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В JSC “SEC Aktobe” announces a competition for a specialist by entering into a civil law agreement with an individual on “Development of expert reviews of financial and economic justification of budget investments planned for implementation through state participation in the authorized capital, budget loan” in accordance with the terms of reference. If you would like to take part, please send your CV to  spk.aktobe@mail.ru

Applications are accepted until September 27, 2024.

Technical Specification

on “Development of expert reviews of financial and economic justification of budget investments planned for implementation through state participation in the authorized capital, budget credit”

It is necessary to prepare the following types of documents in accordance with the Rules for developing or correcting, conducting the necessary expert examinations of the investment proposal of a state investment project, as well as planning, reviewing, selecting, monitoring and evaluating the implementation of budget investments and determining the feasibility of budget Lending, approved byOrder No. 129 of the Minister of National Economy of the Republic of Kazakhstan dated December 5, 2014:

Investment offer information sheet containing:

1) data on the ABP and the proposed GIP implementation;

2) retrospective (information on previously allocated and disbursed funds under the GIP, including current programs);

3) marketing analysis of the industry;

4) a general description of the proposed GIP implementation;

5) institutional scheme for managing the ISU;

6) social and environmental impact;

7) alternative options for the implementation of the GIP by possible types and methods of financing. Calculations on possible types and methods of financing the GIP (budget investment project, budget investments through state participation in the authorized capital of legal entities, public-private partnership project, including concession project, budget loan, private investment);

A financial and economic model that contains:

1. Requirements for the functionality of the financial model:

1) The financial model must be created in Microsoft Excel format (version 97 or later). The name of the financial model file should clearly indicate the date of preparation.

2) no part of the financial model should be hidden, protected, blocked or otherwise inaccessible for viewing and making changes;

3) the financial model should have a clear and logical structure. Initial data (assumptions), financial forecasts and interim calculations, and results of financial forecasts should be presented sequentially. These elements should be visually separated from each other, but linked by calculation formulas.

4) all elements used in calculations as part of formulas must be valid references to cells that contain assumptions (source data), or cells that contain formulas. Links to external files (not provided as part of the FEO or budget loan FEO) are not allowed. In exceptional cases, the fact and reason for deviation from these rules should be described in the description of the financial model.

5) the financial model should allow for changes to the original assumptions and automatically adjust the financial projections if such changes are made. The financial model should be constructed in such a way as to allow an analysis of the sensitivity of the results of financial forecasts to changes in all assumptions (source data) of the model.

6) if the financial indicators obtained in the financial model are based on one or more basic models, it is necessary to ensure dynamic links between these basic models and the financial model so that when changes are made to any basic model, the financial model is updated;

7) the financial model should have a sufficient level of detail, that is, it should contain breakdowns by main types of products, regions, production units, periods, income and cost items, etc. (if applicable). At the same time, the financial model should provide information in an integrated form, namely, it should include a forecast profit and loss statement, a forecast balance sheet, and a forecast cash flow statement that are interrelated with each other.

8) the forms of forward-looking financial statements and interim reports should not contradict each other;

9) the financial model follows the principle of uniformity and consistency in calculations and formatting. Formulas for calculating financial indicators (coefficients) that are present in the financial model should be unchanged for all parts and periods of the financial model.

10) it is necessary to minimize the number of external files (no more than 5 (five) are allowed. All external files linked by formulas to the financial model, as well as external files in which graphs, tables, and diagrams were constructed that are present in the text part of the FEO or budget loan FEO, should be provided as an appendix to the financial model. The relationship between external files and the financial model and the purpose of external files should be disclosed in the description of the financial model.

2. Requirements for the composition of the initial data (assumptions) of the financial model:

1) the initial data (assumptions) on which financial forecasts are based are presented in the text part of the FEO or the FEO of the budget loan (financial section);

2) among the initial data (assumptions) of the financial model, the following main methodological assumptions used in the construction of financial forecasts should be indicated (if applicable to FEO or budget credit FEO activities), including:

project lifetime.

duration of the forecast period.

the initial moment of the forecast period.

forecast step (minimum: for the investment stage – one quarter; for the operating stage-one year).

type of cash flows (nominal) and total currency of cash flows;

type of discount rate and method of calculating it.

methodology for calculating the final cost (with an indication of the expected growth rate in постпрогнозныйthe post-forecast period);

other key methodological assumptions.

Macroeconomic data (forecasts of inflation, exchange rates, real wage growth, etc.).

Forecast of capital investments.

Forecast of sales and production volumes (other quantitative factors that determine revenue).

Forecast of prices/tariffs for finished products/services;

Resource consumption rates per unit of output.

Forecast of prices for basic raw materials and other costs that make up a significant share of the cost, forecast of other variable costs;

Forecast of personnel costs (staffing table or budget of personnel costs, taking into account the planned wage indexation and staff increase).

Forecast of conditionally fixed costs.

Terms of settlements with counterparties (deferrals and prepayments for settlements with suppliers and contractors, buyers, budget, personnel) and (or) turnover standards.

Tax background: information about taxes and other mandatory payments (duties, mandatory insurance contributions, etc.) that are payable in accordance with the current legislation (tax, base, rate, payment procedure), taking into account expected changes in tax legislation.

Prerequisites for accounting policies (policies for depreciation, capitalization of costs, creation of reserves, revenue recognition).

Forecast structure of financing, conditions for debt financing (interest rates, schedule of debt receipt and servicing).

Other inputs and assumptions that are important for the industry and project type.

3. Requirements for the composition of financial forecast results:

1) forward-looking financial statements are prepared for the Recipient of Investments (in the case of budget investments) or for participants in a financial scheme (in the case of budget lending) and are of the nature of management reporting, in particular:

some articles that are relatively insignificant in the scope of the project can be combined.

depreciation should be allocated as a separate line and should not be deducted from revenue when calculating gross profit.

2) the following forms of forward-looking financial statements must be submitted without fail: forward-looking cash flow statement, forward-looking profit and loss statement, and forward-looking balance sheet.

The forecast income statement should be prepared onan accrual basebasis and include, inter alia, the following financial indicators: revenue, gross profit, gross margin, EBITDA (operating profit before depreciation, interest and taxes), EBIT (operating profit before interest and taxes), net profit before depreciation and amortisation. profit, net profit margin. If these indicators are not presented due to industry or other project specifics, please indicate the fact and reasons for their absence in the description of the financial model.

The forward-looking statement of cash flows should include cash flows from operating, investing and financing activities. Cash flows related to the payment and receipt of interest and dividends should be disclosed in separate lines.

In the case of prospective debt financing, справочноfree cash flows before debt servicing (CFADS) should be listed for reference.

Other reports may also be provided.

4. Guidelines for making financial forecasts:

1) only cash flows that will be available (spent) to the Recipient(s) of Investments (in the case of budget investments) or participants in a financial scheme (in the case of budget lending) are projected;

2) project-related costs incurred prior to the start of the forecast period should not be included in the forecast financial flows, but may be accounted for as assets on the balance sheet of the Recipient of the Investment (in the case of budget investments) or participants in the financial scheme (in the case of budget lending);

3) the schedule of attracting financing should be linked to the schedule of implementation of FEO activities or FEO budget credit, cash flows from financial activities should be projected on the basis of cash flows from operating and investment activities;

4) when attracting debt financing, debt service payments should be forecasted (taking into account the possible delay in the payment of accrued interest);

5) it is recommended to forecast cash flows in the currencies in which they are realized (receipts and payments are made), and then bring them to a single, final currency. As the final currency, it is recommended to choose the currency in which most of the cash flows are received.

6) information on cash flows resulting from the receipt and payment of interest and dividends should be disclosed in separate lines;

7) if at the end of the life of the project it is planned to liquidate the Recipient of the Investment (in the case of budget investments) or participants in the financial scheme (in the case of budget lending) or the investment object, or transfer the rights to extract income and incur costs from the operation of the investment object to another person, in the cash flows of the Recipient of the Investment (in the case of budget investments) or participants in the financial scheme (in the case of budget lending) or the investment object the financial scheme (in the case of budget lending) must take into account the costs and revenues associated with the specified liquidation or transfer of rights (including, in accordance with the requirements of the legislation on ecology and subsurface use, as well as labor legislation);

8) the planning horizon for the submitted forecast consolidated and separate financial statements of the Recipient of Investments (in the case of budget investments) or participants in the financial scheme (in the case of budget lending), as well as the financial model, should be at least the term:

service of assets that are planned to be acquired through investment or a budget loan or the period before the first major overhaul;

payback period of the project in case of channeling Investments or a budget loan to replenish working capital for the provision of financial services.

It is recommended to define the life of the project as economically feasible (maximizing the net discounted income (NPV) of the project), technically feasible and legally permissible period during which the creation, subsequent operation and (if required by law or concluded agreements between participants) liquidation of the investment object or transfer of rights to extract income and incur costs is expected from the operation of the investment object to another person.

The discount rate and discounted cash flows must be of the same type (calculated for the entire project or only for the owners) and type (with or without inflation). The discount rate should reflect the required return on investments denominated in the same currency as the cash flow currency.

When calculating the net discounted income (NPV) of a project, all cash flows, including the final cost (final cash flow), should be discounted to the initial point in the forecast period.

5. Assessment of the sustainability of financial indicators (coefficients):

1) to assess the stability of financial indicators (coefficients), the method of sensitivity analysis is used – an assessment of the degree of impact of changes in key sensitivity factors on the results of financial forecasts. If the sensitivity analysis does not allow you to measure / illustrate individual risks, other methods are used, including break-even point calculation, Monte Carlo analysis, scenario analysis, factor analysis, and so on.

2) key sensitivity factors include assumptions (inputs) of the financial model, the actual values of which during the project implementation (due to the impossibility of their accurate assessment or inherent volatility) may significantly deviate from the values included in the financial model. In particular, typical sensitivity factors include:

prices for finished products and tariffs for services;

sales volume (intensity of operation, number of customers/users);

the amount of capital expenditures.

delays in putting the investment facility into operation and reaching its design capacity;

prices for basic raw materials, fuel, and labor;

the amount of fixed operating costs.

discount rate.

projected inflation rates;

currency exchange rates, etc.

3) it is mandatory to analyze the sensitivity to changes in the discount rate, product sales price, key resource price, and sales volume.

6. Requirements for describing the financial model:

1) the description of the financial model is drawn up in the form of an appendix to the financial model;

2) the description should include:

description of the financial model structure.

description of the macro operation mechanism used in the financial model (if applicable).

the main assumptions (assumptions) and initial data for financial forecasts, indicating the sources of information, if they are not provided in the FEO or FEO of the budget loan;

formulas for calculating financial indicators (coefficients), if they are not specified in the FEO or FEO of the budget loan;

other information required to understand the structure, construction principles, operating mechanism, and other features of the financial model.

The FEO of Investments corresponds to the following structure:

1) investment Passport;

1) paragraph “Analysis of the financial condition of participants”, which provides information on the financial condition of participants, including the amounts and quality of existing claims and obligations:

• financial statements of participants (separate and consolidated) with the seal and signature of the first head of the state body-ABP or a person replacing him, or a person authorized separately for each Investment by the first head of the state body-ABP and the chief accountant for the last three years preceding the introduction of FEO Investments to the central or local authorized body for state planning, as well as explanatory notes to the financial statements;

• Participants who are required to have their financial statements audited in accordance with the legislation of the Republic of Kazakhstan on auditing are required to submit audited financial statements and audit reports prepared for the last three years. At the same time, the participant may submit unaudited financial statements for the last reporting period if there are objective reasons in accordance with the current legislation.

• financial statements are submitted in accordance with the requirements of current legislation, including information about financial interests in other organizations, with a detailed explanation of balance sheet items that occupy 10% or more in the balance sheet currency.инансовая отчетность представляется в соответствии с требованиями действующего законодательства, в том числе с приложением информации о финансовых участиях в других организациях, с приложением детальной расшифровкой статей баланса, занимающих 10 % и более в валюте баланса;

• forecast of financial indicators of the Recipient of Investments, excluding Investments, according to the forms defined in the List and forms of annual financial statements for publication by public interest organizations (except for financial organizations) approved by the order Minister of Finance of the Republic of Kazakhstan dated June 28, 2017 No. 404 (registered in the Register of State Registration of Regulatory Legal Acts No. 15384):

• “Balance sheet”;

• “Profit and Loss Statement”;

• “Cash Flow Statement (direct method)” or ” Cash Flow Statement (indirect method)”;

• “Statement of Changes in equity”.

2) paragraph “Loan portfolio”.

The paragraph provides quarterly information on the status of the loan portfolio of the Recipient of Investments in terms of sources of financing (budget funds, own funds, third-party loans, funds of the National Fund of the Republic of Kazakhstan) as of the end of the month preceding the introduction of FEO Investments, for the last 3 (three) years preceding the introduction of FEO Investments;

3) paragraph “Analysis of the macroeconomic environment”, which provides an analysis and characteristics of the macroeconomic environment (country, region or industry) in which the implementation of FEO Investment activities is expected, indicating the main macroeconomic (regional, sectoral) indicators that will be affected by the implementation of FEO Investment activities, and the dynamics of development at least in recent years three years;

4) paragraph “Analysis of the marketing environment”, which provides an analysis of the marketing environment in which the implementation of FEO Investment activities is expected, indicating the main indicators and development dynamics that will be affected by the implementation of FEO Investment activities, at least for the last three years.

The analysis of the marketing environment contains, with an indication of the source of information, an analysis of the market in which the Recipient of Investments operates, as well as the market in which it is planned to sell products produced at the expense of Investments, including:

• market capacity with justification for the calculation and definition of the data sample;

• share of the Recipient of the Investment in the market;

• market growth (contraction) potential and the share of the organization’s products in the event of a change in market capacity;

• characteristics of competitors, the share of competitors in the market;

• characteristics of consumers, including their ability to pay. If the consumers are state institutions and / or participants, it is necessary to provide a complete list of these organizations, indicating their share in the sale of products.

The “Institutional” section corresponds to the following structure:

1) the chapter “Information about participants”;

2) the chapter “Strategic prerequisites”.

The chapter “Information about participants” contains information on each participant, as well as a financial scheme for the implementation of activities, indicating the amounts and directions of cash flows.

To the “Institutional” Section:

• copies of the documents used to create or create participants.

• copy of the Investment Recipient’s charter (if any);

• when making investments for the formation of the authorized capital of legal entities under institutional PPP projects, copies of documents between public and private partners on the implementation of the project are provided;

The chapter “Strategic prerequisites” contains information on strategic documents, in the implementation of which Investments are planned (annual Address of the President of the Republic of Kazakhstan to the people of Kazakhstan on the situation in the country and the main directions of domestic and foreign policy of the Republic of Kazakhstan, regulatory legal acts, documents of the State Planning System of the Republic of Kazakhstan, budget program, instructions of the President of the Republic of Kazakhstan).

The chapter “Investment Volume” provides a documented and calculated justification for the Investment volume in the context of each component.

The Investment Volume chapter contains the following paragraphs:

1) paragraph “Products”, which provides justification for the list, quantity and quality of purchased products, taking into account the information specified in subparagraph 4) of paragraph 124 of these Rules;

2) the paragraph “Justification of prices”, which provides an analysis of prices for products purchased at the expense of Investments. The ABP appends information about the current market prices for products planned for purchase, indicating the source of information.

Price analysis includes:

information about price dynamics over the past two years and possible changes in current prices and events that may lead to such a change;

possible discounts from the price, conditions for granting discounts (purchase volumes, payment terms);

3) paragraph “Replenishment of working capital”, which discloses, but is not limited to the list below, the need for money for:

provision of financial services, indicating the expected number of clients and the average amount of financial services by financial products;

compliance with prudential standards;

financing of the current expenses of the Recipient of the Investment;

4) paragraph “Investment Volume”, which provides calculations confirming the amount of planned Investments.

Calculations are given in the context of each event. If necessary, the cost of putting objects into operation (commissioning).

The chapter “Alternative sources of financing” contains the following paragraphs:

1) the paragraph “Own funds”, which analyzes the possibility of financing activities from own funds. The analysis also includes the possibility of financing activities by reallocating previously allocated funds between the legal entity’s affiliates.

Additional information includes the participants ‘ financial statements prepared on the last day of the month preceding the FEO’s investment in the central and local authorized state planning body, as well as explanatory notes to the financial statements.

2) the paragraph “Borrowing”, which analyzes the possibility of attracting borrowed capital. The analysis includes, but is not limited to:

review of the terms of obtaining a loan, including the interest rate, terms of granting a loan, terms of repayment of obligations, including the possibility of granting a grace period, the requirement to secure and comply with the terms of the covenants of existing contracts of a legal entity;

review of lending instruments, including direct lending, financial leasing, factoring, and bond loans;

the possibility of budget lending.

The chapter “Compliance of the goals and objectives of the FEO of Investments with the investment proposal” contains an analysis for compliance or non-compliance of the goals and objectives of the FEO of Investments with the investment proposal.

The chapter “Production and sales” provides a plan for the production and sale of products. The chapter “Production and sales” contains the following paragraphs:

1) the paragraph “Licenses and patents”, which provides, but is not limited to the following list, information on:

• availability of licenses for certain types of activities, date of issue and license number, issued by whom;

• availability of a comprehensive business license, subject and date of conclusion of the comprehensive business license agreement, term of validity, integrated licensor;

• the need to obtain licenses, the cost of obtaining licenses;

• availability of patents and preliminary patents, when and by whom issued, validity period;

2) paragraph “Production plan”, which provides justification for:

• production program (by product) based on the market situation, concluded contracts, preliminary agreements with consumers;

• costs, based on the approved standards for the implementation of the production plan;

3) paragraph “Implementation plan”, which provides:

• a list and description of the products sold, including those produced at the expense of Investments;

• justification of prices for basic products, including those produced at the expense of Investments, including:

• requirements of the legislation of the Republic of Kazakhstan on approval (establishment) or coordination of prices (tariffs) with authorized state bodies;

• profitability: payback of costs, getting an average or maximum return.

• market conditions: promotion of a new product, maintaining the existing sales volume, ousting competitors from traditional markets, filling an unoccupied segment;

• product values: novelty, quality, after-sales guarantees;

• justification of the implementation program (by product), based on the market situation, concluded contracts, preliminary agreements with consumers;

• planned measures to attract new customers (advertising, pricing policy, after-sales service).

If the activity of the Investment Recipient is carried out on the basis of a franchise agreement or license agreement, provide information on the rights and extent of influence of the seller of the franchise or intellectual property license on the prices and pricing policy of the Investment Recipient.

The Resources chapter provides a justification for the need for all types of resources required to complete the production plan and implementation plan. The Resources chapter contains the following paragraphs:

1) paragraph “Norms”, which contains the norms of consumption of raw materials and materials, heat and electric energy, labor, money, including information on when and by whom they are approved;

2) paragraph “Limits”, which provides information on the size of administrative expenses limits: the size of the limits, including information on when and by whom they were approved;

3) paragraph “Personnel”, which contains, but is not limited to the following list, information on:

plans to increase (reduce) the number of full-time employees associated with Investments;

planned measures to improve the professional level (retraining) of personnel and the costs associated with improving their professional level (retraining);

4) paragraph “Fixed assets”, which provides information (including Investments) on:

• structure of fixed assets (buildings, structures, machinery, equipment, transport, computers and information processing equipment, other fixed assets), including disclosure of information about fixed assets owned, under finance lease( leasing), under operating lease;

• compliance with the quantity, productivity and technical condition of fixed assets for carrying out activities;

5) paragraph “Reserves”, which provides information on:

• requirements (in natural units of measurement) for the main types of reserves;

• prices for the main types of inventory;

• planned inventory acquisition costs;

6) paragraph “Utilities”, which provides information on:

• needs for heat and electricity, water supply and sewerage;

• prices for heat and electricity, water supply and sewerage;

• planned expenses for the purchase of heat and electricity, water supply and sewerage;

7) paragraph “Money”, which provides:

• characteristics of debtors; measures taken to recover debts;

• creditors; measures taken to fulfill obligations;

• non-monetary transactions: transaction volumes and counterparties.

• need for money, cash gaps, activities to attract money;

• plans for using temporarily available money: placement in deposits, acquisition of financial assets, issuance of loans (providing temporary financial assistance), amounts, profitability, and terms of placement.

When disclosing information on activities related to raising money, sources are indicated, including:

• placement of shares (stakes) – the volume of issue and placement, the planned price of placement;

• bond issue – the volume of the issue, the number of bonds in the issue, the procedure and procedure for their issue, placement, circulation, payment of remuneration, repayment, and other material information;

• attraction of loans – lenders, loan amount, term of attraction, interest rate, terms of payment of remuneration, terms of repayment of the principal amount of debt.

The Finance chapter contains plans for income and expenses, information on taxes and other mandatory payments to the budget, and information on dividends. The Finance chapter contains the following paragraphs:

1) paragraph “Income”, which provides justification for:

• planned revenues from sales of products, including justification for their growth or decline (information is disclosed for each product);

• planned financing income;

• income from dividends (information is provided separately for each organization whose equity securities are owned by the Recipient of the Investment);

• planned income from disposal of assets;

• planned subsidies from the state budget;

• planned operating lease income;

• planned income on investments accounted for using the equity method;

• other planned income.

Separately discloses information on income received in the framework of performing a state task, state order, or from the sale of products to state institutions;

2) paragraph “Expenses”, which provides justification for:

• cost of products sold, including justification for their growth or decline (information is disclosed for each product);

• planned product sales expenses, including justification for their growth or decline (information is disclosed for each subgroup);

• planned administrative expenses, including justification for their increase or decrease (information is disclosed for each subgroup);

• planned marketing and advertising expenses, including justification for their increase or decrease (information is disclosed for each subgroup);

• planned remuneration expenses;

• expenses related to the disposal of assets;

• expenses related to operating leases;

• investment expenses accounted for using the equity method;

• planned expenses related to discontinued operations;

• other planned expenses;

3) paragraph “Taxes and other mandatory payments to the budget”, which provides justification for planned payments for each type of tax and mandatory payments to the budget, including justification of the tax bases;

4) paragraph “Dividends”, which provides information on the planned accrual of dividends per share (participation interest), the total amount of accrual of dividends, including on the state block of shares (participation interest), the amount of net income planned by the state enterprise for transfer to the budget.

The chapter “Risks” provides an assessment (determination of the probability of occurrence of an adverse event) and measurement (determination of damage from the occurrence of an adverse event) of risks, as well as information on the methods used to identify and assess risks associated with the implementation of measures and the activities of the Recipient of Investments in general, as well as measures to manage these risks. The chapter “Risks” contains the following paragraphs:

1) paragraph “Operational risks”, which analyzes, but is not limited to, the following list:

• personnel: loss of key managers and specialists of the Recipient of Investment, insufficient qualification of employees, fraud of employees;

• production: threat of technical failures, equipment failure, process disruption;

• business processes: adequacy of the organizational structure to the tasks and scope of the Investment Recipient’s activities, inefficiency of business processes, inconsistency of the Investment Recipient’s business processes;

2) paragraph “Financial risks”, which analyzes, but is not limited to the following list:

• Loss of solvency: the Recipient of an Investment does not have enough money to fulfill its obligations on time, including financial ones, as they reach their due date.

• loss of liquidity: insufficiency or inability to quickly sell assets without significantly reducing their value;

3) paragraph “Market risks”, which analyzes, but is not limited to the following list:

• interest rate risk: increase in interest expenses on attracted resources.

• inflation risk: impairment of assets or income as a result of inflationary processes;

• currency risk: changes in the market exchange rate of foreign currencies in relation to the national currency;

4) paragraph “Credit risk”, which analyzes the possibility of loss of solvency of consumers (debtors) and their inability to fulfill their obligations in accordance with the terms of contracts;

5) paragraph “Marketing risks”, which analyzes, but is not limited to the following list:

• deterioration of the industry’s development dynamics;

• increasing consumer requirements for product quality;

• reduction of demand for products;

• strengthening the position of competitors;

• lower market prices for products;

• restrictions established by the legislation of the Republic of Kazakhstan.

The chapter “Results” reveals the impact of the implementation of FEO Investment measures on the development of the industry, the economy of the state (region). The Summary chapter contains the following paragraphs:

1) the paragraph “Direct results”, which provides a justification for the planned direct results of FEO Investment activities, confirmed by calculations;

2) the “Final results” section, which provides:

justification of the planned final results of FEO Investment activities confirmed by calculations;

analysis of the prospects for the development of the socio-economic situation in the industry and in the Republic of Kazakhstan (region) in case of implementation of FEO Investment measures, and their impact on:

basic social indicators (income level of the population, unemployment rate, employment);

key industry (regional) indicators (output of products (goods/services), the share of the industry (region) in the structure of gross domestic product, the volume of investment in the industry (region) and their trends in the planned period);

analysis of the benefits and costs of FEO Investment activities, which includes analysis of results, consequences and impacts, incremental benefits and costs, additional consumer benefits, irreversible costs, external effects, international effects, indirect benefits from project implementation;

analysis of the impact of the implementation of FEO Investment measures on the development of related industries (neighboring regions);

analysis of the impact of FEO Investment measures on the growth of the export potential of the Republic of Kazakhstan and import substitution, development of innovations (if any);

3) the paragraph “Budget efficiency”, which provides calculations of the impact of the results of the implementation of FEO Investment activities on the revenues and expenditures of the respective budgets.

When evaluating budget efficiency, the following, but not limited to, are taken into account in cash inflows:

dividends on state-owned shares (equity interests) issued (formed) in connection with the sale of Investments;

receipts to the national and local budgets (taxes and other mandatory payments, as well as other payments).

When evaluating budget efficiency, cash outflows include, but are not limited to:

• investment volume;

• budget expenditures related to FEO Investment activities performed in the post-investment period;

• subsidies related to the implementation of certain pricing policies and ensuring compliance with certain social priorities.

FEO adjustment

Investments with subsequent carrying out the necessary expert examinations in accordance with the legislation of the Republic of Kazakhstan are carried out in the following cases:: 1) changes in the established financial and economic parameters, entailing addition and (or) modification of measures, technical and technological solutions, an increase in expenses provided for approved measures; 2) if it is necessary to redistribute previously allocated funds, including between affiliated persons of the legal entity due to changes in the goals and objectives, as well as activities of the legal entity and / or their affiliates; 3) reduction of direct and final results indicators; 4) allocation of unused balances on cash control accounts, current accounts of quasi-public sector entities formed as a result of the implementation of budget investments through state participation in their authorized capital in the form of budget savings for the implementation of a new event(s) (activities) or components within the approved FEO. It is not allowed to approve an adjusted Investment Feasibility Study that has passed the necessary expertise without consideration and proposal of the budget commission. It is not allowed for a quasi-public sector entity to adjust the financial and economic justification of budget investments in the fourth quarter of the current financial year, which provides for a decrease in the indicators of direct and final results defined in the financial and economic justification. The structure and content of the adjusted Investment PHE comply with the provisions of paragraph 9 of Chapter 3 of these Rules, with the relevant sections of the Investment PHE providing justifications and calculations for the expected changes in comparison with the previously approved InvestmentPHE.

Approval and approval

The conclusion of the FEO expert examination of budget investments planned for implementation through state participation in the authorized capital of legal entities is carried out in accordance with the requirements of the Rules for Developing or Adjusting, conducting the necessary expert examinations of the investment proposal of a state investment project, as well as planning, reviewing, selecting, monitoring and evaluating the implementation of budget investments and determining the feasibility of budget Lending, approved by the Order of the Minister of Finance of the Republic of Kazakhstan. of the National Economy of the Republic of Kazakhstan dated December 5, 2014 No. 129 (hereinafter – Rules No. 129).

Consultation during the economic examination (according to paragraph 139 of Rules 129 “If necessary, the relevant legal entities designated by the Government of the Republic of Kazakhstan or local executive bodies for the implementation of the economic examination of Investments may require the provision of additional information and (or) conduct additional examinations on issues not covered or not fully covered by the conducted examinations and / or independent as well as in the provided documentation”) that do not require additional expenses. The service delivery period is no longer than the approved terms according to the Rules (no more than 30 days).