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FINANCIAL GUARANTEE OF THE FULFILLMENT OF THE TERMS OF THE PURCHASE AGREEMENT

In accordance with the provisions of the Rules for the centralized purchase and sale of the electric energy generated by the objects on use of renewable energy sources, waste-to-energy facility and flood electric energy the recalculation and redistribution by the financial settlement center of the corresponding share of electric power to qualified conditional consumer on the basis of the results of the calendar year (the Rules of Centralized Purchase):

• the applicant, recognized as the winner of the auction for selection of renewable energy projects, shall submit an Application within 60 calendar days from date of inclusion of its and its corresponding project for construction of an object on use of RES in the list of energy producing organizations using RES in the list of  energy-producing organizations using RES, published on the internet resource of the authorized body;
• the applicant, recognized as the winner of the auction for selection of WTE projects, shall submit an Application within 60 calendar days from the date of its inclusion in the register of winners of the auction, for each individual WTE facility for purchase of electric energy produced by WTE facility

 in order conclude the agreement with «Расчетно-финансовый центр по поддержке возобновляемых источников энергии» LLP.

The applicant chooses one of the following types of financial guarantee of the fulfillment of the terms of the purchase agreement:

1. bank guarantee or standby letter of credit issued by the SWIFT system. A bank guarantee or a standby letter of credit is issued in tenge.

If the Applicant has decided to issue a bank guarantee (standby letter of credit) as a financial security for the fulfillment of the terms of the purchase agreement, then the Applicant independently selects the Bank in which it will issue a bank guarantee (standby letter of credit) as financial security for the fulfillment of the terms of the purchase agreement. Please note that in accordance with Paragraph 95 of the Rules of centralized purchase, a bank guarantee or a standby letter of credit must be submitted by the Applicant:

1. from the resident banks of the Republic of Kazakhstan with the long-term credit rating in foreign currency not lower than "B" by Standard & Poor's or "B-" by Fitch or "B3" by Moody's Investors Service or with the rating of the parent organization (which owns more than 50% of the shares of the resident bank of the Republic of Kazakhstan) not lower than the "BBB" level by Standard&Poor's or "BBB" by Fitch or "Baa2" by Moody's Investors Service;
2. from non-resident banks in the Republic of Kazakhstan with the long-term credit rating in foreign currency not lower than "ВВВ" by Standard&Poor's, "ВВВ" by Fitch, "Ваа2" according to Moody's Investors Service.

At the same time, a bank guarantee or a standby letter of credit from non-resident banks of the Republic of Kazakhstan must be confirmed by resident banks, by issuing a guarantee for counter-obligations of non-residents under subparagraph 1) of this paragraph.
The amount of financial guarantee of the fulfillment of the terms of the purchase agreement is 10,000 (ten thousand) tenge per 1 (one) kW of installed capacity multiplied by the installed capacity of the renewable energy object specified in the Register of Auction winners and WTE.

Note*. For example, your company became the auction winner bidding for the selection of renewable energy projects for a solar power plant. The installed capacity of the project indicated in the register of auction winners is 50,000 kW, then the amount of financial security for meeting the terms of the purchase agreement will be:
50,000 (kW) * 10,000 ( KZT / kW) = 500,000,000 tenge.

When applying to the Bank for obtaining financial guarantee of the fulfillment of the terms of the purchase agreement, be sure to check the compliance of the Bank chosen by you, with the criteria specified in paragraph 95 of the Rules of centralized purchase. In case of inconsistency of the financial guarantee chosen by you by the Bank for the fulfillment of the terms of the purchase agreement, it will not be accepted by FSC of RES.

After the financial guarantee of the application for participation in the auction has been issued (in the form of a bank guarantee or a standby letter of credit), the applicant must advise the issued financial guarantee of the fulfillment of the terms of the purchase agreement with the Partner Bank of FSC of RES: ForteBank JSC (if the bank guarantee was issued by ForteBank JSC, then it is necessary to advise it in Bank CenterCredit JSC).

All bank commissions and expenses related to the financial guarantee of the fulfillment of the terms of the purchase agreement, including the beneficiary's Bank commissions, are paid by the auction winner (seller).

A bank guarantee or a standby letter of credit is irrevocable and provides for the possibility of their performance in whole or in part by the designation of the recipient (beneficiary) with a validity from the date of signing the purchase agreement:

• for solar – not less than 25 months;
• for wind and biogas – not less than 37 months;
• for hydro – not less than 49 months;
• WTE facilities – at least 61 (sixty one) months.

Financial guarantee of the fulfillment of the terms of the purchase agreement is withheld in the order prescribed in paragraph 98 of the Rules of centralized purchase in the following cases:

1. For energy-producing organizations using RES
1) if a copy of the notification on the beginning of construction and installation works for the object on use of renewable energy sources has not been provided to the Beneficiary within 6 (six) months after 12 (twelve) months (for solar stations), 18 (eighteen) months (for wind and biogas stations), 24 (twenty four) months (for hydro stations) from the date of signing the PPA, in respect of which a PPA is concluded, submitted to the state body exercising state architectural and construction control - at a rate of 30 percent  from the amount of  this Bank Guarantee;

2) if a copy of the act of acceptance of the object on use of renewable energy sources into operation, approved in accordance with the legislation of the Republic of Kazakhstan in the field of architectural, town-planning and construction activity, in respect of which the PPA is concluded has not been provided to the Beneficiary – at a rate of 100 percent of the amount of this Bank Guarantee, and in the event of withholding of the part of the financial guarantee of the fulfillment of the terms of the PPA in accordance with subparagraph 1) of this Bank Guarantee - 70 percent of the amount of this Bank Guarantee within ___________________________months from

Choose the appropriate term for RES objects construction:

• for solar – in 24 (twenty four) months;
• for wind and biogas – in 36 (thirty six) months;
• for hydro – in 60 (sixty) months.
• the date of signing the PPA.

2. For waste-to-energy facility

1) if a copy of the notification on the beginning of construction and installation works for the waste-to-energy facility has not been provided to the Beneficiary within 6 (six) months after 24 (twenty four) months (for WTE facility) from the date of signing the PPA, in respect of which a PPA is concluded, submitted to the state body exercising state architectural and construction control - at a rate of 30 percent  from the amount of  this Bank Guarantee;

2) if a copy of the act of acceptance of the waste-to-energy facility,  in the order  defined in accordance with chapter 11 Law of architectural activity, in respect of which the PPA is concluded has not been provided to the Beneficiary – at a rate of 100 percent of the amount of this Bank Guarantee, and in the event of withholding of the part of the financial guarantee of the fulfillment of the terms of the PPA in accordance with subparagraph 1) of this Bank Guarantee - 70 percent of the amount of this Bank Guarantee within 60 (sixty) months from the date of signing the PPA.

Below you can download the form of bank guarantee (standby letter of credit) of the fulfillment of the terms of the purchase agreement.

For the purposes of processing the financial guarantee of the fulfillment of the terms of the purchase agreement, we give the details of the "Financial Settlement Center for the Support of Renewable Energy Sources" LLP:

Legal address: Astana, Tauelsizdik Ave., 59

Tel./Fax: +7 7172 69 01 06

BIN 130840019312

Certificate of registration for VAT Series 62001 No. 0020007 dated 11.12.13