On ratification of the Loan Agreement (Pilot Project for registration of rights to real estate and Transactions with it) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development dated May 16, 1997

Home / RLA / On ratification of the Loan Agreement (Pilot Project for registration of rights to real estate and Transactions with it) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development dated May 16, 1997

On ratification of the Loan Agreement (Pilot Project for registration of rights to real estate and Transactions with it) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development dated May 16, 1997

Law of the Republic of Kazakhstan dated July 11, 1997 No. 152-I

To ratify the Loan Agreement (a Pilot project for registration of rights to real estate and transactions with it) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development dated May 16, 1997, signed in the District of Columbia, United States of America.

President

Republic of Kazakhstan

application

Loan number 4146 KZ

Loan agreement

(Pilot project of registration of rights to

real estate and transactions with it)

between the Republic of Kazakhstan and the International

By the Bank for Reconstruction and Development dated May 16, 1997

(the text is unofficial)

Agreement dated May 16, 1997 between the Republic of Kazakhstan (the Borrower) and the International Bank for Reconstruction and Development (the Bank). Whereas (A) the Borrower, having satisfied himself of the feasibility and priority of the Project described in Appendix 2 to this Agreement, requested the Bank to assist in financing this Project (B) based on the above, taking into account other facts, the Bank agreed to provide the Borrower with a Loan for the period and conditions provided for in this Agreement: The Parties hereby agree on the following:

Article I. General terms and conditions. Definitions Section 1.01. "General Terms and Conditions Applicable to Loan and Guarantee Agreements" of the Bank dated January 1, 1985 (General Terms and Conditions), as amended below, are an integral part of this Agreement: (a) The last sentence of Section 3.02 is omitted; (b) The second sentence of Section 5.01, as amended, reads as follows: "Except in cases where there is another agreement between the Bank and the Borrower, withdrawals are not made: (a) in respect of expenses in the territories of any country that is not a member of the Bank, or payment for goods produced and services provided from such territories or (b) for the purpose of making payments to individuals or organizations, or to pay for the import of goods, if such payments or imports, according to the Bank, are prohibited by a decision of the United Nations Security Council, adopted in accordance with Chapter VII of the Charter of the United Nations." (c) In section 6.02, subparagraph (k) was renamed to subparagraph (1) and a new subparagraph (k) was added to read as follows: "(k) An emergency situation has arisen in which any further withdrawal of Loan funds does not comply with the provisions of Article III, section 3 of the Bank's Agreement." (d) Section 6.03 reads as follows: "If (a) the Borrower's right to withdraw funds from the Borrowed Account has been suspended for any amount of the loan for thirty consecutive days, or (b) at any time, the Bank has determined, after consultation with the Borrower, that a certain amount of the loan will not be required for financing Project costs from the Loan funds, or (c) at any time the Bank has established in respect of any Loan-financed contract, that the Borrower's representatives or the beneficiary of the Loan committed abuse or fraud during the procurement or execution of the contract, and the Borrower failed to take timely and appropriate measures satisfactory to the Bank to remedy the situation, and established the amount of expenses under such a contract, which would otherwise have been allowed to be financed from the Loan, or (d) At any time, the Bank has determined that purchases under any contract to be financed from the Loan funds do not comply with the procedure established or mentioned in the Loan Agreement, and has determined the amount of expenses in respect of such a contract, the financing of which would otherwise have been permitted from the Loan funds, or (f) after the Closing Date, a certain amount remained outstanding from the Loan Account, or (f) the Bank has received notification from the Guarantor in accordance with Section 6. 07 in respect of a certain amount of the Loan, the Bank may, by notifying the Borrower and the Guarantor, terminate the Borrower's right to withdraw funds in respect of such amount. Upon submission of such notification, such Loan amount is cancelled."

Section 1.02. Unless the context otherwise requires, some terms defined in the General Terms and Conditions and the preamble to this Agreement have the meanings that correspond to those set out in these definitions, and additional terms have the following meanings: (a) "Ministry of Finance" - the Ministry of Finance of the Borrower or any of its legal successors; (b) "Ministry of Justice" _ The Borrower's Ministry of Justice or any of its legal successors; (c) "Goskomzem" - the State Committee on Land Relations and Land Management or any of its legal successors; (d) "Minstroy" - the Ministry of Construction, Housing and Territorial Development of the Borrower or any of its legal successors; (f) "PIU" - the project implementation group organized by the Borrower under the Ministry of Justice in accordance with Government Decree No. 453-r dated September 25, 1996, or any of its legal successors; (f) "Group technical control" - the group responsible for the technical aspects of the Project implementation, established within the framework of hydraulic fracturing in accordance with paragraph 3, Annex 5 to this Agreement. (g) "General Consultants" means the consultants referred to in paragraph 5. Annexes to this Agreement. (h) "Law on Registration" is a Decree of the President of the Republic of Kazakhstan having the force of law. "On Registration of rights to immovable property and transactions with it", adopted on December 25, 1995; i) "Special Account" - means the account referred to in Section 2.02 (b) of this Agreement; (j) "APP" - advance payment for the preparation of the project provided by the Bank To the Borrower as a result of the exchange of letters between the Bank and the Borrower dated June 26, 1996 and July 23, 1996.

Article II. Loan Section 2.01. The Bank agrees, on the terms and conditions set forth or specified in the Loan Agreement, to provide the Borrower with a loan in various currencies, which will have a total value equivalent to ten million US dollars (US$ 10,000,000), representing the amount of funds withdrawn under the Loan, with each withdrawal assessed by the Bank as of the date of such withdrawal.

Section 2.02. (a) Loan funds may be withdrawn from the Loan account in accordance with the provisions of Annex 1 to this Agreement to cover expenses incurred (or, if the Bank agrees to this, which should be incurred) for the purchase at reasonable prices of goods, works and services necessary for the implementation of the Project, described in Appendix 2 to this Agreement and to be financed 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 for a period and conditions 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 Annex 6 to this Agreement. (c) Immediately after the effective date of the Loan Agreement, the Bank, on behalf of the Borrower, withdraws from the Loan Account and pays itself the amount necessary to reimburse the principal amount of the Project Preparation Advance withdrawn from the account and not repaid on that date, as well as to pay all unpaid charges in this regard. After that, the remaining balance of the Advance amount subject to such withdrawal is cancelled. Section 2.03. The final date of the Loan is September 30, 1999 or such later date as the Bank determines. The Bank shall promptly notify the Borrower of such a later date. Section 2. 04. The Borrower periodically pays the Bank commission for the obligation on the principal amount of the Loan that has not been withdrawn from the Account at a rate of three quarters of one percent (3/4 of 1%) per year.

Section 2.05. (a) The Borrower shall periodically pay interest on the withdrawn and outstanding principal amount of the Loan at a rate for each interest accrual period equal to the Cost of qualified borrowings determined in respect of the previous six months, plus half of one percent (1/2 of 1%). On each of the dates specified in Section 2.06 of this Agreement. The Borrower pays the interest accrued on the principal withdrawn outstanding Loan amount during the previous interest accrual period, calculated at the rate in effect during this Interest Accrual Period. (b) At the end of each half-year, the Bank shall notify the Borrower as soon as possible of the Cost of qualified borrowings determined in respect of such half-year. (c) For the purposes of this section: (I) "Interest Accrual Period" means a period of six months ending on the day immediately preceding each date specified in section 2.06 of this Agreement, beginning with the Interest Accrual Period during which this Agreement is signed. (II) "Cost of qualifying borrowings" means the cost reasonably determined by the Bank and expressed as an annual percentage of the value of the Bank's outstanding borrowings granted to it after June 30, 1982, excluding those borrowings or parts thereof that the Bank has allocated to finance: (A) the Bank's investments; (C) loans that may be granted By the Bank after July 1, 1989 at interest rates determined differently than specified in paragraph (a) of this section. (III) "Half-year" means the first six months or the second six months of a calendar year. (d) On such date as the Bank may specify in a notification sent to the Borrower at least six months in advance, paragraphs (a), (b) and (c) (III) of this Section shall be amended to read as follows: "(a) The Borrower periodically pays interest on the principal amount of the withdrawn funds. and outstanding Loan funds at a quarterly rate equal to the Cost of qualified borrowings determined in relation to the previous quarter, plus half of one percent (1/2 of 1%). On each of the dates specified in section 2. 06 of this Agreement, the Borrower pays the interest accrued on the principal outstanding amount of the Loan during the previous Interest Accrual Period, calculated at the rate applicable to such Interest Accrual Period.". "(b) At the end of each quarter, the Bank shall notify the Borrower as soon as possible of the Cost of qualified borrowings determined in respect of such quarter.(c) (III) "Quarter" means a three-month period beginning on January 1, April 1, July 1, or October 1 of a calendar year." Section 2. 06. Interest and other fees are paid semi-annually on January 1 and July 1 of each year. Section 2.07. The Borrower repays the principal amount of the Loan in accordance with the repayment schedule set out in Appendix 3 to this Agreement.

Article III. Project Execution  

Section 3.01. (a) The Borrower declares its commitment to the Project objectives set out in Annex 2 to this Agreement, and for this purpose is obliged to implement the Project through the Ministry of Justice, the State Committee for Agriculture, as well as the local authorities (Akims) of the Borrower with due integrity and efficiency, and in accordance with good administrative, financial, and practice, as well as the practice of information technology, and will, if necessary, provide timely funds, equipment, services and other resources necessary for the implementation of the Project. (b) Without limitation with respect to the obligations provided for in paragraph (a) of this Section, and unless otherwise agreed by the Bank and the Borrower. The Borrower must: (i) ensure the operation of the Hydraulic fracturing Unit until the completion of the Project, as well as ensure that the hydraulic Fracturing Unit regularly performs its functions in accordance with the established procedure and official authority, with personnel and budgetary resources necessary to achieve the objectives of the project and satisfying the Bank; and (ii) carry out the Project in accordance with the Implementation Program described in Appendix 5 to this Agreement; Section 3.02. Unless otherwise agreed with the Bank, the procurement of goods and services of consultants necessary for the implementation of the Project and the Loan funds to be financed shall be carried out in accordance with the provisions of Annex 4 to this Agreement.

Section 3.03. The Borrower is obliged to: (a) implement an appropriate policy and follow the procedure that makes it possible to continuously monitor and evaluate the results obtained, which correspond to indicators satisfactory to the Borrower and the Bank, contributing to the implementation of the project and the achievement of its objectives, as well as the possibility of implementing the objectives of the Project at the national level: (b) prepare in accordance with the technical specifications acceptable to the Bank, and submit to the Bank on or about October 31, 1998. a summary report on the results of monitoring and evaluating activities performed in accordance with paragraph (a) of this Section, on the progress of the project for the period preceding the date of the specified report, and outlining the measures recommended to ensure effective implementation of the Project and achieve the designated goals in the period after the specified date, as well as outlining the planned implementation measures the objectives of the Project at the national level; and (c) before November 31, 1998, or at the request of the Bank at a later date, to review together with the Bank the report referred to in paragraph (b) of this Section, and then take all necessary measures to ensure the effective completion of the Project and the achievement of the designated objectives, based on the conclusions and recommendations of the said report, and with taking into account the Bank's point of view on this issue. Section 3.04. For the purposes of Section 9. 07 Of the General Terms and Conditions and without limitation of its provisions, the Borrower is required to: (a) prepare, on the basis of guidelines acceptable to the Bank, and submit to the Bank, no later than six months after the Closing Date or, for this purpose, such later date as agreed between the Bank and the Borrower, a plan for future Project activities; and (b) provide The Bank has a reasonable opportunity to exchange views on the above plan with the Borrower.

Article IV. Financial Conditions Section 4.01. (a) The Borrower is required to maintain or ensure the maintenance of adequate accounting records and accounts reflecting, in accordance with good accounting practices, the performance, availability of resources and costs associated with the implementation of the Project, those institutions and departments of the Borrower that are responsible for the implementation of the Project or any part thereof. (b) The Borrower is required to: (i) conduct audits of the accounting documents and accounts referred to in paragraph (a) of this section, including the accounting documents and Special Account accounts for each financial year, in accordance with appropriate auditing principles duly applied by independent auditors who meet the Bank's conditions; (II) to provide the Bank, as soon as it is ready, but no later than six (6) months after the end of the financial year, with a report on such audit conducted by the said auditors, of such volume and with such degree of detail as the Bank may reasonably request; and (III) to provide the Bank with other information in connection with the said accounting documents, accounts and audits that the Bank may reasonably request from time to time. (c) For all expenses for which funds were withdrawn from the Loan account based on the expense statements, the Borrower is required to: (i) maintain or ensure, in accordance with paragraph (a) of this Section, the maintenance of accounting documents and accounts reflecting such expenses; (II) keep, for at least one year after the Bank receives the audit report for the financial year during which the last withdrawal of funds from the Loan Account was made or payments were made from the Special Account, all accounting documents (contracts, orders, invoices, receipts, invoices, etc.) confirming (iii) provide an opportunity for representatives of the Bank to verify such documentation.; and (IV) ensure that such accounting documents and accounts are included in the annual audit referred to in paragraph (b) of this Section, and that the audit report contains a separate opinion from those auditors on whether the expense statements presented during that financial year could serve as the basis for those withdrawals, taking into account the procedures and methods of internal control applied during their preparation.  

Article V. Bank's Remedies Section 5.01. In accordance with Section 6.02 (1) of the General Terms and Conditions, the following additional event is stipulated, namely, the amendment, suspension or repeal of the Registration Act, which will significantly adversely affect the objectives of the Project and the Borrower's ability to implement the Project. Section 5. 02. In accordance with section 7. 01 (h) of the General Terms and Conditions, the following additional event is stipulated, namely, the event provided for in Section 5. 01 of this Agreement will occur.

Article VI. Effective Date; Termination of Section 6.01. A period of ninety (90) days from the date of signing of this Agreement is hereby established for the purposes of Section 12.04 of the General Terms and Conditions.

Article VII. Representatives of the Borrower; addresses Section 7.01. Minister of Finance or Deputy Minister of Finance The Borrower is designated as the Borrower's representative for the purposes of section 03 of the General Terms and Conditions.

Section 7. 02. For the purposes of Section 11. 01 of the General Terms and Conditions, the following addresses are defined:

For the Borrower:

Ministry of Finance

480091 Republic of Kazakhstan

97 Ablay Khan Avenue, Almaty

Telex: 251 245 FILIN

For the Bank:

International Bank for

Reconstruction and Development

1818 H Street, N.W.

Washington, D. S. 20433

United States of America

The Telegraph: Telex:

INBAFRAD 248423 (RCA)

Washington, D.C. 82987 (FTCC)

64145 (WUI(or 197688 (TRT)

In witness whereof, the Parties, acting through their duly authorized representatives, have signed this Agreement in the District Colombia, United States of America, on the day and year indicated above.

Appendix 1

Withdrawal of Loan funds from the account

1. The table below identifies the categories of expenses to be financed from the Loan, the allocation of Loan funds for each category, and the percentage of expenses to be financed from the Loan for each category.:

Category The allocated Loan Amount (as a Share

dollar equivalent) of expenses to be paid

financing (in %)

(1) Goods 5,950,000 100% of foreign expenses,

100% of local expenses

(ex-factory price)

75% of local expenses for

other products purchased

In place

(2) Consulting services-

tants and training 1,650 000 100%

(3) Additional 400,000 100% additional expenses

operational expenses- until December 31, 1997, and 80%

hydraulic fracturing moves of subsequent additional

expenses

(4) Refund of the advance payment of 1,500,000 Amounts due according to

to prepare the draft for section 2.02 (c) of the Agreement

(5) Unallocated 500,000

tools

TOTAL 10,000,000

_______________________________________________

2. For the purposes of this Application:

(a) the term "foreign expenses" means expenses in the currency of any country other than the Borrower's country for the purchase of goods and services supplied from the territory of any country other than the Borrower; and (b) the term "local expenses" means expenses in the currency of the Borrower or for the purchase of goods and services supplied from the territory of the Borrower. (c) the term "additional operating costs of hydraulic fracturing" means the reasonable and necessary operating costs of hydraulic fracturing related to the operation and management of Project activities, which includes any costs incurred by hydraulic fracturing that would not have occurred in the absence of the Project, and which are reimbursed for expenses related to rent, utilities, salaries, and organization. equipment and office supplies, repairs, communications and transport, at a cost calculated according to a method acceptable to the Bank. 3. Regardless of the provisions of paragraph 1 above, withdrawals are not made in respect of payments to cover expenses made prior to the date of Signing this Agreement. 4. The Bank may request that withdrawals from the Loan account to pay for the purchase of goods on a contractual basis in the amount of less than 200,000 US dollars and contract consulting services in the amount of up to 100,000 US dollars for consulting firms and 30,000 US dollars for individuals be carried out on the basis of expense statements in in accordance with the terms that the Bank will notify the Borrower about.

Appendix 2 The purpose of the Project is to provide, on a pilot basis, support to the Borrower's efforts to establish a national system for registration of rights to real estate and transactions with it, which will strengthen the guarantee of rights to land and real estate, simplify the conclusion of transactions with land and real estate and will contribute to the development of credit system Appendix 2 The purpose of the Project is to provide, on a pilot basis, support to the Borrower's efforts to establish a national system for registration of rights to real estate and transactions with it, which will strengthen the guarantee of rights to land and real estate, simplify the conclusion of transactions with land and real estate and will contribute to the development of credit systems. Taking into account such changes, which the Borrower and the Bank may periodically agree on in order to achieve these goTaking into account such changes, which the Borrower and the Bank may periodically agree on in order to achieve these goals, the Project includes the following parts:: Part A. Institutional development Strengthening the institutional capabilities of the Ministry of Justice and Goskomzem in the field of real estate registration management, including maintaining an information base on real estate, ensuring proper interconnection between legal and land cadastres, and providing services to clients by providing: (a) training of specialists from the Ministry of Justice and Goskomzem: (b) consulting services; and (c) covering the operating expenses of hydraulic fracturing. Part B. Registration system Supply of necessary goods to the Minisc) covering the operating expenses of hydraulic fracturing. Part B. Registration system Supply of necessary goods to the Ministry of Justice and the State Committee for Agriculture, and works to the Ministry of Justice for the creation and operation of a system for registering real estate rights at the regional and district levels in Akmola, Almaty regions and Almaty city; creation and operation of a department for registration of real estate rights within the Ministry of Justice; implementation and verification of interdepartmental cooperation, including the exchange of information and documentation between the Ministry of Justice, by the State Committee for Agriculture and the Ministry of Construction.

Part C: Card production

Supply of goods and staff training for the organization and operation of the digital cartography center at Goskomzeme in order to test and develop a methodology for using digital maps, train staff to convert maps to digital form, as well as economic analysis of costs and benefits when switching from paper-based maps to digital maps.

The Project is expected to be completed by March 31, 1999.

Appendix 3

Loan repayment schedule

Payment date Repayment of the principal amount of the loan (in

USD)

__________________________________________

* The numbers in this column represent the dollar equivalent determined on the relevant withdrawal date. See General Terms and Conditions, sections 3.04 and 4.33.

Early repayment fees

In accordance with section 3.04 (b) of the General Terms and Conditions, the fee payable

for early repayfor early repayment of the principal amount of a Loan of any maturity period, it is a percentage determined at the appropriate time of early repayment.:

Early Repayment period Fee

The interest rate (in percent

per year), applied to the Loan amount

on the day of early repayment,

multiplied by:

No more than three years until maturity 0.15

More than three years, but not more than six years 0, 30

before the maturity date

More than six years, but not more than 11 years 0.55

before the maturity date

More than 11 years, but not more than 16 years up to 0.80

repayment period

More than 16 years to maturity 0.90

but not more than 18 years before maturity

More than 18 years to maturity of 1, 00

Appendix 4

Procurement and consulting services

Section I. Procurement of goods Part A: General information The purchase of goods is carried out in accordance with the provisions of section I "Guidelines. Procurement of IBRD Loans and IDA loans", published by the Bank in January 1995 and revised in January 1996 (Guidelines), as well as in accordance with the following applicable provisions of this section: Part B: International Competitive bidding With the exception of the provisions of Part C of this Section, the purchase of goods is carried out under contracts concluded in accordance with the provisions of Sections II of the "Guidelines" and paragraph 5 of Annex I. Part C: Other procurement procedures 1. International procurement Goods with an estimated value of less than the equivalent of US$ 200,000 per contract and a cumulative value of less than the equivalent of US$ 300,000 may be purchased under contracts awarded on the basis of international procurement procedures in accordance with the provisions of paragraphs 3, 5 and 3.6 of the Guidelines. 2. National procurement (in retail) Goods with an estimated value of less than 50,000 USD. USD per contract, and the total amount does not exceed USD 200,000, may be purchased under contracts that are concluded as a result of national procurement procedures (in retail trade) in accordance with paragraphs 3, 5 and 3.6 of the Manual. Part D: Verification of procurement decisions by the Bank 1. Procurement planning Before sending out invitations to pre-selection for bidding or to submit bids in accordance with the provisions of paragraph 1 of Annex 1 to the Guidelines, the proposed procurement plan for the Project must be submitted to the Bank for review and approval. The purchase of all goods and works must be carried out in accordance with the procurement plan approved by the Bank and in accordance with the provisions of paragraph 1.2. Preliminary check For each contract for the purchase of goods with an estimated value of 200,000 dollars or more, the procedure set out in paragraphs 2 and 3 of Annex 1 to the Guidelines applies. For the first two contracts for the purchase of goods, the estimated value of each is equivalent to $100,000. The Borrower is required to submit to the Bank for preliminary verification draft requests for price quotations, a copy of the Borrower's report on the evaluation of quotations after their receipt and evaluation, and a draft contract or purchase order for the purchased goods. One certified copy of the contract or order must be submitted to the Bank immediately after its execution or issuance and before sending to the Bank the first request for withdrawal of funds from the Loan Account in respect of such contract or order, or, in the case where payments must be made from a Special Account (CC(, a copy of the contract or The order must be submitted to the Bank prior to making the first payment with the CC in respect of such a contract or order. Regarding contracts subject to preliminary review. The Borrower, prior to making a decision on a significant extension of the agreed term of the contract, agreement on any changes to the contractual terms or waiver of them, including an order or an order within the framework of the contract (except in cases of extreme necessity), which may lead to a cumulative increase in the initial amount of the contract by more than 15 percent, informs the Bank proposed extension of deadlines, amendments to the terms of the contract or work orders, as well as their justification. If the bank considers that such an offer does not comply with the provisions of the Loan Agreement, it will promptly inform the Borrower, stating the grounds for such conclusion. The Bank is provided with a copy of all changes made to the contract for accounting purposes. 3. Follow-up check For each contract that was not concluded in accordance with paragraph 2 of this Part, the procedures set out in paragraph 4 of Annex 1 to the Guidelines shall apply.

Section II. 1. Contracts for the provision of consulting services are concluded in accordance with the provisions of the "Guidelines: The use of consultants by Borrowers of the Bank and the World Bank as an Executive organization", published by the Bank in August 1981 (Guidelines on the Use of Consultants). For complex, time-consuming assignments, such contracts should be based on the standard form of the contract for the provision of consulting services issued by the Bank, with those changes that are agreed with the Bank. In the absence of the relevant standard contract documentation issued by the Bank, the Borrower uses other standard documents acceptable to the Bank. 2. Notwithstanding the provisions of paragraph 1 of this Section, the provisions of the Guidance on the Use of Consultants providing for the preliminary review or approval by the Bank of budgets, short lists, selection procedures, invitation letters, proposals, evaluation reports and contracts do not apply to: (a) contracts for the hiring of consulting firms, if the estimated cost of each such the contract is less than the equivalent of $100,000. or (b) contracts for the hiring of individual consultants, if the estimated value of each such contract is less than the equivalent of US$ 30,000. However, these exceptions do not apply to the Bank's preliminary review of: (a) technical specifications for such contracts; (b) selection of consulting firms or individual consultants in the absence of a competition; (c) assignments reasonably identified by the Bank as particularly important; (d) changes to contracts for the hiring of consulting firms, resulting in the value of the contract equivalent to or exceeding 100,000 dollars; or (e) contracts for the hiring of individual consultants, resulting in the value of each contract equivalent to or exceeding 30,000 dollars.

Appendix 5 Project implementation Program  

1. The Ministry of Justice bears overall responsibility for the implementation of the Project and for the activities of the registration authorities established within the framework of the Project, and ensures access of the State Committee for Land, the Ministry of Construction, other institutions of the Borrower and the public to information in the legal cadastre. The Ministry of Justice, acting through regional and city Real Estate Centers and other executive bodies, is responsible for the graphic representation and digitization of real estate located on the land plot and the formation of other information necessary for the legal cadastre. In case of registration with the Ministry of Justice, the registration will include the cadastral number of the building or part of the building, the user's last name, restrictions, encumbrances and other information provided by the legal cadastre. Regional, city and district architecture authorities, upon request from the Ministry of Justice, must provide registration authorities with the necessary information about buildings, structures and their parts.

2. The hydraulic fracturing company must be responsible for the day-to-day technical, administrative, financial and operational aspects of the project. The PIU is required to coordinate the activities of the Borrower's organizations responsible for the implementation of the Project related to budget development, audit, reporting, monitoring and evaluation of results, as well as be responsible for preparing tender documents, evaluating tender proposals, negotiating and signing contracts for the supply of goods and the provision of consulting services and staff training within the framework of the Project (if technical conditions satisfactory for the Bank). The PIU is responsible for preparing applications for borrowed funds. The PIU is required to monitor the implementation of staff training programs and technical assistance provided within the framework of the Project, as well as to monitor the implementation of organizational arrangements for the exchange of information with architectural authorities and the definition of the functions of registration authorities and Goskomzeme bodies at the district and regional levels. The PIU is required to monitor the preparation of official documents in support of the practical application of the Law on Registration, as well as the allocation of appropriate facilities and staffing for the district and regional registration authorities of the Ministry of Justice.

3. The PIU is responsible for preparing the following reports based on technical specifications satisfactory to the Bank: (a) evaluation of the paper-based system (by December 31, 1997); (b) evaluation of the automated registration system (by December 31, 1998); and (c) evaluation of the digitization program" maps (by December 31, 1998).

4. The Hydraulic fracturing Company is obliged to involve consultants (General Consultants) with the necessary qualifications and knowledge, in accordance with the provisions of Section II of Annex 4 to this Agreement, to assist the hydraulic fracturing Company in the following areas: (a) the system of registration of rights to immovable property; (b) real estate markets; (c) the relationship between legal and land cadastre; and (d) information technology.  

5. The Technical Control Group (SCC) should be established as a division of hydraulic fracturing and be responsible for the supervision and control of all technical aspects of the Project. The Technical Control Group is responsible for: (i) reviewing staff training programs on automated technology and providing operational staff with the necessary skills; (ii) monitoring the progress of application software development; (iii) participating in the development of tender documents and evaluation of tenders for the purchase of goods; (iv) ensuring the necessary information links between the departments involved in the project at the district and regional levels; (v) monitoring the supply and installation of automated systems (the supplier is responsible for the supply and installation of equipment in accordance with the provisions of the future contract); and (vi) monitoring the effectiveness of technical solutions used in the implementation of the project in order to development of recommendations for further expansion of the registration system throughout the republic.

6. Goskomzem is responsible for transmitting the necessary information for the legal cadastre to the registration authorities of the Ministry of Justice. In the case of initial registration according to the Law on Registration, such information should include the cadastral number of the land plot, its location, the name of the owner or user, the form of ownership, the purpose of the plot, the divisibility /indivisibility of the plot, the area (in square meters), restrictions on the use and encumbrances of the land plot. Goskomzem is obliged to keep maps showing land plots and their location in relation to each other. When concluding secondary transactions with a registered site, Goskomzem is responsible for making changes to the maps depicting the sites when creating new sites, dividing existing sites into two or more sites, or merging two or more existing sites into one new site. Goskomzem should carry out activities to "digitize" maps, as well as be responsible for obtaining vector base maps, "digitizing" site boundaries and developing methods for using digital cartography technology to support the functions of the registration authorities of the Ministry of Justice, including digitizing the placement of buildings and structures on maps.

Appendix 6 Special account  

1. For the purposes of this Annex (a), the term "eligible categories" means the categories (1), (2) and (3) listed in the table in paragraph 1 of Annex 1 to this Agreement; (b) the term "eligible expenses" means expenses for the purchase at reasonable prices of goods, works and services, necessary for the implementation of the Project and financed from Loan funds allocated periodically to eligible categories in accordance with the terms of Annex 1 to this Agreement.; and (c) the term "authorized appropriations" means: (i) an amount equivalent to US$ 200,000 that is withdrawn from the Loan account and credited to a Special Account in accordance with paragraph 3 (a) of this Annex, however, subject to the condition that, unless the Bank agrees otherwise, the limited amount of the Authorized Allocation will be amount to 100,000 in dollars until the total amount of funds withdrawn from the Loan 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 1 million US dollars.

2. Payments of funds from a Special Account must be made exclusively for eligible expenses in accordance with the terms of this Appendix.

3. After providing acceptable evidence to the Bank that the Special Account has been opened properly, the corresponding withdrawal of authorized funds 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 authorized funds, the Borrower submits to the Bank a request or requests for a deposit or deposits that do not exceed the total amount authorized allocations. Based on such request or requests, the Bank, on behalf of the Borrower, makes withdrawals from the Loan account and deposits them in a Special Account in the amount or amounts requested by the Borrower. (b) (i) in order to replenish the Special Account, the Borrower submits requests to the Bank for funds transfer to the Special Account at intervals determined by the Bank. (ii) prior to receipt of each of the above-mentioned requests or upon receipt of such request, 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 in accordance with which replenishment of funds in the Special Account is requested. Based on each such request, the Bank, on behalf of the Borrower, makes withdrawals from the Loan account and credits them to 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 for related expenses. The Bank's withdrawal of the specified deposits from the Loan Account is carried out within the framework of eligible categories and in appropriate equivalent amounts, which is confirmed by the submitted financial and other documents.  

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 eligible expenses.

5. Regardless of the provisions of paragraph 3 of this Annex, the Bank does not accept requests for deposits to a Special Account: (a) if at any time the Bank has determined that all further withdrawals will be made by the Borrower directly from the Loan account, as provided for in Article V of the General Terms and Conditions and paragraph (a) of Section 2.02 this Agreement; or (b) if the Borrower fails to submit to the Bank within the time limits specified in section 4. 01 (b) (ii) of this Agreement, the required audit reports in accordance with the specified section in relation to the audit of accounting records and accounts for the Special Account; (c) if at any time the Bank notifies the Borrower of its intention to fully or partially suspend the Borrower's right to withdraw funds from the Loan Account in accordance with the provisions of Section 6. 02 General Terms and Conditions; or (d) the total outstanding amount of the Loan funds intended to finance eligible categories, less any outstanding amount designated in accordance with the provisions of section 5.02 of the General Terms and Conditions, within the framework of the Project will be twice the amount of authorized expenses. After that, the withdrawal from the Loan account of the remaining outstanding amounts intended for financing eligible categories is carried out in accordance with the procedures specified by the Bank in a special notification to the Borrower. Such withdrawals will be made in amounts acceptable to the Bank 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 eligible expenses.

6. (a) If the Bank determines at any time that any payments from the funds of the Special Account (i) were 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 immediately upon receipt of the Bank's notification: (A) provides such additional confirmation as the Bank may request; or (C) deposits to a Special Account (or, upon the request of the Bank, reimburses the Bank) an amount equal to the amount of such payment or part of it, which is not sufficiently confirmed or does not fall into the category of legitimate payments. Unless the Bank agrees otherwise, no funds will be deposited into the Special Account by the Bank until the Borrower, depending on the specific case, submits such confirmation or makes the mentioned contribution to the Special Account or reimburses the funds. (b) If the Bank determines at some point that any outstanding amount in the Special Account will not be required to cover further payments for eligible expenses. The Borrower will refund the outstanding amount to the Bank immediately upon receipt of the notification from the Bank. (c) The Borrower may, by notifying the Bank, 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 Loan account for subsequent withdrawal or cancellation in accordance with the provisions of this Agreement, including the General Terms and Conditions.

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President

Republic of Kazakhstan

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