Unofficial translation

      In accordance with subparagraph 15) of paragraph 1 of Article 388 of the Environmental Code of the Republic of Kazakhstan dated January 2, 2021, the Government of the Republic of Kazakhstan HEREBY RESOLVES:

      1. To approve the attached Rules for financing by the operator of extended obligations of producers (importers) of an organization fifty or more percent of voting shares (stakes in the authorized capital) of which are directly or indirectly owned by the state and (or) the national managing holding, for further financing of projects in the manufacturing industry, aimed at improving the state of the environment.

      2. This Resolution shall enter into force upon expiry of ten calendar days after the day of its first official publication.

Rules for financing by the operator of extended obligations of producers (importers) of an organization fifty or more percent of the voting shares (stakes in the authorized capital) of which are directly or indirectly owned by the state and (or) the national managing holding, for further financing of projects in the manufacturing industry aimed at improving the state of the environment

Chapter 1. General provisions

      1. These Rules for financing by the operator of the extended obligations of producers (importers) of an organization, fifty or more percent of voting shares (stakes in the authorized capital) of which are directly or indirectly owned by the state and (or) the national managing holding, for further financing of projects in the manufacturing industry aimed at improving the state of the environment (hereinafter- the Rules) shall determine the procedure and conditions for financing by the operator of the extended obligations of producers (importers) of an organization, fifty or more percent of voting shares (stakes in the authorized capital) of which are directly or indirectly owned by the state and (or) the national manager holding, for further financing of projects in the manufacturing industry aimed at improving the state of the environment.

      2. The following basic concepts are used in the Rules:

      1) an authorized body in the field of state support for industrial activities (hereinafter-the authorized body) - the central executive body, carrying out management in the field of industrial development, as well as, within the limits provided for by the legislation of the Republic of Kazakhstan, intersectoral coordination and participation in the implementation of state support for industrial activities;

      2) a loan agreement - an agreement under which the operator undertakes to transfer to the ownership of an organization a certain amount of funds for financing of each individual project in the manufacturing industry, and the organization undertakes to return the funds to the operator in a timely manner, taking into account the terms of these Rules;

      3) an authorized body in the field of environmental protection - the central executive body, carrying out management and intersectoral coordination in the field of environmental protection and nature management, as well as its territorial bodies;

      4) an operator of extended obligations of producers (importers) (hereinafter- the operator) - a legal entity determined by the Government of the Republic of Kazakhstan, carrying out organization of collection, transportation, processing, neutralization, use and (or) disposal of waste generated after the loss of consumer properties of products (goods), to which the extended obligations of producers (importers) apply, and its (their) packaging;

      5) an organization – a joint-stock company "Industry Development Fund", established in accordance with the Decree of the Government of the Republic of Kazakhstan dated August 18, 2020 No. 521 "On Establishment of the Industry Development Fund" to provide affordable funding for breakthrough processing projects on the terms specified in the documents of the state planning System;

      6) a project in the manufacturing industry - a project in the sphere of manufacturing industry aimed at improving the state of the environment.

      3. Projects in the manufacturing industry, financed at the expense of the operator, shall be selected in accordance with these Rules and internal acts of the organization in agreement with the authorized body in the field of environmental protection.

Chapter 2. Financing procedure

      4. Financing of projects in the manufacturing industry shall be carried out in the following order:

      1) the authorized body on an annual basis, before August 31 of the relevant year shall send the operator a request for the provision of forecast volumes for financing of projects in the manufacturing industry at the expense of the operator (hereinafter-the request) for the relevant financial year;

      2) The operator, after considering the request, within seven working days shall include the forecast volumes of financing in the relevant section of its investment policy and send it for approval to the authorized body in the field of environmental protection;

      3) an authorized body in the field of environmental protection, within ten working days after receiving the investment policy shall coordinate it or send the operator a motivated refusal to agree.

      If the authorized body in the field of environmental protection sends a reasoned refusal, the operator, within three working days shall eliminate the reason for the motivated refusal and send the investment policy for re-approval to the authorized body in the field of environmental protection.

      4) the operator, if the authorized body in the field of environmental protection agrees on the amount of financing in the investment policy, within five working days after receiving the consent shall send a response to the request for the relevant financial year to the authorized body;

      5) the authorized body, within three working days after receiving a response to the request shall send information on the forecast volumes of financing projects in the manufacturing industry for the corresponding financial year to the organization;

      6) the organization, after receiving information on the forecast volumes of projects financing in the manufacturing industry for the corresponding financial year shall send an application with the business plan of the project considered for financing in the manufacturing industry for approval to the authorized body in the field of environmental protection;

      7) the authorized body in the field of environmental protection, within twenty-two working days after receiving the application shall analyze the project in the manufacturing industry for compliance with the requirements of the environmental legislation of the Republic of Kazakhstan, international and national standards and provide its opinion on the possibility of financing the project.

      To analyze projects in the manufacturing industry for compliance with the requirements of the environmental legislation of the Republic of Kazakhstan, international and national standards, the authorized body in the field of environmental protection may involve environmental organizations specializing in the relevant industry in the manner prescribed by the legislation of the Republic of Kazakhstan.

      8) The organization, within 5 working days after receiving an opinion on the possibility of financing projects in the manufacturing industry shall conclude a loan agreement with the operator for each individual project in the manufacturing industry for further financing of projects in the manufacturing industry.

      5. Further financing of projects in the manufacturing industry shall be carried out by the organization in accordance with the terms of the documents of the State Planning System, internal acts and decisions of the authorized bodies of the organization.

      6. Control over the targeted use of funds allocated for the implementation of projects in the manufacturing industry, in accordance with these Rules shall be carried out by the organization.

      7. Control over the targeted use of funds received by the organization from the operator in accordance with these Rules shall be carried out by the authorized body and the authorized body in the field of environmental protection.

      8. If the project in the manufacturing industry, for which the operator has previously financed, fails to achieve the goals of improving the state of the environment, the amount of allocated funds shall be returned by the organization to the operator in the manner and on the terms determined by the loan agreement.