EBRD helps build climate resilience of Kyrgyz Railways

By Anton Usov

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  • EBRD €11 million financing package to support climate resilience of Kyrgyz Railways
  • Loan to enable renewal of rolling stock and restoration of an avalanche protection gallery
  • Funding to create new employment opportunities and promote economic inclusion

The European Bank for Reconstruction and Development (EBRD) is facilitating better connectivity in the Kyrgyz Republic and beyond by supporting the sustainability of Kyrgyz Railways, Kyrgyz Temir Jolu (KTJ), responsible for managing and maintaining railway infrastructure and rolling stock across the country.

The financial package of up to €11 million, organised by the EBRD, will consist of a 12-year sovereign Bank loan of up to €8 million, plus a €3 million grant provided by the EBRD Shareholder Special Fund. It will allow KTJ to replace its obsolete open-railcar rolling stock for the transportation of construction materials and agricultural produce. It will also use the funds to restore critical railway infrastructure, such as the avalanche protection gallery in the Boom Gorge.

Built in the 1980s in the northern part of the Kyrgyz Republic, the Boom Gorge gallery has been affected by climate-related geological hazards, such as landslides. The introduction of climate adaptation measures will help KTJ reduce risks of weather-related damage to rail infrastructure and rolling stock and avoid service disruptions.

The project will enhance the safety and reliability of KTJ, which is responsible for the transportation of 38 per cent of all national freight. This is particularly important, as trade volumes, particularly container traffic, between Asia and Europe, continue to grow and major trading and logistics companies are exploring ways to diversify and optimise transport routes and make them more sustainable.

As part of the project, KTJ will design and implement an inclusive training programme on climate risk assessment and mitigation measures for the railway sector.

To date, the EBRD has invested €922 million through 213 projects in the Kyrgyz Republic, with the majority of investments supporting private entrepreneurship.

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