The World Bank has approved an $846 million guarantee from the International Bank for Reconstruction and Development (IBRD) to mobilize $1.41 billion in long-term commercial financing for a major rail connectivity project in Kazakhstan. The investment will support development along the country’s section of the Trans-Caspian International Transport Route, also known as the Middle Corridor, a strategic trade link connecting Asia and Europe. The initiative is designed to strengthen Kazakhstan’s position as a key Eurasian transit and logistics hub.
The Transforming Rail Connectivity in Kazakhstan (Middle Corridor Development) Project aims to enhance the efficiency, resilience, and financial sustainability of the national rail network while improving the commercial viability of Kazakhstan Temir Zholy, the country’s railway operator. By combining infrastructure investments with institutional reforms and private capital mobilization, the project seeks to modernize the rail system, support economic growth, promote regional integration, and advance climate resilience.
A central component of the project is the construction of a new 322.3-kilometer railway line between Mointy and Kyzylzhar. This greenfield line will eliminate a major detour, shorten the corridor by 149 kilometers, ease congestion on heavily trafficked sections, and enable double-stack container operations. The railway will incorporate modern signaling and telecommunications systems, with provisions for future electrification and expansion to meet growing demand.
In addition to infrastructure upgrades, the project includes technical assistance and institutional strengthening measures for Kazakhstan Temir Zholy. These reforms will focus on tariff adjustments, exploration of alternative financing options, improvements in financial and environmental management, and preparation for a potential future initial public offering. The broader objective is to enhance the company’s long-term competitiveness and financial sustainability.
By 2030, the project is expected to triple freight volumes and cut end-to-end transit times along the Middle Corridor by half. Shifting freight transport from road to rail will help reduce emissions and contribute to Kazakhstan’s climate commitments, while modern and climate-resilient infrastructure is anticipated to improve market access, lower trade costs, and stimulate job creation in communities along the new railway corridor.
The initiative is being implemented through a Multi-Phase Programmatic Approach and forms part of a joint implementation plan involving the World Bank Group’s IBRD, the International Finance Corporation, and the Multilateral Investment Guarantee Agency. In addition to the IBRD guarantee, the project benefits from a $564 million co-guarantee from the Asian Infrastructure Investment Bank, helping mobilize substantial private sector financing for Kazakhstan’s strategic transport development.
