The draft agreement was adopted with consideration of possible non-essential changes and additions.
According to the terms of the agreement, the Ministry of Economy and Commerce of the Kyrgyz Republic will provide UNIDO **75,000 euros** to finance the project "Country Partnership Program for the Kyrgyz Republic for 2025–2029" (project document No. 160107).
Funding will be provided after the signing of the agreement, and the funds will be accumulated in a special targeted fund, which will be established and managed by UNIDO in accordance with its financial rules.
UNIDO will take responsibility for managing the funds, their distribution, as well as organizing procurement, hiring staff, and implementing project activities. All financial operations will be conducted in euros, and the project also includes funding for UNIDO's ancillary services, which may amount to 13% of the total expenditure.
The property acquired with the funds from the targeted fund will be owned by UNIDO, but during the project implementation, it will be transferred for use to the Cabinet of Ministers of the Kyrgyz Republic or the authorized body. After the project is completed, any remaining funds will be returned to the partner or used as directed by them.
This agreement will come into effect upon its signing and will remain valid until the complete completion of the project and all financial settlements. In case of discrepancies between the Russian and English versions, the English text will take precedence.
Text
AGREEMENT
on the targeted fund between the Ministry of Economy and Commerce of the Kyrgyz Republic and the United Nations Industrial Development Organization (UNIDO)
Considering that the Ministry of Economy and Commerce of the Kyrgyz Republic (hereinafter referred to as the Partner) and UNIDO have agreed to cooperate for the implementation of the project "Country Partnership Program for the Kyrgyz Republic for 2025-2029" (hereinafter referred to as the project), detailed in project document No. 160107, which is an integral part of this Agreement;
Considering that the Partner has expressed readiness to allocate funds for the project;
Considering the agreement reached that UNIDO, according to the terms of this Agreement, will be responsible for managing the funds provided by the Partner;
The parties have come to the following agreement.
Article 1. Project Financing
1. The Partner provides UNIDO with funds in the amount of 75,000 (seventy-five thousand) euros in the manner specified in paragraph 2 of this Agreement, which will be used to finance the project and ancillary expenses.
2. After signing the Agreement, the Partner will transfer the specified funds in convertible currency to the following account:
UniCredit Bank Austria AG
UNIDO Euro Account No. 0029-05107/00
IBAN: AT791100000290510700
SWIFT/BIC: BKAUATWW
Wagramerstrasse 5, A-1400 Vienna, Austria
with reference to project document No. 160107
3. UNIDO will create a targeted fund in accordance with its financial rules and will manage the specified funds and accrued interest.
4. The management of the targeted fund and the projects financed from it will be carried out by UNIDO in accordance with its financial rules and instructions. Procurement of services, materials, and hiring of staff will also be conducted in accordance with these rules.
5. All financial records will be maintained in euros, and conversion to other currencies will not be made. For accounting purposes, all receipts and payments will be converted at the official United Nations exchange rate on the day of the transaction.
Article 2. Use of Targeted Fund Resources
UNIDO will use the targeted fund to cover actual expenses related to the project, as well as to finance ancillary services during its implementation.
Article 3. Implementation and Changes to the Project
1. UNIDO will begin fulfilling its obligations after receiving a signed copy of the Agreement from both parties and the necessary funds in accordance with Article 1.
2. The Partner undertakes to pay for the actual expenses for services specified in the project, and UNIDO will not assume obligations for services not provided for in the project without the Partner's consent.
3. Changes or additions to this Agreement must be made in writing with the consent of both parties. If changes do not affect the main objectives of the project and their financial impact is limited to reallocation within one or between budget items within 15% of the originally agreed amount, UNIDO may make such changes without consent.
Article 4. Ownership of Property
The ownership of all equipment and materials acquired with the funds from the targeted fund remains with UNIDO. However, during the project implementation, this property will be transferred for use to the Cabinet of Ministers of the Kyrgyz Republic or the body designated by it.
Article 5. Activity Evaluation
The evaluation of activities financed from the targeted fund will be conducted in accordance with the provisions set out in Annex A.
Article 6. Audit
The targeted fund will be subject to internal and external audits in accordance with the procedures established by UNIDO.
Article 7. Reporting
In addition to the reports provided for in Annex A, UNIDO undertakes to provide the Partner with the following reports:
(a) an annual financial report with information on income, expenses, assets, and liabilities as of December 31;
(b) a final financial report within six months after the expiration of this Agreement.
Article 8. Notification of Project Completion
UNIDO will notify the Partner of the completion of work financed from the targeted fund. The date of this notification will be considered the date of project completion.
Article 9. Termination of the Agreement
The parties may terminate the Agreement by sending written notice to the other party thirty days in advance, with Article 10 remaining in effect.
Article 10. Final Provisions
1. Upon completion of the project or termination of the Agreement, the targeted fund will remain open until all UNIDO expenses are fully covered. Any amount owed to UNIDO will be deducted from the targeted fund, and the Partner will reimburse UNIDO for any negative balance.
2. The remaining funds in the targeted fund after the final report is submitted will be returned to the Partner or used as directed by them.
Article 11. Contact Information of the Parties
For the purposes of this Agreement, the following addresses are provided:
(a) For the Partner:
Ministry of Economy and Commerce of the Kyrgyz Republic, Bishkek, Abdumomunov St., 207,
email: [email protected]
(b) For UNIDO:
Department of Partner Relations (UNIDO)
Vienna International Centre
Wagramer Strasse 5
P.O. Box 300
A-1400 Vienna, Austria,
email: [email protected]
Article 12. Entry into Force
The Agreement comes into effect upon its signing.
The parties, duly authorized, have signed this Agreement in two copies in Russian and English. In case of discrepancies, the English version will take precedence.
(1) For information: the costs for ancillary services typically amount to 13% of the total expenses from the targeted fund.
For the Ministry of Economy and Commerce of the Kyrgyz Republic:
For the United Nations Industrial Development Organization:
I.E.A. Asylkulov - Deputy Minister
Gerd Müller - Director General
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(signature)
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(signature)
Seal and date
Seal and date
