Azerbaijan, Baku, July 31 / Trend E. Kosolapova/
The European Bank for Reconstruction and Development (EBRD) is providing the private Kazakh rail company JSC Olzha with a $24.8 million (€19.2 million equivalent) loan to support the development and growth of the company, the bank reported.
Olzha, a joint stock company, is providing operating leases for freight wagons to corporate clients in Kazakhstan and beyond, mainly for the transportation of liquefied petroleum gas (LPG) and oil products. Olzha has been active in the market for the last 18 years. As freight owners increasingly favour leasing over ownership of railroad cars, demand for Olzha's services is expected to increase significantly. This will be fuelled further by an increase in oil and gas production in Kazakhstan in the years ahead.
"The EBRD loan will enable the company to expand its fleet and strengthen its position in the market. Also, as part of this engagement with the Bank, the company will implement a programme to align health and safety practices with the relevant international standards," General Director of Olzha Bolat Dyuisekin said.
Kazakhstan has one of the world's largest railway networks. With its vast territory and lack of a significant water transport alternative, railways play a key role in the national transport sector, accounting for some 60 per cent of all freight movement.
"This is our first private sector transaction in the railway sector in Kazakhstan and it makes us very proud to support the future growth and development of a local company with strong potential such as Olzha," EBRD Managing Director for Infrastructure Thomas Maier said.
Since the beginning of its operations in Kazakhstan 20 years ago, the EBRD has invested close to $6.3 billion in the country's economy, with more than half of the Bank's projects supporting the private sector.