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I.O.'S ORDER OF THE MINISTER OF NATIONAL ECONOMY OF THE REPUBLIC OF KAZAKHSTAN

of March 27, 2015 No. 277

About approval of the Standard agreement of concession in various industries (spheres) of economy

According to subitem 7-7) of article 9 of the Law of the Republic of Kazakhstan of July 7, 2006 "About concessions", PRIKAZYVAYU:

1. Approve the enclosed Standard agreement of concession in various industries (spheres) of economy.

2. To provide to department of budget investments and development of public-private partnership:

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

2) within ten calendar days after state registration of this order its direction on official publication in periodic printing editions and in information system of law of Ad_let;

3) placement of this order on official Internet resource of the Ministry of national economy of the Republic of Kazakhstan.

3. To impose control of execution of this order on the supervising vice-minister of national economy of the Republic of Kazakhstan.

4. This order becomes effective after ten calendar days from the date of its first official publication.

Acting minister

M. Kusainov

Approved by the Order of the Minister of national economy of the Republic of Kazakhstan of March 27, 2015, No. 277

The standard agreement of concession in various industries (spheres) of economy

_________________

"___" ____________ 20 __.

(city of signing)

 

(date of the conclusion)

___________________________________________________________________________________

                                                             (state body)

on behalf of, ____________________________________________________ acting on the basis of the

(position, First name, middle initial, last name authorized person)

___________________________________________________________________________________

       (the name and details of the document of the establishing power of the person)

the hereinafter referred to as Concedent, on the one hand, and

___________________________________________________________________________________,

                                         (legal, physical person, etc.)

in лице,_____________________________________________________________________________,

                                                 (position, First name, middle initial, last name authorized person)

acting on основании___________________________________________________________

                                                                    (name and details of the document,

___________________________________________________________________________________

                                              the establishing power of the person)

the hereinafter referred to as Concessionary, on the other hand, further jointly referred to as with the Parties, separately - the Party, according to the decision of the Commission on concessions

___________________________________________________________________________________

                                             (specify full name of the commission)

from "___" __________ 20 __ No. ______ signed the Standard agreement on creation or reconstruction and operation of subjects to concession.

1. Determinations

1. In this Standard agreement of concession in various industries (spheres) of economy (further - the Standard agreement) the following concepts are used:

1) special finance company - the company created by the Concessionary according to the Law of the Republic of Kazakhstan "About project financing and securitization" of February 20, 2006;

2) the asset holder - the state legal entity on whose balance fixing of the subject to concession which is subject to acceptance in state-owned property according to the procedure, the established legislation of the Republic of Kazakhstan on state-owned property is supposed;

3) the project documentation - documentation which development and approval is required according to the legislation of the Republic of Kazakhstan on architectural, town-planning and construction activities for creation and/or reconstruction of subject to concession;

4) local content in work (service) - cumulative total cost portion of local content in the goods used in case of performance of work in the price of the agreement and (or) compensation of the workers who are citizens of the Republic of Kazakhstan in the salary fund of the producer of work (service) in the contract for performance of work or rendering service, less the cost of the goods used in case of performance of work and the prices of agreements of sub contractings;

5) personnel - the main (regular) list of the prepared, skilled workers of the Concessionary in this or that field of activity;

6) local content in personnel - quantity of the Kazakhstan personnel as a percentage to the total number of the personnel involved in case of execution of the contract with breakdown on each category of workers and employees;

7) operation of subject to concession - use of subject to concession by the Concessionary according to purpose of subject to concession, including for the purpose of production of goods and/or performance of works and/or rendering services, according to the procedure and on the conditions determined by the Standard agreement;

8) management of subject to concession - trust management of subject to concession;

9) subject to concession - the name of subject to concession;

10) management of the concessionary project - project management performing procedures: determination, formulation, change of conditions of the project, project planning, technical project implementation (except for planning and control), control over project implementation;

11) the concessionary project - set of the actions for implementation of creation (reconstruction) and operation of subject to concession realized during effective period of the Standard agreement and having complete nature;

12) local content in goods - percentage of cost of the used local materials and costs of the producer of the goods for conversion of goods performed in the territory of the Republic of Kazakhstan in the final cost of goods;

13) risks - the event or condition which in case of origin has positive or negative impact leads to acquisitions or losses in terms of money;

14) the standard agreement - this Standard agreement, all appendices to the Standard agreement (documents to them, if those are available) specified in the Standard agreement and being integral parts of the Standard agreement.

2. Subject of the Standard agreement and subject to concession

2. Subject of the Standard agreement is settlement of the relations of the Parties when implementing by Aspects of activity, directed to creation and/or reconstruction and operation of subject to concession, transfer of subject to concession to trust management or to property employment (lease) to the concessionary or to property employment (lease) to the concedent or person authorized by it for the purpose of satisfaction of public requirements in: _______ (to specify necessary).

3. The description of the created and/or reconstructed subject to concession, technical and economic specifications and other data, including the information about structure of property, technical condition, service life, expected initial, residual and replacement cost of subject to concession, technology and processing equipment, are specified in appendix 1 to the Standard agreement.

4. The concedent has the right to provide to the Concessionary property which _____________________________________________________________

(forms whole with object _____________________________________________________________________

concessions and/or it is held for use on general purpose

_____________________________________________________________________

with subject to concession - to specify necessary) for implementation by the Concessionary of the activities specified in the Standard agreement (further - other property).

The structure of other property and its description, including technical and economic specifications, the list of the objects which are part of other property, including the information about structure of property, technical condition, service life, initial, residual and replacement cost of the transferred property, the term of ownership and use of the Concessionary of other property are given in appendix 2 to the Standard agreement.

The concedent guarantees that he is owner of other property, rights of possession and uses of which are transferred to the Concessionary according to the Standard agreement.

Data on the authorized state bodies representing the interests of the concedent _______________________________.

Joins if it is provided by the Concessionary project.

5. Subject to concession and other property belongs at the time of the conclusion of this Standard agreement to the Concedent on the property right on the basis

___________________________________________________________________________________

                               (name and details of title

___________________________________________________________________________________

                   documents and/or documents on state registration of the rights

___________________________________________________________________________________

property of the Concedent concerning other property) Copies and/or originals of the documents certifying the property right of the Concedent are attached to the Standard agreement.

6. On subject to concession are available and/or the following encumbrances and restrictions of use ________________ are registered

(specify necessary).

7. The concessionary creates the real estate units which are not part of subject to concession held for use when implementing by the Concessionary of activities for the Standard agreement, the description which technical and economic specifications, including the information about structure of property, technical condition, service life, expected initial, residual and replacement cost of property, technology and processing equipment, are specified in appendix 3 to the Standard agreement. Joins if it is provided by the Concessionary project.

8. The schedule of implementation of the concessionary project is specified in appendix 4 to this Standard agreement.

9. Products, works and services of the concessionary project and the market of their sale ______________________________________________ (to specify necessary).

10. The production program of the concessionary project is specified in the financial and economic Section of the feasibility statement (further - the feasibility study) the concessionary project (appendix 5 to the Standard agreement).

11. The main financial and economic indicators of implementation of the concessionary project are enshrined in the feasibility study for the concessionary project (appendix 5 to the Standard agreement) in which the main reasons and basic conditions of the concessionary project are reflected, and also include:

1) the forecast terms provided for receipt of permissions and licenses according to the Schedule of implementation of the concessionary project;

2) the terms provided for performance of works according to the Schedule of implementation of the concessionary project;

3) the amount and the payment schedule of measures of the state support and other payments from means of the government budget;

4) the amounts of the commercial income and net profit in case of operation of subject to concession;

5) the total amount intended for payment of compensations for alienations of real estate and the parcels of land intended for the concessionary project;

6) the total cost of elimination of the circumstances interfering implementation of the concessionary project;

7) characteristics and essence of the made products, works and services at operational phase of subject to concession (joins in case of implementation of the concessionary project in spheres of natural monopolies):

8) procedure for forming of rates and the forecast of the annual profit included in the rate (the price, rate of charge) comprising calculations:

amounts of the costs included in rate (the price, rate of charge) and the expenses which are not considered when forming rate (the price, rate of charge) according to the legislation of the Republic of Kazakhstan in spheres of natural monopolies and the controlled markets;

the annual amounts of depreciation of fixed assets and intangible assets considered in rate;

forecast amount of regulated services (goods, works) by types of regulated services (goods, works);

annual amounts of return of the invested capital;

annual profit on the invested own means;

9) accrual methods of depreciation of fixed assets and intangible assets, terms of carrying out revaluation of fixed assets, and directions of use of means of the depreciation charges;

10) forecast of normative technical losses both forecast technical and technological consumption rates of raw materials, materials, fuel, energy;

11) forecast annual cost budget, directed to the running repairs and other rescue and recovery operations which are not leading to growth of cost of fixed assets;

12) staff list and limit of compensation;

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