The financial guarantee for the application for participation in the auction

In order to participate in auctions for the construction of newly commissioned generating units with maneuverable generation mode for the selection of electric power projects in accordance with the provisions provided for in the Rules for Organizing and Holding Auctions for the construction of newly commissioned generating units with maneuverable generation mode (the Auction Rules), the bidder shall provide the bid financial security issued in favor of the Single Buyer (Financial Settlement Center of RE LLP).

The Bidder shall choose one of the following types of bid financial security issued according to the SWIFT system:

1. bank guarantee;
2. Standby letter of credit.

The amount of bid financial security for participation in the auction, listed in the schedule of the auction for the construction of newly-commissioned generating units with manoeuvrable generation mode for 2021 (the Schedule) is equal to 1% of the cost of the project implementation specified in the relevant pre-feasibility study or in accordance with the information specified in the Schedule.

Financial security shall be valid for a period of at least 120 (one hundred and twenty) calendar days from the date of the auction and shall be irrevocable.

At the same time, the term of bid financial security of the candidate for the winner shall be extended by the such candidate for a period of at least 90 (ninety) calendar days within 3 (three) business days after the closing date of the relevant auction.

 

In order to obtain the bid financial security for participation in the auction, the Bidder shall choose, at its discretion, the Bank, which will issue the bid financial security for participation in the auction. Please be aware that in accordance with clause 95 of the Auction Rules, a bank guarantee or standby letter of credit shall be issued as bid security for participation in the auction by:

1. banks - residents of the Republic of Kazakhstan with long-term foreign currency credit rating not lower than "B"  (Standard&Poor's) or "B-" (Fitch ) or "B3" (Moody's Investors Service), or the rating of the parent organization (which owns more than 50% of the shares of a resident bank of the Republic of Kazakhstan) is not lower than "BBB" (Standard&Poor's) or "BBB" (Fitch) or "Baa2" (Moody's Investors Service);
2. non-resident banks of the Republic of Kazakhstan with long-term  foreign currency credit rating not lower than "BBB"(Standard&Poor's), "BBB" (Fitch) or "Baa2" (Moody's Investors Service).

In addition, a bank guarantee or standby letter of credit issued by non-resident banks of the Republic of Kazakhstan shall be confirmed by resident banks by issuing a guarantee against counter-obligations of non-residents in accordance with this paragraph.

Non-resident banks of the Republic of Kazakhstan with a long-term foreign currency credit rating not lower than "BBB" (Standard&Poor's), "BBB" (Fitch) and "Baa2" (Moody's Investors Service), can issue a bank guarantee or stan-by letter of credit without issuing the corresponding counter-obligations guarantee.

Note*. When contacting the Bank to obtain bid financial security for participation in the auction, please be sure to check the compliance of the Bank you have chosen with the criteria defined in clause 95 of the Auction rules.

 

The bid financial security for participation in the auction shall be issued in favor of Financial Settlement Center of RE LLP no later than 30 (thirty) calendar days before the date of the auction.

Upon issue of bid financial security for  participation in the auction, the Bidder shall advise the issued  bid financial security at the Partner Bank of Financial Settlement Center of RE LLP:

• Bank CenterCredit JSC
• ForteBank JSC

All bank charges and expenses related to the bid financial security for participation in the auction for the selection of projects for the construction of newly commissioned generating units with a maneuverable generation mode, including the Beneficiary's Bank shall be borne by the Bidder.

The bid financial security for participation in the auction submitted by the Bidder in the form of a bank guarantee or stand-by letter of credit shall be returned within 10 (ten) business days from the date of one of the following events:

1. the bidder fails to win the award in accordance with the results of the auction (this case does not apply to the bidder - candidate for conclusion of the contract);
2. the winner or the bidder who took the 2nd place at the auction concluded the contract for procurement of services to maintain the availability of electric power (the Contract) and submitted the required amount of financial security for the fulfillment of the terms of the Contract.

If the winner evades the conclusion of the Contract, the Financial Settlement Center of RE LLP shall issue payment demand under the relevant bank guarantee or stand-by letter of credit.