Early Warning System

Countries

Kazakhstan

Geographic location where the impacts of the investment may be experienced.

Financial Institutions

European Bank for Reconstruction and Development (EBRD)

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

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

Jul 3, 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

KAZAKHSTAN TEMIR ZHOLY NATIONAL COMPANY JSC

A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.

Sectors

Transport

The service or industry focus of the investment. A project can have several sectors.

Investment Type(s)

Loan

The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.

Investment Amount (USD)

$ 222.01 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.
Currency conversion note:
Bank reported 200
Converted using 2024-07-03 exchange rate.

Project Cost (USD)

$ 222.01 million

Bank Documents

Primary Source

Original disclosure @ EBRD website

Updated in EWS Aug 29, 2024

Disclosed by Bank Jul 23, 2024

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Can you contribute information about this project?
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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.

According to the Bank’s website, the project consists of a senior corporate loan of up to CHF 200 million to JSC National Company Kazakhstan Temir Zholy (KTZ or the borrower), a state-owned railway company managing railway infrastructure and operating freight and passenger train services in the Republic of Kazakhstan.

Loan proceeds will enable the Borrower to restructure its financial obligations maturing in 2024, free up capital and mobilise additional financial resources to continue implementation of infrastructure investment projects to support further development of the Trans-Caspian International Transport Route.

Early Warning System Project Analysis

For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

Categorised B (2019 ESP) and high-medium risk due to limited OHS capacity and high number of work-related incidents. The use of proceeds will cover refinancing of the existing company's bond maturing in 2024. The project does not involve any specific capex or any new construction, and therefore it is not expected to be associated with any major Environmental and Social ("E&S") sensitivities or risks. The project will not require any additional land acquisition or impacts on sensitive areas. However, the funds may be used for essential or emergency repairs, while enabled GET components are related to purchase of the electric freight locomotives or low-voltage overhead power line repairs.

Investment Description

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

European Bank for Reconstruction and Development (EBRD)

A senior corporate loan of up to CHF 200 million.

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.

KAZAKHSTAN TEMIR ZHOLY NATIONAL COMPANY JSC - KTZ is a holding company that manages railway infrastructure and operating freight and passenger train services in Kazakhstan. It owns and operates the railway network of 16,000 km in total length, more than 1,730 locomotives, 44,555 freight and 2,300 passenger wagons. It is fully state-owned through JSC Sovereign Wealth Fund Samruk-Kazyna (Samruk-Kazyna). In 2023 KTZ reported revenues of USD 4.2 billion (EUR 3.9 billion equivalent) and EBITDA of USD 1.1 billion (EUR 1.0 billion equivalent).

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	-

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.

COMPANY CONTACT INFORMATION

Meruert Toktarova
Toktarova_M@Railways.kz
+7 (7172) 60 42 29
https://railways.kz
6 Konaeva street, Astana, Republic of Kazakhstan, 010000

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html