Kazakhstan’s national railway company Kazakhstan Temir Zholy (KTZ) will receive $150 million in financing from the Asian Infrastructure Investment Bank (AIIB) to support the construction of a railway bypass around Almaty. The project is considered a key strategic initiative aimed at improving freight efficiency, easing urban congestion, and strengthening regional transport connectivity, DKNews.kz reports.
The financing agreement was signed in Beijing and is provided on a non-sovereign basis, underscoring international confidence in KTZ and Kazakhstan’s broader transport modernization agenda.
Part of a Multilateral Financing Package
The Almaty railway bypass is being implemented as part of a broader multilateral financing package involving several major international institutions. Alongside AIIB, the project is supported by the International Finance Corporation (IFC), Standard Chartered Bank, and the Multilateral Investment Guarantee Agency (MIGA).
Under the arrangement, KTZ may receive up to $300 million, denominated in Swiss francs. The financing structure combines investments from AIIB and IFC with guarantees from MIGA, reflecting strong international backing for Kazakhstan’s efforts to develop a more resilient and competitive logistics system.
What the Project Includes
The project предусматривает construction of a new electrified single-track freight railway line bypassing the northern part of Almaty. The route will stretch approximately 75 kilometers, running from Zhetygen station in the east to Kazibek Bek station in the west.
The new bypass will create a dedicated freight corridor outside densely populated urban areas. In addition to the rail line itself, the project includes the construction of new stations, bridges, and overpasses, as well as the modernization of terminal sections at both ends of the route.
Benefits for Almaty and the National Rail Network
By diverting freight trains away from the city, the project is expected to eliminate one of the most critical operational bottlenecks in Kazakhstan’s railway system. This will free up capacity for passenger services within Almaty, improving reliability and urban mobility.
The project is also expected to reduce emissions associated with rail congestion, contributing to environmental improvements in the country’s largest city.
Boosting Kazakhstan’s Transit Potential
Improved freight efficiency will further strengthen Kazakhstan’s role as a key Eurasian transit hub. The project will enhance the country’s ability to service regional and international cargo flows, including routes linked to the Trans-Caspian Transport Corridor, which plays an increasingly important role in Eurasian trade.
“Strengthening transport infrastructure is essential for Kazakhstan’s long-term development and its role as a major transit hub in Eurasia,” said Konstantin Limitovsky, Chief Investment Officer of AIIB for the public sector in Region 2. “The Almaty rail bypass addresses one of the most serious bottlenecks in the national rail system, enabling faster, more reliable, and environmentally friendly freight transport. We are pleased to partner with KTZ on a project that delivers tangible benefits for both businesses and city residents.”
International Support for Infrastructure Modernization
IFC representatives also emphasized that the investment supports Kazakhstan’s efforts to modernize railway infrastructure, expand electrification, and increase capacity along strategically important corridors.
Removing key bottlenecks and improving network reliability, they noted, will have a positive impact on trade, private sector competitiveness, and the efficiency of the broader logistics system, while also strengthening regional connectivity.
Part of a Broader National Strategy
Kazakhstan is a founding member of AIIB and one of the Bank’s key partners in Central Asia. The Almaty railway bypass project complements the country’s wider national agenda focused on transport infrastructure modernization, transit development, and the creation of a sustainable and efficient logistics network.
The investment aligns with AIIB’s thematic priorities of Connectivity and Regional Cooperation and Sustainable Infrastructure, reaffirming the Bank’s commitment to supporting projects that promote economic growth and long-term development. The project will be implemented by Kazakhstan Temir Zholy.
