Procedures for implementing the programs of technical cooperation in the Republic of Kazakhstan

1. Procedures for implementing the programs of technical cooperation in the Republic of Kazakhstan Ministry of economic development and trade of the Republic of Kazakhstan

2. Donors currently implementing technical cooperation programs in Kazakhstan Donor countries: European union Japan Germany Korea Turkey USA China India Netherlands Malaysia Singapore and etc. International organizations: WB ADB EBRD IDB UNDP USAID OECD IMFand etc.

3. Total volume of financing within the framework of cooperation programs

4. Legal framework for grants • Budget code (part10Grants) has a provision which envisages that grants are given to public organizations, and issues of non-tied grants are implemented in the order, defined by the Government Decree; • Rules of engaging, utilizing, monitoringand evaluating the effectiveness ofnon-tied grants, confirmed by the Government Decree № 740 as of 19 July 2005; • Rules of presenting applications for the engagement of tied grants, confirmed by the Government Decree № 665 as of 7 may 2009 • List of applications for the engagement of tied grants in the relevant financial year, confirmed by the Government Decree • Rules of defining the order, dates of submission, report formsand requirementsfor presented information about the stage and results of utilizing tied grants, confirmed by the joint order of theMinister of economics and budget planning of the Republic of Kazakhstan № 166 as of 6 August 2009and the Minister of financeof the Republic of Kazakhstan № 351 as of25 August 2009. Registered in the Ministry of justice of the Republic of Kazakhstanas of 21 September 2009 under № 5797

5. Legal framework for grants (continued) • Tax and Customs codes envisage exemption of grants from some obligatory payments to the budget; • List of grant givers, confirmed by the Government Decree № 1753 as of 28 December 2001; • Simplified order of customs clearance of assistance provided within the framework of grants, confirmed by order № 717 of the Minister ofState Incomesas of 7 June 2001; • Rules of furnishing documentsfor the exemption from customs dutiesand dues, confirmed by the Government Decree № 675 as of 9 July 2003; • International agreements between Kazakhstan and donorsratified by the Republic in the established orderregulating other rules;

6. Subjects of tied and non-tied grants: • Donors: • Donor countries • International organizations • Beneficiaries: • Private (non-governmental organization) • Public bodies and organizations • Authorized bodies of the parties

7. Division of external assistance coordination under the Ministry of economic development and trade Functions of the Division • Coordination of the work ofCoordinating Councilon the issues of grants and loans; • Coordination of the activities of Governor and Alternative governor forIBRD,EBRD, ADB; • Coordination of the activities of theNational coordinator of CARECprograms (Central Asian Regional Economic Cooperation), «TACC» EU (Technical assistance to CIS countries); • Coordination of realizationof jointPrograms of economic developmentof the Government of the USA (EDP); UNDP; • Coordination of the activities of theCouncil on interactionwiththe OECD (Organization for economic cooperation and development). Coordination of external assistance from International Financial Organizations (IFO) anddonor countriesand their activity in Kazakhstan Coordination of the activities of public bodieson the issues of attracting external assistance • Coordination of the workpursuant tothe Rules ofengaging, utilizing, monitoring and effectiveness evaluation of utilizing non-tied grants.; • Coordination of the work of public bodiespursuant to the Budget code of Kazakhstan (articles. 166-170) and Rules of applying for the engagement of tied grants Elaboration of normative legal acts • Elaboration of the orders of the Head of the state, Government Decrees, Orders of the Prime-ministeron the issues of engaging grantsand technical assistance (annually). Other functions • Conduct of seminars, round tables, conferences, meetings, negotiations with the donor societyand public bodies of Kazakhstanon the issues of external assistance cooperation

8. The process of the transfer of grants by donors и their receipt by Kazakhstani beneficiaries: • Agreements between Kazakhstan and donorson the directions of cooperation; • The process of the transfer of grants by donors; • The process of engagement of grants by Kazakhstani beneficiaries.

9. Types of assistance given within the framework of grants: • Supply ofmaterial and technical valuables; (supply of equipment, materials and goods) • Consulting services; (showing consulting assistanceby sending specialists, conducting researches, development of documentsand recommendations, etc.) • Teaching. (courses, seminars, lectionsand trainings, etc.)

10. The order of engagement of tied grants

11. The order of engagement of non-tied grants

12. The order of grant utilization

13. The procedure for monitoring and evaluatingeffectiveness of utilization of grants:

14. Based on the experience gained in the course of cooperation to engage and utilize grants there is now a necessity to: • Create definite premisesfor the provision of effective utilization of grantsby way of defining minimum obligatory normsfor the conclusion of grant agreements, elaboration of technical tasks; • Create definite mechanismsfor abolishingagents (contractors) of donors presenting assistance of poor quality, and increasing the responsibility of public bodies for the effective utilization of grants; • Conduct regular monitoringand realization of effectiveness evaluation of grant utilization.

15. For the provision of mutually beneficial cooperation with donor countries and IFOsit is expedient to activate the following directions ofexternal assistance coordinationand their activities in Kazakhstan: • - creation of the system of partnership on the basis of consensus; • - strengthening public bodies in the coordination of programsand projects of international financial institutions; • - concentration of the efforts of donor countries and IFOs on strengthening the socio-economic potential, not democratic processes in Kazakhstan; • - defendingpositions of Kazakhstanon consideration of issuesregarding emission of allocation of external meansfor loans, grants and technical assistance; • - givingimportant role tosectoral ministriesand national institutesin the preparation of the relevant projects; • - provision of the connection of external resourceswith the national budget;

16. - development of the system of measures, stimulatingthe development and utilizationof Kazakhstan’s own cadre potentialin the preparationand realization of projects; • - hosting purposeful trainings about the activities of donor countries and IFOs for public bodieswith the aim ofgivingcompetenceand skillsin the economic, administrative and legal issues; • -active participation of public bodieswith the effective partnership of IFOsand donor countries; • - realization of equipment procurement by IFO programs on the territory of Kazakhstan; • - strengthening mutual accountabilitybeforethe public and each other.

17. Thank you for attention!