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The document ceased to be valid since   November 1, 2021 according to Item 3 of the Resolution of the Cabinet of Ministers of the Kyrgyz Republic of  October 14, 2021 No. 220

ORDER OF THE GOVERNMENT OF THE KYRGYZ REPUBLIC

of November 10, 2014 No. 633

About approval of the Standard regulations on procedure for forming of funds of development of regions

(as amended on 13-02-2019)

For the purpose of implementation of Article 34 of the Budget code of the Kyrgyz Republic, being guided by articles 10 and 17 of the constitutional Law of the Kyrgyz Republic "About the Government of the Kyrgyz Republic", the Government of the Kyrgyz Republic decides:

1. Approve:

- Standard regulations on procedure for forming of funds of development of regions according to appendix 1;

- The commitment form on the project according to appendix 2;

- the table of criteria and indicators of selection of the project for financing by fund of development of the region according to appendix 3;

- The agreement on target financing according to appendix 4.

2. To plenipotentiaries of the Government of the Kyrgyz Republic in areas and local district administrations in three-months time to create funds of development of areas and areas on the basis of the Standard provision approved by Item 1 of this resolution.

3. This resolution becomes effective from the date of official publication.

4. To impose control of execution of this resolution on department of organizational and inspection work and regional development of Government office of the Kyrgyz Republic.

Prime Minister

J. K. Otorbayev

Appendix 1

Approved by the Order of the Government of the Kyrgyz Republic of November 10, 2014 No. 633

Standard regulations on procedure for forming of funds of development of regions

1. This Standard provision (further - the Provision) is developed according to the Budget code of the Kyrgyz Republic, the Code of the Kyrgyz Republic about non-tax income, the Law of the Kyrgyz Republic "About non-profit organizations" and other regulatory legal acts of the Kyrgyz Republic and determines procedure for activities of fund of development of the region (further - Fund).

1. General provisions

2. The fund is created for development financing and content of infrastructure of local value, implementation of other actions of purpose for the purpose of program implementation of social and economic development of regions.

3. Activities of Fund are performed on the basis of the current legislation and the Fund charter.

4. The fund has the status of the legal entity in the form of Fund of development of the area or Fund of development of the region.

The fund of development of the region and Fund of development of the area are created in form of business of organization.

5. Founder of Fund of development of the area is the district public administration.

6. Founder of Fund of development of the region is the Government of the Kyrgyz Republic.

7. For implementation of activities of Fund the budget and special accounts in Treasury are opened.

8. The fund performs the activities on the principles of legality, openness, transparency, publicity and the reporting before local community, and also on the principles of priority of initiatives of local community, target, rational use and effective management of fund.

2. The concepts applied in this Provision

9. The concepts applied in this Provision:

The applicant - the local government body which submitted the project or the business project on tender for financing by fund;

Infrastructure - set of the constructions, buildings and engineering networks necessary for providing conditions of activity of society;

Mobilization of local community - process of the problem resolution at the local level with direct participation and support of local community, organized groups of inhabitants;

The project - the list of the tasks, actions and actions developed by local government bodies with participation of representatives of local community and undertaken for achievement of specific purpose;

The project request - the project description or the business project developed on the basis of standard format and provided on behalf of local government body for financing by fund. Representatives of territorial offices of state bodies in education, health cares, social protection, culture and sport, defense, civil protection, and also the business sector of mass media and law enforcement agencies have the right to develop and submit the project application through the applicant for financing from the budget and special fund;

Project funding plan - part of the project request describing stages and procedure for financing of the project on tranches and corresponding to the project implementation plan;

The business project - complete description and reasons for economic feasibility, amount and terms of implementation of direct investments in the creation of new goods and services either reconstruction or upgrade of the operating productions for the purpose of receipt of economic benefit including the design estimates;

the private partner - the individual entrepreneur, the legal entity registered by the legislation of the Kyrgyz Republic, the legal entity registered by the legislation of foreign state;

The plan of monitoring and assessment - stages and procedure for carrying out observation for the purpose of identification of variations from requirements of this provision, and also efficiency evaluation of activities of Fund.

3. Purpose and task of Fund

10. Main objective of Fund is support of priority initiatives of local community of the cities and ayylny aimags directed to increase in level of living of citizens, creations of conditions for local economic development.

10-1. Task of Fund is ensuring effective use of financial resources of Fund according to the main priorities of programs of social and economic development of the cities and ayylny aimags.

11. Money of Fund is allocated according to the list of projects, business projects and the annual budget approved by the Supervisory board for the following purposes:

1) at the expense of budgetary funds of Fund:

- on actions for improvement, gardening and development of infrastructure of settlements;

- on actions for meliorative improvement of lands, repair and recovery of irrigational networks, hydrotechnical objects and other agrotechnical actions for improvement of condition of lands;

- on development of master plans of development of resort and recreational zone, drafts of the detailed layout, town-planning documentation of settlements, providing ecological safety and action for environmental protection;

- on actions for providing local population with clear drinking water, repair and recovery of water supply systems;

- on joint projects of social and economic development of areas, areas, cities and ayylny aimags;

- on opening of the new companies in the area, areas, the cities and ayylny aimags on the principles of joint equity participation with investors and/or joint financing with investors;

- on actions for the prevention and mitigation of consequences of emergency situations in the territory of the area, the area, the city and the ayylny aimag;

- on actions for tourism development and creation of attractive conditions for the international tourism;

- on updating and centralized acquisition of the machinery and equipment which will be aimed at providing requirements of community and development of local economy;

- on construction and repair of objects of education, health care, social protection, culture and sport, law enforcement agencies, defenses, civil protection, mass media, local government bodies, including the incomplete objects having priority value for the area and the area;

2) by special fund:

- on support of exceptional children and talents;

- on microcredit of large and young families, and also the employees of state-financed organization promoting social and economic development of the region on the basis of the paid nature, urgency and recoverability through microcredit institution;

- on mortgage lending, housing construction for social vulnerable segments of the population;

- on strengthening of material and technical resources and support of activities of educational institutions, health care and social protection, culture and sport, law enforcement agencies, defense, civil protection of mass media, local public administrations.

12. Use of fund on actions for the organization of festive actions, anniversaries, the remuneration payments exceeding the established standard rates, and other actions which are not answering the purpose and tasks of Fund is not allowed.

4. Governing bodies of Fund

13. Governing bodies of Fund are:

1) the Supreme body of management - Supervisory board of Fund;

2) Executive bodies:

- board Fonda;

- administrator Fonda.

14. The procedure for formation of governing bodies of Fund and their activities are determined by this Provision.

4.1. Supervisory board Fonda

15. The supervisory board of Fund (further - the Supervisory board) is collegiate supervisory organ which performs the common directorship of Fund, within the conferred powers and functions according to this Provision, provides observance of regulations of this Provision, the legislation of the Kyrgyz Republic and target with use of money of Fund.

Meetings of the Supervisory board are recorded by the secretary of the Supervisory board. Protocols are signed by the chairman of the Supervisory board or person presiding over meeting and the members who are present at meeting Observant council. Originals of protocols are stored at the secretary of the Supervisory board.

The quorum of meeting of the Supervisory board makes more than a half from general structure of the Supervisory board. Decisions of the Supervisory board are made by a majority vote the members of the Supervisory board who are present at meeting and drawn up by the protocol which is signed by person presiding over meeting of the Supervisory board and the members of the Supervisory board who are present at meeting. In case of equality of votes the voice of person presiding over meeting of the Supervisory board is decisive.

16. Members of the Supervisory board participate in its work on a voluntary basis.

17. Members of the Supervisory board participate in its meetings without the replacement right. In case of absence of the member of the Supervisory board, he has the right to provide the opinion on cases in point in writing.

18. The supervisory board of Fund of development of the area consists of at least 11 people which structure affirms the decision of the founder of Fund for a period of 3 years.

18-1. The official representative of the body/organization included in structure of the Supervisory board of Fund is determined by the official letter of the state body / organization with indication of its surname, name, middle name, position, and also the reason in case of change of the representative.

19. The Supervisory board of Fund of development of the area are included:

- the head of territorial subdivision of authorized state body for architecture and construction;

- the head of territorial authorized state body on forecasting and budget implementation;

- the head of territorial authorized state body in the field of civil protection;

- the representative of authorized body for local self-government;

- chairmen of representative bodies of local self-government of the ayylny aimags and cities of local value located in the territory of the area;

- chairman of the Public supervisory board of local public administration;

- representatives of non-profit organizations according to the offer of the Public supervisory board of local public administration.

The head of local public administration participates in meeting of the Supervisory board without voting power.

20. The supervisory board of area consists of at least 11 people which structure affirms the order of Premieres - the minister of the Kyrgyz Republic for a period of 3 years.

21. The Supervisory board of Fund of development of the region are included:

- the head of territorial authorized state body on forecasting and budget implementation;

- the representative of republican state authorized body for economy;

- the head of territorial state authorized body in the field of civil protection;

- the representative of authorized body for local self-government;

- chairmen of the Supervisory boards of funds of development of areas;

- on one representative from among deputies of keneshes of the supervisory boards of funds of development of areas which are parts;

- representatives of non-profit organizations according to the offer of the supervisory boards of funds of development of areas.

The plenipotentiary of the Government of the Kyrgyz Republic in area participates in meeting of the Supervisory board without voting power.

The meeting of the Supervisory board is competent with quorum. Quorum is presence at meeting of the Supervisory board at least a half from total number of members of the Supervisory board.

22. Ceased to be valid according to the Order of the Government of the Kyrgyz Republic of 08.07.2015 No. 468

23. The supervisory board has the right to invite to the meetings, in case of need, representatives of the relevant technical services, experts and consultants which participate in meetings without voting power.

24. The supervisory board is convoked as required, but once a quarter suffices.

25. The supervisory board is headed by the chairman who is elected members of the Supervisory board during the first meeting. The chairman of the Supervisory board resolves issues of organizational activities of the Supervisory board and will organize taking the minutes of meetings. The chairman of the Supervisory board has the right to convene the regular and emergency meetings of members of the Supervisory board.

In the absence of the elected chairman at meeting, the Supervisory Board chooses the chairman on this meeting from among members of the Supervisory board of Fund.

26. Decisions concerning holding meeting of the Supervisory board, with indication of the agenda, time and the venue, shall be brought to the attention members of the Supervisory board by the direction of notices, not later than 10 for discussion of calendar days before holding meetings of the Supervisory board.

27. Ensuring activities of the Supervisory board is performed by the Administrator Fonda.

4.2. Competences of the Supervisory board of Fund

28. Exclusive competence of the Supervisory board of Fund is:

1) approval of the main directions and priorities of activities of Fund;

2) approval of projects of development and improvement of infrastructure of local value;

3) selection and approval of projects for realization of credit activities of Fund;

4) selection, appointment and approval of board members of Fund from among representatives of public and non-governmental organizations;

5) appointment of the chairman of the board of Fund;

6) forming of group for carrying out monitoring and efficiency evaluation of activities of Fund;

7) decision making about carrying out audit of use of fund;

8) consideration of the claim of participants of selection on forming of the list of priority projects;

9) approval of expense budget of Fund for budgetary and special funds for each financial year, taking into account the expected receipt of funds;

10) control of target use of money of Fund;

11) hearing and approval of the performance report of expense budget of Fund for the budget and special fund;

12) selection and approval of business projects for local economic development.

29. The supervisory board for implementation of the competences assigned to it has the right:

1) to request information, necessary for implementation of the activities, from board of Fund, the administrator of Fund and monitoring group of Fund;

To send back 2) for revision the documents submitted by board of Fund, the administrator of Fund, monitoring group on approval of the Supervisory board;

3) to organize and hold consultations with experts and specialists, technical services on the questions carried to competence of board of Fund.

30. The supervisory board is accountable to the founder.

4.3. Competences of the founder of Fund

31. The founder Fonda has the following powers:

a) participates in meetings of the Supervisory board of Fund;

b) participates in board meetings of Fund without decision-making power;

c) requests information from the Supervisory board and board of Fund on activities of Fund, including for financial questions;

d) appoints and exempts board members of Fund.

4.4. Board Fonda

32. For accomplishment of tasks of Fund the Supervisory board creates board of Fund (further - Board).

33. The number of board members constitutes at least 8 people.

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