Sustainable Rail Transport in Kazakhstan (ADB-58519-001)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Kazakhstan
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
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
Dec 2, 2024
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.
Borrower
Government of Kazakhstan, Kazakhstan Temir Zholy
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Law and Government
  • Technical Cooperation
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Advisory Services
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 0.23 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 @ ADB website

Updated in EWS Jan 24, 2025

Disclosed by Bank Dec 9, 2024

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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.

As stated by the ADB, the proposed TA aims to help Kazakhstan Temir Zholy to adopt its internal corporate standards aligned with the international best practices. Specifically, this includes:

"Financial Modeling and Reporting: The TA will support the preparation of comprehensive financial projections in line with ADB's standards, such as cash flow, profit/loss, and balance sheet analyses, and assess key financial ratios, ensuring transparency and compliance with international financial standards.

"Safeguards Component: Advising on the integration of social and environmental safeguards into project due diligence and implementation to ensure that potential projects align with IFI requirements. This will enable KTZ to adopt international best practices in safeguards management, including the development and enhancement of its Environmental and Social Management System (ESMS).

Successful implementation of the TA will pave the way for ADB's engagement in the rail sector of Kazakhstan by financing potential projects developed by KTZ, such as the Darbaza-Maktaaral railway and other potential projects.

The requested small-scale TA amount of $225,000 is appropriate given the low-value nature of the planned activities, which primarily involve conducting an environmental and social safeguards audit of KTZ's current environmental and social management system (ESMS). Additionally, the TA focuses on financial modeling and exploring new project opportunities in the rail logistics cargo sub-sector, including analysis of KTZ's investment program for potential sovereign and non-sovereign financing opportunities and supporting the development of the CAREC Corridor 2 which largely coincides with the Middle Corridor Initiative.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
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.

JSC Kazakhstan Temir Zholy is the national railway company of Kazakhstan.

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.

ADB Team Leader:

Asem Chakenova - Senior Project Officer in Kazakhstan Resident Mission

No contacts provided at the time of disclosure.

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.adb.org/forms/request-information-form

ADB has a two-stage appeals process for requesters who believe that ADB has denied their request for information in violation of its Access to Information Policy. You can learn more about filing an appeal at: https://www.adb.org/site/disclosure/appeals

ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main.

How it works

How it works