EBRD supports sustainability of Kyrgyz railways
The European Bank for Reconstruction and Development will provide a financial package of 11 million euros to support the sustainability and climate resilience of the Kyrgyz Railways. Financing will consist of a 12-year sovereign bank loan of up to €8 million, as well as a €3 million grant from the EBRD Shareholder Special Fund. Railway Supply magazine writes about this with reference to RailwayPro.
This will allow the Kyrgyz Railway to replace outdated wagon rolling stock for the transport of building materials and agricultural products. The company owns a fleet of 26 locomotives and 1,080 wagons, 80% of which are no longer in use.
The company will also allocate funds for the restoration of the avalanche protection gallery. A gallery in the Boom Gorge, built in the 1980s in northern Kyrgyzstan, was hit by landslides. The implementation of climate change adaptation measures will help the Kyrgyz Railway reduce the risk of damage to railway infrastructure and rolling stock due to weather conditions and avoid service interruptions.
The project will improve the safety and reliability of the company, which transports 38% of all national cargo, with coal, coke, oil and gas products accounting for 34% of the Kyrgyz Railways’ freight mix. This is especially important as trade volumes, especially container traffic, between Asia and Europe continue to grow, and large trade and logistics companies are exploring ways to diversify and optimize transport routes and increase their sustainability. In 2020, 86 block trains from China transited Kyrgyzstan.
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