This document aims to implement the UNIDO Country Partnership Program for the Kyrgyz Republic for 2025–2029, which was previously approved by the Cabinet's order No. 84-r dated February 17, 2025.
The Cabinet agreed to the draft agreement in the official language, considering the possibility of making non-essential modifications.
According to the terms of the agreement, the Ministry of Economy and Commerce of the Kyrgyz Republic will act as a partner, providing UNIDO with 75,000 euros to finance the project "Country Partnership Program for the Kyrgyz Republic for 2025–2029" (project document No. 160107).
Financing will begin after the agreement is signed, and the funds will be accumulated in a special fund, which will be established and managed by UNIDO in accordance with its financial rules.
UNIDO will be responsible for the use of funds, organization of procurements, hiring of staff, and implementation of project activities. All financial operations and reporting will be conducted in euros. Funding for UNIDO's auxiliary services, which typically amounts to up to 13% of the total expenses, is also provided.
Property acquired with the funds from the special fund will be owned by UNIDO; however, during the project implementation period, it will be transferred for use by the Cabinet of Ministers of the Kyrgyz Republic or its authorized body. Upon project completion, any remaining funds will be returned to the partner or used at its direction.
The agreement enters into force upon signing and will remain in effect until the project and financial settlements are fully completed. In case of discrepancies between the Russian and English texts, the English version will take precedence.
Text
AGREEMENT
on the special fund between the Ministry of Economy and Commerce of the Kyrgyz Republic and the United Nations Industrial Development Organization (UNIDO)
Considering that the Ministry of Economy and Commerce of the Kyrgyz Republic (hereinafter referred to as the Partner) and UNIDO have agreed to cooperate within the framework of the project "Country Partnership Program for the Kyrgyz Republic for 2025-2029" (hereinafter referred to as the project), which is detailed in project document No. 160107, attached to this Agreement as Annex A;
taking into account the Partner's readiness to provide funds to cover project expenses;
and the agreement between UNIDO and the Partner that UNIDO is responsible for managing the funds provided by the Partner for project implementation;
the parties have agreed as follows.
Article 1. Project Financing
1. The Partner provides UNIDO with funds in the amount of 75,000 (seventy-five thousand) euros, which will be used to cover expenses for project implementation, including auxiliary expenses.
2. After signing this agreement, the Partner will transfer the specified funds in freely convertible currency to the following account details:
UniCredit Bank Austria AG
UNIDO Euro Account No. 0029-05107/00
IBAN: AT791100000290510700
SWIFT/BIC: BKAUATWW
Wagramerstrasse 5, A-1400 Vienna, Austria
with the indication of project document number 160107
3. UNIDO will create a special fund in accordance with its financial rules for receiving and managing the specified funds, including accrued interest.
4. The management of the special fund and the activities financed from it will be carried out by UNIDO in accordance with the applicable financial rules and instructions. This includes hiring personnel, purchasing equipment and services, as well as entering into contracts.
5. All financial reports are kept in euros; transactions in other currencies are not accounted for. All receipts and payments are converted to euros at the official United Nations exchange rate on the day of the transaction.
Article 2. Use of Special Fund Resources
UNIDO will use the special fund to cover actual expenses for the implementation of the project specified in Annex A, as well as to finance UNIDO's auxiliary services during the project work.
Article 3. Implementation and Changes to the Project
1. UNIDO will commence project implementation after receiving the agreement signed by both parties and the necessary funds as per Article 1.
2. The Partner agrees to cover current expenses for services provided for in the project, while UNIDO has no rights to obligations for services not included in the project without the written consent of the Partner.
3. Any changes to this agreement must be made in writing with the consent of both parties. Changes that do not affect the main objectives of the project and do not exceed 15% of the agreed amount may be made unilaterally by UNIDO.
Article 4. Ownership of Property
The ownership of equipment and materials purchased with the funds from the special fund belongs to UNIDO. During the project implementation period, the relevant property will be transferred for use by the Cabinet of Ministers of the Kyrgyz Republic or another designated body.
Article 5. Activity Evaluation
The evaluation of activities financed from the special fund will be conducted in accordance with the provisions specified in Annex A.
Article 6. Internal and External Audit
The special fund is subject to internal and external audits in accordance with established UNIDO procedures.
Article 7. Reporting
In addition to the reports provided for in Annex A, UNIDO will provide the Partner with the following reports in an accepted format for accounting and financial reporting:
(a) an annual financial report showing income and expenses for the year, as well as assets and liabilities as of December 31 concerning the funds provided by the Partner;
(b) a final financial report within six months after the termination of this agreement.
Article 8. Notification of Project Completion
UNIDO will notify the Partner of the completion of project activities for which the special fund was created. The date of notification is considered the date of project completion. The agreement remains in effect for the purposes specified in Article 10.
Article 9. Termination of the Agreement
The agreement may be terminated by either party with thirty days' notice to the other party, while Article 10 remains in force for the specified purposes.
Article 10. Final Provisions Regarding the Special Fund
1. After the completion of the project, as specified in Article 8, or termination of the agreement in accordance with Article 9, the special fund will remain open until all UNIDO expenses are fully covered. The Partner is obliged to reimburse UNIDO for any negative balance of the special fund in accordance with Article 3.
2. After the submission of the final financial report, as specified in Article 7 (b), any remaining funds in the special fund will be returned to the Partner or used at its direction.
Article 11. Contact Details of the Parties
Contact addresses for the purposes of this agreement:
(a) For the Partner:
Ministry of Economy and Commerce of the Kyrgyz Republic, Bishkek, Abdumomunov St., 207,
email: [email protected]
(b) For UNIDO:
Department of Partner Relations (UNIDO)
Vienna International Centre
Wagramer Strasse 5
P.O. Box 300
A-1400 Vienna, Austria,
email: [email protected]
Article 12. Entry into Force and Final Provisions
This agreement enters into force upon its signing.
In witness whereof, the undersigned, authorized parties, have signed the agreement in two copies in Russian and English. In case of discrepancies, the English version takes precedence.
(1) For reference: expenses for auxiliary services within the program typically amount to 13% of the total expenses of the special fund.
For the Ministry of Economy and Commerce of the Kyrgyz Republic:
For the United Nations Industrial Development Organization:
I.E.A. Asylkulov - Deputy Minister
Gerd Müller - Director General
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(signature)
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(signature)
Seal and date
Seal and date
