Information Memo

• Performer’s Confirmation
• Information Memo
• List of unconscientious suppliers of KPI Inc

INFORMATIONAL MEMO

FOR SUPPLIERS OF GOODS, WORKS AND SERVICES OF KPI INC. LLP (HEREINAFTER - KPI),

WHO HAVE ALLOWED NON-PERFORMANCE / IMPROPER PERFORMANCE OF THE PURCHASE CONTRACT

Dear suppliers (potential suppliers) – KPI partners,

Firstly, we congratulate you on signing a contract for the supply of goods, works, and services with our company. We hope for mutually beneficial long-term cooperation, as well as the conscientious fulfillment of the contract by the parties within the specified timeframe and to the required quality;

Secondly, we would like to point out that the concluded contract for the supply of goods and services not only entails rights and obligations for both parties but also provides for liability, which our company would like to draw your attention to in advance, given the fact that KPI is a quasi-state company (with indirect ownership of JSC National Welfare Fund Samruk-Kazyna of more than 51%), which automatically extends the Fund's established procurement standards to us.

The regulation of the responsibility of the goods/works/services supplier in the KPI is based on the main documents:

1. The Law of the Republic of Kazakhstan "On Procurement by Certain Entities in the Quasi-Public Sector" (hereinafter referred to as the Law);

2. The Procurement Procedure of JSC "Samruk-Kazyna" (hereinafter referred to as the Procedure);

3. The procurement contract concluded between KPI and a specific Supplier.

The Law and Order establishes the main restrictions on the participation of suppliers in procurement:

1.    if he is included in the register of unscrupulous procurement participants and/or in the list of unreliable potential suppliers of the Fund (Article 7 of the Law);

2.    if he provided false information during the procurement process, he is also included in the register of unscrupulous participants and the list of unreliable suppliers (Article 9 of the Law);

3.    hhe register of unconscientious procurement participants is formed in the Fund’s information system and represents a list of suppliers:

(1) those determined to be the winners but who evaded entering into a contract;

(2) those who provided false information;

(3) those who failed to fulfill or improperly fulfilled their obligations under the concluded contracts (Article 10 of the Law).

When establishing the facts specified in paragraph 3 above, the KPI is obliged to:

(1)     within 10 working days from the date of the potential supplier’s failure to conclude a contract or to provide security for the performance of the contract, send information about such potential supplier to the centralized service;

(2)     no later than 30 calendar days from the day when they became aware of the fact of providing false information or a violation of the contract for the procurement of goods, works, and services, file a claim in court to recognize such supplier as an unfair procurement participant;

(3)     despite filing a claim in court to recognize the supplier as a bad faith participant in the procurement, it is also mandatory to demand that the supplier pay a penalty (fine, penalty) and fully fulfill its contractual obligations.

The register of unconscientious participants is formed on the basis of the decision of the centralized procurement service, as well as on the basis of court decisions that have entered into legal force, initiated by Customers (including KPI) in relation to their suppliers who have violated the contract.

Suppliers included in the register of unconscientious procurement participants are prohibited from participating in procurement for 24 months from the date of the decision recognizing them as unscrupulous participants or from the date the court decision enters into force. The Fund's list of unreliable suppliers is published on the Fund's procurement website.