On the ratification of the Loan Agreement (project for the Conservation of forests and increasing the forest cover of the territory of the Republic) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development and the Grant Agreement of the Trust Fund (project for the Conservation of Forests and Increasing the forest cover of the Territory of the Republic) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development, acting as the executive organization of the Global Environment Facility

Law of the Republic of Kazakhstan dated June 7, 2007 No. 261

     To ratify the Loan Agreement (project for the conservation of forests and increase the forest cover of the territory of the Republic) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development and the Grant Agreement of the Trust Fund (project for the Conservation of Forests and increase the forest cover of the territory of the Republic) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development, acting as the executive organization of the Global Environment Facility, signed in Astana on November 6, 2006.

     President       Republic of Kazakhstan

LOAN NUMBER 4808 KZ                    GEF TRUST FUND GRANT NUMBER TF 055731

 Loan agreement (Project to preserve forests and increase the forest cover of the republic) between THE REPUBLIC OF KAZAKHSTAN AND BY THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

dated November 6, 2006

LOAN NUMBER 4808 KZ                    GEF TRUST FUND GRANT NUMBER TF 055731

 LOAN AGREEMENT

     AGREEMENT dated November 6, 2006 between THE REPUBLIC OF KAZAKHSTAN (the Borrower) and the INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (The Bank).       WHEREAS (A) The Borrower, having verified the feasibility and priority of the project described in Annex 2 to this Agreement, requested the Bank to assist in financing the Project;       (C) in accordance with the agreement (the GEF Trust Fund Grant Agreement) dated the same date as this Agreement, the Bank acting as the executive organization of the Global Environment Facility (GEF) agrees to provide the Borrower with a Grant (the GEF Trust Fund Grant) in the amount of five million US dollars (5,000,000) to assist in financing the Project on the terms provided for in the GEF Trust Fund Grant Agreement; and WHEREAS the Bank agrees to provide the Borrower on the basis of the above, among other things, a Loan on the terms provided for in this Agreement;       The parties hereby agree on the following:

 ARTICLE I General conditions; Definitions

     Section 1.01. "General Terms and Conditions applicable to Loan and Guarantee Agreements under Monocurrency Loans" of the Bank dated May 30, 1995 (as amended on May 1, 2004), including the following amendments (General Terms and Conditions), form an integral part of this Agreement:       (a) Section 5.08 of the General Terms and Conditions has been amended as follows:       "Section 5.08. With the exception of cases stipulated in the Loan Agreement, Loan funds may be withdrawn from the account to pay taxes levied by the Borrower or the Guarantor, either on its territory, on goods or services provided for financing under the Loan, or their import, production, purchase or supply. The financing of such taxes depends on the implementation of the Bank's policy, which requires the economical and efficient use of loan funds. To this end, if at any point the Bank determines that the amount of taxes collected or payable in respect of any category of expenses provided for financing from Loan funds is overstated or unjustified, the Bank, in order to ensure consistent compliance with its policy, may, by notifying the Borrower, adjust the established or specified in the Agreement. about the loan, the percentage of withdrawals in relation to such an expense item."       (b) In Section 6.03. (c) The General Terms and Conditions have replaced the words "corrupt or fraudulent" with the words "corrupt, fraudulent, colluded or forced (practice)".       Section 1.02. Unless the context otherwise requires, some of the terms defined in the General Terms and Conditions and in the Preamble to this Agreement correspond to the concepts set out there, and additional terms have the following meanings:       (a) "Management system for restricted access to forest resources" means the system developed by the Borrower and specified in paragraph 6 of Annex 5 to this Agreement, which describes the Project Areas of Restricted Access, vulnerable populations and institutional measures, including the procedure for handling complaints, (b) "Environmental Management Plan" means a plan acceptable to the Bank, which has received a positive conclusion from the Borrower's State Environmental Assessment dated June 6, 2005, and is specified in paragraph 3 of Annex 5 to this Agreement, describing mitigation measures. environmental impact assessment, monitoring and institutional measures within the framework of the Project;       (c) "CLOH" means the Forestry and Hunting Committee of the Ministry of Agriculture of the Borrower and includes any successor or successors thereof; (d) "Financial Monitoring Report" or "OFM" means each of the reports prepared in accordance with Section 4.02 of this Agreement;       (e) "Forest management system with the involvement of the local population" means a system to be approved by the Borrower in the person of CLOH, which describes the guidelines and procedures for the implementation of the forest management system with the involvement of the local population, given in Part A.3 of the Project, specified in paragraph 7 of Annex 5 to this Agreement;       (f) "Management system for saxaul forests used for pasture" means a system to be approved by the Borrower in the person of KLOH, which describes the sites, procedures, guidelines and policies, including long-term forest management rights and harvesting rules for saxaul forest-related activities in accordance with Part B.2 of the Project and specified in paragraph 8 of Annex 5 to this Agreement; (g) "Ministry of Agriculture" means the Ministry of Agriculture of the Borrower and includes any successor or successors thereof;       (h) "Ministry of Finance" means the Ministry of Finance of the Borrower and includes any successor or successors thereof; (i) "GKP" means the Project Coordination Group to be established by the Borrower in the person of CLOH, as specified in paragraph 1 of Annex 5 to this Agreement; (j) "Project Advisory Committee" means the committee that It must be created by the Borrower in the person of the Ministry of Agriculture, specified in paragraph 5 of Annex 5 to this Agreement.;       (k) "Forest Pest Control Plan" means a plan for the safe management, use and disposal of pesticides used in the implementation of the Project, which is an integral part of the Environmental Management Plan; (l) "Procurement Plan" means the Borrower's procurement plan dated September 26, 2005, covering an initial 18-month period (or a longer) Project implementation period, and periodically reviewed in accordance with the provisions of Section 3.02 of this Agreement to cover subsequent 18-month (or longer) Project implementation periods;       (m) "Project Implementation Plan" or PRP means the project implementation plan, taking into account possible changes made to it from time to time in agreement with the Bank, referred to in paragraph 4 of Annex 5 to this Agreement; (n) "RPP" means the three regional offices of the project, which are to be established by the Borrower in in the reserves of Semey-Ormany and Yertis-Ormany and in the Kyzylorda region to provide administrative support to the GKP, specified in paragraph 1 of Annex 5 to this Agreement;       (o) "Special Account" means the account specified in Section 2.02 (b) of this Agreement.

 ARTICLE II Loan

Section 2.01. The Bank agrees to provide the Borrower with an amount equivalent to thirty million US dollars (30,000,000) for the period and on the terms stipulated or specified in this Agreement.       Section 2.02. (a) In accordance with the provisions of  Appendices 1 to this Agreement, the Loan funds may be withdrawn from the Loan Account for expenses that have been (or, with the consent of the Bank, will be) incurred in respect of goods and works of reasonable value required for the Project and provided for financing from the Loan funds.       (b) For the purposes of the Project, the Borrower may open and maintain a special dollar deposit account with a commercial bank on terms acceptable to the Bank, including adequate protection of funds from counter-claims, confiscation or seizure. Deposits to a Special Account and payments from this account are made in accordance with the provisions of  Annexes 6 to this Agreement.       Section 2.03. The final date of the loan is November 30, 2012 or such later date as the Bank determines. The Bank shall immediately notify the Borrower of such later date. Section 2.04. The Borrower undertakes to pay a one-time commission fee to the Bank in the amount of one percent (1%) of the Loan amount, subject to a possible partial exemption from payment of such fee, which is decided from time to time by the Bank. Such fee is payable no later than 60 days from the Date of entry into force of this Agreement.       Section 2.05. The Borrower undertakes to pay the Bank an annual commission for reserving funds in the amount of three quarters of one percent (3/4 of 1%) of the outstanding amounts of the main loan from time to time.       Section 2.06. (a) The Borrower undertakes to pay the loan interest on the withdrawn and from time to time outstanding principal amount of the Loan for each interest accrual period at a rate equal to the Base LIBOR Rate plus the total LIBOR spread.       (b) For the purposes of this section: (i) "Interest Accrual Period" means the initial interest accrual period from and including the date of signature of this Agreement, but excluding the first interest payment date following it, and after the initial period, each period starting from and including the Interest Payment Date, but excluding the "Interest Payment Date" following it.       (ii) "Interest Payment Date" means the date specified in Section 2.07 of this Agreement.       (iii) "LIBOR Base Rate", for each interest accrual period, means the rate of supply on the London interbank market for six-month deposits in the single currency, estimated on the first day of the Interest Accrual Period (or, in the case of the initial Interest Accrual Period, estimated on the Date of the Interest Payment, or on the day of such Interest Accrual Period, or on the next day preceding the first day of interest accruals), which is reasonably determined by the Bank and expressed as a percentage per annum.       (iv) "Total LIBOR Spread", for each Interest Accrual Period, means (A) three-quarters of one percent (3/4 of 1%); (C) minus (or plus) the weighted average margin for each Interest Accrual Period, below (or above) London Interbank offer rates or other indicative six-month deposit rates in respect of the Bank's outstanding borrowed funds or portions of borrowed funds allocated by the Bank to finance single-currency loans or portions of loans that are reasonably determined by the Bank and expressed as a percentage per annum.       (c) The Bank shall immediately notify the Borrower or the Guarantor of the LIBOR base rate and the total LIBOR spread, which are determined for each interest accrual period.       (d) If, due to a change in market conditions that affects the determination of the interest rates specified in Section 2.06, the Bank determines that it is necessary, in the interests of its borrowers in general and the Bank in particular, to apply a different basis than that specified in Section 2.06 for determining Loan interest rates, the Bank may change the basis for determining interest rates Loan rates, upon notifying the Borrower at least six (6) months in advance of such a new basis. The new base rate comes into effect after the expiration of the notification period, except in cases when the Borrower notifies the Bank of his objection during the specified period, in which case the specified changes should not apply to the Loan.       Section 2.07. Payments on loan interest and other debt charges are payable at semi-annual intervals on February 15 and August 15 of each year.       Section 2.08. The Borrower repays the principal amount of the Loan in accordance with the gradual repayment schedule set out in Appendix 3 to this Agreement.

 ARTICLE III Project Execution

     Section 3.01. (a) The Borrower declares his commitment to the objectives of the Project and, to this end, undertakes to carry out the Project through CLOH with due integrity and efficiency, and in accordance with appropriate administrative, financial, engineering, utility and environmental practices, and promptly provide funds, facilities, services and other resources necessary. for the Project.       (b) Without limitation with respect to the provisions of paragraph (a) of this Section and unless otherwise agreed between the Borrower and the Bank, the Borrower, through KLOH, undertakes to carry out the Project in accordance with the Implementation Program set out in Annex 5 to this Agreement.       (c) Without limitation with respect to the provisions of paragraphs (a) and (b) of this Section, the Borrower undertakes to provide an amount not exceeding twenty-eight million eight hundred thousand US dollars (28,800,000) for the purposes of the Project, which will be used in accordance with the provisions of this Agreement, including  Annex 4 , and the provisions of the GEF Trust Fund Grant Agreement, including Appendix 3. Section 3.02. (a) Except in cases where there is another agreement with the Bank, purchases of necessary goods and works for the Project are carried out in accordance with the provisions of Annex 4 to this Agreement.       (b) The Borrower, represented by KLOH, reviews the Procurement Plan in accordance with guidelines acceptable to the Bank and submits such revised plan to the Bank for approval within twelve months from the date of the previous Procurement Plan.       Section 3.03. For the purposes of Section 9.07 of the General Terms and Conditions and without limitation of its provisions, the Borrower represented by KLOH:       (a) no later than six (6) months after the Closing Date or such later date as may be agreed between the Bank and the Borrower, prepare, on the basis of guidelines acceptable to the Bank, and submit to the Bank a plan that ensures the consistent achievement of the Project objectives; and (b) provide the Bank with an informed opportunity to exchange views with the Borrower on the plan.

 ARTICLE IV Financial regulations

Section 4.01. (a) The Borrower is required to maintain a financial management system, including accounting documents and accounts, and prepare financial statements in accordance with accounting standards acceptable to the Bank that adequately reflect transactions and financial position, and separately record Project-related transactions, resources and expenses;       (b) The Borrower: (i) ensures that independent auditors audit the financial statements (balance sheets, income and expense statements, and other financial statements related to the Project) for each financial year (or other period agreed with the Bank) in accordance with consistently applied auditing standards acceptable to the Bank;       (ii) submits to the Bank, as soon as it is ready, but in any case no later than six months after the end of the financial year (or any other period agreed with the Bank): (A) certified copies of the financial statements specified in paragraph (a) of this section that have been audited for the relevant year (or any other agreed period). with the Bank during the period); and (C) an auditor's report on such financial statements, made by the aforementioned auditors, to the extent and in detail satisfactory to the Bank; and (iii) submits to the Bank any other information related to the specified accounting documents, accounts and audits of such financial statements, as well as the mentioned auditors, which the Bank reasonably requests from time to time.       (c) For all expenses in respect of which funds were withdrawn from the Loan Account on the basis of expense statements, the Borrower represented by KLOH:       (i) retains, for at least one year after the Bank receives the audit report for the financial year when funds were last withdrawn from the Loan Account, all accounting documents (contracts, payment orders, invoices, invoices for payment, receipts and other documents) confirming such expenses; (ii) provides an opportunity for representatives of the Bank to check such documentation; and (iii) ensure that such expense statements are reviewed during the audit for each financial year (or other period agreed with the Bank) specified in paragraph (b) of this Section.       Section 4.02. (a) Without limiting the Borrower's obligations with respect to the project progress reports specified in paragraph 10 (b) of Annex 5 to this Agreement, the Borrower, represented by KLOH, undertakes to prepare and submit to the Bank financial monitoring reports acceptable to the Bank in form and content, which: (i) indicate the actual sources funds and their use for the Project, both as a total and for the reporting period, with a separate indication of the Loan funds; and discrepancies between the actual and planned use of such funds are explained;       (ii) describes the physical indicators of the progress of the Project, both as a total and for the reporting period, and explains the discrepancies between the actual and planned progress of the Project; and (iii) describes the status of procurement within the Project at the end of the reporting period.       (b) The first OFM is submitted to the Bank no later than 45 days after the end of the first calendar quarter after the Date of entry into force of this Agreement, and covers the period starting from the first expenditure of funds for the Project and ending with the end of the first calendar quarter; Subsequently, each of the OFMS covering the next calendar quarter is submitted to the Bank no later than 45 days after the end of such calendar quarter.

 ARTICLE V Bank's sanctions

     Section 5.01. In accordance with Section 6.02 (p) of the General Terms and Conditions, the following additional event is stipulated: (i) subject to the continued validity of subparagraph (ii) of this paragraph: (A) the Borrower's right to withdraw funds from any grant or loan provided to the Borrower to finance the Project is suspended, cancelled or terminated in whole or in part in accordance with the terms of the relevant agreement, or (B) the maturity and payment of any such loan has arrived before the agreed maturity date.       (ii) The provisions of subparagraph (i) of this paragraph shall not apply if the Borrower provides satisfactory evidence to the Bank that: (A) such suspension, cancellation, termination or early repayment is not caused by the Borrower's inability to fulfill its obligations under such an agreement; and (C) the Borrower has sufficient funds for the Project from other sources on terms that do not contradict the obligations of the Borrower under this Agreement.

 ARTICLE VI Effective date; Termination

     Section 6.01. In the context of Section 12.01 (c), the following event is specified as an additional condition for the entry into force of the Loan Agreement, namely, the GEF Trust Fund Grant Agreement has been duly signed and all conditions for its entry into force or the Borrower's right to withdraw funds under it have been fulfilled, with the exception of entry into force Section 6.02. For the purposes of Section 12.04 of the General Terms and Conditions, a period of one hundred and twenty (120) days after the date of conclusion of this Agreement is established.

 ARTICLE VII Representative of the Borrower; Legal addresses

     Section 7.01. For the purposes of Section 11.03 of the General Terms and Conditions, the Borrower's Minister of Finance is designated as the Borrower's representative. Section 7.02. For the purposes of Section 11.01 of the General Terms and Conditions, the following addresses are defined:

     The borrower:

     Republic of Kazakhstan 010000, Astana ave. Pobedy 11 Ministry of Finance

     Telegraphic address:    Telex:        Fax: 264126(FILIN) (7)(3172)717785

     Bank:

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

     The Telegraph:             Telex:

     INTBAFRAD 248423 (MCI) or Washington, D.C. 64145 (MCI)

     IN WITNESS WHEREOF, the Parties, acting through their duly authorized representatives, signed this Agreement (in Astana, Republic of Kazakhstan) on the above-mentioned day and year.

     FOR THE REPUBLIC OF KAZAKHSTAN

                                     Authorized representative

     FOR THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

                                     Authorized representative  

 APPENDIX 1 Withdrawal of Loan funds

     1. The following table shows the Categories of Items to be financed from the Loan, the allocation of Loan amounts to each Category, and the percentage of expenses for items to be financed for each Category.:

                    Allocated loan amount   Maximum percentage (in dollars)      financing      Expense category

     (1) Part A and B products 18,000,000 80 %                  The project

     (2) Infrastructure construction and repair work on:

     (a) Part A of the Project 3,800 000 80 % (b) Part B of the Project 200,000 80 %

     (3) Forestry work on:

     (a) Part A of Project 5,600,000 60% (b) Part B Of Project 2,400,000 60 %

     total:                        30 000 000

     2. Notwithstanding the provisions of paragraph 1 above, the loan funds are not subject to withdrawal against: (a) expenses incurred prior to the date of signature of this Agreement; and (b) expenses in respect of Categories (2) (a) and 3 (a) in the table in paragraph 1 of Annex 1 to this Agreement, if Upon receipt of the results of field tests for radioactive contamination, the Bank will not be satisfied that the Project Area provided for in Part A of the Project is safe according to national standards of radioactive contamination and cannot be excluded due to the level of contamination.; and (c) for expenses in respect of any Category specified in the table in paragraph 1 of the table in this Annex, unless and until the Borrower pays the Bank in full the one-time fee specified in Section 2.04 of this Agreement.       3. The Bank may require that funds be withdrawn from the Loan Account on the basis of expense statements for expenses under contracts for goods and works that are not subject to Prior Review by the Bank, as stipulated in the Procurement Plan, on such terms, which the Bank will inform the Borrower in a special notification.

 APPENDIX 2 Project Description

The project aims to assist the Borrower in developing methods for the economical and environmentally sustainable restoration and management of forests and pasture lands, focusing on the ribbon forests of the Irtysh region, the dried-up bottom of the Aral Sea and Saxaul forests used for pasture.       Subject to possible changes agreed from time to time between the Borrower and the Bank in order to achieve the agreed goals. The project consists of the following parts:       Part A: Restoration of belt bores of Irtysh region 1. Reproduction of forests on an area of 41,000 hectares, creation of a forest seed base, applied research on the creation of cost-effective nursery forests and the use of effective planting technologies (for example, greenhouses, containers, production and sowing of granular seeds).       2. Improving the effectiveness of fire prevention measures and providing other types of forestry support through: (i) fire information, consulting and staff training; (ii) improvements to the fire prevention and detection system, including improvements to observation towers, communications facilities, and the restoration of a network of fire lanes; (iii) improvements to the fire management system, including the reconstruction of roads, the construction of fire stations, and the provision of rapid extinguishing fire trucks; and (iv) the development of a thinning and clearing program, including the purchase of vehicles means to increase the effectiveness of patrolling in order to reduce the scale of illegal activities; and the development of the potential of comprehensive pest control measures.       3. Development of partnership in forestry through the analysis of opportunities for the creation of environmentally sustainable enterprises for processing small-scale and fawn wood, as well as through pilot testing of forestry management with the participation of the local population in 16 villages.       Part B: Phytocomelioration in the Kyzylorda region 1. Planting operations on the dried-up areas of the Aral Sea bottom on 79,000 hectares (on the territory of 44,000 hectares, planting seedlings and, as far as possible, sowing granular seeds on 35,000 hectares) using effective planting technologies and the development of economical methods for the production and sowing of granular seeds. 2. Improving the management of saxaul forests used for pasture through the implementation of a saxaul forests and pasture management program with the participation of the local population at 30 demonstration sites, while restoring approximately 200 hectares of forest land on each of them with increased access to water sources for livestock or the creation of an equivalent level of infrastructure support for grazing on an additional area of about 7,500 hectares. Part C: National institutional development and Project Coordination 1. Improving policy analysis and government spending, improving information provision and information support, including mapping, human resource development, improving organizational management in order to strengthen policy and budgetary decisions; improving the process of public consultation, inventory, planning, monitoring, improving staff knowledge and skills and organizational effectiveness.       2. Provision of grants for innovative subprojects aimed at solving issues related to forest protection, reproduction and afforestation, as well as timber processing.       3. Providing support to the GKP in Project coordination and management.

***

     The project is expected to be completed by May 31, 2012.

 APPENDIX 3 Schedule of gradual repayment of the loan

     Payment date: payment of the principal amount of the loan (in US dollars)

     Every February 15th and August 15th

     starting from August 15, 2011       until February 15, 2023, 1,250,000

 APPENDIX 4 Purchases

     Section I. General provisions

     A. All goods, works and services (with the exception of consulting services) are procured in accordance with the provisions of Section I of the IBRD Loans and MAP Loans Procurement Guidelines dated May 2004. (Procurement Guidelines) and the provisions of this Annex, with the exception of purchases of goods, works and services (except consulting services) financed from the Borrower's National Budget for the purpose of carrying out preparatory work on the Project, which may be purchased before the entry into force of this Agreement, in accordance with the Borrower's Law "On Public Procurement" dated 16 May 2002, with changes and amendments.       B. The terms printed in capital letters in this Appendix and used to describe specific procurement methods or Bank verification methods for individual contracts have the meanings assigned to them in the Procurement Manual, depending on the situation.

     Section II. Specific methods of purchasing goods, works and services (excluding consulting)

     A. International competitive bidding. Unless otherwise provided in Component B of this Section, contracts are awarded based on International Competitive Bidding. The provisions of paragraphs 2.55 and 2.56 of the Procurement Manual, which provide benefits for domestic suppliers and contractors in evaluating tenders, apply to goods manufactured in the Borrower's territory. Other procurement methods 1. National competitive bidding. Works with an estimated cost of less than 1,000,000 US dollars per contract may be purchased under contracts awarded on the basis of National Competitive Bidding and on the basis of additional provisions set out in the appendix to this annex.       2. Shopping (Purchases in free trade). Goods with an estimated value of less than US$100,000 per contract and works with an estimated value of less than US$50,000 per contract may be purchased under contracts awarded using the shopping method.       3. Participation of the society. The goods and works required for investment in activities under Part A.3 of the Project, specified in Annex 2 to this Agreement, may be purchased with the participation of the company in accordance with the provisions of the Forest Management System with the involvement of the local population.       4. Direct purchases. Goods and works that, according to the Bank's rules, meet the requirements of Direct Procurement may be purchased in accordance with the provisions of this procurement method.       5. Targeted purchases. Works that, according to the Bank's rules, meet the requirements of Targeted Procurement can be carried out in accordance with the provisions of this procurement method.

     Section III. The Bank's review of procurement decisions

     The Procurement Plan specifies those contracts that are subject to preliminary review by the Bank. All other contracts are subject to subsequent verification by the Bank (after the fact).

 Addendum to APPENDIX 4

     The procedures of National Competitive Bidding may be used by the Borrower to purchase works within the framework of the Project, subject to the following provisions: A. State organizations of the Republic of Kazakhstan should be allowed to participate in the bidding process only if they can confirm that they are legally and financially autonomous, operate within the framework of commercial law and are independent of the procuring entity. In addition, they are subject to the same requirements for providing guarantees for the tender offer and contract performance as other bidders.       B. Tender documents The procuring entity should use appropriate standard tender documents for the procurement of works acceptable to the IBRD. C Opening and evaluation of tenders (a) Tenders must be opened publicly, immediately after the deadline for submission of tenders;       (b) Tenders should be evaluated in strict compliance with the monetarily measurable criteria specified in the tender documents; (c) Preference for local bidders does not apply; and (d) Contracts should be awarded to a qualified bidder who submitted a bid meeting the bidding requirement with the lowest estimated value, and no negotiations should take place. places.       D. Price adjustment Long-term construction contracts (for example, more than eighteen (18) months) must contain an appropriate price adjustment clause.       E. Recognition of the contest as invalid       The recognition of the competition as invalid and the announcement of a new competition is carried out by prior agreement with the IBRD. F Rejection of individual tenders       A separate tender application should be rejected only in the following cases:       (a) The Bidder is found to be unqualified; (b) The Bidder does not accept corrections of an arithmetic error in its bid submitted by the tender commission of the procuring entity; (c) The Bidder does not meet the requirements specified in the tender documents.

 APPENDIX 5 Implementation program

1. During the Project implementation period, the Borrower, represented by KLOH, will ensure the activities of the GKP and RPP, staffed, whose qualifications and technical specifications are acceptable to the Bank, and provided with adequate resources for the effective implementation of the Project.       2. The borrower, represented by KLOH, will ensure that the GCP is responsible for: (a): (i) Project management, coordination and monitoring, including evaluation and preparation of reports for the Project Advisory Committee; (ii) preparation of Loan withdrawal requests; (iii) management of the Special Account specified in Section 2.02 (b) this Agreement; (iv) procurement of goods, works and services; (v) maintenance and auditing of Project records and records; and (vi) preparation of an annual work program; and (vii) overall responsibility for accounting, financial reporting and management, and preparation of the FMS for the Project; and (b) submitted to the Bank by August 15 and February 15 of each year, during the entire Project period, semi-annual reports on monitoring and evaluation of the Project, including information on the status of key monitoring indicators to assess the effectiveness of the Project.       3. The Borrower, represented by KLOH, implements the Environmental Management Plan, including the Pest Control Plan, in a manner satisfactory to the Bank and provides the Bank with a brief report on the status of the project (including the results of environmental monitoring) as part of the regular reporting on the Project or at the Bank's special request.       4. The Borrower, represented by KLOH, takes all necessary measures to implement the Project in accordance with the PRP and undertakes not to assign, amend, cancel or waive any provisions of the PRP without the prior approval of the Bank.       5. The Borrower, represented by the Ministry of Agriculture, will, within three months from the date of signing this Agreement, establish and maintain until the completion of the Project a Project Advisory Committee consisting of representatives of key ministries, Project executive organizations, non-governmental organizations, the private sector, international organizations and donors involved in forestry activities, which will provide strategic recommendations and guidance during implementation. The project.       6. The Borrower, represented by KLOH, carries out the Project in accordance with the principles and procedure set out in the Forest Resource Restriction Management System and undertakes not to assign, amend, cancel or waive any provisions of this System without the prior approval of the Bank.       7. The borrower represented by KLOCH, no later than March 31, 2007. will approve a Forestry Management System involving the local population acceptable to the Bank, and will carry out the Project in accordance with the principles and procedures set out in this System, and undertakes not to assign, amend, cancel or abandon any provisions of the System without the prior approval of the Bank.       8. The borrower represented by KLOKH, no later than December 31, 2006. will approve a Management System for Saxaul forests used for pastures acceptable to the Bank, and will carry out the Project in accordance with the principles and procedures set out in this System, and undertakes not to assign, amend, cancel or waive any provisions of the System without the prior approval of the Bank.       9. The borrower, represented by KLOH, will submit a report containing complete data on the results of the radiation analysis of the territory in accordance with Part A of the Project and specified in paragraph 2 (b) of Annex 1 to this Agreement, and if the report indicates the need for additional analyses and data, the Recipient is required to prepare and submit to the Bank one or more similar additional reports in the future. In the event that any subsequent report shows an excess of the standards of radioactive contamination established in the republic, the Borrower, through KLOH, undertakes to take all satisfactory and appropriate regulatory measures for the Bank, including bypassing contaminated sites, disclosing the report data to the public and conducting a campaign to inform the public about the risks associated with contamination. forest plots and products.       10. The borrower in the person of KLOCH:       (a) implements a policy and ensures an appropriate procedure for monitoring and evaluating the progress of the Project on a regular basis, and achieving project goals in accordance with indicators acceptable to the Bank; (b) Prepares Technical Specifications based on those acceptable to the Bank and submits them to the Bank on or about October 31, 2009. a report on the results of monitoring and evaluation activities carried out in accordance with paragraph (a) of this Section, outlining the results achieved during the period preceding the date of the said report, as well as recommended measures to ensure the effective implementation of the Project and achieve its objectives in the period after the date of the report; and (c) considers jointly with the Bank until November 30, 2009 at the request of the Bank, the report referred to in paragraph (b) of this Section, and then takes all necessary measures to ensure the effective completion of the Project and the achievement of its objectives based on the conclusions and recommendations of the report and the Bank's views on the matter.

 APPENDIX 6 Special account

1. For the purposes of this Annex:       (a) The term "legitimate categories" means categories (1), (2), (3) in paragraph 1 of the Table in Annex 1 to this Agreement; (b) the term "legitimate expenses" means expenses for goods, works, services necessary for the Project and provided for financing from the Loan funds, which are periodically allocated to legitimate Categories in accordance with the terms of Annex 1 to this Agreement; and (c) the term "Approved Allocation" means an amount equivalent to US$ 3,000,000 to be withdrawn from the Loan Account and credited to a Special Account in accordance with paragraph 3 (a) of this Annex, provided that no other agreement exists with the Bank.; The approved allocation will be limited to the amount of US$ 1,500,000 until the total amount of funds withdrawn from the Loan Account, plus the total amount of all outstanding special obligations assumed by the Bank under Section 5.02 of the General Terms and Conditions, is equal to or exceeds the amount equivalent to US$ 15,000,000. 2. Payments of funds from a Special Account are made exclusively for legitimate expenses in accordance with the terms of this Application.       3. After the Bank receives acceptable evidence that the Special Account has been opened in accordance with the established procedure, withdrawals of the Approved Allocation and subsequent withdrawals for the purpose of replenishing the Special Account will be made in the following order: (a) in order to withdraw funds from the Approved Allocation, the Borrower submits to the Bank an application or requests for depositing into the Special Account the amount or amounts that do not exceed the total amount of the Approved Allocation. Based on such an application or requests, the Bank, on behalf of the Borrower, withdraws from the Loan Account and deposits into a Special Account the amount or amounts as requested by the Borrower. (b) (i) In order to replenish the Special Account, the Borrower submits requests to the Bank for deposits to the Special Account at the frequency determined by the Bank.       (ii) Prior to or during the submission of each such application, the Borrower shall submit to the Bank the documentation and other evidence provided for in paragraph 4 of this Annex for making the payment or payments according to which replenishment of funds in the Special Account is requested. On the basis of each such request, the Bank, on behalf of the Borrower, withdraws funds from the Loan account and deposits them into a Special Account in the amount requested by the Borrower, the validity of which is confirmed by the mentioned financial and other documents attesting to the withdrawal of this amount from the Special Account to pay legitimate expenses. The withdrawal of all specified deposits from the Loan Account by the Bank is carried out within the relevant legitimate Categories and in appropriate equivalent amounts, confirmed by the mentioned documents and other confirmations.       4. For each payment made by the Borrower from a Special Account, the Borrower, within the period specified in the Bank's request, submits to the Bank documentation and other evidence that such payment was made solely for legitimate expenses.        5. Regardless of the provisions of paragraph 3 of this Annex, the Bank is not obligated to satisfy requests for further deposits for a Special Account.:       (a) if at any point the Bank determines that all further withdrawals must be made by the Borrower directly from the Loan Account, as provided for in the provisions of Article V of the General Terms and Conditions and paragraph (a) of Section 2.02 of this Agreement;       (b) if the Borrower has not submitted to the Bank, within the period specified in Section 4.01 (b) (ii) of this Loan Agreement, any audit reports that must be submitted to the Bank in accordance with the specified Section regarding the audit of accounts and Special Account statements; (c) if, in anyat that time, the Bank will notify the Borrower of its intention to partially or completely suspend the Borrower's right to withdraw funds from the Loan Account in accordance with the provisions of Section 6.02 of the General Terms and Conditions; or (d) as soon as the total outstanding Loan amount allocated to finance eligible Categories, less the total amount of all outstanding special obligations assumed by the Bank in accordance with Section 5.02 of the General Terms and Conditions for the Project, is equal to double the amount of the Approved Allocation.       After that, the withdrawal of the remaining unselected amount from the Loan Account allocated for financing legitimate categories is carried out in accordance with the procedure stipulated by the Bank in a special notification to the Borrower. Further withdrawals are made only in a certain amount and after the Bank makes sure that all amounts remaining on the deposit of the Special Account as of the date of the mentioned notification will be used to make payments for legitimate expenses.       6. (a) If the Bank determines at any time that any payments from the Special Account (i) have been made to cover expenses or in amounts that do not comply with the terms of paragraph 2 of this Annex, or (ii) are not justified by the documentation provided to the Bank, the Borrower shall immediately upon receipt of the Bank's notification (A) provides such additional confirmation as the Bank may request; or (C) deposits to a Special Bank Account (or, upon request of the Bank, reimburses the Bank) an amount equal to the amount of such payment or a portion thereof that is not sufficiently lawful or justified.       Unless the Bank agrees otherwise, no further funds will be deposited into the Special Account by the Bank until the Borrower submits such confirmation in each specific case or makes the mentioned contribution to the Special Account or reimburses the funds.       (b) If the Bank determines at any time that any outstanding amount in the Special Account will not be required to cover further payments for legitimate expenses, the Borrower will immediately reimburse the Bank for such outstanding amount upon receipt of notification from the Bank.       (c) The Borrower may reimburse the Bank in whole or in part for the funds deposited in the Special Account upon receipt of the Bank's notification.       (d) Funds reimbursed to the Bank in accordance with paragraphs 6 (a), (b) and (c) of this Annex shall be credited to the Loan Account for subsequent withdrawal or cancellation in accordance with the provisions of this Agreement, including the General Terms and Conditions.

     I hereby certify that this translation corresponds to the text of the Loan Agreement between the Republic of Kazakhstan and the International Bank for Reconstruction and Development, signed in Astana on November 6, 2006 in English.

     Vice Minister of Finance       Republic of Kazakhstan

LOAN NUMBER 4808 KZ                    GEF TRUST FUND GRANT NUMBER TF 055731

 Global Environment Facility The agreement on the grant of the trust fund (The project of preservation of forests and increase of forest cover of the territory of the republic) between THE REPUBLIC OF KAZAKHSTAN AND the INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT, acting as an executive organization The Global Environment Facility

dated November 6, 2006

LOAN NUMBER 4808 KZ                    GEF TRUST FUND GRANT NUMBER TF 055731

 GLOBAL ENVIRONMENT FACILITY TRUST GRANT AGREEMENT

     AGREEMENT dated November 6, 2006 between THE REPUBLIC OF KAZAKHSTAN (Recipient) and the INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (The Bank), acting as the executive organization of the Global Environment Facility (GEF) in relation to grant funds provided to the GEF Trust Fund by a number of members of the Bank who are participants in the GEF. WHEREAS (A) the Bank, in accordance with Resolution No. 91-5 of the Executive Directors of the Bank dated March 14, 1991, established the GEF in to protect the global environment and promote environmentally sound and sustainable economic development;       (C) After the reorganization of the GEF, such an agreement was extended in accordance with Resolution No. 94-2 of the Bank's Executive Directors dated May 24, 1994, which, among other things, established the GEF Trust Fund and appointed the Bank as a trustee of the GEF Trust Fund (Resolution No. 94-2);       (C) The Recipient, having satisfied himself of the feasibility and priority of the Project described in Annex 2 to this Agreement (the Project), requested the GEF Trust Fund to assist in financing the Project, and the request was approved in accordance with the provisions of the Document on the Reorganization and Establishment of the Global Environment Facility, approved by Resolution 94-2;       (D) The Recipient has also requested the Bank to provide additional financing for the Project, and by agreement (Loan Agreement) between the Recipient and the Bank dated the same date as this Agreement, the Bank agrees to provide such assistance in the aggregate amount equivalent to thirty million US dollars (30,000,000) (Loan); and

     WHEREAS, on the basis of, among other things, the above, the Bank agrees to provide the Recipient with a Grant from the GEF Trust Fund for the period and on the terms provided for in this Agreement;

     The parties hereby agree on the following:

 ARTICLE I General conditions; Definitions

Section 1.01. (a) The following provisions of the Bank's "General Terms and Conditions Applicable to Loan and Guarantee Agreements under Monocurrency Loans" dated May 30, 1995 (as amended on May 1, 2004), including the amendments set out in paragraph (b) of this Section (General Terms and Conditions), form an integral part of this Agreements:       (i) Article I; (ii) Sections 2.01 (2), (3), (4), (5), (6), (7), (8), (14), (15), (16), (18) and (21), 2.02 and 2.03; (iii) Section 3.01; (iv) Sections 4.01 and 4.06; (v) Article V;       (vi) Sections 6.01, 6.02 (a), (c), (d), (e), (f), (i), (l), (m), (n), (o) and (p), 6.03, 6.04 and 6.06; (vii) Section 8.01 (b); (viii) Sections 9.01 (a) and (c), 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09; (ix) Sections 10.01, 10.03 and 10.04; and (x) Article XI; and (x) Article XI; and (xi) Sections 12.01 (c), 12.03 and 12.04.       (b) The following changes are being made to the General Terms and Conditions:       (i) the term "Bank" in the General Terms and Conditions, with the exception of Sections 2.01 (6), 6.02 (f) and 5.01 (a), means a Bank acting as an executive organization of the GEF, with the exception of Section 6.02, where "Bank" also means a Bank acting in its own capacity; (ii) The term "Borrower" in the text of the General Terms and Conditions means the Recipient; (iii) The term "Loan Agreement" in the text of the General Terms and Conditions means this Agreement; (iv) The term "Loan" and "Loan" in the text of the General Terms and Conditions means a Grant from the GEF Trust Fund;       (v) the term "Loan Account" in the text of the General Terms and Conditions means the GEF Trust Fund Grant Account; (vi) A new subparagraph (o) is added to section 6.02 of the General Terms and Conditions as follows: "An emergency situation has arisen where any further disbursements of the GEF Trust Fund Grant exceed the available resources for disbursements from GEF."; (vii) In Section 6.03 (c) of the General Terms and Conditions, the words "corrupt or fraudulent" are replaced by the words "corrupt, fraudulent, colluded or forced (practice)".       Section 1.02. Unless the context otherwise requires, some of the terms defined in the General Terms and Conditions and in the Declarative Part of this Agreement correspond to the meanings set out there, and additional terms have the following meanings:       (a) "Management system for restricted access to forest resources" means the system developed by the Recipient and specified in paragraph 6 of Annex 4 to this Agreement, which describes the Project Areas of Restricted Access, vulnerable populations and organizational arrangements, including the procedure for handling complaints, to minimize the negative consequences of Project Activities, and to organize their monitoring and evaluation; (b) "PKG" means a Competitive Grant Program organized by the Recipient in accordance with the provisions of the Operational Guidelines (see definition below) for the purposes of Part C.2 of the Project; (c) "PKG Attorney" means a financial institution acceptable to the Bank, acting as a Recipient of funds for the PKG;       (d) "Agreement with the PCG Attorney" means an agreement between the Recipient and the PCG Attorney in accordance with Section 3.02 (a) of this Agreement, as amended from time to time, and such term includes all annexes and additional arrangements under the Agreement with the PCG Attorney; (e) "Competitive Grants Program Board" or "CCG" means the council established by the Recipient in accordance with Part C.2 of the Draft and specified in paragraph 9 of Annex 4 to this Agreement.;       (f) "Environmental Management Plan" means a plan acceptable to the Bank, which has received a positive assessment of the State Environmental Assessment dated June 6, 2005, and is specified in paragraph 3 of Annex 4 to this Agreement, describing environmental mitigation, monitoring and institutional measures within the framework of the Project; (g) "KLOCH" means the Forestry and Hunting Committee of the Ministry of Agriculture of the Recipient and includes any of its legal successors or successors;       (h) "Financial Monitoring Report" or "OFM" means each of the reports prepared in accordance with Section 4.02 of this Agreement; (i) "Grant" means a competitive grant provided or proposed for Grant by the Recipient in accordance with Part C.2 of the Project from the Grant funds in accordance with the Operational Guidelines; (j) "Grant Agreement" means the agreement entered into between the Recipient and each recipient of the Grant and specified in paragraph 13 (c) of Annex 4 to this Agreement;       (k) "Forest management system with the involvement of the local population" means a system that must be approved by the Recipient in the person of CLOH, which describes the activities, guidelines, procedures and policies for the implementation of a forest management system with the involvement of the local population in accordance with Part A.3 of the Draft, and specified in paragraph 7 of Annex 4 to to this Agreement;       (l) "Management system for saxaul forests used for pasture" means a system that must be approved by the Recipient, represented by KLOH, which describes the plots, procedures, guidelines and policies, including long-term use rights and harvesting rules for activities related to saxaul forests in accordance with Part B.2 of the Project and specified in paragraph 8. Annex 4 to this Agreement; (m) "Ministry of Agriculture" means the Ministry of Agriculture of the Recipient, including any of its legal successors or assigns;       (n) "Ministry of Finance" means the Ministry of Finance of the Recipient, including any successor or successors thereof; (o) "Operational Management" means the management that must be approved by the Recipient for the operations of the PKG and specified in paragraph 10 of Annex 3 to this Agreement; (p) "GKP" means the Project Coordination Group, which It must be created by the Recipient in the person of KLOH, specified in paragraph 1 of Annex 4 to this Agreement.;       (q) "Forest Pest Control Plan" means a plan for the safe management, use and disposal of pesticides used in the implementation of the Project, including the Subproject(s) (see definition below), which is an integral part of the Environmental Management Plan;       (r) "Procurement Plan" means the Recipient's procurement plan dated September 26, 2005, covering an initial 18-month (or longer) Project implementation period and periodically reviewed in accordance with the provisions of Section 3.03 of this Agreement to cover subsequent 18-month (or longer) Project implementation periods; (s) "Advisory Committee project" means the committee to be established by the Recipient in the person of the Ministry of Agriculture, specified in paragraph 5 of Annex 4 to this Agreement.;       (t) "Project Implementation Plan" or PRP means the project implementation plan specified in paragraph 4 of Annex 4 to this Agreement, subject to possible changes from time to time, in agreement with the Bank; (u) "RPP" means the three regional offices of the project, which should be established by the Recipient in in the reserves of Semey-Ormany and Yertis-Ormany and in the Kyzylorda region, to provide administrative support to the GKP specified in paragraph 1 of Annex 4 to this Agreement.;       (v) "Special Account" means the account specified in Section 2.02 (b) of this Agreement; (w) "Subproject(s)" means the subproject(s) selected and approved by the SCG in accordance with the criteria and procedures set out in the Operational Guidelines, and partially funded from the Grant funds.

 ARTICLE II Grant from the GEF Trust Fund

     Section 2.01. The Bank agrees to provide the Recipient, on the terms stipulated or specified in this Agreement, with a Grant from the GEF Trust Fund in the amount equivalent to five million US dollars (5,000,000).       Section 2.02. (a) The amount of the GEF Trust Fund Grant may be withdrawn from the GEF Trust Fund Grant Account in accordance with the provisions of  Appendices 1 to this Agreement: (i) on account of the upcoming expenses incurred by the Recipient (or with the consent of the Bank) for services purchased at a reasonable cost, required for the implementation of the Project and provided for financing from the funds of the GEF Trust Fund Grant; and (ii) the amounts paid (or, with the consent of the Bank, to be paid) by the Recipient, against funds withdrawn by the recipient of the Grant to pay for goods, works and services of reasonable value required for the implementation of the Subproject under Part C.2 of the Project, in respect of which funds are withdrawn from the GEF Trust Fund Grant Account. (b) For the purposes of the Project, the Recipient may open and maintain a special deposit account with a commercial bank, on terms acceptable to the Bank, including adequate protection against counter-claims, confiscation or seizure. Deposits to and payments from a Special Account are made in accordance with the provisions of  Appendices 5 to this Agreement.       Section 2.03. The Closing date is determined on November 30, 2012 or a later date to be set by the Bank. The Bank is obliged to immediately notify the Recipient of such a later date.

 Article III Project execution

Section 3.01. (a) The Recipient declares his commitment to the objectives of the Project set out in Annex 2 to this Agreement and, to this end, undertakes to carry out the Project through CLOH with due integrity and efficiency, and in accordance with good administrative, financial and environmental practices, and with due consideration for environmental factors and the state of the environment, and immediately provide funds, facilities, services and other resources necessary for the Project.       (b) Without prejudice to the provisions of paragraph (a) of this Section and except as otherwise agreed by the Recipient and the Bank, the Recipient, through CLOH, undertakes to carry out the Project in accordance with the implementation program set out in Annex 4 to this Agreement.       Section 3.02. Without limiting the provisions of Section 3.01 of this Agreement and except in cases where the Recipient and the Bank agree otherwise, the Recipient, for the purposes of Part C.2 of the Draft, undertakes:       (a) in agreement with the Attorney of the PKG, provide Grant funds allocated from time to time to Category (4) of the table in paragraph 1 of Annex 1 to this Agreement, and funds from the Recipient's republican budget allocated to the Attorney of the PKG for Grants in order to transfer them to the recipients of Grants for Subprojects selected in accordance with the procedure and eligibility criteria, and on the terms of, agreed upon in the Operational Guidelines acceptable to the Bank, which should include, without limitation, provisions on reporting, procurement, suspension and termination; (b) exercise their rights under an Agreement with the Attorney of the PKG in such a way as to protect the interests of the Recipient and the Bank, achieving the objectives stipulated in the Draft, and not assign, modify, cancel or to withdraw from Agreements with the Attorney of the PKG or any of its provisions without the prior consent of the Bank.       Section 3.03.(a) Except in cases where there is a different agreement with the Bank, the procurement of goods, works and services for the Project required for the Subprojects under Part C.2 of the Project, as well as the selection and hiring of consultants for the Project are carried out in accordance with the provisions  Annexes 3 to this Agreement, taking into account the possible further development of the agreed provisions in the Procurement Plan.       (b) The Recipient, represented by CLOCH, reviews the Procurement Plan in accordance with guidelines acceptable to the Bank and submits such revised plan to the Bank for approval no later than 12 months after the date of the previous Procurement Plan.       Section 3.04. For the purposes of Section 9.07 of the General Terms and Conditions and without limitation of its provisions, the Recipient represented by KLOH:       (a) no later than six (6) months after the Closing Date or such later date as may be agreed between the Bank and the Recipient, prepare, on the basis of guidelines acceptable to the Bank, and submit to the Bank a plan that ensures the consistent achievement of the Project objectives; and (b) provide the Bank with an informed opportunity to exchange views with the Recipient on the plan.

 ARTICLE IV Financial regulations

     Section 4.01. (a) The Recipient is required to maintain a financial management system, including accounting documents and accounts, and prepare financial statements in accordance with consistently applied and acceptable accounting standards for the Bank, appropriately reflecting Project-related transactions, resources and expenses.       (b) Recipient:       (i) ensure that the financial statements referred to in paragraph (a) of this Section are audited for each financial year (or other period agreed with the Bank) in accordance with appropriate auditing standards acceptable to the Bank and consistently applied by independent auditors;       (ii) submits to the Bank, as soon as it is ready, but in any case no later than six months after the end of the financial year (or any other period agreed with the Bank): (A) certified copies of the financial statements specified in paragraph (a) of this section that have been audited for the relevant year (or any other agreed period). with the Bank during the period); and (C) an auditor's report on such financial statements, made by the aforementioned auditors, to the extent and with such details as the Bank may reasonably request.; and (iii) submit to the Bank any other information regarding the said accounting records, accounts and audits of such financial statements, as well as the said auditors, which the Bank reasonably requests from time to time.       (c) For all expenses for which funds were withdrawn from the GEF Trust Fund Grant Account on the basis of expense statements, the Recipient, represented by CLOCH:       (i) retains, for at least one year after the Bank has received the audit report for the financial year when funds were last withdrawn from the GEF Trust Fund Grant Account, all accounting documents (contracts, payment orders, invoices, invoices for payment, receipts and other documents) confirming such (ii) provides an opportunity for representatives of the Bank to verify such documentation; and (iii) ensure that such expense statements are reviewed during the audit for each financial year (or other period agreed with the Bank) specified in paragraph (b) of this Section.       Section 4.02. (a) Without limiting the Recipient's obligations with respect to the project progress reports specified in paragraph 12 (b) Annex 4 to this Agreement, the Recipient, represented by KLOH, undertakes to prepare and submit to the Bank financial monitoring reports in a form and content acceptable to the Bank, which: (i) indicate the sources of funds and their use for the Project, both as a total and for the reporting period, with a separate indication of funds provided from funds from the GEF Trust Fund Grant, and explain the discrepancies between the actual and planned use of such funds; (ii) describe the physical indicators of the progress of the Project, both as a total and for the reporting period, and explain the discrepancies between the actual and planned progress of the Project; and (iii) describe the procurement status of the Project at the end of the reporting period.       (b) The first OFM is submitted to the Bank no later than 45 days after the end of the first calendar quarter after the Date of entry into force of this Agreement and covers the period from the first expenditure of Project funds to the end of the first calendar quarter; subsequently, each of the OFM covering the next calendar quarter is submitted to the Bank no later than 45 days after the end of each calendar quarter and covers it.

 ARTICLE V Bank's sanctions

     Section 5.01. In accordance with Section 6.02 (p) of the General Terms and Conditions, the following additional event is stipulated: (i) subject to the maintenance of subparagraph (ii) of this paragraph: (A) the Recipient's right to withdraw funds from any grant or loan provided to the Recipient to finance the Project is suspended, cancelled or terminated in whole or in part in accordance with the terms of the relevant agreement, or (B) the maturity and payment of any such loan has arrived before the agreed maturity date.       (ii) The provisions of subparagraph (i) of this paragraph shall not apply if the Recipient provides satisfactory evidence to the Bank that: (A) such suspension, cancellation, termination or early repayment is not caused by the Recipient's inability to fulfill its obligations under such an agreement; and (C) the Recipient has sufficient funds for the Project from other sources on terms that do not contradict the Recipient's obligations under this Agreement.

 ARTICLE VI Effective date; termination

     Section 6.01. In the context of Section 12.01 (c) of the General Terms and Conditions, the following event is specified as an additional condition for the entry into force of the GEF Trust Fund Grant Agreement, namely, the Loan Agreement has been duly signed and all conditions for its entry into force or the Recipient's right to withdraw funds have been fulfilled, except for the entry into force of this The GEF Trust Fund Grant Agreement. Section 6.02. For the purposes of Section 12.04 of the General Terms and Conditions, a period of one hundred and twenty (120) days after the date of conclusion of this Agreement is established.       Section 6.03. This Agreement shall remain in force until the full payment of the GEF Trust Fund Grant and the fulfillment of the relevant obligations by the parties to this Agreement.

 ARTICLE VII Recipient's representative; Legal addresses

     Section 7.01. For the purposes of section 11.03 of the General Terms and Conditions, the Minister of Finance of the Recipient is designated as the Recipient's representative.       Section 7.02. For the purposes of Section 11.01 of the General Terms and Conditions, the following addresses are defined:

     Recipient:

     Republic of Kazakhstan 010000 Astana ave. Pobedy 11 Ministry of Finance

     Telegraphic address:       Telex:         Fax: 264126 (FILIN) (7)(3172)717785

     For the Bank:

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

     Cable address:           Telex:       Facsimile:       INTBAFRAD                248423 (MCI) (202)477-391       Washington, D.C.         64145 (MCI)

     IN WITNESS WHEREOF, the Parties, acting through their duly authorized representatives, signed this Agreement (in Astana, Republic of Kazakhstan) on the above-mentioned day and year.

     REPUBLIC OF KAZAKHSTAN

     Authorized representative

     INTERNATIONAL BANK       RECONSTRUCTION AND DEVELOPMENT, as an executive organization of the Global Environment Facility

     Authorized representative

 Appendix 1

Withdrawal of funds from the GEF Trust Fund Grant

1. The table below shows the Categories of Items to be funded from the GEF Trust Fund Grant, the allocation of the GEF Grant amounts for each Category, and the percentage of expenditures for items to be funded for each Category.:

     Allocated Grant Amount        Maximum% of GEF TF expenditures (in USD)         financing

     Category

(1) Training 1,700,000 80 %

(2) Technical services 2,000,000 35 %

(3) Remote image 500,000 80% and cartography according to Part C.1     The project

(4) Grants under Part C.2     Project 800,000 33 % of spent amounts

Total:             5 000 000

     2. For the purposes of this Annex, the term: (a) "training" means Project expenses related to study trips and training courses, seminars and meetings, including the cost of training materials, rental of premises and equipment, travel expenses for organizers and participants; (b) "technical services" means expenses incurred in connection with with the involvement on a contractual basis of specialists providing services for specific tasks related to the Project.       3. Notwithstanding the provisions of paragraph 1 above, no funds shall be deductible for: (a) expenses incurred prior to the date of signature of this Agreement; and (b) expenses in respect of Category (4) in the table in paragraph 1 of Annex 1 to this Agreement, unless the Recipient has formed the JCC, and the Agreement with It was not signed by the attorney of the PKG.       4. The Bank may require that funds be withdrawn from the GEF Trust Fund Grant Account on the basis of expense statements for expenditures under Grant and training contracts and contracts for services not subject to Prior Review by the Bank, as stipulated in the Procurement Plan, all on such terms as the Bank notifies the Recipient.       5. If the Bank determines at a certain point that any amount from the GEF Trust Fund Grant Account has not been used in accordance with the provisions of this Agreement, the Recipient must immediately reimburse the Bank for the amount equivalent to the amount spent by depositing it into the GEF Trust Fund Grant Account upon receipt of the Bank's notification.

 APPENDIX 2

Project Description

     The project aims to assist the Recipient in developing methods for economical and sustainable environmental rehabilitation and management of forest and pasture lands, focusing on the ribbon forests of the Irtysh region, the dried-up bottom of the Aral Sea and Saxaul forests used for pasture.       Subject to possible changes agreed from time to time between the Recipient and the Bank in order to achieve the agreed goals. The project consists of the following parts:

     Part A: Restoration of belt bores of Irtysh region

     1. Reproduction of forests on an area of 41,000 hectares, creation of a forest seed base, applied research on the creation of cost-effective nursery forests and the use of effective planting technologies (for example, greenhouses, containers, production and sowing of granular seeds).       2. Improving the effectiveness of fire prevention measures and providing other types of forestry support through: (i) fire information, consulting and staff training; (ii) improvements to the fire prevention and detection system, including improvements to observation towers, communications facilities, and the restoration of a network of fire lanes; (iii) improvements to the fire management system, including the reconstruction of roads, the construction of fire stations, and the provision of rapid extinguishing fire trucks; and (iv) the development of a thinning and clearing program, including the purchase of vehicles means to increase the effectiveness of patrolling in order to reduce the scale of illegal activities; and the development of the potential of comprehensive pest control measures.       3. Development of partnership in forestry through the analysis of opportunities for the creation of environmentally sustainable enterprises for processing small-scale and fawn wood, as well as through pilot testing of forestry management with the participation of the local population in 16 villages.

     Part B: Phytocomelioration in the Kyzylorda region

     1. Planting operations on the dried-up areas of the Aral Sea bottom on 79,000 hectares (on the territory of 44,000 hectares, planting seedlings and, as far as possible, sowing granular seeds on 35,000 hectares) using effective planting technologies and the development of economical methods for the production, preparation and sowing of granular seeds. 2. Improving the management of saxaul forests used for pasture through the implementation of a saxaul forests and pasture management program with the participation of the local population at 30 demonstration sites, while restoring approximately 200 hectares of forest land on each of them with increased access to water sources for livestock or the creation of an equivalent level of infrastructure support for grazing on an additional area of about 7,500 hectares.

     Part C: National institutional development and Project coordination

     1. Improving policy analysis and government spending, improving information provision and information support, including mapping, human resource development, improving organizational management in order to strengthen policy and budgetary decisions; improving the process of public consultation, inventory, planning, monitoring, improving staff knowledge and skills and organizational effectiveness.       2. Provision of grants for innovative subprojects aimed at solving issues related to forest protection, reproduction and afforestation, as well as timber processing.       3. Providing support to the GKP in Project coordination and management.

***

     The project is expected to be completed by May 31, 2012.

 APPENDIX 3

Purchases

     Section I. General provisions

     A. All goods, works and services (with the exception of consulting services) are procured in accordance with the provisions of Section I of the IBRD Loans and MAP Loans Procurement Guidelines dated May 2004 (hereinafter referred to as the Procurement Guidelines) and the provisions of this Annex.       B. All consulting services are procured in accordance with the provisions of Sections I and IV of the "Guidelines for the Selection and Hiring of Consultants by Borrowers of the World Bank" dated May 2004. (hereinafter referred to as the Consultant Guide) and the provisions of this Annex, with the exception of the services of local consultants who perform preparatory work for the Project, as well as radiation analysis services that are funded from the Borrower's National Budget, which can be purchased in accordance with  The Borrower's Law "On Public Procurement" dated May 16, 2002, as amended prior to the entry into force of this Agreement.       C. The terms printed in capital letters in this Appendix and used to describe specific procurement methods or Bank verification of individual contracts have the meanings assigned to them in the Procurement Manual or the Consultant Manual, as appropriate.

     Section II. Specific methods of purchasing goods, works and services (excluding consulting)

     But. Other procurement methods 1. Public participation. The goods, works and services required for Part C.2 of the Project, specified in Appendix 2 to this Agreement, may be purchased on the basis of the company's participation in accordance with the provisions of the Operational Guidelines.

     Section III. Specific methods of procurement of consulting services

     A. Selection based on quality and cost. Unless Part B of this Section provides otherwise, the services of consultants are purchased under contracts awarded according to the selection method based on quality and cost assessment. For the purposes of paragraph 2.7 of the Consultant Guidelines, the shortlist of consultants for services with an estimated value of less than US$100,000 per contract may consist entirely of local consultants.       B. Other methods 1. Selection at the lowest price. Services for performing assignments that, with the Bank's consent, meet the requirements of paragraph 3.6 of the Consultant Guidelines, may be purchased under contracts awarded using the selection method at the lowest price in accordance with the provisions of paragraphs 3.1 and 3.6 of the Consultant Guidelines.       2. Selection based on the qualifications of consultants. Services valued at less than US$ 200,000 per contract may be purchased under contracts awarded in accordance with the provisions of paragraphs 3.1, 3.7 and 3.8 of the Consultant Guidelines.       3. Selection from a single source. Services for performing assignments in circumstances meeting the requirements of paragraph 3.10 of the Single Source Selection Consultant Guidelines may, subject to the prior consent of the Bank, be purchased in accordance with the provisions of paragraphs 3.9-3.13 of the Consultant Guidelines.       4. Individual consultants. Services for assignments that meet the requirements set out in the first sentence of paragraph 5.1 of the Consultant Guidelines may be purchased under contracts awarded to individual consultants in accordance with the provisions of paragraphs 5.2 and 5.3 of the Consultant Guidelines. In the circumstances specified in paragraph 5.4 of the Consultant Guidelines, such contracts may be awarded to individual consultants through an out-of-competition selection process, subject to prior approval by the Bank.

     Section IV. The Bank's review of procurement solutions

     The Procurement Plan should specify those contracts that are subject to preliminary review by the Bank. All other contracts are subject to review by the Bank after their execution (fact check).

 APPENDIX 4

Implementation program

1. During the Project implementation period, the Recipient, represented by KLOH, will ensure the activities of the GKP and RPP with a staff with qualifications and technical specifications acceptable to the Bank, and with adequate resources for the effective implementation of the Project.       2. The recipient, represented by KLOH, will ensure that the GCP: (a) is responsible for: (i) managing, coordinating and monitoring the Project, including conducting evaluations and preparing reports for the Project Advisory Committee and the JCC; (ii) preparing applications for withdrawal of Grant funds; (iii) managing the Special Account specified in Section 2.02 (b) this Agreement; (iv) PCG management; (v) procurement of goods, works, and services; (vi) maintaining and auditing records and accounting records for the Project; (vii) preparing the annual work program; and (viii) had overall responsibility for accounting, financial reporting, and management, and preparing OFMS for the Project; and (b) provided By August 15 and February 15, each year, the Bank receives semi-annual monitoring and evaluation reports on the Project, including information on the status of key monitoring indicators to assess the effectiveness of the Project.       3. The Recipient, represented by KLOH, implements the Environmental Management Plan, including the Pest Control Plan, in a manner satisfactory to the Bank and provides the Bank with a brief report on the status of the project (including the results of environmental monitoring) as part of the regular reporting on the Project or at the Bank's special request.       4. The Recipient, represented by KLOH, takes all necessary measures to carry out the Project in accordance with the PRP and undertakes not to assign, amend, cancel or waive any provisions of the PRP without the prior approval of the Bank.       5. The Recipient, represented by the Ministry of Agriculture, will establish and maintain, until the completion of the Project, a Project Advisory Committee consisting of representatives of key ministries, Project executive organizations, non-governmental organizations, the private sector, international organizations and donors involved in forestry activities, which will provide strategic recommendations and guidance for the implementation of the Project.       6. The Recipient, represented by KLOH, carries out the Project in accordance with the principles and procedures set out in the Forest Resource Restriction Management System and undertakes not to assign, amend, cancel or waive any provisions of this System without the prior approval of the Bank.       7. The recipient, represented by KLOH, no later than March 31, 2007. Approves a Forestry Management System involving the local Population acceptable to the Bank, and will implement the Project in accordance with the principles and procedures set out in the Forestry Management System involving the Local Population, and undertakes not to assign, amend, cancel or abandon any provisions of this System without the prior approval of the Bank.       8. The recipient, represented by KLOH, no later than December 31, 2006. Approves a Management System for Saxaul forests used for Pastures acceptable to the Bank, and will carry out the Project in accordance with the principles and procedures set out in this System, and undertakes not to assign, amend, cancel or waive any provisions of the System without the prior approval of the Bank.       9. The Recipient, represented by KLOH, will retain the terms of reference acceptable to the Bank until the completion of the SPKG Project.       10. The recipient, represented by KLOH, no later than December 31, 2006. approves the Operational Guidelines, which will be maintained throughout the Project in a form and content acceptable to the Bank, and undertakes not to assign, amend, cancel or waive any provisions of the Operational Guidelines without the prior approval of the Bank. Operational guidance should include, among other things, the following aspects: (a) criteria for the acceptability of Subprojects; (b) principles and procedures for approving Subprojects; and (c) indicators used to monitor the progress of the Subproject.       11. The Recipient will submit a report containing complete data on the results of samples for radioactive contamination of the territory in accordance with Part A of the Project and specified in paragraph 2 (b) of Annex 1 to this Agreement, and if the report indicates the need for additional analyses and data, the Recipient is required to prepare and submit to the Bank one or more similar additional reports in the future. In the event that any subsequent report shows an excess of the standards of radioactive contamination established in the Republic, the Recipient, through KLOH, undertakes to take all appropriate regulatory measures satisfactory to the Bank, including bypassing contaminated sites, disclosing the report data to the public and conducting a campaign to inform the public about the risks associated with contamination of forest sites. and products.       12. The recipient is represented by a CLOCH:       (a) implements policies and ensures an appropriate procedure that allows it to monitor and evaluate the progress of the Project and the achievement of its objectives on a regular basis and in accordance with indicators acceptable to the Bank; (b) prepares technical specifications based on those acceptable to the Bank and submits them to the Bank on or about October 31, 2009. a report on the results of monitoring and evaluation activities carried out in accordance with paragraph (a) of this Section, outlining the results achieved during the period preceding the date of the said report, as well as recommended measures to ensure the effective implementation of the Project and achieve its objectives in the period after the date of the report; and (c) consider jointly with the Bank until November 30, 2009 at the request of the Bank, the report referred to in paragraph (b) of this Section, and then takes all necessary measures to ensure the effective completion of the Project and the achievement of its objectives based on the conclusions and recommendations of the report and the Bank's views on the matter.       13. The recipient, represented by KLOCH, will ensure that:       (a) The selection, evaluation, implementation and evaluation of Subproject proposals for Grants under Part C.2 of the Project was carried out in accordance with the principles, procedures and criteria set out in the Operational Guidelines.       (b) during the implementation of the Project, the results of the selection of subproject proposals were sent for preliminary review and approval by the Bank; and (c) Grants were provided to the PKG Attorneys in accordance with the standard Grant Agreement form included in the Operational Manual, which: (i) duly describes the proposed Subprojects for which the Grant is being provided.; (ii) stipulate the requirements for the recipient of the Grant to carry out the proposed Subprojects in accordance with their description and within the budget set out in the Grant Agreement, and to purchase goods and services in accordance with the procedure set out in the Grant Agreement; (iii) the amount of each Grant is determined based on the estimated cost of goods, works and services, and the operating costs required for the Subproject, and should not exceed the Grant limit set in the Operational Guidelines; and (iv) the purpose and use of the Subproject and the Grant recipient's contribution to the financing of the subproject are specified in accordance with the requirements set out in the Operational Guidelines.       14. The Recipient, represented by KLOH, will ensure that the Agreement with the Attorney of the PKG, among other things, includes the following: (i) The Attorney of the PKG pays the Grant funds on time and in accordance with the terms and conditions specified or established in the Agreement with the Attorney of the PKG and the Operational Manual; (ii) The PCG Attorney shall take all necessary measures and exercise all rights stipulated in the Agreement with the PCG Attorney, including suspension or termination of the Grant recipient's right to use the Grant funds in the event that the recipient fails to fulfill any obligations arising from the Grant Agreement.; (iii) in the event that the recipient of the Grant fails to fulfill the obligations arising from the Grant Agreement, the Attorney of the PKG has the authority to terminate the Grant Agreement after prior agreement with CLOH, terminate payment of the Grant funds provided in accordance with it, and require other appropriate sanctions provided for by the laws of the Recipient; (iv) for timely payment of the Grant funds, his Up to 30% of the Grant funds are advanced to the Attorney of the PKG to an account with the Treasury or a commercial bank.; (v) The Attorney of the PKG provides documentation of expenses for a period of sixty (60) days to the KLOH and the GKP in order to ensure that the Grant funds are advanced for a period of no more than sixty (60) days.

 APPENDIX 5

Special account

     1. For the purposes of this Application:

(a) The term "legitimate Categories" means categories (1), (2), (3) and (4) in paragraph 1 of the Table in Annex 1 to this Agreement; (b) the term "legitimate expenses" means reasonable expenses for goods, works, services necessary for the Project and provided for financing from the funds of the GEF Trust Fund Grant, periodically allocated to eligible Categories, in accordance with the terms of Annex 1 to this Agreement; and (c) the term "Approved Allocation" means the amount of US$ 500,000 that will be withdrawn from the GEF Trust Fund Grant Account and credited to a Special Account in accordance with paragraph 3 (a) of this Annex, unless otherwise agreed with the Bank, the Approved Allocation will be limited to US$ 250,000 until as long as the total amount of funds withdrawn from the GEF Trust Fund Grant Account, plus the total amount of all outstanding special obligations assumed by the Bank in accordance with Section 5.02 of the General Terms and Conditions, will not be equal to or exceed the equivalent of 2,500,000 US dollars. 2. Payments from a Special Account are made exclusively for legitimate expenses in accordance with the terms of this Application.       3. After the Bank receives acceptable evidence that the Special Account has been opened in accordance with the established procedure, withdrawal of the Approved Allocation and subsequent withdrawal of funds for the purpose of replenishing the Special Account will be carried out in the following order: (a) In order to withdraw funds from the Approved Allocation, the Recipient submits to the Bank an application or requests for depositing the amount or amounts that do not exceed the total amount of the Approved Allocation. Based on such an application or applications, the Bank, on behalf of the Recipient, withdraws the amount or amounts from the GEF Trust Fund Grant Account and deposits them into a Special Account in accordance with the Recipient's application.       (b) (i) In order to replenish the Special Account, the Recipient submits requests to the Bank for depositing funds into the (relevant) Special Account at the frequency determined by the Bank.       (ii) Before or during the submission of each application, the Recipient shall submit to the Bank the documentation and other evidence provided for in paragraph 4 of this Annex for making the payment or payments in accordance with which replenishment of funds in the Special Account is requested. On the basis of each such application, the Bank, on behalf of the Recipient, withdraws funds from the GEF Trust Fund Grant Account and credits them to a Special Account in the amount requested by the Recipient, the validity of which is confirmed by the aforementioned documents attesting to the withdrawal of this amount from the Special Account to pay for related expenses. The Bank's withdrawal of all specified deposits from the GEF Trust Fund Grant Account is carried out within the framework of the legitimate categories and in appropriate equivalent amounts, confirmed by the mentioned documents and other confirmations.       4. For each payment made by the Recipient from a Special Account, the Recipient, within the period specified in the Bank's request, submits to the Bank documentation and other evidence that such payment was made solely for legitimate expenses.       5. Regardless of the provisions of paragraph 3 of this Annex, the Bank is not obliged to satisfy requests for further deposits to a Special Account.:       (a) if at any point the Bank determines that all further withdrawals must be made by the Recipient directly from the GEF Trust Fund Grant Account, as provided for in the provisions of Article V of the General Terms and Conditions and paragraph (a) of Section 2.02 of this Agreement;       (b) if the Recipient has not submitted to the Bank, within the period specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports that must be submitted to the Bank in accordance with the specified Section regarding the audit of accounts and Special Account statements; (c) if at any time the Bank will notify the Recipient of its intention to partially or completely suspend the Recipient's right to withdraw funds from the GEF Trust Fund Grant Account in accordance with the provisions of Section 6.02 of the General Terms and Conditions; or (d) as soon as the total outstanding Grant amount allocated to finance eligible categories, less the total amount of all outstanding special obligations assumed by the Bank in accordance with the provisions of section 5.02 of the General Terms and Conditions for the Project, is equal to double the amount of the Approved Allocation.       After that, the withdrawal of the remaining outstanding amount from the Account of the GEF Trust Fund Grant allocated for financing eligible categories is carried out in accordance with the procedure specified by the Bank in a special notification to the Recipient. Further such withdrawals are made only after the Bank has verified that all amounts remaining in the Special Account deposit as of the date of the said notification will be used to make payments for legitimate expenses.       6. (a) If the Bank determines at any time that any payments from the Special Account (i) have been made to cover expenses or in amounts that do not comply with the terms of paragraph 2 of this Annex, or (ii) are not justified by the documentation provided to the Bank, the Recipient shall immediately upon receipt of the Bank's notification (A) provide such additional confirmation as the Bank may request; or (C) deposits into a Special Account (or, upon request of the Bank, reimburses the Bank) an amount equal to the amount of such payment or a portion thereof that is not lawful or justified. Unless the Bank agrees otherwise, no funds will be deposited into the Special Account by the Bank until the Recipient, in each specific case, submits such confirmation or makes the mentioned contribution to the Special Account or reimburses the funds. (b) If the Bank at any time determines that some outstanding amount is in the Special Account. The account will not be required to cover further payments for legitimate expenses, and the Recipient will immediately reimburse the Bank for such outstanding amount upon receipt of notification from the Bank.       (c) Upon receipt of the Bank's notification, the Recipient may reimburse the Bank in whole or in part for the funds deposited in the Special Account.       (d) Funds reimbursed to the Bank in accordance with paragraph 6 (a), (b) and (c) of this Annex shall be credited to the GEF Trust Fund Grant Account for subsequent withdrawal or cancellation in accordance with the provisions of this Agreement, including the General Terms and Conditions.

     RCPI's note: The English text of the Agreement 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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