KTZ Railway Project (MIGA-15064)

  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
  • Kazakhstan
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Multilateral Investment Guarantee Agency (MIGA)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 30, 2023
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Citibank N.A., Banco Santander S.A.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
  • Infrastructure
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 621.20 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ MIGA website

Updated in EWS Oct 15, 2023

Disclosed by Bank May 20, 2023

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

On September 19, 2023, The Multilateral Investment Guarantee Agency (MIGA) a member of the World Bank Group, issued a CHF 554.7 million (the equivalent of US$ 621.2 million) guarantee covering the principal and interest on a loan from Citibank N.A (United States of America), and Banco Santander, S.A (Spain) to National Railway Company Kazakhstan Temir Zholy JSC (KTZ).

MIGA's guarantee provides cover for a 10-year period of the loan against the risk of Non-Honoring of Financial Obligations by a State-Owned Enterprise. The Guarantee will help KTZ to access long term international commercial financing at favorable terms.

KTZ is embarking on a capital expenditure program during the period 2022-2027 to rehabilitate and repair its existing railway tracks network, as well as to modernize, upgrade and expand its fleet of electric locomotives, and passenger cars to improve its freight and passenger transport safety, speed, and capacity. In addition, this capital expenditure program will contribute to the realization of KTZ's low-carbon pathway strategy. The proceeds of MIGA-guaranteed loan will be used to finance KTZ's capital expenditure program needs for the years 2023 and 2024.

MIGA's guarantee is the first step toward a long-term World Bank Group's collaboration to support KTZ's development projects.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by the MIGA, KTZ is a vertically integrated group and is 100% state-owned enterprise (via Samruk-Kazyna JSC, Kazakhstan's Sovereign Wealth Fund). The group owns and operates all the state railway network and is the country's largest owner of rolling stock. KTZ plays a key role in the national and regional transport system, providing economic connectivity with 14 regions of Kazakhstan, and with five neighboring countries, rendering KTZ as one of the 15 largest railway companies in the world in terms of freight turnover.

As stated by Bloomberg, Citibank, N.A. operates as a bank. The Bank provides saving accounts, deposits, loans, mortgages, investment fund, credit and debit cards, insurance, capital markets and advisory, electronic, and private banking services. Citibank serves customers worldwide.

Banco Santander S.A. attracts deposits and offers retail, commercial and private banking, and asset management services. The Bank offers consumer credit, mortgage loans, lease financing, factoring, mutual funds, pension funds, insurance, commercial credit, investment banking services, structured finance, and advice on mergers and acquisitions.
Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - JSC National Company Kazakhstan Temir Zholy Client Transport

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Guaranteed Institutions -

Citibank NA:

Address: Citibank Customer Service, P.O. Box 6500, Sioux Falls, SD 57117
Phone: +1 888 248 4226
Website: https://www.citi.com/

Banco Santander SA:

Address: Santander Group City, Av. de Cantabria s/n, 28660 Boadilla del Monte MADRID-SPAIN
Phone from Spain: 902 11 22 11
Phone from abroad: +34 912890000
Website: https://www.santander.com/en/home

Client - JSC National Company Kazakhstan Temir Zholy:

Bakhytzhan Shakhmanov - Senior manager of Borrowings and investor relation department
Phone: +7 702 112 22 00 / +7 7172 60 37 37
Email: Shakhmanov_b@railways.kz  
Address: 6 Kunayev str., block B, room 3301
Website: www.railways.kz


You can submit a request for information disclosure at: https://www.miga.org/contact/access_to_information

You can also request general information about MIGA and for information on guarantees by emailing: migainquiry@worldbank.org


The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

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