Eurasian Development Bank will finance production of electric locomotives in Kazakhstan
Almaty, August 1, 2012 — Eurasian Development Bank (EDB) yesterday signed a loan agreement with LLP Electrovoz Kurastyru Zauyty (EKZ) as part of project of organization of production of electric locomotives in Kazakhstan. According to the document EDB has provided loan facility to this Kazakh company, which is project operator, in the amount of KZT 10 bn. (more than US $ 66 m) for a period of 10 years.
The funds are intended for construction of modern plant in Astana industrial park for assembly of main electric locomotives based on technology of Alstom company, which has considerable experience in the industry. The company will produce four-, six-and eight-axle locomotives with asynchronous traction motors designed for both freight and passenger rail transportation.
The total project cost is over KZT 18 bn. Thus the size of initiators’ participation in the project will be more than KZT 8 bn. or 44% of all investments.
The company EKZ is a joint venture established in 2010 specifically for this project. Its founders are JSC Remlokomotiv (a subsidiary of JSC National Company Kazakhstan Temir Zholy (JSC NC KTZh) — the operator of Kazakhstan’s main railroad network) with share in the authorized capital amounted to 50%, Alstom Holdings — French engineering company, one of the world’s leading manufacturers of power equipment and railway transport, with share in the authorized capital amounted to 25%, and JSC Transmashholding — the largest company in Russia in the field of transport engineering, with share in the authorized capital amounted to 25%.
Within this project JSC Locomotive has already signed a contract with EKZ for delivery of 200 freight and 95 passenger locomotives till 2020 for the needs of Kazakh railway. The total contract value is around Euros 1.3 bn.
JSC NC KTZh, being project’s initiator, oversees construction of modern plant for assembly of electric locomotives, Alstom transfers modern technologies of electric locomotives production and will deliver more than 50% of components for electric locomotives and Transmashholding will supply about 25% of components to the plant.
When implementing the project a strong effect of sustainable economic development of Kazakhstan’s economy will be achieved. First of all it will have positive impact on development of transport infrastructure in Kazakhstan and a single railway network of CIS countries.
«With growing demand for railway transportation locomotive fleet of the Bank member states (Russia and Kazakhstan) is characterized by rowing moral and technical wear, which in turn leads to an increase in costs of its maintenance and repair, — says Deputy Chairman of the EDB Managing board, Marat Dzhaukenov. — Organization of new production of electric locomotives will contribute to upgrade of rolling stock fleet, increase in volume of railway traffic, improvement of efficiency and safety of use of existing infrastructure as well as the transition to more environmentally friendly type of transport».
During the period of crediting from EDB total gross output in Kazakhstan’s economy will exceed US $ 222 m a year. The company plans to create 650 new jobs.
The project has integrative effects, which are expressed in
growth of mutual trade and increase of mutual investments between member
states. Russian company Transmashholdding stands as one of initiators and
Reference
Eurasian Development Bank is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth and the expansion of trade and other economic ties in its member states. EDB’s charter capital exceeds US $1.5 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan