The European Bank for Reconstruction and Development (EBRD) is providing an €11m funding package to support the climate resilience of Kyrgyz Railways, Kyrgyz Temir Jolu (KTJ).

KTJ manages and maintains railway infrastructure and rolling stock across Kyrgyzstan.

Organised by the EBRD, the financial package includes a 12-year sovereign bank loan of up to €8m and a €3m grant from the EBRD Shareholder Special Fund.

KTJ will use the funds for the replacement of its obsolete open-railcar rolling stock to transport construction materials and agricultural produce.

The funds will also support the restoration of key railway infrastructure, including the avalanche protection gallery in the Boom Gorge.

Constructed in the 1980s in the northern part of the Kyrgyz Republic, the Boom Gorge gallery was damaged by climate-related geological hazards such as landslides.

KTJ will implement climate adaptation measures to lower risks of weather-related damage to rail infrastructure and rolling stock and avoid service disruptions.

It will also design and conduct an inclusive training programme on climate risk evaluation and mitigation measures for the railway industry.

The project is said to improve the safety of KTJ, which accounts for the transportation of 38% 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,” stated EBRD.

In July this year, EBRD announced an investment exceeding $100m (KZT50bn) in Kazakhstan Railways bond issue to improve its financial resilience.