BAKU, Azerbaijan, February 26. The World Bank
(WB) has approved an $846 million International Bank for
Reconstruction and Development (IBRD) guarantee to mobilize $1.41
billion in long-term commercial financing for a railway project in
Kazakhstan along the Trans-Caspian International Transport Route
(Middle Corridor), Trend reports via WB.
The Transforming Rail Connectivity in Kazakhstan (Middle
Corridor Development) Project is set to improve the efficiency and
resilience of the national rail network while strengthening the
financial sustainability of Kazakhstan Temir Zholy (KTZ).
The project includes the construction of a new 322.3-kilometer
railway line between Mointy and Kyzylzhar. The link will shorten
the corridor by 149 kilometers, ease congestion on heavily used
sections, and enable double-stack container operations. The line
will be equipped with modern signaling and telecommunications
systems, with provisions for future electrification.
A second component focuses on institutional support for KTZ,
including tariff reforms, alternative financing mechanisms,
improved financial and environmental management, and preparation
for a potential initial public offering.
The project is expected to help triple freight volumes and halve
transit times along the Middle Corridor by 2030. It will also
reduce transport emissions by shifting cargo from road to rail and
improve market access for communities along the corridor.
The initiative is being implemented in phases with the support
of the International Bank for Reconstruction and Development
(IBRD), International Finance Corporation (IFC), and Multilateral
Investment Guarantee Agency (MIGA). The project also mobilizes a
co-guarantee from the Asian Infrastructure Investment Bank (AIIB)
of $564 million.
