ORDER OF THE MINISTER OF NATIONAL ECONOMY OF THE REPUBLIC OF KAZAKHSTAN

of July 2, 2015 No. 495

About approval of Rules of crediting of construction, reconstruction and upgrade of water supply systems and water disposals

According to subitem 8-4) of article 37-1 of the Water code of the Republic of Kazakhstan, I ORDER:

1. Approve Rules of crediting of construction, reconstruction and upgrade of water supply systems and water disposal.

2. To provide to committee on cases of construction, housing and communal services and management of land resources of the Ministry of national economy of the Republic of Kazakhstan in the established legislative procedure:

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 in the Ministry of Justice of the Republic of Kazakhstan the direction it on official publication in periodic printing editions and in information system of law of Ad_let;

3) placement of this order on Internet resource of the Ministry of national economy of the Republic of Kazakhstan";

4) within ten working days after state registration of this order in the Ministry of Justice of the Republic of Kazakhstan submission to Legal department of the Ministry of national economy of the Republic of Kazakhstan of data on execution of the actions provided by subitems 1), 2) and 3) of Item 2 of this order.

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 after day of its first official publication.

Approved by the Order of the Minister of national economy of the Republic of Kazakhstan of July 2, 2015 No. 495

Rules of crediting of construction, reconstruction and upgrade of water supply systems and water disposal

1. General provisions

1. These rules of crediting of construction, reconstruction and upgrade of water supply systems and water disposal (further – Rules) are developed according to subitem 8-4) of article 37-1 of the Water code of the Republic of Kazakhstan and determine procedure:

1) provisions of budget credits on construction, reconstruction and upgrade of water supply systems and water disposal;

2) implementation of financing and monitoring of implementation of the investment projects directed to construction, reconstruction and upgrade of water supply systems and water disposal at the expense of means of budget credit;

3) implementation of monitoring of financial condition of final borrowers.

2. In these rules the following concepts are used:

1) the Potential final borrower – the subject of natural monopoly performing the activities in the field of water supply and water disposal, applying for receipt of budget credit from the Borrower;

2) Administrators of the budget program:

authorized body in the field of municipal services;

3) budget credit – the money provided by creditors from the relevant budgets on the terms of urgency, the paid nature, recoverability and security;

4) the Working group – advisory advisory body on development of recommendations about provision of budget credit for projects in the field of water supply and water disposal based on the conclusion of the Confided (agent);

5) the investment project – the project directed to construction, reconstruction and upgrade of water supply systems and water disposal, financed from the republican budget by budget crediting;

6) the Borrower – local executive bodies of areas, cities of republican value and the capital;

7) Creditor – The government of the Republic of Kazakhstan, on behalf of the central authorized body on budget implementation;

8) the credit agreement – the agreement signed between the Creditor, the Administrator of the budget program and the Borrower;

9) the Confided (agent) – the physical and (or) legal entity determined on competitive basis and who signed the contract of the order with the Administrator or the structural division authorized by it;

10) water supply system – the complex of engineering networks and constructions intended for fence, storage, preparation, giving and distribution of water to places of its consumption;

11) system of water disposal – the complex of engineering networks and constructions intended for collection, transportation, cleaning and removal of sewage;

12) social policy of the state in housing and communal services industry – set of the measures and actions directed to life support of the population and improvement of level and quality of life;

13) the Final borrower – the subject of natural monopoly performing the activities in the field of water supply and water disposal, obtaining budget credit from the Borrower.

3. For selection of the investment projects Administrator of the Budget Program creates the Working group which structure joins representatives of the structural divisions of the Administrator of the budget program interested state bodies and other organizations.

2. Procedure for provision of budget credits on construction, reconstruction and upgrade of systems warm, water supply and water disposal

Paragraph 1. Basic principles and terms for crediting

Subsection 1. Principles of crediting

4. Budget credits on construction, reconstruction and upgrade of water supply systems and water disposal are provided on the solution of tasks of social policy of the state in housing and communal services industry.

Provision of budget credits is performed according to Article 172 of the Budget code of the Republic of Kazakhstan (further – the Code), according to the following principles:

1) recoverability, providing obligation of repayment of budget credit according to the credit agreement;

2) security, providing availability of ensuring obligation fulfillment stipulated in Clause 183 Codes by methods;

3) the paid nature, the Borrower of remuneration for provision of budget credit providing payment;

4) urgency, providing establishment of term of provision of budget credit.

Subsection 2. Terms for crediting

5. Budget crediting is performed by provision of budget credit to the Borrower with the subsequent provision to his Final borrower.

6. The compulsory provision of budget crediting is ensuring protection of the interests of the Creditor consisting in effective and purposeful use of the allocated borrowing facilities, their timely return and minimizing of emergence of credit risk.

7. In the course of budget crediting credit agreements are signed between:

1) Creditor, Administrator of the budget program and Borrower;

2) Borrower and Final borrower.

8. The budget credit is granted to the Borrower on condition of lack at it of arrears to higher budgets for earlier obtained budget credits.

9. The borrower uses funds of budget credit only for the purposes provided by the budget program and the credit agreement.

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