Project Description

The provision of a KZT 1.4 billion (€ 2.8 million equivalent) loan to Temirservice Astana LLP for the construction of railway tracks in Astana.

Project Objectives

The Project will be supporting a private company investing in commercial transport operations and expansion of rail freight services.

Transition Impact

ETI score: 60

• Competitive – the Project will support the Company’s profitability.
• Green – the Project will expand railway infrastructure to avoid congestions and CO2 emissions because of increasing demand.

Client Information

TEMIRSERVICE ASTANA LLP

Temirservice Astana LLP operates last-mile railway infrastructure in Astana and railway tracks in industrial parks in the Astana area.

EBRD Finance Summary

KZT 1,400,000,000.00

Total Project Cost

KZT 2,000,000,000.00

Additionality

The EBRD offers financing that is not available in the market from commercial sources on reasonable terms and conditions.

Environmental and Social Summary

Categorised B (2019 ESP) and low-medium risk. The Project involves existing client, and its Environmental and Social (“E&S”) performance and reporting including Environmental and Social Action Plan (“ESAP”) implementation during the Bank’s previous operation has been reviewed during ESDD. ESDD has been carried out as a combination of internal review of the past E&S performance under the previous operation, review of the past reports, and an external Technical due diligence by independent consultants. The impacts of the Project are not expected to be significant and would be limited to the immediate vicinity of the new 4.2 km track and auxiliary infrastructure. The Project will be subject to a local Environmental Impact Assessment (“EIA”) procedure and it will be implemented in the existing industrial area next to the Company’s station. The Project will have no impacts on any environmentally sensitive areas or cultural heritage sights. Land ownership as well as current and previous land use have been reviewed and no risks have been identified in relation to the Project implementation. The Company has adequate corporate management systems in place, including formalised policies and procedures on environmental and Occupational Health and Safety (“OHS”) matters. Management of the Company is familiar with the EBRD requirements from the previous operation and has the necessary skills and capacity to implement the investment project in line with the EBRD Performance Requirements (“PRs”). The TSA will be further required to strengthen their construction management practices, safety/emergency procedures and obtain the necessary permits prior to start of construction. Previous ESAP will be further updated and agreed with the Company prior to signing.

Technical Cooperation and Grant Financing

TC1 – Technical and market due diligence: EUR 50,245 financed 50% by the SME F&D TC funds provided by the Government of Kazakhstan and 50% by the Company’s parallel cost sharing contribution.

Company Contact Information

Kanat Rakhmetov
rakhmetov@tsast.kz
+7 (7172) 613-145
https://tsast.kz/

PSD last updated

14 Sep 2023

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD’s Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank’s countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.