The World Bank’s Board of Directors has approved an USD 846 million guarantee through the IBRD to mobilize USD 1.41 billion in long-term commercial financing for the modernization of Kazakhstan’s railway infrastructure on the national segment of the Trans-Caspian International Transport Corridor (Middle Corridor).
The project “Transforming Kazakhstan’s Rail Connectivity – Developing the Middle Corridor” aims to increase the efficiency and resilience of the rail network and strengthen the financial sustainability of the national operator Kazakhstan Temir Zholy (KTZ).
According to the World Bank, the investment will strengthen Kazakhstan’s role as a Eurasian logistics hub, supporting regional integration and connectivity between Asia and Europe.
New 322 km line to eliminate a major detour
The main component of the project involves the construction of a new 322.3 km railway line between Mointy and Kyzylzhar.
The new connection will: The line will be equipped with modern signaling and telecommunications systems and designed with the possibility of future electrification.
- eliminate a major detour in the network
- shorten the route by 149 km
- reduce congestion on heavily used sections
- allow the operation of double-stack container trains
Institutional reform and IPO preparation
In addition to infrastructure investments, the project includes technical assistance for KTZ, support for tariff reform, improvement of financial and environmental management, and preparation for a possible initial public offering (IPO).
“Beyond investments in critical infrastructure, the project supports important reforms that will strengthen KTZ’s long-term financial sustainability and competitiveness,” said Andrei Mikhnev, World Bank Country Manager for Kazakhstan and Turkmenistan.
Increased volumes and reduced transit times
Authorities estimate that the project will contribute to: By shifting some traffic from road to rail, the project will help reduce emissions and meet Kazakhstan’s climate goals.
- tripling the volume of cargo transported
- halving transit times on the Middle Corridor by 2030
Complex financial structure
The financing mobilizes USD 1.41 billion in private capital, supported by: The project is implemented through a multi-phase programmatic approach, which allows for a gradual reduction in reliance on sovereign guarantees.
- an IBRD guarantee of 846 million USD
- a co-guarantee of 564 million USD from the Asian Infrastructure Investment Bank (AIIB)
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