The Asian Infrastructure Investment Bank (AIIB) will lend USD150 million to support the Almaty Railway Bypass Project, a landmark investment aimed at strengthening freight efficiency, urban mobility and regional connectivity in Kazakhstan. The financing is provided to Kazakhstan Temir Zholy (KTZ), the national railway company, under a nonsovereign structure.
As part of a broader financing package, the International Finance Corporation (IFC), AIIB and the Multilateral Investment Guarantee Agency (MIGA) will jointly provide up to USD300 million equivalent in Swiss-franc-denominated support to KTZ, combining IFC and AIIB investment with a MIGA guarantee. This multilateral partnership reflects strong international confidence in Kazakhstan’s transport modernization agenda and reinforces efforts to build a more resilient and competitive logistics network.
The project will finance construction of a new single-track electrified freight railway bypass along the northern perimeter of Almaty. Extending about 75 km between Zhetygen station in the east and Kazybek Bek station in the west, the route will provide a dedicated corridor for freight operations outside the densely populated city center. The bypass includes construction of new stations and supporting structures such as bridges and overpasses, as well as upgrades at both terminals.
The investment marks a significant step in modernizing Kazakhstan’s transport infrastructure and improving mobility in its largest city. A dedicated freight route around Almaty will reduce operational bottlenecks, free up capacity for passenger services and help lower emissions associated with rail congestion. Strengthening rail efficiency will also expand Kazakhstan’s capacity to support regional transit flows across Eurasia, including along the Middle Corridor trade route.
“Strengthening Kazakhstan’s transport backbone is essential for supporting the economy’s long-term growth and its role as a key connectivity hub across Eurasia,” said Konstantin Limitovskiy, Chief Investment Officer, Public Sector (Region 2) & Project and Corporate Finance (Global) Clients, AIIB. “This project removes one of the most significant bottlenecks in the national rail system, enabling faster, cleaner and more reliable freight movement. We are pleased to partner with KTZ on an investment that enhances efficiency for businesses and improves mobility for citizens.”
“IFC’s investment aims to support Kazakhstan’s efforts to modernize national rail infrastructure, expand electrification, and increase capacity on strategic corridors,” said Laura Vecvagare, IFC’s Regional Head of Industry for Infrastructure and Natural Resources in the Middle East, Central Asia, Türkiye, Afghanistan and Pakistan. “By addressing key bottlenecks and improving network reliability, the project is expected to generate positive spillovers for trade facilitation, private sector competitiveness, and the overall logistics ecosystem. It also supports Kazakhstan’s efforts to deepen connectivity and integration across Central Asia and the Caucasus.”
About AIIB
The Asian Infrastructure Investment Bank is a multilateral development bank dedicated to financing “Infrastructure for Tomorrow,” with sustainability at its core. AIIB began operations in 2016, now has 111 approved members worldwide, is capitalized at USD100 billion, and is AAA-rated by major international credit rating agencies. AIIB collaborates with partners to mobilize capital and invest in infrastructure and other productive sectors that foster sustainable economic development and enhance regional connectivity.
About KTZ
«Kazakhstan temir zholy» (KTZ) is Kazakhstan’s state-owned national railway company, responsible for the development, operation, and maintenance of the country’s railway infrastructure. Established in 1997, KTZ provides freight and passenger rail services nationwide and plays a central role in Kazakhstan’s transport and logistics system. KTZ supports regional and international connectivity by participating in major trans-Eurasian rail corridors linking Asia and Europe, reinforcing Kazakhstan’s position as a key transit hub for international trade.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Operating in more than 100 countries, IFC uses its capital, expertise and influence to create markets and opportunities in developing countries. In fiscal year 2025, IFC committed a record USD71.7 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet.
