A USD735,000 grant to support railway construction between Kazakhstan and Uzbekistan, intended to ease traffic along an existing cross-border route and enhance rail transport capacity and speed, was approved by the Multilateral Cooperation Center for Development Finance (MCDF) Governing Committee during its meeting in Beijing on 10 June. The project is the first to receive upstream grant funding from the MCDF Central Asia Fund and is expected to be cofinanced by the Asian Infrastructure Investment Bank (AIIB) and International Financial Institution (IFI) partners and implemented by the Government of Kazakhstan.
The MCDF grant will finance preparatory activities for a 139.5-kilometer railway line between Darbaza and Maktaaral in southern Kazakhstan, establishing an additional border crossing with Uzbekistan. By diverting traffic from the congested Saryagash-Tashkent railway line, the project will improve the efficiency, reliability, cost, and volume of the area’s cross-border passenger and freight transport, and strengthen Central Asia connectivity and trade, including corridors linking Asia and Europe.
A comprehensive environmental and social impact assessment, noise and vibration assessment, operational rail safety review, and alternative option studies, as well as a time-bound environmental and social action plan, will be supported by the MCDF grant. It will also fund legal due diligence and the preparation of legal documents critical for de-risking the underlying investment project and ensuring sufficient financial arrangements.
The MCDF grant will help the project adhere to IFI standards and good practices, paving the way for cofinancing of Darbaza-Maktaaral Railway construction by AIIB and partners.
Contact
David Hendrickson
Senior Communications Officer
Mobile: +86 185 0114 6758
david.hendrickson@themcdf.org
