Azernews.Az

By Aynur Jafarova

The European Bank for Reconstruction and Development (EBRD) continues supporting private sector involvement in Kazakhstan's transport sector.

The bank will allocate $ 9 million - in addition to a loan of worth $24.8 million approved last year - to Kazakhstan's Olzha Joint Stock Company to support the development and growth of the company, the EBRD reported on March 28.

The company will direct the new EBRD financing to purchase about 100 freight wagons and a locomotive, to meet market demand.

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.

Ekaterina Miroshnik, the EBRD Director for Infrastructure, Russia and Central Asia said 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.

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 percent of all freight movement.

Since the beginning of its operations in Kazakhstan, the EBRD has invested around $6.5 billion in the country's economy, with more than half of the bank's projects supporting the private sector.