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 "Water Supply to rural settlements in the Republic of Kazakhstan"

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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 "Water Supply to rural settlements in the Republic of Kazakhstan"

Law of the Republic of Kazakhstan dated January 9, 2004 No. 520

(Official website of the Ministry of Foreign Affairs of the Republic of Kazakhstan - Entered into force on January 19, 2004)

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 "Water supply to rural settlements in the Republic of Kazakhstan", signed in Astana on November 5, 2003.

President of the Republic of Kazakhstan

Astana, November 5, 2003

Your Excellency,

Allow me to confirm receipt of a Note from Your Excellency dated today stating the following:

"Let me refer to the recent discussions held between representatives of the Government of Japan and the Government of the Republic of Kazakhstan regarding Japanese economic cooperation to expand friendly ties and cooperation between the two countries and propose the following agreements on behalf of the Government of Japan: 1. In order to assist the Government of the Republic of Kazakhstan in the implementation of the project "Water Supply to rural settlements in the Republic of Kazakhstan" (hereinafter referred to as the "Project"), the Government of Japan will allocate to the Government of the Republic of Kazakhstan, in accordance with existing laws and regulations of Japan, a grant in the amount of five hundred twenty-five million yen (Y 525,000,000) (hereinafter referred to as the "Grant").

To His Excellency Toshio TSUNOZAKI to the Extraordinary and Plenipotentiary To the Ambassador of Japan in the Republic of Kazakhstan

2. The grant will be granted during the period between the date when these agreements come into force and March 31, 2004, unless this period is extended by mutual agreement between the representatives of the two Governments. 3. (1) The grant will be used by the Government of the Republic of Kazakhstan, respectively, and exclusively for the purchase of products from Japan or the Republic of Kazakhstan and services from Japanese nationals or subjects of the Republic of Kazakhstan, as indicated below: (the term "subjects" used in these agreements means Japanese individuals or Japanese legal entities controlled by Japanese individuals, in relation to Japanese nationals, and Kazakhstani individuals or legal entities, with respect to Kazakhstani filings): (a) vehicles, equipment and materials, necessary for the implementation of the Project and the services necessary for their purchase; (b) the services necessary for the transportation of the products specified in the above subparagraph (a) to the Republic of Kazakhstan and for transportation within the country; (c) the services necessary for training in working with the above-mentioned equipment, and (d) the services necessary for management and quality control during the implementation of activities. (2) Notwithstanding the provisions of higher subparagraph (1), if both Governments deem it necessary, the Grant may be used to purchase products specified in subparagraph (a) of higher paragraph (1), which are manufactured in third countries other than Japan or the Republic of Kazakhstan, and services specified in subparagraphs (a), (b), (c), and (d) above paragraph (1), nationals of third countries other than Japan or the Republic of Kazakhstan. 4. The Government of the Republic of Kazakhstan or its authorized body will conclude contracts in Japanese yen with Japanese nationals for the purchase of products and services specified in paragraph 3. Such contracts must be approved by the Government of Japan as suitable for the Grant. 5. (1) The Government of Japan will fulfill the Grant by making 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 an account opened in the name of the Government of the Republic of Kazakhstan with the Bank of Japan (hereinafter referred to as "the Bank"), determined by the Government of the Republic of Kazakhstan or its authorized body. (2) The payments specified in the above subparagraph (1) will be executed upon submission by the Bank authorized to make the payment by the Government of the Republic of Kazakhstan or its authorized body, a payment application to the Government of Japan. (3) The sole purpose of the account referred to in paragraph (1) above is to receive payments in Japanese yen from the Government of Japan and to pay Japanese nationals who are participants in Approved Contracts. The procedural details regarding the loan and debit from the bank account will be agreed upon through consultations between the Bank and 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 domestic transportation in the territory of the Republic of Kazakhstan of goods purchased at the expense of the Grant; (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 the supply of goods and services under Approved Contracts; (c) 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 The Republic of Kazakhstan and stay in it to carry out their work; (d) ensure that the goods purchased through the Grant will be properly and efficiently maintained and used for the implementation of the project; and (e) bear all costs, other than those covered by the Grant, necessary for the implementation of the Project. (2) With regard to insurance of shipments and sea transportation of goods purchased at the expense of a Grant, the Government of the Republic of Kazakhstan will refrain from imposing any restrictions that may interfere with fair and free competition between insurance companies for shipments and sea transportation of goods. (3) The goods purchased at the expense of the Grant will not be re-exported outside the Republic of Kazakhstan. 7. The Governments will consult with each other regarding issues that may arise in connection with these agreements. I have the honor to assume that this Note and Your Excellency's reply confirming the above agreements on behalf of the Government of the Republic of Kazakhstan will be considered an approved 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 Government of the Republic of Kazakhstan has completed the internal procedures necessary for the entry into force of this Agreement. Taking this opportunity, let me express to Your Excellency my assurances of the highest consideration.".

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 approved 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 Government of the Republic of Kazakhstan 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

Protocol of discussions

In connection with the Exchange Notes dated November 5, 2003, on Japanese Economic Cooperation, which will be provided in order to strengthen friendly relations and cooperation between Japan and Kazakhstan (hereinafter the Exchange Notes), representatives of the Japanese delegation and the Kazakh delegation would like to record the following: 1. Regarding paragraph 3 of the Exchange Notes, the representative of the Japanese delegation states that the Government of Japan understands that the Government of Kazakhstan will take the necessary measures to prevent any offer, 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.

November 5, 2003 November 5, 2003

________________________ _________________________

Kasymzhomart TOKAYEV Toshio TSUNOZAKI Minister of Foreign Affairs Extraordinary and Plenipotentiary of the Republic of Kazakhstan Ambassador of Japan to the Republic of Kazakhstan

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 Kazakhstan dated November 5, 2003, on Japanese Economic Cooperation, which will be provided in order to strengthen friendly relations and cooperation between Japan and Kazakhstan, the representatives of the Government of Japan and the Government of Kazakhstan would like to record the following procedural details, agreed by the authorized representatives Two Governments: 1. The Government of Japan determines the Japan International Cooperation Agency (JICA) to carry out the necessary work aimed at facilitating the appropriate implementation of Japanese gratuitous financial assistance. 2. The Government of Kazakhstan guarantees that the goods and/or services referred to in subparagraph (1) of paragraph 3 of the above-mentioned Exchange Notes will be purchased in accordance with the "Japanese Gratuitous Financial Assistance Rules for General Type Projects and Fisheries" of the JICA, which, among other things, define the tender procedures to be followed, except for except in cases where such procedures are unacceptable and inappropriate. 3. Any official of the Government 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. When it is necessary to change the plan and/or scheme of the Project referred to in paragraph 1 of the Exchange Notes, first of all, the Government of Kazakhstan should consult and obtain the consent to make changes from the Government of Japan, in accordance with the aforementioned "Rules of Japanese Gratuitous Financial Assistance for General Type Projects and Fisheries".

November 5, 2003 November 5, 2003

________________________ ________________________

Kasymzhomart TOKAYEV Toshio TSUNOZAKI Minister of Foreign Affairs Extraordinary and Plenipotentiary of the Republic of Kazakhstan Ambassador of Japan to the Republic of Kazakhstan

Astana, November 5, 2003

Your Excellency,

Let me refer to the recent discussions held between representatives of the Government of Japan and the Government of the Republic of Kazakhstan regarding Japanese economic cooperation to expand friendly ties and cooperation between the two countries, and propose the following agreements on behalf of the Government of Japan: 1. In order to assist the Government of the Republic of Kazakhstan in the implementation of the project "Water Supply to rural settlements in the Republic of Kazakhstan" (hereinafter referred to as the "Project"), 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 five hundred twenty-five million yen (Y 525,000,000) (hereinafter referred to as the "Grant"). 2. The grant will be granted during the period between the date when these agreements come into force and March 31, 2004, unless this period is extended by mutual agreement between the representatives of the two Governments. 3. (1) The grant will be used by the Government of the Republic of Kazakhstan, respectively, and exclusively for the purchase of products from Japan or the Republic of Kazakhstan and services from Japanese nationals or subjects of the Republic of Kazakhstan, as indicated below (The term "subjects" used in these agreements means Japanese individuals or

To Kasymzhomart TOKAYEV, Minister of Foreign Affairs of the Republic of Kazakhstan

Japanese legal entities controlled by Japanese individuals, in relation to Japanese nationals, and Kazakh individuals or legal entities, in relation to Kazakh citizens): (a) vehicles, equipment and materials necessary for the implementation of the Project and services necessary for their purchase; (b) services necessary for the transportation of products specified in the above subparagraph (a) to the Republic of Kazakhstan and for transportation within the country; (c) services required for training in the operation of the above-mentioned equipment, and (d) services required to guide the operation management and quality management of the equipment. (2) Notwithstanding the provisions of higher subparagraph (1), if both Governments deem it necessary, the Grant may be used to purchase products specified in subparagraph (a) of higher paragraph (1) that are manufactured in third countries other than Japan or the Republic of Kazakhstan, and services specified in subparagraphs (a), (b), (c) and (d) above paragraph (1), nationals of third countries other than Japan or the Republic of Kazakhstan. 4. The Government of the Republic of Kazakhstan or its authorized body will conclude contracts in Japanese yen with Japanese nationals for the purchase of products and services specified in paragraph 3. Such contracts must be approved by the Government of Japan as suitable for the Grant. 5. (1) The Government of Japan will fulfill the Grant by making 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 an account opened in the name of the Government of the Republic of Kazakhstan with the Bank of Japan (hereinafter referred to as the "Bank"), determined by the Government of the Republic of Kazakhstan or its authorized body. (2) The payments specified in the above subparagraph (1) will be executed upon submission by the Bank authorized to make the payment by the Government of the Republic of Kazakhstan or its authorized body, a payment application to the Government of Japan. (3) The sole purpose of the account referred to in paragraph (1) above is to receive payments in Japanese yen from the Government of Japan and to pay Japanese nationals who are participants in Approved Contracts. The procedural details regarding the loan and debit from the bank account will be agreed upon through consultations between the Bank and 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 domestic transportation in the territory of the Republic of Kazakhstan of goods purchased at the expense of the Grant; (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 the supply of goods and services under Approved Contracts; (c) 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 The Republic of Kazakhstan and stay in it to carry out their work; (d) ensure that the goods purchased through the Grant will be properly and efficiently maintained and used for the implementation of the Project; and (e) bear all costs, other than those covered by the Grant, necessary for the implementation of the Project. (2) With regard to insurance of shipments and sea transportation of goods purchased at the expense of a Grant, the Government of the Republic of Kazakhstan will refrain from imposing any restrictions that may interfere with fair and free competition between insurance companies for shipments and sea transportation of goods. (3) The goods purchased at the expense of the Grant will not be re-exported outside the Republic of Kazakhstan. 7. The Governments will consult with each other regarding issues that may arise in connection with these agreements. I have the honor to assume that this Note and Your Excellency's reply confirming the above agreements on behalf of the Government of the Republic of Kazakhstan will be considered approved agreements between the two Governments, which will enter into force on the date of receipt by the Government of Japan of a written notification on the completion by the Government of the Republic of Kazakhstan of the internal procedures necessary for the entry into force of this Agreement.

I take this opportunity to renew to Your Excellency my assurances of my highest consideration.

_________________________

Toshio TSUNOZAKI, Ambassador Extraordinary and Plenipotentiary Ambassador of Japan to the Republic of Kazakhstan

Protocol of discussions

November 5, 2003 November 5, 2003

________________________ __________________________

Toshio TSUNOZAKI Kasymzhomart TOKAYEV, Minister Extraordinary and Plenipotentiary of Foreign Affairs Ambassador of Japan of the Republic of Kazakhstan to the Republic of Kazakhstan

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 Kazakhstan dated November 5, 2003, on Japanese Economic Cooperation, which will be provided in order to strengthen friendly relations and cooperation between Japan and Kazakhstan, the representatives of the Government of Japan and the Government of Kazakhstan would like to record the following procedural details, agreed by the authorized representatives Two Governments: 5. The Government of Japan determines the Japan International Cooperation Agency (JICA) to carry out the necessary work aimed at facilitating the appropriate implementation of Japanese gratuitous financial assistance. 6. The Government of Kazakhstan guarantees that the goods and/or services referred to in subparagraph (1) of paragraph 3 of the above-mentioned Exchange Notes will be purchased in accordance with the "Japanese Gratuitous Financial Assistance Rules for General Type Projects and Fisheries" of the JICA, which, among other things, define the tender procedures to be followed, except for except in cases where such procedures are unacceptable and inappropriate. 7. Any official of the Government 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. 8. When it is necessary to change the plan and/or scheme of the Project referred to in paragraph 1 of the Exchange Notes, first of all, the Government of Kazakhstan should consult and obtain the consent to make changes from the Government of Japan, in accordance with the aforementioned "Rules of Japanese Gratuitous Financial Assistance for General Type Projects and Fisheries".

November 5, 2003 November 5, 2003

_______________________ ________________________

Toshio TSUNOZAKI Kasymzhomart TOKAYEV, Minister Extraordinary and Plenipotentiary of Foreign Affairs Ambassador of Japan of the Republic of Kazakhstan to the Republic of Kazakhstan

President

Republic of Kazakhstan

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