Project Description
On June 30, 2026, MIGA issued two guarantees totaling US$998 million to cover SCB, J.P. Morgan, and CB’s loan to the Development Bank of Kazakhstan (DBK), providing coverage against the risk of non-honoring of financial obligations for a state-owned enterprise, covering for up to 95% of DBK’s payment obligations under the facility for a tenor of up to 10 years. The Project entails a loans of up to US$785 million from SCB, J.P. Morgan, and CB (the Guarantee Holders) to DBK, which will then on-lend the funds to Joint Stock Company National Company “KazAvtoZhol” (KAZh) for financing regular road maintenance and medium repair works under the National Road Rehabilitation and Repair investment project (the Program) of around 7,700 kilometers of public republican roads. This includes strategic sections of the North-South Corridor and the Trans-Caspian Transport Corridor, also known as the Middle Corridor, an increasingly important alternative route connecting Asia and Central Asia to Europe.
The US$2 billion Program also includes an EUR200 million loan from the European Investment Bank (EIB). This is the first project MIGA has supported jointly with the EIB, with close collaboration during the due diligence process.
Kazakhstan faces road quality and safety challenges due to deteriorating infrastructure. The Government of Kazakhstan launched the Program in 2024, targeting completion by 2028, to improve road conditions, reduce accidents, shorten travel times, and boost international transit traffic.
Within the on-lending structure to KAZh, DBK will benefit from a sovereign guarantee from the Ministry of Finance to protect itself against potential defaults of KAZh to DBK. KAZh does not have a standalone credit profile, and its balance sheet and income statement are not supportive of any lending without external support. MIGA’s guarantee enables DBK to (i) expand its funding sources beyond DFI and bilateral loans by attracting a wide array of commercial lenders and (ii) to attract a sizeable amount of long-term commercial financing on favorable terms.
This project is the largest MIGA project to date in Central Asia.
Environmental Categorization
The Project is classified as Category B under the MIGA’s Policy on Environmental and Social Sustainability. Click here for the project’s Environmental and Social Review Summary.
Development Impact
The rehabilitation of the road infrastructure in Kazakhstan will restore the original qualities of the roads, which will benefit the road users and local communities by reducing the travel time, improving road safety and reducing overall transport and vehicle operational costs. At the same time, road rehabilitation will create new employment opportunities directly during the construction phase and indirectly by enhancing economic dynamism along the road corridors. The project also improves connectivity across the country as the roads to be rehabilitated connect important economic hubs such as industrial areas and tourist destinations. Some roads are part of international corridors connecting neighboring countries.
The project is aligned with the World Bank Group Country Partnership Framework (CPF) for Kazakhstan for FY2020-2025, in particular the third objective of the CPF “Strengthen Connectivity Infrastructure”, which aims at improving connectivity between the country’s regions and with neighboring countries.
