Translated version of this PSD: Russian
Project Description
The EBRD is considering extending a secured loan to JSC Olzha, a private freight wagon operator in Kazakhstan. The proceeds of the loan will be used for:
1) The acquisition of new freight railcars and
2) The refinancing of existing debt.
Transition Impact
The Kazakh freight wagon market remains dominated by the state sector. By supporting Olzha purchasing additional railcars, the Project will contribute towards increasing the share of privately held wagon fleets in Kazakhstan.
The Project will also contribute to fostering the lease market which remains underdeveloped in the railway sector in Kazakhstan.
Moreover, the proposed loan will also set new up-to-date business standards (ISO standards).
The Client
The company’s activities include: lease of railcars, transportation and sales of liquefied petroleum gas (LPG) and oil products (mainly diesel and gasoline).
The company operates about 1,400 wagons, mostly LPG and oil tanks.
EBRD Finance
A senior secured loan of USD 24.8 million.
The EBRD is considering extending final maturity of the loan.
Project Cost
USD 32.8 million.
Environmental Impact
Categorised B. Environmental and social due diligence (ESDD) will focus on reviewing the Company's existing environmental and social management systems and procedures which the Company is applying to its railcar leasing operations in the areas of environmental protection, occupational health and safety, human resources, contractor management and stakeholder engagement. A risk-based review of the Company's other activities and operations as well as of the use of the wagons by the lessees for transportation of LPG and petroleum products for apparent E&S and reputation issues will also be undertaken. Environmental, health and safety issues are mainly associated with the maintenance and use of railcars usually undertaken by third parties. The due diligence should review contractual mechanisms regulating potential lessees' environmental and social performance to mitigate exposure to potential reputation risk associated with use of the Client's rolling stock by third parties. An Environmental and Social Action Plan will be developed for identified impacts and agreed prior to Final Review.
Technical Cooperation
None.
Company Contact
Mr Arman Beissekov,
Deputy CEO on Economy and Finance
E-mail: arman.beissekov@olzha.com
Business opportunities
For business opportunities or procurement, contact the client company.
For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com
General enquiries
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com
Public Information Policy (PIP)
The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP
Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.
