ORDER OF THE GOVERNMENT OF THE REPUBLIC OF TAJIKISTAN

of August 15, 2008 No. 400

About approval of Rules of carrying out tender on mineral right in the Republic of Tajikistan

According to Article 18 (2) the Law of the Republic of Tajikistan "About licensing of separate types of activity", the Government of the Republic of Tajikistan decides:

1. Approve Rules of carrying out tender on mineral right in the Republic of Tajikistan it (is applied).

2. Recognize invalid:

the order of the Government of the Republic of Tajikistan of March 1, 2004 No. 88 "About approval of the Procedure and conditions of carrying out tenders on mineral right";

the order of the Government of the Republic of Tajikistan of May 10, 2005 No. 174 "About formation of the Tender committee on mineral right".

Approved by the Order of the Government of the Republic of Tajikistan of August 15, 2008 No. 400

Rules of carrying out tender on mineral right in the Republic of Tajikistan

1. These rules of carrying out tender on mineral right in the Republic of Tajikistan are developed according to Article 18 (2) the Law of the Republic of Tajikistan "About licensing of separate types of activity".

2. Competitions on mineral right (further Tenders) are announced in process of preparation of geological information on the licensed objects and receipt of requests for certain subsoil plots.

Objects of use of subsoil are exposed on tender after approval of local state bodies of the executive authority.

3. Competitions are held by the Tender committee of the Government of the Republic of Tajikistan on mineral right in structure according to appendix 1 (further the Commissions).

Announcements of carrying out tender (Item 6 of these rules), consideration of bids (Item 7) and acceptance document package (Item 8) are performed by the executive licensing authorities specified Item 3 of Chapter 59 of the Regulations on features licensing of separate types of activity.

Competition on popular minerals is held according to these rules.

4. The commissions act on the basis of convocation and are created for the purpose of carrying out tender and determination of the winner on rights to use of subsoil.

5. Physical persons and legal entities irrespective of patterns of ownership, including foreign Physical persons and legal entities can participate in tender.

6. Announcements of carrying out tender are published in mass media and in the Website and shall contain the following information:

- location, quantity of explored reserves (according to established procedures) or forecast resources on competitive object or perspectives of their detection in subsoil;

- terms and place of submission of bids and provision of competitive programs;

- tender conditions (for each object separately).

The licensing body has the right not later than thirty days to the beginning of tender to refuse its carrying out.

7. Competitions are held based on the applications submitted to relevant organs (Item 3 of these rules) and shall contain the following information:

- name of the competitive subsoil plot;

- data on the applicant - the name, legal address, phone, the fax, the state accessory (for legal entities), nationality (for the individual entrepreneur);

- financial condition of the applicant and availability of technical means;

- data on the head of the legal entity or individual entrepreneur.

Registration of statements is made after payment for their consideration. After verification of information provided by participants of tender they in writing are informed on the admission to participation in tender or motivated refusal. Results of discussion of applicants of tender and the information about them are closed.

After registration geological information (the certificate of geological study of object) for creation of business plans on paid basis in accordance with the established procedure is provided to job seekers.

8. After adoption of statements applicants present document packages in the sealed form and the signature of the applicant and secretary of the commission who shall contain:

- statements for participation in tender;

- copies of constituent documents;

- copy of the certificate on state registration;

- the copy of the certificate on registration in tax authority;

- the document confirming payment of the license fee for considerations of the application;

- the document on offers on payment on uses of subsoil;

- data on financial opportunities;

- data on personnel opportunities;

- data on technical and technological capabilities;

- data on technical and economic indicators of activities over the last 5 years;

- data on geological study;

- the business plan which shall contain on licensed objects of geological studying - the concept of geological researches and the annual amounts of financing of search or prospecting works.

On subjects to industrial development - technical and economic calculations for capital investments, operating costs, the expected income and profit, profitability of the mountain project, and also approximate terms and the sequence of development of licensed object.

Document package are represented to executive body of licensing of use of subsoil no later than 30 days after the end of order taking on objects of geological studying and no later than 60 days on subjects to industrial development.

Executive bodies of licensing in week time after the end of acceptance document package in coordination with the Commission chairman make the decision on the place and time of carrying out commission session and transfer document package to the secretary of the commission.

9. Meeting of tender committee are closed. On commission session the secretary transfers to the chairman document packages of contestants in sealed type. The chairman in the presence of members of the commission opens document packages. After opening of packets the commission makes sure available documents of the these rules specified in Item 8. Lack of one of the documents specified in Item 8 is the basis for exception of tender.

10. The winner of tender is determined, proceeding from the following criteria:

- scientifically - technological level of programs of geological studying and use (completeness of extraction of minerals) of subsoil plots;

- the economic situation supported by the financial and economic documents (assurances of bank investor or banks, individual investors - partners, calculations, etc.);

- production achievements in case of performance of works, specified in the request (if those were not carried out and works will be performed by contract method, the reference is provided on contract organization);

- security with the laboratory and production base allowing to perform effective solution of geological (technical) tasks (if those are not present and works will be performed by contract method, the reference is provided on contract organization);

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