The European Bank for Reconstruction and Development (EBRD) has granted a loan of €121m to national rail company Kazakhstan Temir Zholy (KTZ), for the purchase of equipment for logistics and infrastructure maintenance.
The project aims to enhance Kazakhstan’s transit potential and improve passenger rail transportation security in the country.
KTZ, along with its subsidiaries KTZ Express and Lokomotiv, will benefit from the loan. KTZ controls about 15,000km of track, which is being expanded.
EBRD Kazakhstan director Janet Heckman said: "This loan will significantly reduce KTZ’s foreign currency risk.
"It is particularly significant for the EBRD as it is the first large local currency loan by the bank under the new local currency facilities granted by the National Bank of Kazakhstan."
This is the largest local currency loan of EBRD in Kazakhstan that will help avoid the difficulties usually faced by foreign exchange.
The EBRD has already invested approximately $6.5bn in the economy of Kazakhstan, which included a major share to support the private sector.
KTZ, a joint stock company, controls Kazakhstan’s railway system, including the operation of passenger and freight rail services; accounting for approximately half of all rail freight in the country.
Image: KTZ controls about 15,000km of track, which is being expanded. Photo: courtesy of European Bank for Reconstruction and Development.