Хэвлэх DOC Татаж авах

МОНГОЛ  УЛСЫН  ХУУЛЬ

 

 2010 оны 05 сарын 07 өдөр                                                                                                                                                                                        Төрийн ордон, Улаанбаатар хот

 

 

ХЭЛЭЛЦЭЭР СОЁРХОН БАТЛАХ ТУХАЙ

 

 

1 дүгээр зүйл.Монгол Улсын Засгийн газар, Бүгд Найрамдах Унгар Улсын Засгийн газар хоорондын “Санхүүгийн хамтын ажиллагааны Ерөнхий хөтөлбөр” байгуулах тухай Хэлэлцээрийг Монгол Улсын Засгийн газрын өргөн мэдүүлснээр соёрхон баталсугай.

 

 

            МОНГОЛ УЛСЫН ИХ ХУРЛЫН ДЭД ДАРГА                                           Н.ЭНХБОЛД

 

 

 

 

 

 

AGREEMENT

BETWEEN THE GOVERNMENT OF THE REPUBLIC OF HUNGARY AND THE GOVERNMENT OF MONGOLIA ABOUT THE ESTABLISHMENT OF A FRAMEWORK PROGRAMME FOR

FINANCIAL CO-OPERATION

 

The Government of the Republic of Hungary and the Government of Mongolia (further on: Contracting Parties) agree about the mutually advantageous extension of the economic relationship and promotion of the development co-operation as follows:

 

Article 1

Definitions

 

For the purpose of this Agreement:

  1. tied aid credit: export credit tied to procurement of goods and/or services originating from Hungary and supported officially through interest rate support and insurance with a concessionality level not less than the relevant proportion set forth in the provision of the OECD Arrangement for “minimum concessionality level”
  2. mixed credits: associated financing packages of concessionary credits mixed with grants. The overall concessionality level of a package set forth in the OECD rules is calculated on the basis of the interest subsidy and the grant part, the latter may include but not exceed the amount of the risk premium;
  3. concessionality level: the difference between the nominal value of the tied aid credit and the discounted present value of the future debt service payable by the borrower, expressed as a percentage of the nominal value of the tied aid credit;
  4. nominal value of the tied aid: the total value of the project financed in the frame of the tied aid credit along with the risk premium for the credit repayment excluding interests;
  5. grant element: the part of the tied aid credit’s nominal capital value, non-repayable by the borrower;
  6. OECD Arrangement: OECD Arrangement on Officially Supported Export Credits effective on the day of contracting;
  7. starting point of credit: to be determined according to the list of definitions set out in the k) point of Annex XI. of the OECD Arrangement;
  8. DDR: Differential Discount Rate used for calculating the concessionality level of tied aid in a given currency, set forth in the provision of the OECD Arrangement for “calculation of Concessionality level of tied aid”;
  9. ODA: Official Development Assistance.

 

Article 2

Establishment of the framework programme for financial co-operation

 

The Government of the Republic of Hungary, in accordance with its international development co-operation policy, offers a non-refundable official support through interest rate support and grant element, in the form of tied aid credit ( disbursed by the Hungarian Export-Import Bank Pte. Ltd. (further on: Eximbank) with  conditions set out in the present Agreement, available for financing high priority development project of the Republic of Mongolia, nominated in Appendix I.

 

The Government of Mongolia accepts the tied aid credit and, acting in accordance with its own legal system and international obligations, supports the realisation of the present framework programme of tied aid credit by issuing sovereign guarantee or accepts payment obligations equal to a sovereign guarantee issued by the state or any authorised governmental organisation to ensure the repayment of the credit spent and its additional charges. (For the avoidance of any doubt, in case under the individual credit agreement the Ministry of Finance of the Republic of Mongolia - as the authorised organisation of its Government - shall act as the borrower, the undertaking of the Ministry of Finance shall be deemed to be sovereign under this Agreement.)

 

Contracting Parties express their willingness with respect to the participants of the credit transactions belonging to the present tied aid credit line and will confirm by declarations that pursuant to the provisions of the action statement of the OECD on “Bribery and officially supported export credits” they did not participate in any bribery in relation to the transactions and they are not aware of any corruption.

 

Article 3

Amount of the tied aid credit and its financial conditions

 

The total value of the project financed under the tied aid credit is 25 M USD. The firm commitments arises on the basis of the individual credit agreement concluded between the Ministry of Finance of the Republic of Mongolia and Eximbank as stipulated in Article 7 of this Agreement.

 

The concessionality level of the tied aid credit shall reach 35 per cent in accordance with the provision of the OECD Arrangement for “minimum concessionality level”.

 

Tenor of the tied aid credit shall not exceed 17.5 (seventeen and a half) years, which includes maximum 4 (four) years grace period starting from the starting point of credit as defined in the OECD Arrangement, and maximum 13.5 (thirteen and a half) years repayment period of the credit.

 

The disbursement period of the tied aid credit will be stipulated in the individual credit agreement depending on the particular project. The disbursement period for the individual credit shall not exceed 3 (three) years. The repayment period does not include the disbursement period.

 

The interest rate related to the tied aid credit is 0 (zero) percent under this Framework Programme, which remains constant for the whole tenor of the credits.

 

The risk premia related to the tied aid credit under this Framework Programme stipulated in the individual credit agreement will be calculated in line with the OECD Arrangement, and will be officially supported and counted in as a grant part of the associated financing package.

Article 4

Utilisation of the tied aid credit

 

The tied aid credit can be utilised for the realisation of project not objected by signers of the OECD Arrangement during the procedure in conformity with the acceptance rules of the OECD Arrangement and the consultation procedure, respectively.

Contracting Parties agree that the Government of Mongolia will apply the tied aid credit for project specified in the Appendix I forming an integral part of this Agreement.

 

The selected project will be realised by Hungarian exporter which company shall be registered in Hungary. The financed export realised under the tied aid credit may include the foreign content in cases if at least 50 per cent of the export realised by company registered in Hungary qualifies as of Hungarian origin performed on the territory of  Mongolia.

 

The Government of Mongolia or the organisation appointed by it chooses company registered in Hungary (further on: exporter) for realisation of the project specified in the Appendix I, in conformity with its legislation, acting in accordance with the Good Procurement Practice for ODA, and gives the Ministry for National Development and Economy information about its decisions.

 

Article 5

Acceptance procedure

 

The Contracting Parties, for acceptance of the project financed under the tied aid credit as per this Agreement, will follow the procedure below:

 

  1. The exporter and the buyer/importer elaborate the export contract on the realisation of the project.
  2. The Ministry of Finance of Mongolia approves the export contract concluded and gives a written notice about this to the Hungarian Eximbank.
  3. Eximbank confirms in writing the export contract approved by the Ministry of Finance of Mongolia.

 

Article 6

Disbursement of the tied aid credit

 

Detailed conditions of the tied aid credit provided to finance the project accepted by the Contracting Parties is to be stipulated in the individual credit agreement between the borrower authorised by the Government of Mongolia in accordance with the provisions laid down in Article 7 on the one part and Eximbank as the lender on the other.

 

Eximbank, for the account of its own resources, lends up to the amount of the tied aid credit agreed in this Agreement, in the form of mixed credit to the borrower authorised by the Government of Mongolia for the realisation of the accepted project. The measure of the financing is 100 per cent of the value of the accepted project and the amount of the grant element.

 

Commercial and political risks of the tied aid credit will be insured by the Hungarian Export Credit Insurance Pte. Ltd. (further on: MEHIB).

 

Article 7

General preconditions of the individual credit agreement

 

According to the relevant international obligations, individual tied aid credit financing a particular project shall be notified to, and accepted by the OECD and the EU. After successful execution of this procedure, written notice is sent to the buyer, the exporter, and the Contracting Parties, respectively.

 

The borrower under the individual credit agreement shall be the Ministry of Finance of  Mongolia, as the authorised representative of the Government of Mongolia. In the individual credit agreement the Ministry of Finance of Mongolia shall undertake the repayment of the credit, the payment of interests and additional charges based on the present tied aid credit in the case of the project specified in the Appendix I.

 

The Government of Mongolia shall set aside the amount of its payment obligation in the actual year in its state budget.

 

Eximbank and MEHIB shall conclude a credit insurance contract complying with the conditions fixed by the Hungarian law in force.

 

Article 8

Taxes, fees

 

The Contracting Parties are obliged to pay or exempt the taxes (i.e. import taxes and VAT), fees and other public charges arising on the basis of the execution of this Agreement in their own country. These costs cannot be paid from the individual tied aid credit and they cannot be separated.

 

Costs arising during the individual credit agreement shall be paid by the parties of the credit agreement in their own country and they cannot be charged on the individual tied aid credit.

 

During the reimbursement of the loan and the payment of the interest the amounts to be paid cannot be decreased by the tax levied by the Government of Mongolia or other amounts arising as a result of other payment obligations.

 

Article 9

Dispute Settlement

 

The Contracting Parties shall settle any dispute in connection with this Agreement in the course of direct negotiations.

 

Article 10

Governing Law and Arbitration

 

The individual credit agreement shall be governed by the laws of the Republic of Hungary.

 

All disputes arising from or in connection with the individual credit agreement shall be settled first by amicable negotiations in good faith. In case the said disputes are not settled within 60 (sixty) calendar days, the said disputes shall be finally settled under the Rules of Conciliation and Arbitration of the International Chamber of Commerce (ICC), Paris, by 3 (three) arbitrators. The arbitration shall be conducted in English language. Place of arbitration shall be Paris, France.

 

Article 11

Closing Provisions

 

  1. This Agreement shall be valid for two years from the date of its coming into force.
  2. Provisions of this Agreement, even after their expiry, shall be applicable for projects accepted and financed on the basis of the individual credit agreement concluded according to this Agreement.
  3. The Contracting Parties shall notify each other in writing through diplomatic channels that they have fulfilled the internal legal prescriptions necessary for the coming into force of this Agreement. The present Agreement shall come into force on the day of receipt of such a note later on.
  4. This Agreement may be cancelled in writing through diplomatic channels without explanation by either Contracting Party. In this case the Agreement shall abate on the 30th (thirtieth) day of the other Contracting Party’s receipt of the notification about cancellation.
  5. The Contracting Parties may amend or supplement this Agreement at their common will and agreement through the way of exchange of diplomatic notes. These amendments and supplements shall come into force according to point c) of this Article.

 

Signed in ……................on the …..day of …………. in 200.. in English language, in two originals.

 

………………..…………….                                                        ……………………..……….

on behalf of the Government of the Republic of Hungary

 

on  behalf of the  Government of Mongolia

 

ANNEX ON

PROJECT PROPOSED FOR REALISATION ON THE BASIS OF THE AGRREEMENT ON A FRAMEWORK PROGRAM FOR FINANCIAL CO-OPERATION BETWEEN THE REPUBLIC OF HUNGARY AND TMONGOLIA

 

 

1.) Project on Renovation of Songino Biocombinat State Owned Enterprise.