EBRD loan supports further reform in Kazakhstan’s rail sector
The EBRD is providing a $50 million loan to Kaztemirtrans, a subsidiary of the Kazakhstan’s national rail network operator Kazakhstan Temir Zholy (KTZ), to finance the renewal of the company’s rolling stock.
Kaztemirtrans is the holder of KTZ freight wagon fleet and its main business activity is leasing rolling stock to KTZ. Almost 70 per cent of Kaztemirtrans railcars are over 20 years old and require replacement.
The EBRD loan will support Kaztemirtrans’ investment programme and will finance the acquisition of 1,000 new freight wagons, helping the company to improve its efficiency and reduce maintenance costs. The project is supported by grant financing from the Bank’s Shareholder Fund to help KTZ strengthen its corporate governance.
“This project underscores the EBRD’s commitment to support the reform of the rail sector in Kazakhstan and to assist KTZ with improvements in corporate governance standards”, said EBRD President, Thomas Mirow, at a signing ceremony in London.
“This investment will help Kaztemirtrans improve its business operations and become an operationally independent freight operator”, said Vice-President Kanat Alpysbayev, during the signing ceremony in London.
The EBRD is the largest investor outside the oil and gas sector in Kazakhstan. Since the beginning of its operations, the Bank has committed over €2.4 billion in various sectors of the country’s economy, which mobilised additional investment worth more than €5 billion.