On the ratification of the Agreement on the Grant by the International Bank for Reconstruction and Development to the Republic of Kazakhstan for the preparation of the project "Support for agricultural services" and the Letter from the International Bank for Reconstruction and Development on amendments and additions to the Agreement on the Grant by the International Bank for Reconstruction and Development to the Republic of Kazakhstan for the preparation of the project "Support for agricultural Services"
The Law of the Republic of Kazakhstan dated November 5, 2003 No. 491
Article 1. To ratify the Agreement on the Grant by the International Bank for Reconstruction and Development to the Republic of Kazakhstan for the preparation of the project "Support for agricultural services", signed in Astana on May 18, 2001, and the Letter from the International Bank for Reconstruction and Development on amendments and additions to the Agreement on the Grant by the International Bank for Reconstruction and Development to the Republic of Kazakhstan for the preparation of the project "Support for Agricultural Services" committed in Astana on July 24, 2002.
Article 2. This Law applies to legal relations that have arisen since the conclusion of the Agreement on the provision of a grant by the International Bank for Reconstruction and Development to the Republic of Kazakhstan for the preparation of the project "Support for agricultural services".
President of the Republic of Kazakhstan
World Bank 1818 N. Street N.W. (202) 477-1234 International Bank Washington, D.C. Cable Address: INTBAFRAD Reconstruction and 20433 USA Cable Address: INDEVAS Development Association for International Development
To Mr. Zhaksybek Kulekeyev, Minister of Economy and Trade, Ministry of Economy and Trade, Astana, 473000 Republic of Kazakhstan
Cas: Republic of Kazakhstan: Japanese grant for the preparation of a project to support agricultural services - grant N TF026444
Dear Mr. Kulekeev,
I am writing to you on behalf of the International Bank for Reconstruction and Development (IBRD) to inform you of the Bank's agreement as administrator to provide the funds of the Japan grant in the amount not exceeding six hundred twenty three thousand six hundred US dollars ($ 623,600) (Grant) to the Republic of Kazakhstan (Recipient). The Grant is provided in response to the Recipient's request for financial assistance for the purposes and under the conditions set out in the Annex to this letter of Agreement. The Recipient's confirmation of this agreement means that he is authorized to conclude a contract and withdraw a Grant from the account for the specified purposes and on the agreed terms. Please confirm your consent to the following by signing on behalf of the Recipient, the attached letter of agreement comes into force from the date of its signing by you after the Bank receives a copy of it signed by you.
With deep respect,
International Bank for Reconstruction and Development
Kiyoshi Kodera, Director of the Central Asia Department, Europe and Central Asia Region
On behalf of the Republic of Kazakhstan, Bolat Abylkasymovich Palymbetov, Vice Minister of Economy and Trade Date: 05/18/2001
Application
Objectives, terms and conditions of the Grant
1. Goals and activities
1.1. The objectives of the Grant are to assist in the preparation of a project to Support agricultural services (the Project), the main objective of which is to determine the appropriate role of Government in providing services to agriculture and to better define the relationship between the public and private sectors in this area. The project includes the following components: (i) agricultural marketing: (ii) agricultural services: and (iii) the creation of organizational and human resources capabilities in the Ministry of Agriculture. The grant is provided for the following events (hereinafter referred to as "events"): (a) Agricultural marketing strategy (USD 206,900). Provision of technical assistance for the preparation of the agricultural marketing component, which will summarize and finance the following work: (i) grading and standards - review of existing grading and standards for marketable products, classification and monitoring methodology, identification of measures to align with international practice; (ii) contracts - development of standard contracts for agricultural products, analysis of the existing contract law, enforcement of the contract and recommendations for their amendment; (iii) improvement of the strategy for the dissemination of market information - development of a system driven by real demand to provide information on agricultural markets, taking into account existing sources and flows of information, and distinguishing the roles of the public and private sectors in this area; and (iv) improving market mechanisms - analyzing existing commodity exchanges and identifying measures to improve their performance and efficiency; analyzing opportunities to introduce futures transactions; identifying steps needed to introduce warehouse receipts in credit markets; and organizing a workshop with representatives of the public and private sectors in the field of agricultural marketing. The cost of the assessment workshop will be about $6,000. (b) A plan to provide agricultural services ($255,700). Provision of technical assistance for the preparation of the agricultural services component, which will include a plan for the provision of agricultural services, developed on the basis of funded work on the following aspects: (i) seed strategy, which will identify the main participants, assess the existing certification system and available experimental and laboratory facilities and equipment; government support and government regulation policy; a plan of measures to change such policy is presented; Necessary changes in the roles and responsibilities of various organizations have been identified, plans for the commercialization of specific seed enterprises have been outlined, and investment needs have been assessed in connection with these recommendations: (ii) a competitive grant program will (a) develop a manual detailing the working procedure, financial management and procurement responsibilities, and provide an explanation of ownership rights and regarding the organization of reporting and monitoring: (b) assistance will be provided to the Government in organizing the Council for Competitive Grants and the Review Commission: and (c) assistance was provided to the Government in identifying priority areas for applied research and information based on the demand of agricultural enterprises; (iii) veterinary services, this area will analyze the existing institutional structure, facilities and equipment, policies, regulations and costs associated with veterinary and quarantine services; as well as (iv) plant protection services, the existing institutional structure, premises and equipment, policies, regulations and costs related to plant protection and phytosanitary surveillance will also be analyzed in this area. It is planned to organize a seminar for the main participants of the competitive grants program, the approximate cost of which is estimated at $ 6,000. (c) Creation of organizational and personnel capabilities in the Ministry of Agriculture (USD 161,000). Technical assistance will be provided to the Ministry of Agriculture in order to (i) monitor those areas of activity that will be funded by the Grant; (ii) draw up a plan and provide guidance on the implementation of the Project to Support Agricultural Services; (iii) draw up a plan of measures to create organizational and human resources capabilities in the Ministry in the field of policy analysis and economic development; (iv) developing an industry strategy framework that delineates the roles of the public and private sectors and focuses on sustainability, taking into account social and environmental aspects, as well as preparing for an assessment of preferred options and end-user needs for market information, applied research and technical information.
2. General provisions on the implementation of measures
2.1. The Recipient is obliged to: (a) carry out Activities with due integrity and efficiency; (b) promptly provide funds, premises, services and other resources necessary for this purpose; (c) provide all information on Activities and the use of Grant funds upon a reasonable request from the Bank; (d) exchange opinions from time to time with representatives of the Bank on the progress and results of the Activities; (e) take all necessary measures to enable representatives of the Bank to visit the territory of the Republic of Kazakhstan for Grant-related purposes. Without limiting the above, upon completion of the Activities, if requested by the Bank, the Recipient will prepare and submit to the Bank as soon as possible a report on the results and impact of the Activities in a form and content acceptable to the Bank.
3. Purchases
3.1. Except in cases agreed with the Bank, the procurement of consultant services necessary for the implementation of Activities and funded by the Grant will be governed by the provisions set out in Appendix 1 to this Annex.
4. Withdrawal of grant funds
4.1. The Grant amount will be credited to an account opened by the Bank in its books in the name of the Recipient (hereinafter referred to as the grant account), and funds may be withdrawn from there by the Recipient in accordance with the provisions of this Section 4, for expenses for services purchased at a reasonable price necessary for the implementation of activities funded by the Grant. 4.2. Expenses for the following categories can be financed from the Grant funds and should be used exclusively for the implementation of Activities:
Expense category The allocated grant amount is funded by %
(in US dollars) The amount of expenses
Consulting services 611,600 100 % Seminars 12,000 100 % Total 623,600
For the purposes of this paragraph, the term "seminar" means the costs of local transportation, daily subsistence allowance, rental of premises, interpretation and translation, and the cost of materials.
4.3. Despite the provisions contained in paragraph 4.2 above: (a) Funds will not be withdrawn from the account: (i) for expenses incurred prior to the date of signing this letter of agreement by the Bank; (ii) for payment of any taxes imposed on the Recipient's territory; (iii) for expenses incurred on the territory of any country that is not a member of the Bank, or on goods produced in these territories or services supplied from such territories; (iv) for the purpose of making payments to individuals or organizations, if such payment, according to the Bank, is prohibited by a decision of the United Nations Security Council under Chapter VII of the Charter of the United Nations; b) Funds are not withdrawn from the account after March 31, 2002 or a later date (Closing Date) set by the Bank in a written notification To the Recipient, except in special circumstances when the Closing Date cannot be extended beyond the estimated date when the Bank approves the financing of the Project. However, funds may be withdrawn from the account after the Closing Date if the relevant application is received by the Bank within four months after the Closing Date, after which any amount of unused Grant funds in the grant account will be cancelled. 4.4. In the event that the Recipient wishes to withdraw any amount from the grant account, he submits to the Bank a written request for withdrawal of this amount in accordance with the form agreed by the Bank. The withdrawal request from the account: (a) is signed on behalf of the Recipient by the Minister of Economy or another person authorized by him in writing; and (b) is accompanied by documents in support of the application at the reasonable request of the Bank. A certified sample of the signature of the person authorized to sign the withdrawal request must be submitted together with the first application bearing his or her signature. Each request for withdrawal of the Grant amount and supporting documentation must be sufficient in form and content, and satisfy the Bank that the Recipient has the right to withdraw this amount from the grant account, and that the amount will be used to carry out Activities. The Bank pays the amounts withdrawn by the Recipient from the grant account only to the Recipient or on his behalf. 4.5. The Bank may require that withdrawals from the Grant account be made on the basis of a cost statement for: (a) consulting firm services worth up to the equivalent of $35,000; (b) individual consultant services worth less than the equivalent of $25,000; (c) seminars, in all cases on the terms agreed by the Bank notifies the Recipient. 4.6. Withdrawal of Grant funds will be made in the Grant currency. The Bank, at the request of the Recipient or acting as the Recipient's agent, will use the money withdrawn from the grant account to purchase the currency necessary to pay for expenses financed from the Grant funds. For the purposes of this letter of agreement, if necessary, the value of one currency, expressed in the exchange rate of another, will be reasonably determined by the Bank. 4.7. To speed up the implementation of Measures, the Recipient may open and maintain a special deposit account in US dollars (Special Account) with a commercial bank on terms acceptable to the Bank, including appropriate protection against liquidation, confiscation or seizure. Deposits to the account and payments from the account will be made in accordance with Appendix II to this Annex.
5. Reporting and auditing
5.1. (a) The Recipient is required to maintain or ensure the maintenance of a financial management system, including records and accounts, and prepare financial reports in a form acceptable to the Bank that adequately reflect transactions, resources and expenses related to the implementation of Activities, in accordance with generally accepted accounting standards. (b) The Recipient is required to: (i) conduct each financial year an audit of the books and accounts referred to in subparagraph (a) conducted by independent auditors acceptable to the Bank; (ii) provide the Bank with the reports of such auditors as soon as they are ready, but in any case no later than six months after the end of the financial year, (A) certified copies of the financial statements specified in paragraph (a) of this section for each audited year, and (B) an opinion on reports, records, accounts and to the extent and with such details as the Bank reasonably requests; and (iii) provide the Bank with any other information related to accounting and reporting and their audit upon the Bank's reasonable request. (c) For all expenses for which funds were withdrawn from the grant account based on the expense statements, the Recipient: 1) must maintain or ensure that records and reports reflecting such expenses are maintained in accordance with subparagraph (a); (ii) keep all records (contracts, orders, invoices, etc.) for at least one year after the Bank receives the audit report for the financial year in which the grant account was last withdrawn. invoices submitted for payment, receipts, and other documents) attesting to these expenses; (iii) to give representatives of the Bank the opportunity to examine these records; and (iv) to ensure that these records and statements are included in the annual audit specified in subparagraph (b), and that such audit report contains a separate opinion of the said auditors on the reliability of the information in the expense statements provided during the financial year. as well as the procedure and internal control during their preparation to confirm the correctness of withdrawals.
6. Suspension and cancellation
6.1. The Bank may at any time, by notifying the Recipient, temporarily suspend the Recipient's right to further withdraw from the Grant account if any of the following events have occurred and are continuing: (a) the Recipient has failed to fulfill any of its obligations stipulated in this document; or (b) the right of the Recipient or any other organization that The Bank provided a loan under the guarantee of the Republic of Kazakhstan, which was temporarily suspended for withdrawals under a loan agreement with the Bank or any loan agreement for development purposes. 6.2. The Bank may, by written notification to the Recipient, terminate the Recipient's right to make further withdrawals from the Grant Account: (a) at any time after the Recipient's right to make further withdrawals from the Grant Account has been temporarily suspended in accordance with the provisions of paragraph 6.1 above; or (b) if, within six months of entry into force by virtue of this document, the Bank has not taken measures to meet the Bank's requirements for the implementation of the Measures; or (c) if the Bank has decided, at some point after consultation with the Recipient, to terminate its support for the Project; or (d) if the Recipient has withdrawn his request for the Bank's assistance in financing the Project.
Addendum 1
Purchases
Section I . Consulting services
Part A: General provisions
Consultant services are purchased in accordance with the provisions of the Introduction and Section IV of the "Guidelines: Selection and Hiring of Consultants by Borrowers of the World Bank", published by the Bank in January 1997, as amended in September 1997 and January 1999 (hereinafter referred to as the "Consultant Guidelines") and the following provisions of Section I.
Part B: Selection based on quality and cost
Except as provided in Part B of this section, consultant services will be purchased under contracts awarded in accordance with the provisions of Section II of the Guidelines, paragraph 3 of Annex 1 thereto, Annex 2 thereto, and the provisions of paragraphs 3.13 - 3.18 applicable to the selection of consultants based on quality and cost.
Part B: Other selection procedures for consultants
1. Selection with a fixed budget
The Project management services specified in paragraph 1.1 (c) of the Annex will be purchased under contracts awarded to individual consultants in accordance with the provisions of paragraphs 3.1 and 3.5 of the Consultant Guidelines.
2. Individual consultants
Services for agricultural marketing, graduation and standards, seed production, seed processing and marketing, veterinary services, plant protection, project management, agricultural policy, and translations specified in paragraphs 1.1 (a) and (b) of the Appendix are purchased under contracts with individual consultants in accordance with the terms of paragraphs 5.1 - 5.3 of the Guidelines on consultants."
Part D: The Bank's review of the selection of consultants
1. Selection planning
Before sending any invitations to the consultants to participate in the competition, the proposed plan for the selection of event consultants is submitted to the Bank for review and approval in accordance with the provisions of paragraph 1 of Annex 1 to the Guidance on Consultants. All consultant services are selected in accordance with a plan to be approved by the Bank and in accordance with the provisions of paragraph 1 above.
2. Preliminary review
(a) For each contract for the employment of consulting firms with an estimated value equivalent to US$ 35,000 and above, but less than US$ 100,000, the procedures set out in paragraphs 1, 2 and 5 of Appendix 1 to the Guidance on Consultants shall apply. (b) For each contract for the hiring of individual consultants with an estimated value equivalent to USD 25,000 or higher, information on qualifications and experience, terms of reference and terms of employment must be submitted to the Bank for verification and approval. The contract is awarded only after the Bank submits the mentioned approval.
3. Follow-up review
For contracts that do not fall under paragraph 2 of this Part, the procedures set out in paragraph 4 of Annex 1 to the Guidance on Consultants shall apply.
Appendix II
Special Account
1. For the purposes of this Annex: (a) the term "legitimate categories" means the categories of expenses listed in the table in paragraph 4.2 of the annex to this letter of agreement; (b) the term "legitimate expenses" means expenses for goods and services purchased at a reasonable cost, which are required for the provided Activities and are subject to financing from the Grant funds; and (c) the term "approved allocated amount" means an amount equivalent to $75,000. This amount will be withdrawn from the Grant Account and deposited into a Special Account in accordance with paragraph 3 (a) of this Addendum. 2. Payments from a Special Account must be made exclusively for legitimate expenses in accordance with the provisions of this Addendum. 3. After the Bank receives satisfactory confirmation that the Special Account has been properly opened, withdrawals of the Approved Allocated Amount and subsequent withdrawals to replenish the Special Account are carried out as follows: (a) The Recipient submits to the Bank an application or requests for a deposit to the Special Account of an amount or amounts that do not exceed the total Approved Allocated amount. Based on such an application or applications, the Bank, on behalf of the Recipient, withdraws from the Grant Account and deposits into a Special Account the amount or amount requested by the Recipient. (b) (i) In order to replenish the Special Account, the Recipient submits requests for deposits to the Special Account to the Bank at the time intervals specified by the Bank. (ii) Before or during the submission of each such application, the Recipient submits to the Bank the documents and other confirmations required under paragraph 4 of this Addendum for the payment or disbursements for which funds are requested to replenish the account. Based on such an application, the bank, on behalf of the Recipient, withdraws from the Grant Account and deposits into a Special Account the amount requested by the Recipient, which, as shown in the aforementioned documents and other supporting documents, was paid from a Special Account for legitimate expenses. All such deposits are withdrawn by the Bank from the Grant Account in accordance with the legitimate categories and in appropriate equivalent amounts, justified in the specified documents and other supporting documents. 4. For each payment made by the Recipient from a Special Account, the Recipient is obliged, upon receipt of a reasoned request from the Bank, to submit to the Bank documents and other supporting documents indicating that the payment was made solely for legitimate expenses. 5. Regardless of the provisions of paragraph 3 of this Addendum, the Bank should not place further deposits into a Special Account in cases where: (a) The Bank has decided at any time that the Recipient should withdraw all funds directly from the Grant Account in the future; (b) The Recipient has not submitted to the Bank, within the time period specified in paragraph 5.1 (b) (ii) of the Annex to this Letter of Agreement, any audit reports necessary to submit to the Bank in accordance with the specified paragraph regarding the audit of accounting documents and accounts for the Special Account; (c) The Bank has notified the Recipient about its intention to fully or partially suspend the Recipient's right to withdraw funds from the Grant Account in accordance with the provisions of paragraph 6.1 of the Annex to this letter of Agreement; or (d) The total outstanding Grant amount is equivalent to double the amount of the Approved Allocated Amount. After that, the remaining Grant amount must be withdrawn from the Grant Account in accordance with the procedure that the Bank specifically notifies the Recipient about. Further withdrawals are made only after and to the extent that the Bank has verified that all these amounts remaining on the Special Account deposit as of the date of such notification will be used to make payments for legitimate expenses. 6. (a) If at any time the Bank decides that a payment from a Special Account is: (1) made for expenses or in an amount that is lawful under paragraph 2 of this Addendum, or (ii) is not justified by supporting documentation submitted to the Bank, the Recipient must immediately upon receipt of notification from the Bank(A) provide such additional evidence as the Bank may request, or (B) deposit into a Special Account (or, if the Bank requests a refund) an amount equal to the amount of such payment or a portion thereof that is not lawful or justified. Unless otherwise agreed with the Bank, the Bank will not further deposit any deposits into a Special Account until the Recipient submits the supporting documents or deposits or replenishes the required amount, depending on the specific case. (b) If at any time the Bank determines that any unrealized amount in the Special Account will not be required to cover further payments for legitimate expenses. The Recipient is obliged to refund such unrealized amount to the Bank immediately upon receipt of the notification from the Bank.
World Bank 1818 N. Street N.W. (202) 477-1234 International Bank Washington, D.C. Cable Address: INTBAFRAD Reconstruction and 20433 USA Cable Address: INDEVAS Development Association for International Development
January 25, 2002
To Mr. Zhaksybek Kulekeyev, Minister, Ministry of Economy and Trade, Astana, Republic of Kazakhstan
Cas: Agricultural Services Support Project - Grant N TF026444 Amendments and additions to the Grant Agreement of the Japanese Government
Dear Mr. Kulekeev:
This letter concerns the Agreement on a Grant from the Japanese Government for the preparation of a Project to support Agricultural Services dated December 18, 2000 and signed on May 18, 2001. (Japanese Grant Agreement) between the Republic of Kazakhstan and the International Bank for Reconstruction and Development (the Bank). In accordance with the request for the reallocation of components, activities and funds under the Agreement approved by the Government of Japan, we are pleased to inform you that the Bank agrees to make the following changes to the said Agreement: 1. In the appendix, the first line of subparagraph 1.1. (a) Paragraph 1 is amended as follows:
Agricultural Marketing Strategy (USD 187,600)
2. In the appendix, the first line of subparagraph 1.1. (b) of paragraph 1 is amended as follows.
Maintenance plan (USD 249,200)
3. In the appendix, paragraph 1, subparagraph 1.1. (b), the proposal "Provides for the organization of a seminar for the main participants of the competitive grants program, the approximate cost of which is estimated at $ 6,000." deleted. 4. In the appendix, the first line of sub-paragraph 1.1. (c) of paragraph 1 should read:
Capacity building of the Ministry of Agriculture (USD 186,800)
5. In the annex, subparagraph 1.1. (c) of paragraph 1, the sign "." after the word "information" is replaced by the sign ":" and a new subparagraph "v" is introduced as follows:
"and (v) the audit of the grant funds."
6. In the appendix, paragraph 3 is amended as follows:
"3. Purchases
3.1. Except in cases agreed with the Bank, purchases of consultants' services and goods necessary for the implementation of activities and funded from the Grant funds are governed by the provisions of Appendix I to this annex. 3.2. The recipient must ensure that all imported goods funded by the Grant must be insured against damage that may occur during purchase, transportation and delivery to the place of use or installation, and that any compensation for insured goods must be paid in freely convertible currency to replace or repair such goods. The recipient must ensure that all equipment intended for carrying out activities is always used and maintained in proper condition, and that any repairs or replacements of such equipment should be carried out as necessary and as soon as possible.
7. In the annex, sub-paragraphs 4.1, 4.2, 4.3, 4.4 and 4.5 of paragraph 4 are amended as follows:
"4. Withdrawal of grant funds from the account
4.1. The Grant amount will be credited to the account opened by the Bank in its accounting reports in the name of the Recipient (hereinafter referred to as the Grant Account), and funds can be withdrawn from there by the Recipient in accordance with the provisions of this Section 4, for expenses for services and goods purchased at a reasonable cost, which are necessary for the implementation of activities, and provided for for financing from the Grant funds. 4.2. Expenses for the following categories can be financed from the Grant funds and should be used exclusively for the implementation of activities:
Categories The allocated amount is % of the funded Grant (in US dollars of the cost amount)
(1) Consulting services 591 500 100%
(2) Seminars 6 000 100%
(3) 16,000 goods 100% of external costs, 100% of local costs (manufacturer's price) and 85% of local costs for other goods purchased on the local market
(4) Operating 6,000 100% expenses
(5) Audit of Grant accounts 4,100,100%
Total 623 600
Meanings of terms:
(a) "external expenses" means expenses in the currency of any country other than the Recipient's country for goods and services supplied from the territory of any country other than the Recipient's country; (b) "local expenses" means any expenses that are not external expenses, however, if the Recipient's currency is identical to the currency of the country from which the goods are supplied goods and services, expenses in such currency for such goods and services are considered external expenses; (c) "seminar" means the costs of the seminar, such as: travel, daily subsistence allowance, rental of premises, translation services and equipment; and (d) "operating expenses" means the costs of office space. 4.3. Notwithstanding the provisions contained in paragraph 4.2 above: (a) Funds may not be withdrawn from the account: (i) for expenses incurred prior to the date of signing by the Bank of this Letter of Agreement; (ii) for the payment of any taxes levied in the Recipient's territory; (iii) for expenses on the territory of any country that is not a member of the Bank, or for goods manufactured in such countries or services supplied from such territories; (iv) for the purpose of making any payment to individuals or organizations, or importing goods, if such import or payment, to the best of the Bank's knowledge, is prohibited by a decision Of the United Nations Security Council, adopted in Chapter VII of the Charter of the United Nations; (b) Funds are not withdrawn from the account after October 31, 2002. or a later date set by the Bank in a written notification to the Recipient (closing date), except in cases where the closing date cannot be other than that set by the Bank for financing the Project. However, funds may be withdrawn from the account after the closing date if the relevant application is received by the Bank within four months after the closing date, after which any amount of unused Grant funds in the account will be cancelled.; and (c) If, in the opinion of the Bank, the amount of the Grant allocated to any of the items listed in the table in paragraph 4.2 will not be sufficient to finance the costs of these items, the Bank may, by notifying the Recipient in writing, redistribute to such item the amount from the Grant funds allocated to the costs of another item, for which, in accordance with according to the Bank, the expenses will not be mandatory. 4.4 When the Recipient wishes to withdraw any amount from the grant account, he must submit to the Bank a written request for withdrawal of this amount in the form specified by the Bank. The withdrawal request must be: (a) signed in writing on behalf of the Recipient by the Minister of Finance or another person authorized by him; (b) accompanied by justifications in support of the application, which the Bank reasonably requests. A certified sample signature of the person authorized to sign the withdrawal request must be provided with the first application with his or her signature. Each request for withdrawal of an amount from the account and the accompanying justifications must be sufficient in form and content to convince the Bank that the Recipient has the right to withdraw this amount from the grant account and that this amount will be used to carry out Activities. The Bank will pay the amounts withdrawn from the Recipient's account from the grant account only to the Recipient or in accordance with his order. 4.5 The Bank may require that withdrawals from the Grant account be made on the basis of a cost statement for: (a) consulting firm services worth less than the equivalent of USD 35,000; and (b) individual consultant services costing less than the equivalent of US$ 25,000; (c) seminars; and (d) operating expenses, in all cases on such terms as the Bank will notify the Recipient.
8. In Addition 1, section 1, Part B, a new subsection 3 has been added:
"3. Selection based on the professional qualities of consultants
Audit services under the grant pursuant to paragraph 1.1 (b) (v) of the annex are procured under contracts awarded in accordance with the provisions of paragraphs 3.1 to 3.7 of the Guidelines for the Selection and Hiring of Consultants.".
9. In addition I, a new section II has been introduced as follows:
"Section II. Purchase of Goods
The goods must be purchased: (a) in accordance with the terms of Section I of the IBRD Loans and AMP Loans Procurement Guidelines, published by the Bank in January 1995 and revised in January, August 1996, September 1997 and January 1999 (hereinafter referred to as the Guidelines); and (b) under contracts awarded on the basis of procurement procedures in accordance with the terms of paragraphs 3.5 and 3.6 of the Guidelines. The review procedures set out in paragraph 4 of annex 1 to the Guidelines should apply to such contracts, with the phrase "tenders" in paragraph 4 replaced by the word "prices".
Please confirm your agreement to the above amendments by signing, putting down the date and returning the attached copy of this letter to us. These changes will take effect immediately after we receive the signed letter.
With respect,
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
Nancy Cook, Acting Director, Central Asia Department, Europe and Central Asia Region
Approved by: Republic of Kazakhstan ____________________________ Authorized Representative
Full name: A.S. Yessimov Position: Deputy Prime Minister of the Republic of Kazakhstan - Minister of Agriculture of the Republic of Kazakhstan Date: July 24, 2002
President
Republic of Kazakhstan
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