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According to the Bank’s website, the objective of this project is to improve rail connectivity and resilience along the Kyzylzhar-Mointy section of the Trans-Caspian Transport Corridor and strengthen the financial sustainability of the national railway operator in Kazakhstan.
The proposed project is the first phase of the multi-phased program that will focus on the development and modernization of selected key railway sections of the Trans-Caspian Transport Corridor (TCTC) in Kazakhstan. The proposed IBRD guarantee will be structured as a loan guarantee backstopping the debt service obligations of the state-owned enterprise, KTZ. The project includes the greenfield investment for construction of Mointy-Kyzylzhar Railway Section (322 km) of the TCTC in Central Kazakhstan.
The Mointy-Kyzylzhar line is designed as a shortcut for the congested section of the TCTC that currently deviates significantly from the direct route by passing through the Zharyk station in the North. The project will deliver a single-track main line with the associated civil works and integrated signaling and telecommunications systems. By creating a direct connection between Mointy junction and Kyzylzhar station, the line shortens the corridor by 149 km and decongests the heavily used Mointy-Zharyk section. It is planned to accommodate about 30 train pairs/day and to enable double-stack container operation, thereby increasing throughput and improving end-to-end reliability of east-west flows.
To enhance KTZ's financial sustainability and project execution capacity, the project will also support KTZ in several key areas, including tariff reform, access to commercial finance, and support for its initial public offering (IPO).
The environmental risk rating, ‘High’, reflects: (i) the extent of land clearance, including in areas recognized for biodiversity value, such as the Ayak-Bestau Hills and the Ortau upland massif Key Biodiversity Areas (KBAs), and the nationally protected Andasai Nature Sanctuary; (ii) the habitat fragmentation and barrier effects on wildlife movement caused by the linear infrastructure; (iii) other impacts to biodiversity impacts, such as alteration of migration routes and collision risk; (iv) the project’s potential environmental and occupational health and safety (OHS) risks and impacts associated with construction activities; and (v) the potential capacity constraints within KTZ to ensure compliance, given the large geographic scope of the proposed operations.
The social risk rating, ‘Moderate’, recognizes that, despite the large footprint, the proposed railway corridor traverses regions that are predominantly uninhabited or sparsely populated. No physical displacement is anticipated, and no communities, dwellings, or permanent structures have been identified within or in close proximity to the alignment. Impacts on livelihoods and economic displacement are expected to be minimal, potentially affecting a small percentage of a limited number of land parcels, which are owned by fewer than 25 households. The risk categorization nevertheless accounts for potential future impacts related to restrictions on land use, as well as community health and safety risks associated with potential labor influx.
Total Project Cost: US$ 1,410.00 million
IBRD Guarantee: US$ 846.00 million
NC Kazakhstan Temir Zholy JSC is Kazakhstan's state-owned railway company founded in 1997, both owning and managing all infrastructure and operating freight and passenger train services and has a near-monopoly on long-distance train travel in Kazakhstan.
KTZ will be both the Borrower and the Implementing Agency. KTZ has established the Project Directorate (PD), which will have primary responsibility for implementation of activities under the project. PD will handle contract administration and financial management, monitor progress, certify payments, and ensure quality and compliance with environmental and social standards.
| 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 POINT - World Bank
Task Team Leader: Nijat Valiyev
Title: Senior Transport Economist
Email: nvaliyev@worldbank.org
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ACCOUNTABILITY MECHANISM OF THE WORLD BANK
The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. Information on how to file a complaint and a complaint request form are available at: https://www.inspectionpanel.org/how-to-file-complaint
