ORDER OF THE MINISTER OF ENERGY OF THE REPUBLIC OF KAZAKHSTAN

of November 28, 2017 No. 416

About approval of Rules of the admission for consideration, considerations and selection of investing programs of upgrade, expansion, reconstruction and (or) updating, the conclusion of investment agreements on upgrade, expansion, reconstruction and (or) updating, the corresponding conclusion of purchase agreements of service in maintenance of readiness of electric power and establishment for these agreements of individual rates for service in maintenance of readiness of electric power, amounts and terms of purchase of service in maintenance of readiness of electric power

According to the subitem 330) of Item 15 of the Regulations on the Department of Energy of the Republic of Kazakhstan approved by the order of the Government of the Republic of Kazakhstan of September 19, 2014 No. 994, I ORDER:

1. Approve the enclosed Rules of the admission for consideration, considerations and selection of investing programs of upgrade, expansion, reconstruction and (or) updating, the conclusion of investment agreements on upgrade, expansion, reconstruction and (or) updating, the corresponding conclusion of purchase agreements of service in maintenance of readiness of electric power and establishment for these agreements of individual rates for service in maintenance of readiness of electric power, amounts and terms of purchase of service in maintenance of readiness of electric power.

2. To provide to department of power industry and coal industry of the Department of Energy of the Republic of Kazakhstan in the procedure established by the legislation of the Republic of Kazakhstan:

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

2) within ten calendar days from the date of state registration of this order the direction it the copy in paper and electronic type in the Kazakh and Russian languages in the Republican state company on the right of economic maintaining "The republican center of legal information" of the Ministry of Justice of the Republic of Kazakhstan for official publication and inclusion in Reference control bank of regulatory legal acts of the Republic of Kazakhstan;

3) within ten calendar days after state registration of this order the direction it the copy on official publication in periodic printing editions;

4) placement of this order on Internet resource of the Department of Energy of the Republic of Kazakhstan;

5) within ten working days after state registration of this order in the Ministry of Justice of the Republic of Kazakhstan submission to Department of legal service of the Department of Energy of the Republic of Kazakhstan of data on execution of the actions provided by subitems 2), 3) and 4) of this Item.

3. To impose control of execution of this order on the supervising vice-Minister of Energy of the Republic of Kazakhstan.

4. This order becomes effective since January 1, 2018 and is subject to official publication.

Approved by the Order of the Minister of Energy of the Republic of Kazakhstan of November 28, 2017 No. 416

Rules of the admission for consideration, considerations and selection of investing programs of upgrade, expansion, reconstruction and (or) updating, the conclusion of investment agreements on upgrade, expansion, reconstruction and (or) updating, the corresponding conclusion of purchase agreements of service in maintenance of readiness of electric power and establishment for these agreements of individual rates for service in maintenance of readiness of electric power, amounts and terms of purchase of service in maintenance of readiness of electric power

Chapter 1. General provisions

1. These rules of the admission for consideration, considerations and selection of investing programs of upgrade, expansion, reconstruction and (or) updating, the conclusion of investment agreements on upgrade, expansion, reconstruction and (or) updating, the corresponding conclusion of purchase agreements of service in maintenance of readiness of electric power and establishment for these agreements of individual rates for service in maintenance of readiness of electric power, amounts and terms of purchase of service in maintenance of readiness of electric power (further – Rules) are developed according to the subitem 330) of Item 15 of the Regulations on the Department of Energy of the Republic of Kazakhstan approved by the order of the Government of the Republic of Kazakhstan of September 19, 2014 No. 994, and determine procedure for the admission for consideration, considerations and selection of investing programs of upgrade, expansion, reconstruction and (or) updating, the conclusions of investment agreements on upgrade, expansion, reconstruction and (or) updating, the corresponding conclusion of purchase agreements of service in maintenance of readiness of electric power and establishment for these agreements of individual rates for service in maintenance of readiness of electric power, amounts and terms of purchase of service in maintenance of readiness of electric power.

According to Item 1 of article 15-4 of the Law of the Republic of Kazakhstan "About power industry" (further – the Law) investment agreements on upgrade, expansion, reconstruction and (or) updating consist in the relation of the capital generating equipment, and also service equipment of the operating (existing) power plants of the operating power making organizations.

Costs for the service equipment join in individual rate for service in maintenance of readiness of electric power within the investment agreement on upgrade, expansion, reconstruction and (or) updating only with costs of the capital generating equipment and do not exceed thirty percent from the cost of the capital generating equipment.

2. In these rules the following concepts and determinations are applied:

1) coincidence of points – value of number of points which is at the same time gained by two and more investing programs by results of the exposure of points performed by authorized body according to Item 8 of these rules;

2) investing program of upgrade, expansion, reconstruction and (or) updating – the program of upgrade, expansion, reconstruction and (or) updating which actions cover the capital generating equipment, and also the service equipment of one operating (existing) power plant of the operating power making organization;

3) the investment agreement on upgrade, expansion, reconstruction and (or) updating – the agreement signed by authorized body with the operating power making organization, on upgrade, expansion, reconstruction and (or) updating of the operating (existing) power plants and including one or more investing programs of upgrade, expansion, reconstruction and (or) updating;

4) the schedule of preparation and project implementation (further - the schedule) – the detail schedule of implementation of the investment agreement determining reporting indicators and providing terms of realization surveying, logistic, construction and balancing and commissioning, approved by the first head of the power making organization;

5) the level of necessary annual return – the annual annual earnings of the power making organization necessary for it for return of investment investments to implementation of actions of investing program of upgrade, expansion, reconstruction and (or) updating which are determined by the work of value of individual rate for service in maintenance of readiness of electric power and value of amount of service in maintenance of readiness of electric power of this investing program, and also value of duration of the year expressed in months;

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