Olzha Phase III Loan

Summary

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

Expected Outcome

By supporting the acquisition of additional wagons, the project would 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.

Phase 3 will further facilitate implementation of the original objectives and promote enhancing corporate governance standards via setting up the audit and risk committees.