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AGREEMENT BETWEEN THE KYRGYZ REPUBLIC AND INTERNATIONAL DEVELOPMENT ASSOCIATION

of August 4, 2011

About financing (Additional financing for the draft of the prevention of emergency situations)

This agreement of August 4, 2011 is signed between the KYRGYZ REPUBLIC ("Receiver") and INTERNATIONAL DEVELOPMENT ASSOCIATION ("Association") for the purpose of provision of additional financing for the Original Project (according to determination in Amendment to this agreement). The receiver and Association agree as follows present:

Article I - General terms; determinations

1.01. General terms (according to the definition given in Amendment to this agreement) constitute integral part of this agreement.

1.02. If other does not follow from context, the terms designated by capital letters which are used in this agreement have the corresponding values assigned to them General terms or Amendment to this agreement.

Article II - Financing

2.01. The association agrees to provide to the Receiver - for terms and on the conditions stated or mentioned within this agreement - grant in the amount of, equivalent 1 000 000 (one million dollars) special drawing rights (700 000 SPZ) ("Financing") for assistance to financing of the project described in Appendix 1 to this agreement (Project):

2.02. The receiver can make selection of means of Financing according to provisions of the Section IV of Appendix 2 to this agreement.

2.03. The maximum size of the commission for reservation of not chosen balance of financing paid by the Receiver constitutes half of one percent (1/2 from 1%) in year.

2.04 Payment due dates are on April 15 and on October 15 every year.

2.05 Payment currency is the US dollar.

Article III - Project

3.01. The receiver declares the commitment to project objectives. For this purpose, the Receiver, being effective through the Ministry of Emergency Situations, provides project implementation according to provisions of Article IV of General terms.

3.02. Without restrictions on provisions of Section 3.01 of this agreement, and in the absence of other arrangements between the Receiver and Association, the Receiver provides project implementation according to provisions of Appendix 2 to this agreement.

Article IV - Legal remedies of Association

4.01. The additional event attracting activities suspension consists in the following: change, suspension, cancellation or variation of Operational project board without prior consent Associations.

Article V - Entry into force; Cancellation

5.01. The additional term of entry into force consists in the following: review of the Operational project board meeting requirements of Association for the purposes of this Additional financing.

5.02. The final Term of entry into force constitutes ninety (90) days from the moment of the conclusion of this agreement.

5.03. For the purpose of observance of provisions of the Section 8.05 (b) of General terms, the completion date of obligations of the Receiver within this agreement (except for obligations on payments) constitutes twenty (20) years from the moment of the signature of this agreement.

Article VI - Representatives, Addresses

6.01. The representative Poluchatelya is the Minister of Finance.

6.02. Receiver's address:

Ministry of Finance

Erkindik Blvd., 58

Bishkek, 720040

Kyrgyz Republic

Telex:


245-156 NUR KH

Facsimile:


(996-312) 661645

6.03. Address of Association:

International Development Association

1818 H Street, N.W.

Washington, D.C. 20433

United States of America

Telegraph


Indevas


Washington, D.C.

Telex


248423 (MCI)

Facsimile:


1-202-477-6391

Appendix 1

Project description

The purposes of this Project consist in assistance to the Receiver in the following: (a) minimizing of impact on people, the cattle, river flora and fauna of the radionuclides connected with the abandoned uranium tailings dams and dumps of dead rocks around Mayluu-Suu; (b) increase in management efficiency and mitigation of consequences of emergency situations national both regional authorities and local communities in emergency situations; and (c) decrease in potential human and material losses in the territory of key landslide regions of the country.

The project consists of Parts A and C of the Original Project, taking into account changes and amendments to the designated Parts A and C stated as follows:

"Part A: Isolation and protection of waste from uranium mines

1. Unloading of top of the unstable landslide site "Techtonic dance" for decrease in exposure hazard on the tailings dam No. 3.

2. Check and recovery of tailings dams and mountain dumps, including improvement of superficial drainage around sites of tailings dams and mountain dumps, measure for reducing radioactive impact of tailings dams and mountain dumps, and transfer of two small pedigree dumps.

3. Implementation of system of drainage of surface water on landslide perimeter "Which - Tash" for removal of drains for the purpose of decrease in risk of renewal of landslide activity.

4. Installation on top of landslide sites "Techtonic dance" and "Which - Tash" monitoring systems and the notification, including system of global positioning, piezometers, strain gages and seismic stations, along with connection of the equipment to the central systems of the early notification in Mayluu-Suu and nearby villages.

5. Implementation of protective systems for the purpose of prevention of soil erosion in the territory of tailings dams along certain sections of the rivers Mayluu-Suu and Aylyampa-Say.

6. Realization of priority actions for tailings dams and landslides according to the feasibility statement and project calculations prepared by Expert group for versions of the long-term decision in Mayluu-Suu along with ensuring financing of the meant Expert group.

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