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Auction for the realisation of 100 per cent of Government Stake in the Alfa Telecom CJSC

November 8, 2016

The State Property Management Fund, under the KR Government, is inviting participation in an auction for the realization of 100 per cent of the Government stake in the closed joint-stock company Alfa Telecom – 100,100 (one hundred thousand and one hundred) shares.

Republic of Kyrgyzstan is the owner of the company.

Means of payment is in national currency som.

Information on services provided by the cellular company:

Megacom (SCJC Alfa Telecom has the trademark for its goods as Megacom): services of movable cellular radiotelephone communication, services of movable cellular radiotelephone communication of standard 2G, 3G and 4 G, services regarding data communication, rendering of telematics services, rendering of services on projecting, construction and installation of networks, systems and devices of telecommunications.

Subscriber base – 2.681 million subscribers (by 30.06.2016)

Incorporated equipment, ZTE, Huawei, NokiaSiemensNetworks, Hewlett-Packard, Alcatel-Lucent, Ericsson, NEC, RAD, Protei, TEMS, Anritsu, Rohde and Schwarz, Memotec, TP-Link, Andrew, Coslight, Coiler, RFS, 1PTK, Nemo, Emerson, PeterService, RID, GEKO, Turkuazmashiner, Vilson, AKSA, SunMicrosystems, Cisco, FujitsuSiemens, SunMicrosystems.

Base stations –2.444ea.

Distribution network is more than 6567 points of sale, seven regional divisions in districts, 35 brand showrooms, СPO-37.

International GMS roaming is supported by networks of 234 operators.

GSM network coverage is 98.6% of the territory of Kyrgyzstan.

Number of employees as of 30.06.2016 are 1288 people.

Starting cost of Government stake in Alfa Telecom CSJC: 14 255 250 000 (fourteen billion two hundred fifty five million and two hundred fifty thousand) som.

Date and time of auction and a day of summarising: 16 December 2016, 16.00 p.m.,59, Boulvard Molodaya Gvardiya, Bishkek, Department of Public Teleradio Coorporation.

There is no restriction for participation in the auction for non-resident of Kyrgyz Republic as well as residents of the country, founders of affiliated foreign legal individuals and private companies.

List of documents in relation to the auction and requirements for execution of documents. Applicants must present the following documents:

For private individuals:

1. Standard application form for participation in the auction.

2. Identification document of a participant or letter of attorney certified according to Kyrgyz Law, in the name of the applicant, authorizing the person acting on behalf of him/her to make transactions as needed.

3. Copy of deposit payment receipt for 10 per cent value of the object (the company), confirming payment to the current account of the State Property Management Fund under the KR Government.

4. Copy of a letter to the name of the participant from a Tax Office not being in debts on its duties from the department of Social Fund of Kyrgyz Republic. This inquiry isn’t obligatory for foreign applicant who is non- resident of Kyrgyz Republic.

5. Written approval of additional requirements of the seller (Terms and conditions of the auction). The sample of terms and conditions are on the website of the State Property Management Fund under the KR Government: www.mgi.kg and www.fgi.kg.

6. All the signed, listed documents should be in 2 copies of each.

For companies:

1. Standard application form for participation in the auction.

2. Letter of attorney from the applicant, empowering the agent to act in the name of the applicant and to make transactions, authenticated by established procedure under the legislation of Kyrgyz Republic.

3. Copy of ownership documents certified according Kyrgyz Law.

4. Copy of certified State Registration Certificate according Kyrgyz Law.

5. Letter from Social Fund Tax office declaring that participant has no tax debts. The current requirement is not obligatory for foreign applicants, nonresident in the Kyrgyz Republic.

6. Copy of payment document confirming payment on current account to the State Property Management Fund under the KR Government. Deposit equal to 10 per cent of starting cost of the object.

7. Written consent on accepting additional requirements of the vendor (auction terms). Terms and conditions are on the website of the State Property Management Fund under the KR Government: www.mgi.kg and www.fgi.kg.

8. All the signed, listed documents should be in 2 copies of each.

The above mentioned documents must be submitted by applicants in the Kyrgyz or Russian languages.

Additional information about taking part in the auction is on the official website of the State Property Management Fund under the KR Government: www.mgi.kg and www.fgi.kg. Also the applicant also has the right to obtain extra information and a financial-economic statement from the State Property Management Fund under the KR at the following address by applying in writing: 151, Moscowskaya Street, Bishkek, 720017 Kyrgyz Republic. Telephone:+ 996(312) 61-37-22, Fax: +996(312) 61-49-58; cellphone: (996) 551 00 06 34 Elvira.

Application forms with attachment of necessary documents must be submitted to the State Property Management Fund under the KR at latest 10:00 am, 16 December 2016 to the following address: 151, Moscowskaya Street, Bishkek, room 308.

The start of submission: 16 September, 2016.

The address and the time of receipt of documents: 151, Moscowskaya Street, Bishkek, room 308

The deadline is 16 December, 2016 at 10:00 am.

The announcement date for auction participants: (date and time of meeting about the Commission of Privatization ) – 16 December, 2016 at 16:00.

Rule and regulation of warranty and return of deposit.

Warranty deposit 10 per cent of the sum of – 1 425 525 000 soms (One billion four hundred and twenty five million five hundred twenty five thousand) should be transferred to a special account of the State Property Management Fund :

The payment must be made in national currency (som):

Receiver Pervomay DDT*

Account 1290524132820096

Bank Ayil Bank JSC

Swift 135001

ID number 4402012100002561

The payment destination: State Property Management Fund under the KR Government, guarantee deposit equal to 10 per cent of the starting price of the object.

The warrant deposit must be transferred to the above account before 10:00 am on 16 December, 2016.

Deposit payment must be returned to an applicant in these cases and on the following terms:

- If the applicant withdraws the application form before the deadline, the deposit will be returned within 10 bank working days.

- If a participant in the auction is not the winner of the auction (nominate) or the auction is not held, the deposit will be returned within 10 bank working days after the auction was held.

The winner of the auction will pay 7 % interest in additional of the cost the object.

Note:

The auction will be cancelled if there is only one participant. The participant considered to be the winner (nominate) is the one who offers the highest price for the object. After the auction the nominate will sign the protocol of the auction and must register the documents within three working days.

The warranty deposit paid by the participant will be considered as part of the payment. The buyer must pay the agreed payment within 30 (thirty) bank working days into the account which is specified in the purchase and sale agreement.

If the winner of the auction refuses or avoids signing the agreement of the auction of Sale and Purchase in time, the deposit which was paid will not be returned him, he loses right to sign the agreement of the Sale and Purchase.

If the nominate of the auction disagrees with the result, this will be counted as a refusal to purchase the object.

In this case the winner of the auction will be announced by the commission of the State Sale and Purchasing Property the participant who has offered less price than the nominate who had refused to purchase the object.

The decision of the commission of the winner of the auction will be announced within two days after the auction is hold. If the second nominate refuses to sign the protocol of the result of the auction and the agreement of Sale and Purchase, the deposit which was paid by him will not be returned to him.

* District Department of the Treasury