Public Contract

Public Contract for provision of water and (or) sanitation services

Taraz City                                                   «___» ________ 20___.

The State Communal Enterprise with the right of economic management “Taraz Su” of the Department of Housing and Communal Services, Passenger Transport and Highways of the Akimat of Taraz that provides water and (or) sanitation services (hereinafter the “Services”), hereinafter referred to as the “Provider”, represented by its Director Mr. Smailov M.R., acting on the basis of the Charter on the one part, and __________________ hereinafter referred to as the Provider represented by _________________________, acting on the basis of ____________________ on the other part have entered into this Contract (hereinafter the “Contract”) as follows:

  1. Basic terms and definitions used in the Contract
  • Verification of meters is a set of operations performed by the representative of the Provider with the aim to examine the condition of meters, to assess their conformity to technical requirements and check the meter readings;
  • The meter is an instrument with normalized metrological characteristics designed to measure water volume and to reproduce and store a physical unit within a certain time interval, allowed for commercial accounting pursuant to the procedure established by the Law of the Republic of Kazakhstan as of 7 June 2000 “On Assuring the Uniformity of Measurements”;
  • Billing period is a time equaling under the Contract to a calendar month that begins at 00-00 of the month’s first day and ends at 24-00 of the month’s last day, after the expiration of which the Customer calculates the service volumes consumed;
  • Operational responsibility boundary is the delineation of water and (or) wastewater system elements (water supply and sewerage networks and facilities) based on the allocation of duties (responsibilities) for operation of the water and (or) wastewater system elements as per the Contract between the Parties.
    In the absence of such a contract, the operational responsibility boundary is set as per the balance sheet attribution;
  • Balance sheet attribution delineation is a boundary delineating elements of water and (or) wastewater system elements among owners based on ownership, economic management or operating management;
  • Payment document is a bill, notice, receipt, or a bill-warning drawn up to make payments for services (goods, works) provided by the Provider;
  • Customer is an individual or a legal entity that makes use of or wants to make use of regulated services (goods, works) provided by natural monopoly entities and from a regulated market;
  • Authorized agency is the Committee on Regulation of Natural Monopolies and Protection of Competition under the Ministry of National Economy of the Republic of Kazakhstan;
  • Other terms and definitions are applied in this Contract as they defined in the Water Code and the Law of the Republic of Kazakhstan on natural monopolies and regulated markets.
  1. Subject of Contract
  1. Pursuant to the terms of the Contract, the Provider undertakes to provide water and (or) sanitation services to the Customer, whereas the Customer undertakes to pay for services provided.
  2. Services provided and the quality of water supplied shall comply with legislative requirements of the Republic of Kazakhstan, sanitary rules and regulations, and state standards.
  3. The Contract is concluded with every Customer individually provided that it is furnished with the equipment connected to water and (or) wastewater systems in conformance with the technical requirements.
  4. Services are provided 24 hours a day.
  5. A partition flange of the gate valve at the entry point to a building is the boundary of operational responsibility for a condominium’s water networks; the boundary of operational responsibility for individual dwellings and legal entities is the last flange of a shut-off valve at a connection point to water networks of the Provider.

The boundary of operational responsibility for a condominium’s wastewater networks is a well at a connection point to a settlement’s water disposal system.

  1. Terms of Service
  2. Services are terminated if there are:

1) Emergencies or threats to life and safety of the public;

2) Unauthorized connections to the Provider’s networks;

3) Payments delayed for two months following the billing period;

4) Repeated preventions of the Provider’s representatives from accessing water meters;

5) Needs for disinfection of pipelines;

6) Other cases envisaged in laws, regulations and provisions of the Contract.

The Customer is informed of cases specified in items 3 and 4 of this Clause one month before the termination of services.

  1. In cases specified in items 1 and 2 of Clause 7, Customers are connected after fault remedy.

Services terminated due to violations by the Customer of provisions specified in item 3 of Clause 7 are resumed after debt repayment. In case of repeated disconnections, the Customer is connected after payment of debt and connection charge.

  1. Service Cost and Procedure
  2. Service charges under the Contract are paid on the basis of tariffs fixed by an authorized agency.

The cost of the Services likewise other terms of the Contract are set equal for all Customers except for preferences established by the legislation of Kazakhstan.

  1. The Customer pays on a monthly basis for services actually provided about what it evidences by a payment document before the 25th day of a month following the billing period.
  2. Accounting for Services Provided and Consumed
  3. The amount of water supplied is measured by individual water meters. When no individual meters are available, the amount of water supplied is determined by readings of communal water meters divided by the number of residents actually living in a house. When no communal water meters are available in a house, the amount of water supplied is calculated under water consumption rates set for this settlement.

In firehouses, the amount of water used for filling fire tanker trucks is not accounted for by the Provider.

If the house is 100% equipped with individual water meters and a communal water meter, the difference between readings of the communal meter and cumulative readings of individual meters shall be paid by owners of a condominium or as agreed by the parties.

  1. The amount of water discharged by the Customer to water disposal system or wastewater treatment system is taken equal to:

1) The amount of cold water supplied in an indirect hot-water system with local water heaters;

2) The amount of supplied cold water plus the amount of water provided for hot-water supply in a direct hot-water system with the water being provided by a centralized hot-water supply system.

  1. The water not discharged into the water disposal system is not accounted for when calculating wastewater services.

The amount of unaccounted water is determined under technological calculations.

  1. The Customer can be connected without a water meter for a certain time only with the Provider’s permission. The amount of the service thus provided is calculated by the Provider based on the water consumption rates.
  2. When temporary accounting inaccuracies are found as not caused by the Customer, the services provided are calculated on the basis of average daily consumption of the previous billing period.
  3. The undamaged condition of water meters installed in an apartment or a single-family detached home shall be provided by the Customer. The responsibility for the undamaged condition of water meters installed by the Provider in a dedicated premise falls on the Provider.
  4. In case of stealing or damaging a water meter by unidentified people, the person held responsible for the meter safe-keeping shall recover it in a month period, unless otherwise provided for by the Contract. Until the meter is recovered, the Provider connects the Customer to its water networks.
  5. In case of violation of metering procedure by the Customer, breakage of seals in control units and meters, devices or tools installed to misrepresent the meter readings, the services provided to the Customer are recalculated from the last inspection day to the violation identification day but no more than two months, with account of the full flow rate of a pipe before the control unit, provided it operates 24 hours a day.
  6. Rights and Obligations of Parties
  7. The Customer has rights:

1) To receive services of prescribed quality, safe for the Customer’s health, harmless for the Customer’s property, and in the amount set out in the Contract;

2) To discharge wastewater in the volume within allowable loads;

3) To require the installation of water meters from the Provider;

4) To file a complaint to the authorized agency and (or) a court against the Provider’s act or omission that are contrary to the law;

5) To participate in public hearings on draft tariffs for services;

6) To make use of services at the required level on the condition of due payment;

7) To require from the Provider the full compensation for the damage caused to life, health and (or) property due to the improper provision of services and the compensation for non-pecuniary damage;

8) To require the recalculation of service charges if services do not meet the requirements set by state standards and other regulations;

9) Not to pay for services provided without a duly issued bill;

10) To unilaterally terminate the Contract provided a written notification is given to the Provider not later than a month and the services provided are paid for.

  1. The Customer is obliged:

1) To have meters used to measure regulated utility services (goods, works) installed and pay for services provided in full and on time, as per payment documents;

2) Immediately to inform the Provider of malfunctioning water and wastewater systems and meters during the provision of services. In case of damaged water supply and wastewater disposal facilities or emergency discharge of pollutants and toxic substances, inform local emergency prevention and response authorities, the State Fire Service, the Sanitary and Epidemiological Service, and environmental authorities;

3) To give the representatives of the Provider an access to water meters for the formers to monitor technical condition and safety of networks, instruments, and equipment;

4) To comply with safety requirements during the consumption of services;

5) To provide safe and proper operation of the meters and the water and wastewater systems being run or maintained by the Customer.

  1. The Provider has rights:

1) To receive payments for services provided in full and on time;

2) To reduce tariffs for all Customers for services provided within the lifetime of tariffs under a procedure approved by an authorized agency;

3) To maintain the water and wastewater systems, inspect and calibrate water meters;

4) To monitor the consumption of and the payment for services.

 

  1. The Provider is obliged:

1) To ensure the timely and continuous provision of services to the Customer under the terms of the Contract, without limiting the provision of the Customer with services due to nonfulfillment of the Provider’s requirements by other Customers;

2) To acquire and install water meters to Customers;

3) Not to allow other parties to perform any service related functions;

4) To monitor and control the quality and quantity of services provided, take prompt measures aimed to prevent and rectify faults in the provision of services;

5) To enter into a service contract with the Customer;

6) To provide the Customer with a service payment document before the tenth day of a month following the billing period;

7) To notify Customers of changes in tariffs, at least 30 calendar days in advance of their enforcement;

8) To take measures aimed at recovering the quality and quantity of services within 24 hours to meet legitimate claims of Customers;

9) To show an official identity card when inspecting the water and wastewater networks, the Customer’s meters, taking their readings;

10) To supply the Customer with drinking water by vehicles during preventive and repair works;

11) To ensure the confidentiality of personal data of the Customer from the third persons.

  1. Restrictions of Parties
  2. The Customer is prohibited:

1) To reequip and rebuild indoor water and wastewater networks and facilities as well as to replace meters without the Provider’s consent;

2) To breach the established service metering procedure.

  1. The Provider is prohibited:

1) To refuse to provide the Customer with services due to nonfulfillment of the Provider’s requirements by other Customers;

2) To charge fees for services higher than those established by an authorized agency;

3) To require from the Customer monthly fees for services provided without payment documents.

  1. The Parties are prohibited from taking actions that restrict rights of the Parties or otherwise violate the legislation of the Republic of Kazakhstan.

 

  1. Responsibility of Parties
  2. The responsibility for improper maintenance of equipment and utilities lies with their owner and is determined by the balance sheet attribution delineation.
  3. In case of failure to perform or improper performance of obligations imposed by the Contract, the Party in fault shall, under the legislation, reimburse the other Party damages incurred.
  4. In case of delayed payments for services provided, the Customer shall, under the Contract (except for cases stated in Clause 32), pay a refinance-based penalty set by the National Bank of the Republic of Kazakhstan effective in the day of payment for each overdue day but no more than the principal debt amount.

The penalty rate is set when the Customer enters into the contractual obligations with the Provider. The penalty is charged from the 26th day of a month following the billing period unless otherwise provided for by the Contract.

  1. If the Provider’s failure to supply the Customer with services caused by parties entered into contractual relationships with the Provider, the Provider is liable to the Customer.
  2. Payment of penalty (interest) does not relieve the Parties from contractual obligations.
  3. Where illness or accidents caused considerable material costs or temporary inability to work that is supported by documents, the Customer may claim under the Contract the grace period for penalty provided the Customer filed a written appeal to the Provider.

 

  1. Force Majeure
  2. Neither Party shall be liable to the other party in the event of force majeure, that is, circumstances of insuperable force (natural disaster or other circumstances that cannot be foreseen or prevented), as well as military actions, strikes, and etc., entailing non-performance or improper performance of the terms of the Contract.

In the event of force majeure, the Provider informs the Customers of it through the official mass media within five days from the date of such a case occurrence.

Obligations of the Parties under the Contract may be suspended for the duration of force majeure, but only to the extent that such circumstances interfere with the performance of the contractual obligations of the Parties.

If force majeure lasts for three months or more, each of the Parties is entitled to terminate the Contract subject to prior notification of the other Party at least twenty calendar days before the date of expected termination. At the same time, the Parties undertake to make all mutual settlements under the Contract within thirty calendar days.

  1. General Provisions and Settlement of Disputes
  2. The Parties undertake to give each other access to commercial meters at any time before 21:00 for technical inspection and taking readings of meters.

The faults revealed during the inspection of meters shall be recorded in an established order in a reconciliation report.

  1. In establishment of their relationships, the Parties shall follow the Contract and applicable legislation.
    1. The Service Contract comes into effect from the day of the Customer’s connection in due order to systems.

The Contract is of unlimited duration for natural and legal entities unless otherwise specified therein. For institutions financed from the state budget, the Contract duration is set under the national legislation in place.

  1. Termination or amendment of the terms of the Contract is subject to the legislation of the Republic of Kazakhstan.
  2. When one of the Parties does not fulfill or violate contractual obligations, the other Party is entitled to terminate the Contract unilaterally and require the recovery of losses incurred.
  3. When the Parties cannot reach an agreement, disputes and disagreements between them are settled in a court.
  4. The Contract is made in two copies in the English and Russian languages, one copy for each Party.

The Contract with institutions financed from the state budget is registered with local offices of the Treasury Committee of the Ministry of Finance of the Republic of Kazakhstan and becomes effective from the day of its registration.

  1. Upon mutual agreement between the Parties, the Contract can be supplemented with terms and conditions compliant with the provisions of the Standard
  2. Relationships between the Parties not established in the Contract are governed by the law in place on natural monopolies and regulated markets.
  3. Requisites of the Parties

The Provider:                                                                             The Customer:

SCE with the right of economic management                                         ______________________________

“Taraz Su” of the Department of Housing and Communal Services, Passenger Transport and Highways of the Akimat of Taraz                       ______________________________

The Certificate of Registration                                           ______________________________

VAT series 21001 №0001519                                                      ______________________________

BIN 000940000190                                                                  ______________________________

Individual Identification Code KZ21914142203KZ0004С                                                 ______________________________

Bank Identification Code SABRKZKA                                                                        ______________________________

Subsidiary Bank Sberbank of Russia JSC                                                                      ______________________________

Beneficiary Code -16                                                                                       ______________________________

Address: 136, Kazybek By Str., 080012, Taraz City, Kazakhstan, Tel.: 45-35-37                       ______________________________

Director ____________________ Smailov M.R.                          ______________________________