The EDB and Kazakhstan’s national railroad carrier, Kazakhstan Temir Zholy, discuss potential development projects
22 September 2023, Astana. The Eurasian Development Bank (EDB) and Kazakhstan Temir Zholy (KTZ), Kazakhstan’s national railroad carrier, discussed potential development projects in Astana.
Nikolai Podguzov, Chairman of the EDB Management Board, mentioned the construction of the Ayagoz–Bakhty railway and a new border crossing on the Kazakhstan–China border among promising initiatives. The Bank intends to finance these projects and has agreed to provide a grant from its Technical Assistance Fund to support the project feasibility study. This new infrastructure is expected to boost freight traffic by 20 million tonnes per year.
Over the past decade (from 2013 to 2022), the number of container trains travelling between China and Europe has increased 200-fold. The value of goods transported in transit through Kazakhstan in 2022 by the United Transport and Logistics Company (in which Kazakhstan’s shareholder holds 33%) is estimated at US $30 billion or approximately 4% of the total value of trade between China and EU countries.
Kazakhstan’s unique geographical position places it as a natural intersection in the North–South and Europe–Western China transport corridors. The EDB places a strong emphasis on the development of transportation infrastructure, including railway infrastructure, in Kazakhstan.
Nikolai Podguzov highlighted that Kazakhstan accounts for the largest share of EDB-funded investment, representing 57% of the Bank’s project portfolio or US $5.6 billion, with 104 projects implemented across various sectors. In 2022, the EDB’s investment in Kazakhstan reached US $1.2 billion, a fivefold increase from the previous year. Since 2023, the Bank has invested over US $900 million, with plans to invest not less than US $3.9 billion through 2026.
Additional Information:
The Eurasian Development Bank (EDB) is an international financial institution promoting integration and development in its member countries. For more than 17 years, the Bank has worked to strengthen and expand economic ties and foster comprehensive development in its member countries. The Bank’s charter capital totals US $7 billion. Its portfolio consists principally of projects with an integration effect in transport infrastructure, digital systems, green energy, agriculture, manufacturing, and mechanical engineering. The Bank’s operations are guided by the UN Sustainable Development Goals and ESG principles.
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