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Kazakhstan Railways receive EBRD support
A vital transport corridor in Kazakhstan will be upgraded through a US$ 65 million (EUR 61.3 million) loan from the European Bank for Reconstruction and Development (EBRD) to Kazakhstan Temir Zholy (KTZ), the state-owned railway.
"This loan is a demonstration of the EBRD’s commitment to Kazakhstan," said Horst Köhler, President of the EBRD. "In view of the need to move huge volumes of coal and other bulk commodities over long distances, and with no significant water transport alternative, Kazakhstan relies heavily on its railway system. This project will improve the performance of the railways, helping to strengthen the Kazakh economy and increase the competitiveness of its exports in international markets."
Guaranteed by the Republic of Kazakhstan, the loan will support ongoing restructuring of the railway and greater commercialisation. The project will improve track maintenance through the use of modern equipment and will demonstrate how these techniques may be used across the network. It will also help to reduce transport costs in Kazakhstan.
The financing will allow the company to purchase track maintenance equipment, automated hand tools and spare parts costing about US$ 59 million. KTZ will provide an additional US$ 25 million from its own budget for other track maintenance materials. The EBRD will provide approximately US$ 5 million to finance a retraining programme covering some 15,000 staff, starting next year.
Technical co-operation funds from EU-Tacis and the United States Trade and Development Agency will be used to develop a modern legal framework for Kazakhstan’s railways sector, to help with business planning and to support restructuring and project implementation.
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