On the ratification of the Agreement in the form of an exchange of notes between the Government of the Republic of Kazakhstan and the Government of Japan on attracting a grant from the Government of Japan for the implementation of the project "Supply of sound equipment to the Palace of the Republic (Almaty)"

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On the ratification of the Agreement in the form of an exchange of notes between the Government of the Republic of Kazakhstan and the Government of Japan on attracting a grant from the Government of Japan for the implementation of the project "Supply of sound equipment to the Palace of the Republic (Almaty)"

Law of the Republic of Kazakhstan dated June 16, 2005 No. 60

(Official website of the Ministry of Foreign Affairs of the Republic of Kazakhstan - Entered into force on June 30, 2005)

To ratify the Agreement in the form of an exchange of notes between the Government of the Republic of Kazakhstan and the Government of Japan on attracting a grant from the Government of Japan for the implementation of the project "Supply of sound equipment to the Palace of the Republic (Almaty)", made in Astana on August 27, 2004.

President of the Republic of Kazakhstan

Unofficial translation

MD-98/11 March 10, 2005

The Embassy of Japan presents its compliments to the Ministry of Foreign Affairs of the Republic of Kazakhstan and refers to the note verbale N 11/1-1-842 Dated March 10, 2005, has the honor to inform the Ministry that the authorized bodies of the Government of Japan accept the proposal indicated in the above-mentioned note.

Ministry of Foreign Affairs of the Republic of Kazakhstan

We hereby confirm that this text is a translation from English of a Note from the Embassy of Japan in the Republic of Kazakhstan regarding the extension of the Agreement in the form of an exchange of Notes between the Government of the Republic of Kazakhstan and the Government of Japan on attracting a grant from the Government of Japan for the implementation of the project "Supply of sound equipment to the Palace of the Republic (Almaty)", signed on August 27, 2004 in the city of Astana.

Head of Organizational and Personnel Work

Unofficial translation

N 11/1-1-842

The Ministry of Foreign Affairs of the Republic of Kazakhstan presents its compliments to the Embassy of Japan and, referring to the exchange notes dated August 27, 2004, regarding the Japanese cultural grant for the supply of sound equipment to the Palace of the Republic (Almaty), has the honor to inform that due to difficulties encountered in the schedule for the provision of goods and services mentioned in paragraph 3 of the above exchange notes The authorized body of the Government of the Republic of Kazakhstan proposes that the authorized bodies of the two countries extend the period, specified in paragraph 2 of the above-mentioned exchange notes before March 31, 2006. We would be grateful if the Embassy would inform the Ministry as soon as possible about the response of the authorized body of the Government of Japan. The Ministry of Foreign Affairs takes this opportunity to renew to the Embassy the assurances of its high esteem.

Astana, March 10, 2005

Embassy of Japan

We hereby confirm that this text is a translation from English of the Note of the Ministry of Foreign Affairs of the Republic of Kazakhstan regarding the extension of the Agreement in the form of an exchange of Notes between the Government of the Republic of Kazakhstan and the Government of Japan on attracting a grant from the Government of Japan for the implementation of the project "Supply of sound equipment to the Palace of the Republic (Almaty)", signed on August 27, 2004 in the city of Astana.

Head of Organizational and Personnel Work

(Note from the Kazakh side translated from English)

Your Excellency, I have the honor to confirm receipt of Your Excellency's note dated today, which reads as follows:

"Your Excellency,

I have the honor to refer to the recent negotiations held between representatives of the Government of Japan and the Government of the Republic of Kazakhstan regarding the project "Supply of sound equipment to the Palace of the Republic (Almaty)" (hereinafter referred to as the Equipment), and propose the following agreements on behalf of the Government of Japan:

1. In order to assist in the development of cultural activities in the Republic of Kazakhstan, the Government of Japan will allocate to the Government of the Republic of Kazakhstan, in accordance with the existing laws and regulations of Japan, a grant in the amount of forty-nine million eight hundred thousand Japanese yen (Y 49 800 000), (hereinafter - the grant).

2. The grant will be valid for the period from the date of entry into force of this agreement until March 31, 2005, unless this period is extended by mutual agreement of the authorized bodies of the two Governments.

3. (1) The grant will be used by the Government of the Republic of Kazakhstan for its intended purpose and exclusively for the purchase of equipment manufactured in Japan or the Republic of Kazakhstan and services related to the purchase of equipment, including transportation of equipment to the Republic of Kazakhstan. (2) Notwithstanding the provision of the higher subparagraph (1) of paragraph (3), if both Governments consider it necessary to purchase equipment manufactured outside Japan or the Republic of Kazakhstan, this can be done with the funds provided for by the Grant.

To Her Excellency Mrs. Yoriko Kawaguchi, Minister of Foreign Affairs Japan

4. The Government of the Republic of Kazakhstan or its authorized body will conclude a contract in Japanese yen with a Japanese national for the purchase of products and services specified in paragraph 3 (the term "Japanese nationals" used in this agreement means Japanese individuals or Japanese legal entities controlled by Japanese individuals). Such contracts must be approved by the Government of Japan as suitable for the Grant.

5. (1) The Government of the Republic of Kazakhstan or its authorized body will open a bank account, which will be used only for the purpose of implementing the Grant, in the name of the Government of the Republic of Kazakhstan at the Bank of Japan, designated by the Government of the Republic of Kazakhstan or its authorized body. (2) The Government of Japan shall make payments in Japanese yen to cover obligations assumed by the Government of the Republic of Kazakhstan or its authorized body under contracts approved in accordance with the provisions of paragraph 4 (hereinafter referred to as "Approved Contracts") to the account specified in subparagraph (1) of paragraph 5, payments will be made upon provision by the bank, authorized to make the payment by the Government of the Republic of Kazakhstan or its authorized body.

6. (1) The Government of the Republic of Kazakhstan will take the necessary measures to: (a) ensure timely customs clearance and internal transportation of Equipment purchased under the Grant in the territory of the Republic of Kazakhstan; (b) exempt Japanese nationals from paying customs duties, taxes within the country and other financial charges that may be levied by the Republic of Kazakhstan in respect of supply of goods and services within the framework of the Grant; (c) to provide Japanese nationals, whose services will be required in connection with the supply of goods and services under Approved Contracts, with conditions for entry into and stay in the Republic of Kazakhstan to perform their work; (d) to ensure the proper and efficient use of equipment; and (e) to pay the costs necessary for the implementation of the Project, except those that will be covered by the Grant. (2) With regard to the loading and marine insurance of Equipment purchased under the Grant, the Government of the Republic of Kazakhstan will refrain from applying any restrictions that may hinder fair and free competition between the loading and marine insurance companies of the two countries. (3) The equipment purchased at the expense of the Grant may not be re-exported outside the Republic of Kazakhstan.

7. The two Governments will consult with each other when considering any issue that may arise from or in connection with the above-mentioned arrangements. I also have the honor to propose that this note and Your Excellency's reply confirming the above with respect to the Government of the Republic of Kazakhstan be considered an Agreement between the two Governments, which will enter into force on the date of receipt by the Government of Japan of a written notification that the Kazakh side has completed the internal procedures necessary for the entry into force of this Agreement. I take this opportunity to renew to Your Excellency the assurances of my high esteem.".

I have the honor to confirm the above agreements on behalf of the Government of the Republic of Kazakhstan and to agree that Your Excellency's Note and this Note will be considered an agreement between the two Governments, which will enter into force on the date of receipt by the Government of Japan of a written notification that the Kazakh side has completed the internal procedures necessary for the entry into force of this Agreement. I take this opportunity to renew to Your Excellency the assurances of my highest consideration.

Kasymzhomart Tokayev Minister of Foreign Affairs Republic of Kazakhstan

(Note from the Japanese side translated from English)

Your Excellency,

To His Excellency Kasymzhomart Tokayev, Minister of Foreign Affairs of the Republic of Kazakhstan

Yoriko Kawaguchi Minister of Foreign Affairs Japan

An agreed protocol on procedural details

Referring to paragraphs 1, 3, 4 and 5 of the Exchange Notes between the Government of Japan and the Government of the Republic of Kazakhstan dated __________ 2004 year (hereinafter referred to as Exchange Notes), regarding Japanese cultural cooperation for the purchase of sound equipment (hereinafter referred to as Equipment) to the Palace of the Republic (Almaty city), Representatives of the Government of Japan and the Government of the Republic of Kazakhstan would like to record the following procedural details, agreed upon by authorized representatives of the two Governments:

1. 1) The grant must be used effectively and non-discriminatively to purchase the equipment and services specified in subparagraph 1) of paragraph 3 of the Exchange Notes. In order to comply with these requirements, it is necessary that the Government of the Republic of Kazakhstan or its authorized body engage an independent and competent agent to assist the Republic of Kazakhstan or its authorized body in conducting a tender for the purchase of equipment. The Government of the Republic of Kazakhstan or its authorized body must further conclude the contract stipulated in paragraph 4 of the Exchange Notes, within one month after the entry into force of the Exchange Notes, with the participation of the Japan International Cooperation System (JICS) (hereinafter referred to as the Agent) to provide assistance to the Republic of Kazakhstan or its authorized body in accordance with the list of Agent's services, 2) The Contract will enter into force upon written approval by the Government of Japan.

2. Agent's Fee 1) The amount referred to in paragraph 1 of the Exchange Notes must include the Agent's fee; 2) The Government of the Republic of Kazakhstan or its authorized body must authorize such payment in accordance with the aforementioned contract to the bank referred to in subparagraph 1) of paragraph 5 of the Exchange Notes.

3. Any official of the Government of the Republic of Kazakhstan should not undertake any part of the work of Japanese citizens to purchase the goods and services mentioned in paragraph 4 of the Exchange Notes.

4. If it is necessary to change the plan and/or scheme of the Grant referred to in paragraph 1 of the Exchange Notes, the Government of Kazakhstan should consult and obtain the consent of the Government of Japan to make such changes.

____________ ___________ Kasymzhomart Tokayev - Yoriko Kawaguchi - Minister of Foreign Affairs Minister of Foreign Affairs of the Republic of Kazakhstan Japan

Protocol of discussions

In connection with the Exchange Notes dated August 27, 2004 on Japanese cultural cooperation for the purchase of equipment to the Palace of the Republic (Almaty) (hereinafter referred to as the Exchange Notes), representatives of the Japanese delegation and the Kazakh delegation would like to record the following:

1. Regarding subparagraph 1) of paragraph 3 of the Exchange Notes, the representative of the Japanese delegation states that the Government of Japan understands that the Government of the Republic of Kazakhstan will take the necessary measures to prevent any offer of an offering or remuneration for the provision of contracts referred to in paragraph 4 of the Exchange Notes.

2. The representative of the Kazakh delegation states that his delegation does not object to the statement of the representative of the Japanese delegation mentioned above.

____________ ___________ Kasymzhomart Tokayev - Yoriko Kawaguchi - Minister of Foreign Affairs Minister of Foreign Affairs of the Republic of Kazakhstan Japan

Application

List of Agent's services

1. Preparation of a list of goods for which a tender has been announced (hereinafter referred to as Equipment) based on a request sent in writing to the Embassy of Japan in the Republic of Kazakhstan by the Government of the Republic of Kazakhstan or its authorized body.

2. Investigation of the cost and characteristics of the Equipment and determination of the highest price limit for the tender.

3. Preparation of draft tender documents, which include the terms and conditions of the tender and technical specifications.

4. The announcement of the tender and the distribution of the tender documents.

5. Assistance to the Government of the Republic of Kazakhstan or its authorized body in conducting a tender at the Agent's office and determining the winner in the presence of applicants.

6. Preparation of the tender report in English and submission of the report to the Government of the Republic of Kazakhstan or its authorized body.

We hereby confirm that this text is a translation of the Agreement in the form of an exchange of notes between the Government of the Republic of Kazakhstan and the Government of Japan on attracting a grant from the Government of Japan for the implementation of the project "Supply of sound equipment to the Palace of the Republic (Almaty)", signed on August 27, 2004 in Astana.

Minister

President

Republic of Kazakhstan

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