The provision of a 5-year senior secured loan in KZT of up to US$ 15 million equivalent to Eastcomtrans LLP (the Company), the largest private rolling stock operator in Kazakhstan.
The loan proceeds will be used to finance major maintenance and capital repairs of the Company's railcar fleet.
ETI score: 63
The Transition Impact is expected to derive from "inclusive" and "competitive" qualities.
Namely, the Project will introduce equal opportunity policies and practices to increase the company's female workforce share by 5-10 per cent in male dominated roles / levels and improve policy practices by introducing two new or improved National Occupational Skills Standards.
Also, the Project will support a private operator in a market dominated by state-owned enterprises via increase of the Company's market share supported by the increase of operational efficiency and service improvement.
Eastcomtrans LLP is the largest private rail freight company in Kazakhstan and a long-standing client of the Bank. The company owns and leases over 12,000 wagons with an average age of around 10 years. In 2021, it reported € 99 million turnover.
EBRD Finance Summary
A 5-year senior secured loan in KZT of up to US$ 15 million equivalent
Total Project Cost
The Bank will provide post-signing technical support to the Company in the review and preparation of HR policies and practices and identification of specific actions to improve the gender balance and promote safe work environment.
The Project will support the Company to establish policies and procedures to address and mitigate the risks of GBVH in the workplace. It will also establish grievance mechanism and investigation procedure to enable the Company to respond to instances of gender-based violence and harassment safely and confidentiality.
Environmental and Social Summary
Categorised C (ESP 2019). The proposed transaction involves capital repairs and routine maintenance of non-fossil fuels fleet. Potential E&S were identified through the E&S questionnaire. This is an existing client and the Company has robust process and labour safety procedures in place. The Company has assigned health and safety responsibilities to a number of managers and employees, and regularly provides health and safety training to its workers and an induction for all new employees. The current Environmental and Social Action Plan (ESAP) contains measures aimed at the following: (i) streamlining current health and safety provisions along with environmental procedures into an integrated management system to benchmark the performance of the Company against relevant national and international standards as well as applicable Performance Requirements; (ii) developing a system for tracking the use of railcars against agreed route, cargo type and volume; and (iii) developing a procedure for registering accidents and incidents and development of a grievance mechanism for employees. The Company is on track with implementing the ESAP and submits satisfactory reporting on environmental and social issues. It undertakes an in-house evaluation of the third-party depots to ensure their compliance with licensing, HSE requirements, environmental policies and procedures, hazardous waste management and utilisation and other issues. Gender and GBVH issues will be reviewed as part of proposals for the Company to develop an Equal Opportunities Action Plan and update HR policies. The Project is Paris aligned for climate mitigation and climate adaptation.
Technical Cooperation and Grant Financing
The Project will benefit from post-signing TC support to assist the Company with the development or improvement of National Occupational Skills Standards in line with its needs and requirements. The estimated cost of the proposed TC support is up to € 75,000, expected to be funded by international donors and/or the EBRD Shareholder Special Fund (the "SSF").
Company Contact Information
+7 727 355 5111 (ext.801)
PSD last updated
20 Apr 2022
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