Olzha Loan Extension

Summary

The project extends a secured loan to JSC Olzha, a private operator of freight wagons in Kazakhstan, to acquire new freight railcars and one shunting locomotive.

Expected Outcome

By supporting the acquisition of additional wagons, the project will indirectly support small and medium-sized companies whose business involve transportation of commodities and thus improve trade.

Expected Outputs

The first loan was signed in July 2013 and aims to

• expand private sector participation;
• develop the leasing market which remains underdeveloped, particularly in the railcar leasing segment); and
• set standards through formal introduction of OHSAS 18001 (safety process and management), which is a key issue for LPG railcars.

The proposed loan extension would support further expansion of the above original objectives.