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Bishkek (AKIpress) - The European Bank for Reconstruction and Development (EBRD) is further supporting private sector involvement in Kazakhstan’s transport sector by increasing financing to JSC Olzha.
Olzha, a joint stock company, will receive an additional US$ 9 million – in addition to a loan of US$ 24.8 million approved last year – to support the development and growth of the company.
Olzha provides operating leases for freight wagons to corporate clients in Kazakhstan and beyond, mainly for the transportation of liquefied petroleum gas (LPG) and oil products. The company has been active in the market for the last 19 years. Olzha will use the new EBRD financing to purchase about 100 freight wagons and a locomotive, to meet market demand.
“By supporting further development of the company, the EBRD will strengthen the expansion of the private sector supply of operating lease services and promote the application of modern business practices,” said Ekaterina Miroshnik, EBRD Director for Infrastructure, Russia and Central Asia.
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.
Since the beginning of its operations in Kazakhstan, the EBRD has invested close to US$ 6.5 billion in the country’s economy, with more than half of the Bank’s projects supporting the private sector.