Bridging Regions, Building Futures: Catalyzing Kazakhstan's Railway Sector Modernization
Kazakhstan, the world's largest landlocked country, relies heavily on its extensive railway network for economic growth and connectivity. KTZ, the national railway company, faced significant challenges in modernizing its aging Soviet-era infrastructure and improving operational efficiency.
The railway system plays a vital role in connecting Kazakhstan's 17 regions and three major cities, making efficient rail infrastructure essential for economic development. With rail accounting for 65% of the country's freight turnover, upgrading the network was crucial for Kazakhstan's ambition to become a key transit hub between Europe and Asia. KTZ needed to address issues such as high depreciation rates of rolling stock, limited capacity during peak demand periods, and infrastructure bottlenecks on key routes.
However, the scale of investment required long-term financing on more favorable terms than KTZ was able to obtain on its own.
MIGA provided a $621 million guarantee to a syndicate of banks lending to Kazakhstan Temir Zholy (KTZ), transforming the nation's critical 16,000-kilometer rail network.
The project addresses infrastructure modernization, enhancing domestic and international trade connectivity and supporting Kazakhstan's low-carbon development ambitions.
Through its credit enhancement product, MIGA enabled international financing, unlocking strategic investments in transportation infrastructure.