ORDER OF THE MINISTER OF FINANCE OF THE REPUBLIC OF KAZAKHSTAN

of May 17, 2018 No. 530

About approval of Rules of carrying out economic project appraisal of the supplement to contract on subsurface use

According to Item 12 of article 278 of the Code of the Republic of Kazakhstan of December 27, 2017 "About subsoil and subsurface use" I ORDER:

1. Approve the enclosed Rules of carrying out economic project appraisal of the supplement to contract on subsurface use.

2. To committee of state revenues of the Ministry of Finance of the Republic of Kazakhstan (Tengebayev A. M.) in the procedure established by the legislation to provide:

1) state registration of this order in the Ministry of Justice of the Republic of Kazakhstan;

2) within ten calendar days from the date of state registration of this order the direction it the copy in paper and electronic type in the Kazakh and Russian languages in the Republican state company on the right of economic maintaining "The republican center of legal information" of the Ministry of Justice of the Republic of Kazakhstan for official publication and inclusion in Reference control bank of regulatory legal acts of the Republic of Kazakhstan;

3) placement of this order on Internet resource of the Ministry of Finance of the Republic of Kazakhstan;

4) within ten working days after state registration of this order in the Ministry of Justice of the Republic of Kazakhstan submission to Department of legal service of the Ministry of Finance of the Republic of Kazakhstan of data on execution of the actions provided by subitems 1), 2) and 3) of this Item.

3. This order becomes effective since June 29, 2018 and is subject to official publication.

Approved by the Order of the Minister of Finance of the Republic of Kazakhstan of May 17, 2018 No. 530

Rules of carrying out economic project appraisal of the supplement to contract on subsurface use

Chapter 1. General provisions

1. These rules of carrying out economic project appraisal of the supplement to contract on subsurface use (further - Rules) are developed according to Item 12 of article 278 of the Code of the Republic of Kazakhstan of December 27, 2017 "About subsoil and subsurface use" (further - the Code) and determine procedure for carrying out economic project appraisal of the supplement to contract on subsurface use (further - economic examination) mentioning key financial and economic indicators of the contract for subsurface use signed before enforcement of the Code.

2. Economic expertize is carried out according to the draft of the supplement to contract on subsurface use directed for conducting such examination by the solution of working group of competent authority (the state body which is the contract party).

Chapter 2. Procedure for carrying out economic project appraisal of the supplement to contract on subsurface use

3. Economic expertize is carried out by authorized state body on state planning within thirty calendar days from the date of receipt of complete document package from competent authority (the state body which is the contract party) including:

1) the copy of the letter notification of competent authority (the state body which is the contract party) about permission to modification and amendments in the contract for subsurface use;

2) the copy of the minutes of working group of competent authority (the state body which is the contract party) on consideration of conditions of projects of amendments to contracts and negotiating with subsoil users;

3) project of amendment;

4) the copy of the contract for subsurface use with all appendices and amendments (in case of absence in base the Single State Management system Subsurface use);

5) copy of geological or mountain branch;

6) the copy of the confidentiality agreement in case of acquisition of geological information with the enclosed calculation of the amount of historical costs;

7) draft of the working program;

8) the copy of financial part of the project document with reflection of costs and financings of planned activities with breakdown by years;

9) copy of the expert opinion of the State Commission on Mineral Reserves or minutes of the State Commission on Mineral Reserves.

10) feasibility statement and financial and economic model.

The documents directed by competent authority (the state body which is the contract party) for conducting economic examination are officially submitted through the Single system of electronic document management.

4. Economic examination includes:

1) check of compliance of provisions of projects of amendments to requirements of the legislation of the Republic of Kazakhstan in the field of economy and finance;

2) assessment of conformity of conditions of the project of amendment with the current contract on subsurface use;

3) assessment of economic justification of expected amounts of works and the corresponding costs in the project of amendment to the approved project documents;

4) economic evaluation of the project (economic feasibility of project implementation in case of the planned income and costs taking into account the applied technologies and social value of project implementation);

5) assessment of financial performance of the project (cash flow, net current value, internal profit margin, payback period);

6) assessment of budget efficiency of the project.

5. The expert opinion which is drawn up in writing is result of conducting economic examination.

6. The expert opinion of the project of amendment contains:

1) the list of the submitted documents;

2) short analysis results and estimates of provisions of the draft of the supplement to contract on subsurface use according to these rules;

3) one of the following decisions:

approve the draft of the supplement to contract on subsurface use with positive assessment as as a result of consideration justification of expected amounts of project costs and compliance of its parameters to requirements of the legislation of the Republic of Kazakhstan is confirmed;

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