whom notifications and requests should be sent in accordance with the Grant Agreement.       3. "Addressee" - the party to whom notifications and demands should be sent for the purposes of Section 7.01. 4. "Application" is an application for withdrawal of any grant amount from the Grant Account submitted by the Recipient in accordance with Section 3.04, or a request to the World Bank for a Special Commitment regarding any grant amount.        5. "Arbitration Body" is an arbitration body established in accordance with Section 5.03. 6. "Grant Account Closing Date" is the date specified in the Grant Agreement (or a later date set by the World Bank upon notification to the Recipient), after which the World Bank may, by notifying the Recipient accordingly, terminate the Recipient's right to withdraw funds from the Grant Account.       7. "Project Completion Report" means each report that must be prepared and submitted to the World Bank in accordance with Section 2.06 (b) (ii). 8. "Dedicated Account" means each account mentioned in Section 3.05 to which the Bank can deposit the amounts withdrawn from the Grant Account for upcoming payments for the Project.         9. "Dollar", "$" and "USD" - each of these terms means the legal currency of the United States of America.        10. "Acceptable expense" is an expense whose payment meets the requirements Section 3.06, and which, accordingly, is eligible for grant funding.        11. "Financial Statements" - financial statements that must be maintained in relation to the Project in accordance with Section 2.07.         12. "Grant" is a grant stipulated in the Grant Agreement.        13. "Grant Account" is an account opened by the World Bank in its books in the name of the Recipient, to which the grant amount is credited in accordance with Section 3.01 (a). 14. "Grant Agreement" is a grant agreement between the Recipient and the World Bank providing for the grant, taking into account possible periodic contributions changes and additions.       The "Grant Agreement" includes these Standard Terms and Conditions applicable to the Grant Agreement, as well as all appendices, supplements, and additional agreements to the Grant Agreement.       15. IBRD means the International Bank for Reconstruction and Development.        16. IDA stands for the International Development Association.         17. "Member State" means a member of the World Bank in whose territory the Project is being implemented, or any political or administrative divisions of such a member. If a grant is provided by the World Bank to such a member as a party to a Grant Agreement, the terms "Member State" and "Recipient" refer to the same person.         18. "Project" means a project for which a grant is being provided, and the description of which is provided in the Grant Agreement, taking into account possible periodic changes in the description of such a project, made by agreement between the Recipient and the World Bank.        19. "Project Report" - each Project report that must be prepared and submitted to the World Bank for the purposes of Section 2.06 (b) (i). 20. "Recipient" is the party under the Grant Agreement to which the grant is being provided.        21. "Recipient's Representative" means the representative referred to in Section 7.02, indicated by the Recipient in the Grant Agreement or authorized in writing by such representative for the purposes of this Section.        22. "Special commitment" means any special commitment made or to be accepted by the World Bank in accordance with Section 3.03.23. "Confirmations" - confirmations and documents submitted to the World Bank in accordance with Section 3.04 (b) in connection with the Application.         24. "Taxes" means taxes, fees, commissions and duties of any kind, both effective on the date of the Grant Agreement and imposed after that date.        25. "Super Arbiter" is the third arbitrator appointed in accordance with Section 5.03 (b). 26. "World Bank" means: (a) the IBRD if the grant is provided or administered by the IBRD; (b) IDA, if the grant is provided or administered by IDA; (c) jointly by the IBRD and IDA, if the grant is provided or administered jointly by the IBRD and IDA.

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

President    

Republic of Kazakhstan     

© 2012. RSE na PHB "Institute of Legislation and Legal Information of the Republic of Kazakhstan" of the Ministry of Justice of the Republic of Kazakhstan  

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