KYRGYZSTAN: National railway KTJ is to replace wagons, undertake climate mitigation works and promote economic inclusion using €11m of financial support which has been arranged by the European Bank for Reconstruction & Development.
The package comprises a 12-year sovereign bank loan of up to €8m, plus a €3m grant provided by the EBRD Shareholder Special Fund.
The funding will enable KTJ to replace obsolete open wagons currently used to transport construction materials and agricultural produce.
It will also support repairs to infrastructure including a 1980s avalanche protection gallery where the Bishkek to Balykchy line passes through the Boom Gorge, which has been affected by climate-related geological hazards such as landslides.
As part of the project, KTJ will design and implement an inclusive training programme on climate risk assessment and mitigation measures.
Announcing the financing on December 1, EBRD said KTJ transports 38% of the country’s freight. Volumes are continuing to grow, particularly container traffic between Asia and Europe; logistics companies are exploring ways to diversify, optimise and increase the sustainability of their transport routes.
- On December 9 KTJ, RZD International and the Russia Export Centre signed a memorandum of understanding covering studies into the possible joint construction of the planned 163 km Balykchy – Kara-Keche line. KTJ is current building the first 5 km of the route using its own resources, with completion expected by the end of 2022.
