On signing a Loan Agreement (Secondary Education Modernization Project) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development

Home / Decree / On signing a Loan Agreement (Secondary Education Modernization Project) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development

Decree of the President of the Republic of Kazakhstan dated August 11, 2017 No. 530.

In accordance with Article 8 of the Law of the Republic of Kazakhstan dated May 30, 2005 "On International Treaties of the Republic of Kazakhstan", I HEREBY DECREE:

1. To approve the attached draft Loan Agreement (Secondary Education Modernization Project) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development.

2. To authorize the Minister of Finance of the Republic of Kazakhstan Sultanov Bakhyt Turlykhanovich to sign on behalf of the Republic of Kazakhstan a Loan Agreement (Project for the modernization of Secondary Education) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development, authorizing amendments and additions that are not fundamental.

3. This Decree shall enter into force from the date of its signing.

President

Republic of Kazakhstan

N. Nazarbayev

Approved by Decree of the President of the Republic of Kazakhstan on August 11, 2017 No. 530

Project

LOAN AGREEMENT (Secondary Education Modernization Project) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development"

Agreement from _______________ 201_ between the Republic of Kazakhstan (the "Borrower") and the International Bank for Reconstruction and Development (the "Bank"). The Borrower and the Bank have hereby agreed on the following:

ARTICLE I — GENERAL CONDITIONS; DEFINITIONS

1.01. The General Terms and Conditions (defined in the appendix to this Agreement) are an integral part of this Agreement.

1.02. Unless otherwise indicated in the context, the terms used in this Agreement starting with capital letters have the meanings assigned to them in the General Terms and Conditions or the annex to this Agreement.

ARTICLE II - LOAN

2.01. The Bank agrees to provide the Borrower with an amount equal to sixty-seven million (6,700,000) US Dollars, which may be converted from time to time by Currency Conversion in accordance with the provisions of Section 2.08 of this Agreement (the "Loan"), for the term and conditions set forth in this Agreement or referenced therein, in order to provide assistance in financing the project described in Appendix 1 to this Agreement (the "Project").

2.02. The Borrower has the right to withdraw the Loan funds in accordance with Section IV of Appendix 2 to this Agreement.

2.03. The one-time commission payable by the Borrower is one quarter of one percent (0.25%) of the Loan amount. The Borrower pays a One-time Commission no later than sixty (60) days after the effective date.

2.04. The reservation fee payable by the Borrower is one quarter of one percent (0.25%) per annum of the outstanding Loan balance.

2.05. The interest payable by the Borrower for each Interest Period will be calculated at a rate equal to the Reference Rate for the Loan currency plus a Variable Spread; provided that the interest payable in no case will be less than zero percent (0%) per year, and also provided that upon conversion of all or For any part of the principal amount of the Loan, the amount of remuneration payable by the Borrower during the Conversion Period for this amount will be determined in accordance with the provisions of article IV of the General Terms and Conditions. Notwithstanding the above, in the event that any part of the Withdrawn Loan Balance remains unpaid on time and is not paid within thirty (30) days, the amount of remuneration payable by the Borrower will then be calculated in accordance with the provisions of section 3.02 (e) of the General Terms and Conditions.

2.06. The payment dates are February 15th and August 15th of each year.

2.07. The principal amount of the Loan is repaid in accordance with the repayment schedule set out in Appendix 3 to this Agreement.

2.08. (a) The Borrower may at any time request any of the following Loan Terms and conditions to be converted in order to ensure sound debt management: (i) a change in the Loan currency of all or any part of the Loan principal amount, both withdrawn and not withdrawn, to an Approved Currency; (ii) a change in the interest rate basis, applicable to: (A) all or any part of the withdrawn and outstanding principal amount of a Variable-rate to Fixed-Rate Loan, or vice versa; or (B) to all or any part of the principal amount of the Loan withdrawn and outstanding, from a Variable Rate based on a Reference Rate and a Variable Spread, to a Variable Rate based on a Fixed Reference Rate and a Variable Spread, or vice versa; or (C) to the entire principal amount of the Loan withdrawn and outstanding, from A variable rate based on a Variable Spread to a Variable rate based on a Fixed Spread; and (iii) determining the limits of the Variable Rate or Reference Rate applicable to all or any part of the withdrawn and outstanding principal amount of the Loan by setting an Upper Limit or Lower Limit on the Interest Rate for the Variable or Reference Rate.

(b) Any Conversion requested in accordance with paragraph (a) of this section and accepted by the Bank will be considered a "Conversion" as defined in the General Terms and Conditions and will take effect in accordance with the provisions of Article IV of the General Terms and Conditions and the Conversion Guidelines.

ARTICLE III — THE DRAFT

3.01. The Borrower declares his commitment to achieving the Project objective. To this end, the Borrower implements the Project through the Ministry of Education and Science of the Republic of Kazakhstan (hereinafter referred to as the "Ministry of Education and Science")in accordance with the provisions of article V of the General Terms and Conditions.

3.02. Without being limited by the provisions of Section 3.01 of this Agreement, unless otherwise agreed between the Borrower and the Bank, the Borrower will ensure the implementation of the Project in accordance with the provisions of Appendix 2 to this Agreement.

ARTICLE IV - ENTRY INTO FORCE; TERMINATION

4.01. Additional conditions for the entry into force of the Agreement are the development and approval by the Borrower through the Ministry of Education and Science of the Republic of Kazakhstan of the Operational Guidelines for the Project that meet the requirements of the Bank.

4.02. The deadline for the entry into force of this Agreement is the date following the expiration of one hundred and eighty (180) days after the date of signing this Agreement.

ARTICLE V - REPRESENTATIVES; ADDRESSES

5.01. The representative of the Borrower is the Minister of Finance of the Republic of Kazakhstan.

5.02. Borrower's address:

Ministry of Finance

11 Pobedy Avenue

Astana, 010000

Republic of Kazakhstan

Telex: Fax:

265126 (FILIN) (7) (7172) 717785

5.03. Bank Address:

International Bank for Reconstruction and Development

1818 H Street, N.W.

Washington, DC, 20433

United States of America

Telex: Fax:

248423(MCI) or 1-202-477-6391

64145(MCI)

AGREED ________________, __________, on the day and year specified above.

REPUBLIC OF KAZAKHSTAN

Whom:

_________________________________________

Authorized representative

Full name.: ____________________________

Post: ______________________________

INTERNATIONAL BANK

RECONSTRUCTION AND DEVELOPMENT

Whom:

_________________________________________

Authorized representative

Full name.: __________________________

Post: ______________________________

ADDENDUM 1 Project Description

The aim of the Project is to improve the quality and achieve equality in primary and secondary education, particularly in rural and vulnerable schools.

The project includes the following parts:

Part 1. Support for the improvement of the primary and secondary education system

A. Modernization of educational content

Technical assistance aimed at supporting the Ministry of Education and Science will be provided, among other things, through: (a) monitoring and evaluating pilot activities within the framework of the updated content of primary and secondary education; (b) discussing issues with stakeholders; (c) updating standards applied to textbooks in accordance with the updated content of education; (d) reviewing the criteria for evaluating and selecting textbooks; and (e) enhancing the capacity of technical experts conducting textbook quality assessments.

B. Bringing assessment systems in line with the updated educational content

The provision of technical assistance and goods to subordinate organizations of the Ministry of Education and Science responsible for national student assessment is provided for the following purposes:

(i) (a) develop a database of test assignments and (b) enhance the capacity of staff to develop tests to measure the updated educational content and new skills identified in Part 1.A of this Project;

(ii) creating new testing standards, as well as strengthening the capacity of relevant organizations to train staff to: (a) develop and comply with new testing standards for HEED and UNT in order to assess student achievement and improvement and for final assessment after graduation; and (b) conduct more effective assessment data analysis for providing information to teachers, administrators, local executive authorities, parents, and other stakeholders;

(iii) training employees and developers of test tasks in the administration, maintenance and updating of the database of test tasks.

C. Modernization of teacher education

Technical assistance and goods for the Ministry of Education and Science are provided for the following purposes:

(i) (a) testing the teacher training model in pedagogical universities, and (b) developing new curricula based on the evaluated model;

(ii) strengthening the capacity of individual pedagogical universities to teach new curricula, including the provision of appropriate equipment;

(iii) training of the teaching staff of pedagogical universities in teaching subjects of the mathematical cycle and science in English.

D. Increasing accountability through school inspections

Technical assistance will be provided through the training of teachers, principals and representatives of stakeholders on school management and school inspection.

Part 2. Providing support to rural and vulnerable schools to reduce the learning achievement gap

A. Provision of instructional materials and multimedia equipment to rural schools will be provided.

B. Technical assistance and training aimed at improving pedagogical and managerial potential are provided.

C. Support for inclusive education

Technical assistance and training are provided for the following purposes:

(i) assisting the Ministry of Education and Science in developing a model for integrating children with special educational needs into the general education process in accordance with the national concept of inclusive education;

(ii) to assist inclusive education organizations in the practical implementation of the above-mentioned model and the development of methodological guidelines;

(iii) educating teachers and representatives of local education authorities on the implementation of the model described in paragraph (i) above.

Part 3. Support for citizen engagement, monitoring and evaluation of Project implementation

A. Support will be provided for stakeholder engagement and awareness-raising through: (i) consultations; (ii) awareness-raising; (iii) the establishment of a complaints system; and (iv) independent monitoring and evaluation of Project implementation.

B. Technical assistance will be provided to support monitoring and evaluation initiatives for the following purposes::

(i) the development and implementation of evaluation activities for: (a) the specific initiatives provided for in Parts 1.A (a) to (d), 1.C (i) and (iii) of this Project; and (b) the entire Project;

(ii) the analysis of the Ministry of Education and Science's experience gained as a result of the assessment in order to develop a policy;

(iii) developing and conducting an assessment of the achievements of 4th grade students in the third (baseline assessment) and fifth years of the Project (impact assessment);

(iv) developing and/or updating a tool for evaluating classroom teaching methods before and after training; and

(v) The establishment of a Technical Advisory Board to provide advice and support for the implementation of the Project.

C. Project Implementation

Support will be provided to the Ministry of Education and Science and the State Unitary Enterprise in the implementation of the Project, including financing operational costs and ensuring the activities of the Advisory Technical Council.

ADDENDUM 2 Project Execution

Section I. Implementation mechanisms

A. Institutional arrangements

1. Without being limited by the provisions of Article V of the General Terms and Conditions and except in cases where the Bank agrees otherwise, the Borrower through the Ministry of Finance:

(a) is responsible for the overall implementation and supervision of the Project;

(b) ensures that the requirements, criteria, policies, procedures and organizational arrangements set out in the PRU are applied in connection with the execution of the Project; and

(c) is not entitled to assign, amend, cancel or waive the PIU or any of its provisions, as well as to allow assignment, amendment, cancellation or waiver of its provisions in a manner that, in the opinion of the Bank, may have significant negative consequences for the implementation of the Project.

2. No later than within thirty (30) days from the Date of entry into force of this Agreement, the Borrower, through the Ministry of Education and Science, will establish, maintain and ensure the functioning of the State Unitary Enterprise throughout the entire period of the Project, with the level of resources and in accordance with the technical specifications and functions that meet the requirements of the Bank.

3. (a) No later than within ninety (90) days from the Date of entry into force of this Agreement, the Borrower, through the Ministry of Education and Science, will establish and then ensure the functioning throughout the entire period of the Project of an Advisory Technical Council consisting of, with the level of resources and in accordance with the technical specifications that meet the requirements of the Bank, which will Responsibility for ensuring that Project standards are maintained at a satisfactory level and that policy reforms based on the world's leading standards are followed., by periodically reviewing the progress of the Project, and, as necessary, providing advice to the Ministry of Education and Science regarding corrective measures.

(b) The borrower, through the Ministry of Education and Science, should ensure that the Advisory Technical Council is staffed with international and Kazakhstani experts with in-depth knowledge of global trends in teacher training policy, curriculum development and evaluation, as well as the reforms being implemented in Kazakhstan in the field of school education.

4. No later than within forty-five (45) days from the Date of entry into force of this Agreement, the Borrower, through the Ministry of Education and Science, must develop and implement a module within its existing automated accounting software with the ability to generate interim unaudited financial reports and collect data from Project accounts that fully meet the Bank's requirements.

B. Anti-corruption measures

The Borrower will ensure the implementation of the Project in accordance with the provisions of the Anti-Corruption Guidelines.

Section II. Monitoring, reporting and evaluation of the Project

A. Project Reports

1. The Borrower, through the Ministry of Education and Science, will monitor and evaluate the progress of the Project and prepare Project Reports in accordance with the provisions of Section 5.08 of the General Terms and Conditions and based on indicators acceptable to the Bank. Each Project Report must cover a period of one calendar quarter and be submitted to the Bank no later than forty-five (45) days after the end of the period covered by such report.

B. Financial management, financial reports and audits

1. The borrower, through the Ministry of Education and Science, will maintain a financial management system in accordance with the provisions of Section 5.09 of the General Terms and Conditions.

2. Not limited to the provisions of Part A of this section, the Borrower, through the Ministry of Education and Science, will prepare and submit to the Bank, as part of each Project Report, interim unaudited financial reports on the Project for the relevant calendar quarter that meet the Bank's requirements in form and content, no later than forty-five (45) days after the end of each calendar quarter.

3. The Borrower will ensure that its financial statements are audited in accordance with the provisions of section 5.09 (b) of the General Terms and Conditions. Each audit of financial statements should cover the period of one financial year of the Borrower. The audited financial statements for each such period must be submitted to the Bank no later than six months after the end of the relevant period.

Section III. Purchases

A. General provisions

1. Goods and non-consulting services. All goods and non-consulting services that are required for the Project and will be financed from the Loan funds must be purchased in accordance with the requirements contained or referenced in section I of the Procurement Manual, as well as in accordance with the provisions of this section.

2. Consulting services. All consulting services required for the Project and to be financed from the Loan funds must be procured in accordance with the requirements contained or referenced in sections I and IV of the Consultant Selection and Recruitment Guidelines, as well as in accordance with the provisions of this section.

3. Definitions. The capitalized terms used in this section below to describe individual procurement methods or the Bank's review methods for individual contracts refer to the relevant method described in sections II and III of the Procurement Manual or sections II, III, IV and V of the Consultant Selection and Recruitment Manual, as appropriate..

B. Selected methods of purchasing goods and non-consulting services

1. International competitive bidding. Unless otherwise provided in paragraph 2 below, goods and non-consulting services must be procured under contracts awarded in accordance with International Competitive bidding procedures.

2. Other methods of purchasing goods and non-consulting services. In addition to International competitive bidding, the following methods of procurement of goods and non-consulting services may be used for those contracts specified in the Procurement Plan: (a) National competitive bidding, to which additional provisions specified in the annex to this Appendix 2 of this Agreement will apply; (b) free trade procurement; and (c) direct contracts.

C. Selected methods of procurement of consulting services

1. Selection based on quality and cost. Unless otherwise provided in paragraph 2 below, consulting services should be procured under contracts awarded in accordance with a selection procedure based on quality and cost.

2. Other methods of procurement of consulting services. In addition to Selection based on quality and cost, the following methods of procurement of consulting services may be used for those contracts specified in the Procurement Plan: (a) Selection with a fixed budget; (b) Selection at the lowest cost; (c) Selection based on consultant qualifications; (d) Selection of consulting firms from a single source in accordance with paragraph 3.8 of the Guidelines for the Selection and Hiring of Consultants; and (e) Procedures for the selection of individual consultants from a single source.

D. The Bank's review of procurement decisions

The Procurement Plan should specify those contracts that are subject to preliminary review by the Bank. All other contracts are subject to subsequent review by the Bank.

Section IV. Withdrawal of Loan funds

A. General provisions

1. The Borrower may withdraw funds from the Loan in accordance with the provisions of article II of the General Terms and Conditions, this section and those additional instructions specified by the Bank in the notification to the Borrower (including the "World Bank Guidelines for the Disbursement of Project Funds" dated May 2006, periodically reviewed by the Bank and applicable to this Agreement in accordance with such instructions), to finance Eligible Expenses according to the table given in paragraph 2 below.

2. The table below shows the categories of Eligible Expenses that can be financed from the Loan (the "Category"), the Loan amounts allocated for each Category, and the percentage of expenses to be financed as Eligible Expenses for each Category.

Download

Category

Loan amount allocated (expressed in US dollars)

Share of expenses to be financed (not including Taxes)

(1) Goods, non-consulting services, consulting services, Training, Project Operating expenses

67000000

100%

TOTAL AMOUNT

67000000

B. Withdrawal conditions; withdrawal period

1. Regardless of the provisions of Part A of this section, funds should not be withdrawn:

(a) from the Loan Account until the Bank receives the full amount of the Lump Sum Fee; or

(b) to make payments before the date of this Agreement.

2. The closing date is December 31, 2022.

Appendix to APPENDIX 2

The procurement procedures to be used in conducting national competitive bidding will be the competitive bidding procedures specified in the Law of the Republic of Kazakhstan dated December 4, 2015 No. 434-V "On Public Procurement"; provided that the provisions of section I and paragraphs 3.3 and 3.4 of the Procurement Manual will apply to such procedures, and also the following additional provisions:

(a) Eligibility: The eligibility of bidders to participate in the procurement process and receive the award of a Bank-funded contract should be determined in accordance with section I of the Procurement Manual; accordingly, no bidder or potential bidder may be declared ineligible to enter into Bank-funded contracts for reasons other than which are listed in section I of the Procurement Manual. Foreign bidders are allowed to participate in the CNT procedures, and are not required to enter into partnerships with local bidders in order to participate in the procurement process.

(b) Registration: Competitive bidding should not be limited to pre-registered firms, nor is it required that foreign bidders register with local authorities as a condition for submitting bids.

(c) Preferences: No preferences of any kind should be applied in evaluating bids based on the nationality of the bidder; origin of goods, services, or labor; local content; local ownership interest; and/or any other preference programs.

(d) Tender documentation: Procurement organizations should use the appropriate standard package of tender documentation, including contract provisions that meet the requirements of the Bank.

(e) Estimated costs: Estimated costs are confidential information and should not be disclosed to potential bidders.

(f) The validity period of the tender application: An extension of the validity period of bids, if due to exceptional circumstances, may be requested in writing from all bidders before the expiration of the bids and for the minimum period necessary to complete the evaluation or award of the contract, provided that such extension will cover only the minimum period necessary to complete the evaluation and/or the award of the contract, and must not exceed four (4) weeks. No additional extensions should be requested without the prior written consent of the Bank.

(g) Submission and opening of bids: Potential bidders will be given at least thirty (30) days from the date of publication of the invitation to bid or the date when the tender documents are ready, whichever is later, to prepare and submit bids. Applications are opened publicly, immediately after the deadline for their submission. A copy of the tender opening protocol must be immediately provided to all bidders who submitted bids and to the Bank in respect of contracts subject to preliminary review by the Bank.

(h) Qualifications: The qualification criteria should be clearly stated in the bidding documents. All the criteria specified there, and only these specified criteria, should be used to determine the qualifications of the bidder. Qualifications should be assessed using the "passed or failed" method, and no points should be used. Such assessments should be based entirely on the capabilities and resources of the bidder or potential bidder necessary to effectively execute the contract, taking into account objective and measurable factors, including: (i) relevant general and specific experience and a satisfactory track record of successful execution of such contracts over a specified period; (ii) financial situation; and depending on the circumstances (iii) conformity of construction and/or production facilities.

(i) In cases where prequalification is not used, the qualifications of the bidder who is recommended for the award of the contract will be evaluated during the postqualification process using the qualification criteria specified in the bidding documents referred to in paragraph (d) above.

(j) Evaluation of bids: The evaluation criteria should be clearly stated in the bidding documents. The evaluation of bids should be carried out in strict accordance with the quantifiable criteria stated in the tender documentation. Evaluation criteria other than price should be quantified in monetary terms. No points or the method of extremes should be used, and no minimum points or percentages should be used to determine the importance of price in evaluating bids. Bidders should not be excluded on the basis of minor, insignificant deviations. The bidder may request clarifications from the bidders necessary to evaluate the bids submitted by them, but he may not ask or allow the bidders to change the content or price of their bids after the bids are opened.

(k) Contracts should be awarded to a qualified bidder whose bid is defined as: (i) substantially meeting the requirements of the bidding documents; and (ii) offering the lowest estimated value. There should be no negotiations regarding the price or content of the bid.

(l) Rejection and resubmission of bids: No bids should be rejected solely because their price is lower or higher than the estimated value, outside the range or beyond the limits of the cost of bids. All bids (including cases where the bidders have received less than two bids) should not be rejected, the procurement process should not be canceled, and the invitation to submit new bids should not be published without the prior written consent of the Bank.

(m) Guarantees: Guarantees for bids and performance of contracts must be provided in the format and have the required validity period specified in the tender documentation referred to in paragraph (d) above. If necessary, the security of the tender application can be expressed in the form of a fixed amount and should not exceed two percent (2%) of the estimated contract value. No advance payments should be made to contractors without an appropriate advance payment guarantee.

(n) Confidentiality: The process of evaluating bids should be kept confidential until information about the award of the contract is published.

(o) E-procurement systems: E-procurement systems may be used, provided that the Bank is satisfied with the parameters of the systems, including, but not limited to, their security and ensuring the integrity, confidentiality and authenticity of submitted applications.

(p) Fraud and corruption: According to the Procurement Manual, all tender documents and contracts must include provisions regarding the Bank's policy of sanctioning firms or individuals found to be engaged in fraudulent, corrupt activities, collusion or obstructive practices, as defined in the Procurement Manual.

(q) Rights regarding the conduct of inspections and audits: According to the Procurement Guidelines, each package of tender documents and each Loan-funded contract must contain provisions stating that bidders, suppliers and contractors, as well as their subcontractors, agents, employees, consultants, service providers or suppliers, will allow the Bank to verify their accounts, accounting and other documentation. related to the submission of bids and the execution of contracts, and will also allow auditors appointed by the Bank to audit accounts and accounting documents. Actions aimed at creating significant difficulties in the Bank's exercise of its rights to conduct inspections and audits provided for in the Procurement Manual are an obstructive practice as defined by the Procurement Manual.

(r) Publication of information on the conclusion of contracts: The bidder must publish on public web resources or other sources acceptable to the Bank the following information on the award of contracts: (i) the name(s) of each tenderer who submitted the bid; (ii) the prices indicated in the bids and announced as part of the opening procedure; (iii) the name and estimated price of each bid that has passed the evaluation procedure; (iv) the names of the bidders whose bids were rejected, indicating the reasons for such rejection; (v) the name(s) of the winning bidder, the price offered by him, as well as the duration and content of the contract concluded with him.

ADDENDUM 3 Repayment schedule

1. The following table shows the Repayment Dates of the principal debt and the percentage of the total Loan amount to be repaid on each Repayment Date of the Principal debt (the "Repayment Share"). If the Loan funds are fully withdrawn on the first Repayment Date of the Principal debt, the principal amount of the Loan that will be repaid by the Borrower on each such Repayment Date will be determined by the Bank by multiplying: (a) the Loan Amount withdrawn on the first Repayment Date of the principal debt and (b) the repayment share for each The repayment date of the principal debt. Such amount to be repaid will be adjusted, if necessary, to deduct any amounts referred to in paragraph 4 of this Addendum to which Currency Conversion applies.

Download

Repayment date of the main debt

Repayment rate (in percentage terms)

Every 15 February and 15 August, starting from 15 February 2023 to 15 August 2033

4,35%

February 15th, 2034

4,30%

2. If the Loan funds are not fully withdrawn on the first Repayment Date of the principal debt, the principal amount of the Loan that will be repaid by the Borrower on each such Repayment Date will be determined as follows:

(a) To the extent that any Loan funds were withdrawn on the first Repayment Date of the Principal debt, the Borrower must repay the Loan Amount withdrawn on that date in accordance with paragraph 1 of this Addendum.

(b) Any amounts withdrawn after the first Repayment Date of the principal debt must be repaid on each Repayment Date of the principal debt after the date of such withdrawal in amounts determined by the Bank by multiplying the amount of each such withdrawal by a fraction, the numerator of which is the initial amount of the Repayment Share specified in the table in paragraph 1 of this Supplement for that Repayment Date. debt ("The initial amount of the Repayment Share"), and the denominator of which is the sum of all remaining Initial Amounts of the Repayment Share of Payments on or after the Repayment of the Principal Debt on such date, the amount to be repaid will, if necessary, be adjusted to deduct any amounts referred to in paragraph 4 of this Addendum to which Currency Conversion applies.

3. (a) Loan amounts withdrawn during the two calendar months preceding any Repayment Date of the Principal debt, solely for the purpose of calculating the amounts of the principal debt payable on any Repayment Date, will be considered withdrawn and outstanding on the second Repayment Date of the principal debt following the withdrawal date, and will be repayable. for each Repayment Date of the principal debt, starting from the second Repayment Date of the principal debt following the withdrawal date.

(b) Notwithstanding the provisions of subparagraph (a) of this paragraph, if at any time the Bank implements a billing system based on payment dates, in which invoices are issued on or after the relevant Repayment Date, the provisions of this subparagraph will not apply to any withdrawals made after the introduction of such billing system.

4. Notwithstanding the provisions of paragraphs 1 and 2 of this Addendum, after the currency Conversion of all or any part of the withdrawn Loan balance into the Approved Currency, the amount thus converted into the Approved Currency, which is repayable on any Repayment Date of the Principal debt occurring during the Conversion Period, will be determined by the Bank by multiplying such amount in the currency its denomination immediately before Conversion to any of the following: (i) an exchange rate that reflects the amounts of the principal debt in the Approved Currency, payable by the Bank as part of Currency Hedge Transactions related to the Conversion, or (ii) the currency component of the Interest Rate, if the Bank decides accordingly in accordance with the Conversion Guidelines.

5. If the withdrawn Loan balance is denominated in more than one Loan Currency, the provisions of this Addendum shall apply separately to the amount expressed in each Loan Currency in order to establish a separate repayment schedule for each such amount.

application

Section I. Definitions

1. "Anti-Corruption Guidelines" means "Guidelines for the Prevention and Suppression of Fraud and Corruption in the Implementation of Projects Financed by IBRD Loans and IDA Loans and Grants" dated October 15, 2006, as amended and supplemented in January 2011.

2. "Category" means the category specified in the table in section IV of Appendix 2 to this Agreement.

3. "Guidance on the Selection and Hiring of Consultants" means the "Guidance on the Selection and Hiring of Consultants by World Bank Borrowers on IBRD Loans and IDA Loans and Grants" dated January 2011 (with amendments and additions dated July 2014).

4. "External assessment of academic achievement" or "IED" means a national large-scale assessment of the quality of educational services and the degree to which students master the content of educational programs at the time of completion of basic secondary education and higher education in certain specialties, as specified in Part 1.B (ii) of this Project.

5. "General Terms and Conditions" means the "General Terms and Conditions for Loans of the International Bank for Reconstruction and Development" dated March 12, 2012, as amended in section II of this annex.

6. "Ministry of Education and Science" or "Ministry of Education and Science" means the Ministry of Education and Science of the Borrower or any of its legal successors or assigns.

7. "Ministry of Finance" means the Ministry of Finance of the Borrower or any of its legal successors or assigns.

8. "Operating expenses" means incremental operating costs directly incurred by the Ministry of Education and Science and the State Unitary Enterprise during the implementation, management and monitoring of the Project, including communication costs, interpretation and translation services, commission fees, stationery, announcements, conferences, seminars, dissemination of information on the Project, rental of office space and utilities, insurance, office equipment maintenance and repair, vehicle maintenance and repair, Project travel, security and other costs, directly related to the Project, in each case based on periodically prepared budgets acceptable to the Bank, but excluding the remuneration of any government employees of the Borrower.

9. "Project Management Group" or "GUP" means the Project management group established by the Borrower in accordance with Section I.2 of Appendix 2 to this Agreement and specified in section I.A.2 (a) of Appendix 2 to this Agreement, or any of its assignees or assignees acceptable to the Bank, in order to provide support in the management and coordination of the Project.

10. "Project Operational Manual" or "PIU" means a Project implementation manual acceptable to the Bank, which sets out, among other things, institutional arrangements, reporting and oversight mechanisms, disbursement, procurement, environmental and social management for the implementation of the Project, with possible changes made periodically with the consent of the Bank; this concept includes any applications to the PIU.

11. "Procurement Manual" means the "Guidelines for the Procurement of Goods, Works and Non-Consulting Services by World Bank Borrowers under IBRD Loans and IDA Loans and Grants" dated January 2011 (as amended in July 2014).

12. "Procurement Plan" means the Borrower's procurement plan for the Project dated January 18, 2017, specified in paragraph 1.18 of the Procurement Manual and paragraph 1.25 of the Guidelines for the Selection and Hiring of Consultants and subject to periodic updating in accordance with the provisions of these paragraphs.

13. "Technical Advisory Council" means the technical advisory group referred to in section I.3 of Appendix 2 to this Agreement, or any of its successor or successors.

14. "Training" means reasonable expenses (not related to consulting services or goods) incurred for Project-related study trips, training courses, seminars, trainings and other educational activities, including expenses for educational materials, rental of premises and equipment, business trips, accommodation and daily expenses of students and teachers, teaching fees and other tuition-related expenses, based in each case on the annual budget agreed with the Bank.

15. "UNT" means Unified National Testing.

Section II. Changes to the General Terms and Conditions

The following modifications are hereby made to the General Terms and Conditions:

1. The Content links to sections, their names and numbering are changed to reflect the changes outlined in the paragraphs below.

2. The following changes are made to section 3.01. (One-time commission):

"Section 3.01. One-time commission; Reservation fee

(a) The Borrower pays a One-Time Fee to the Bank for the Loan amount at the rate stipulated in the Loan Agreement (the "One-Time Fee").

(b) The Borrower pays the Reserve Fee to the Bank in respect of the Outstanding Loan Balance at the rate stipulated in the Loan Agreement (the "Reserve Fee"). The reservation fee is charged from the date following the expiration of sixty (60) days after the Date of the Loan Agreement until the corresponding dates when the amounts are withdrawn or cancelled by the Borrower from the Loan Account. The reservation fee is payable every six months at the end of each period on each Payment Date.".

3. In the Definitions appendix, all relevant references to section and paragraph numbers are changed as necessary to reflect the changes provided for in paragraph 2 above.

4. The annex is being amended by including a new paragraph 19 with the following definition, "Reservation fee", with a corresponding renumbering of all subsequent paragraphs.:

"19. "Reservation Fee" means the reservation fee provided for in the Loan Agreement for the purposes of Section 3.01(b)."

5. In the renumbered paragraph 49 (originally paragraph 48) of the annex, the definition of "One-time commission" was changed by replacing the reference from section 3.01 to section 3.01 (a).

6. In the renumbered paragraph 68 (originally paragraph 67) of the annex, the definition of the word "Loan Payment" has been changed to read as follows:

"68. "Loan Payment" means any amount payable by the Parties to the Loan to the Bank in accordance with Legal Agreements or these General Terms and Conditions, including (but not limited to) any amount of Loan funds withdrawn, remuneration, One-time Fee, Reservation Fee, late payment interest rate (if any), any penalty for early repayment, any transaction fee for conversion or early termination of conversion, Variable Spread fixing fee (if any), what- or a bonus, payable after setting a fixed Upper or Lower Limit on the interest rate and any amounts related to changes in the terms payable by the Borrower.".

7. In the renumbered paragraph 73 (originally paragraph 72) of the annex, the definition of "Payment date" was changed by deleting the word "is" and inserting the words "and Reservation Fee" after the word "percentage".

President

Republic of Kazakhstan

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