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 loan for the implementation of the Astana City Water Supply and Sewerage Project

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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 loan for the implementation of the Astana City Water Supply and Sewerage Project

The Law of the Republic of Kazakhstan dated November 6, 2003 No. 494

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 raising a loan for the implementation of the Astana City Water Supply and Sewerage Project, signed in Astana on March 29, 2002.

President of the Republic of Kazakhstan

Translation of the note from the Embassy of Japan in the Republic of Kazakhstan

"March 29, 2002 Astana

Your Excellency,

I have the honor to confirm the following Agreement recently reached between representatives of the Government of Japan and the Government of the Republic of Kazakhstan on the issue of granting a loan to Japan in order to support the economic stabilization and development process of the Republic of Kazakhstan:

1. A loan in the total amount of twenty-one billion three hundred and sixty-one million Japanese yen (Y 21 361 000 000) (hereinafter referred to as the "Loan") will be provided to the Government of the Republic of Kazakhstan by the Japan Bank for International Cooperation (hereinafter referred to as the "Bank") in accordance with the national legislation of Japan for the implementation of the project "Water Supply and Sanitation Astana City" (hereinafter referred to as the "Project").

2. (1) The loan will be available for use in accordance with the Loan Agreement to be concluded between the Government of the Republic of Kazakhstan and the Bank. The period and terms of the Loan, as well as the procedures for its use, will be determined in accordance with the aforementioned Loan Agreement, which, among other things, will contain the following principles: (a) (i) the repayment period will be twenty (20) years after the end of the grace period of ten (10) years; (ii) The interest rate will be two point two per annum (2.2%); (b) Notwithstanding the above condition of subparagraph (a), in the event that a portion of the Loan is available to cover the costs of Project consultants, the following applies: (i) the payment period for the said portion will be thirty (30) years after the end of the grace period of ten (10) years;

 His Excellency Mr. Yerlan Idrisov First Vice Minister of Foreign Affairs of the Republic of Kazakhstan

(ii) the interest rate on the said portion will be zero point seventy-five hundredths per annum (0.75%); and (c) the Loan will be granted for nine (9) years from the date of entry into force of the aforementioned Loan Agreement. (2) The Loan Agreement referred to in subparagraph (1) of this paragraph, will be concluded after the Bank's positive review of the feasibility study of the Project, which includes environmental protection issues.; (3) The Loan period referred to in subparagraph (1) of this paragraph (c) may be extended by agreement of the authorized authorities of the two Governments.

3. (1) The loan funds will be available to cover the payments of the Kazakh executive agency to suppliers, contracting organizations and/or consultants from eligible countries under contracts that may arise between them for the purchase of products and/or services necessary for the implementation of the Project, provided that such products are manufactured and/or services provided to/from these eligible countries. (2) The list of eligible countries mentioned in subparagraph (1) will be agreed upon between the authorized bodies of the two Governments. (3) Part of the Loan may be used to cover eligible claims in the national currency of the Republic of Kazakhstan related to the implementation of the Project.

4. The Government of the Republic of Kazakhstan will ensure that the products and/or services referred to in subparagraph (1) of paragraph (3) will be purchased in accordance with the Bank's procurement rules and the subsequent international tender procedure, except in cases where such a procedure is not applicable or inappropriate.

5. With regard to cargo and maritime transportation and insurance of products purchased under a Loan, the Government of the Republic of Kazakhstan will refrain from any restrictions that may hinder fair and free competition among transport and marine insurance companies.

6. Japanese nationals whose services may be required in the Republic of Kazakhstan in connection with the supply of products and/or services referred to in subparagraph (1) of paragraph (3) will be provided with the conditions necessary for entry and residence in the Republic of Kazakhstan to perform their work.

7. The Government of the Republic of Kazakhstan will release: (a) The Bank from all fiscal payments and taxes in the Republic of Kazakhstan imposed and/or in connection with the Loan, as well as on interest on it; (b) Japanese companies acting as suppliers, contracting organizations and/or consultants from all fiscal payments and taxes in the Republic of Kazakhstan imposed on them in with respect to income from the supply of products and/or the provision of Loan services; (c) Japanese companies acting as contracting organizations and/or consultants, from all payments and tax duties in the Republic of Kazakhstan in respect of the import and re-export of their own materials and equipment necessary for the implementation of the Project; and (d) Japanese employees involved in the implementation of the Project, from all fiscal payments and taxes in the Republic of Kazakhstan, imposed on them in relation to personal income received from payments from Japanese companies acting as suppliers, contract organizations and/or consultants.

8. The Government of the Republic of Kazakhstan will take the necessary measures: (a) The Loan will be used appropriately and exclusively for the execution of the Project; and (b) the facilities built with the Loan funds will be used and maintained efficiently and appropriately for the purposes described in this Agreement.

9. The Government of the Republic of Kazakhstan will, upon request, provide the Government of Japan and the Bank with information and data on the progress of the Project.

10. The two Governments will consult each other on any issues that may arise from or be related to the above-mentioned Agreement.

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 the conclusion of an Agreement between the two Governments, which will enter into force upon receipt by the Government of Japan of a written notification from the Government of the Republic of Kazakhstan on the completion of the necessary domestic procedures for the entry into force of such an Agreement.

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

 Hiroki Tokunaga Charge d'affaires a.i. Japan in the Republic of Kazakhstan

Translation of the note of the Ministry of Foreign Affairs of the Republic of Kazakhstan

"March 29, 2002 Astana

dear sir,

I have the honor to confirm receipt of your note dated today on the following issue: "I have the honor to confirm the following agreement recently reached between representatives of the Government of Japan and the Government of the Republic of Kazakhstan on the issue of granting a loan to Japan in order to support the economic stabilization and development process of the Republic of Kazakhstan:

2. (1) The loan will be available for use in accordance with the Loan Agreement to be concluded between the Government of the Republic of Kazakhstan and the Bank. The period and terms of the Loan, as well as the procedures for its use, will be determined in accordance with the aforementioned Loan Agreement, which, among other things, will contain the following principles: (a) (i) the repayment period will be twenty (20) years after the end of the grace period of ten (10) years; (ii) The interest rate will be two point two per annum (2.2%); (b) Notwithstanding the above condition of subparagraph (a), in the event that a portion of the Loan is available to cover the costs of Project consultants, the following applies: (i) the repayment period for the said portion will be thirty (30) years after the end of the grace period of ten (10) years; (ii) the interest rate on the said portion will be zero point seventy-five hundredths per annum (0.75%); and (c) the Loan will be granted for nine (9) years. years from the date of entry into force of the aforementioned Loan Agreement.

 Mr. Hiroki Tokunaga Charge d'affaires a.i. Japan in the Republic of Kazakhstan

(2) The Loan Agreement referred to in subparagraph (1) of this paragraph will be concluded after a positive review by the Bank of the feasibility study of the Project, which includes environmental issues; (3) The Loan Period referred to in subparagraph (1) of this paragraph (c) may be extended by agreement of the authorized authorities. two Governments.  

9. The Government of the Republic of Kazakhstan will, upon request, provide the Government of Japan and the Bank with information and data on the progress of the Project.

10. The two Governments will consult each other on any issues that may arise from or be related to the above-mentioned Agreement.

I take this opportunity to express to Your Excellency the assurances of my highest consideration."

I also have the honor to confirm on behalf of the Government of the Republic of Kazakhstan that the Government of the Republic of Kazakhstan agrees with the above, and to agree that your note and this reply note should be considered an Agreement between the two Governments, which will enter into force upon receipt by the Government of Japan of a written notification from the Government of the Republic of Kazakhstan that the necessary domestic procedures have been completed for such entry into force Agreements.

I take this opportunity to express to you the assurances of my high esteem.

Yerlan Idrisov First Vice Minister of Foreign Affairs of the Republic of Kazakhstan

President

Republic of Kazakhstan

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