Dosjan Temir Joly (DTJ) JSC (Kazakhstan) informed about amendments into government regulation of the Republic of Kazakhstan "About providing government guarantee..."

/KASE, September 10, 07/ - Dosjan Temir Joly (DTJ) JSC (Almaty), bonds of which are traded under "A" category in the Kazakhstan Stock Exchange's (KASE) official listing, had provided KASE with a press release of the following content: Beginning of citation "About corrective actions and amendments into the Government regulation of the Republic of Kazakhstan dated August 25 of 2005 number 785 "About providing guarantee of government within concessive agreement on construction and exploitation of a new railway line" - Shar-Ust-Kamenogorsk station". Almaty city, September 5, 2007 Over the last years, the pace of development of Kazakhstani transportation industry as the paces of development of other industries has considerably accelerated. The high paces of economic development presuppose construction of new and lucrative traffic roads to transport the passengers and freight. Reduction of transportation time of freight and decrease in flow of cargo in the region is one of the main factors while building new traffic roads. Construction of the new railway - Shar-Ust-Kamenogorsk is a realization of the idea of traffic roads development and a response on fast growing economy of the country. With the goal of implementation of the Decree of President of the Republic of Kazakhstan "About further actions for realization of the Development Strategy of Kazakhstan until 2030" dated December 4 of 2001 # 735, and with a view to form and develop of the regional transport network of the country, on January 18 of 2005, Government of the Republic of Kazakhstan passed resolution # 21 - "About the measures to build new railway line, Shar-Ust-Kamenogorsk Station". On July 6 of 2005, a Concessive agreement between Dosjan Temir Joly (DTJ) JSC and Ministry of transport and communication of the Republic of Kazakhstan has been signed on behalf of Government, and, on August 27 of 2005, building and assembly jobs had started. At t\present, the project has been realized quite successfully. As of today, 80% of volume of work was done. At the present moment, about 95% of materials and equipment needed during construction of the Object has been purchased. The specified project is pilot project that has been realized on the basis of concessive agreement and financed at the expense of offering infrastructure bonds. Since the beginning of project realization till now, infrastructure bonds of the Company have been offered to the sum of KZT18,529,000 th. Taking into account that project financing is being conducted a lot due to bonds, the defense of bondholders' interests and provision of certain guarantees are important terms for us. With the aim of satisfying mutual interest of issuers and investors, we conduct a thorough work of providing all the investors with favorable offering conditions. In particular, we would like to inform that as a result of team-work with representatives of investors, a significant success has been achieved in defending bondholders' interests. Particularly, on August 17 of 2007, the Government of the Republic of Kazakhstan passed the resolution # 698 - "On corrective actions and amendments into the Government regulation of the Republic of Kazakhstan dated August 25 of 2005 number 875 "About providing guarantee of government within concessive agreement on construction and exploitation of a new railway line" - Shar-Ust-Kamenogorsk station". By the given resolution, the Government provides a guarantee for interest, accrued on the offered bonds for the period of circulation of infrastructure bonds that had been issued wile building the object of Concession. The resolution's edition that used to be valid before had not provided the bondholders with protection against risk on interest remuneration on of infrastructure bonds in case of default of concessionaire during the exploitation of the object, but had offered guarantees only for the period of Object's construction. Therefore, the bondholders' interests are protected for the whole period of infrastructure bonds' circulation. Before the present resolution takes effect, in the earlier edition, the term of demand of a refund to the guarantor had been restricted with 30 days following the maturity date, after that, the guarantee time was expired. In order to offer a reasonable term for demand of a refund to the guarantor who carries secondary liability with issuer of infrastructure bonds, the term of demand of a refund to the guarantor was changed to 60 calendar days. Moreover, the contract of guarantee used to stipulate that the representative of bondholders has a right to raise a demand to a guarantor only in case of issuer's refusal to satisfy or in case of his violation of capital commitments on the day of redeeming plus 30 days from the maturity date. In its turn, the opportunity of raising a demand by the representative of bondholders on the maturity day or at the date of coupon payment is also an additional factor of reduction of risk when investing in infrastructure bonds. The accepted amendments increase the investment attractiveness of the project and considerably improve the guarantee terms protecting the investors' interests. That contributes to the successful realization of not only Shar-Ust-Kamenogorsk, but also of all future concessive projects. End of citation [2007-09-10]