ORDER OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN

of June 16, 2022 No. 401

About determination of conditions and funding mechanisms, including joint financing of industrial and innovative projects, lease financing within means from the government budget and recognition voided some decisions of the Government of the Republic of Kazakhstan

According to Item 3 of article 30 of the Law of the Republic of Kazakhstan of December 27, 2021 "About industrial policy" the Government of the Republic of Kazakhstan DECIDES:

1. Determine conditions and funding mechanisms, including joint financing of industrial and innovative projects, lease financing within means from the government budget according to appendix to this resolution.

2. Recognize invalid:

1) the order of the Government of the Republic of Kazakhstan of June 5, 2012 No. 745 "About determination of conditions and funding mechanisms, including joint financing, industrial and innovative projects, lease financing of subjects of industrial and innovative activities";

2) Item of 19 changes which are made to some decisions of the Government of the Republic of Kazakhstan, approved by the order of the Government of the Republic of Kazakhstan of December 20, 2013 No. 1363 "About modification of some decisions of the Government of the Republic of Kazakhstan".

3. This resolution becomes effective after ten calendar days after day of its first official publication.

Appendix

to the Order of the Government of the Republic of Kazakhstan of June 16, 2022 No. 401

Conditions and funding mechanisms, including joint financing of industrial and innovative projects, lease financing within means from the government budget

Chapter 1. Financing terms

1. Financing terms, including joint financing of industrial and innovative projects, lease financing within means from the government budget, are:

1) the amount of participation of Development bank of Kazakhstan, and also other national institutes of development determined by the Government of the Republic of Kazakhstan (further – sponsoring organization), in financing of industrial and innovative projects (further – the project) which constitutes no more than 85% (eighty five percent) of the amount of the estimate of the project;

2) the financing share within the estimate of the project the subject of industrial and innovative activities (further – the subject) and (or) other third parties is performed by money;

3) risks on project implementation are covered in full, including provided;

4) financing, including joint financing, is provided for the term of no more than twenty years;

5) technological and technical justification of project decisions.

2. In case of joint financing additional term is availability of the party, except the sponsoring organization performing partial providing the project with necessary financial resources (money).

3. Lease financing is provided to subjects for a period of one year up to twenty years. Lease financing is performed in national currency.

4. Financing, including joint financing, is performed for creation of new industrial and innovative projects, and also industrial and innovative projects according to the list of the priority goods directed to upgrade (modernization, including digital transformation of the industry, implementation of the Industry of 4.0 and digital technologies) and expansion of the operating productions.

Chapter 2. Funding mechanisms

5. When financing, including joint financing, projects the following mechanisms are used:

1) loan granting to subjects in cash on the terms of the paid nature, urgency and recoverability (loans);

2) financing of the project for the purpose of ensuring preparation and project implementation (interim financing);

3) provision of loan with the right of its converting in shares or shares in the authorized capital of the subject (mezzanine financing);

4) financing of the project under concession of rights to claim which ensuring are the expected systematic money payments for creation and cession of property, and also rendering services and (or) production of goods, and (or) performance of works in the course of use of the created property (project financing).

6. The mechanism of lease financing of subjects is providing projects with necessary financial resources (money) in case of which the lessor shall transfer the leasing subject acquired to the possession at the seller and caused by the agreement of leasing to subjects for certain payment and under certain conditions to temporary ownership and use for the term of at least one year.

7. Lease financing is performed by means of provision of net leasing.

8. The subject addresses sponsoring organization for financing, including joint financing, projects, lease financing by filing of application in a free form and submits the following documents:

1) for physical person – the copy of the identity document, the copy of the document on registration as the individual entrepreneur; for the legal entity – the copy of the certificate (1) or certificates of state registration (re-registration).

2) copies of constituent documents for legal entities;

3) business plan of the project;

4) the balance sheet of the legal entity as of December 31 of the last accounting year preceding application;

5) data on lack (availability) of debt according to which account is kept in tax authorities;

6) copies of documents of title, including about availability or lack of encumbrances, on the personal or real estate acting in the form of pledge;

7) the project description, directed to upgrade (modernization) and expansion of the operating productions, both forecast economic and financial effect of its realization;

8) the documents confirming participation of the subject and (or) other third parties in financing of the project with money.

_________________________________________

(1) the certificate on the state (accounting) registration (re-registration) of the legal entity (branch, representation) issued before enforcement of the Law of the Republic of Kazakhstan of January 20, 2010 to No. 239-IV "About modification and amendments in some legal acts of the Republic of Kazakhstan concerning state registration of legal entities and accounting registration of branches and representations" is valid before the termination of activities of the legal entity.

9. Financing, including joint financing, projects, lease financing are performed by sponsoring organization by results of consideration and the analysis of the documents submitted by the subject.

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info