WASHINGTON, February 19, 2026—The World Bank’s Board of Executive Directors approved today a $846 million IBRD guarantee to mobilize $1.41 billion in long-term commercial financing for a major rail connectivity project along Kazakhstan’s section of Trans-Caspian International Transport Route (Middle Corridor), a strategic trade route linking Asia and Europe.
The Transforming Rail Connectivity in Kazakhstan (Middle Corridor Development) Project aims to improve the efficiency and resilience of the country’s rail network while strengthening the financial sustainability and commercial viability of Kazakhstan Temir Zholy (KTZ), the national railway operator. The project will reinforce Kazakhstan’s role as a key Eurasian transit and logistics hub, supporting economic growth, regional integration, and climate resilience.
“Beyond enabling critical infrastructure investments, this project supports important reforms that will strengthen Kazakhstan Temir Zholy’s financial sustainability and long-term competitiveness,” said Andrei Mikhnev, World Bank Country Manager for Kazakhstan and Turkmenistan. “By combining phased investments, institutional reforms, and private capital mobilization, we are helping build a modern rail system that will deliver lasting economic and environmental benefits for Kazakhstan and the wider region.”
The project comprises two main components: railway connectivity investments and institutional and implementation support.
The first component will finance the construction of a new 322.3-kilometer greenfield railway line between Mointy and Kyzylzhar. This critical link will eliminate a major network detour, shorten the corridor by 149 kilometers, relieve congestion on heavily used sections, and enable double-stack container operations. The new line will include modern signaling and telecommunications systems, with provisions for future expansion and electrification.
The second component will provide technical assistance and institutional strengthening to KTZ, including support for tariff reforms, exploration of alternative financing mechanisms, enhanced financial and environmental management, and preparation for a future initial public offering (IPO).
The project is expected to contribute to tripling the volume of freight operations and halving end-to-end transit times along the Middle Corridor by 2030. By shifting freight from road to rail, the project will reduce transport-related emissions, contributing to Kazakhstan’s climate commitments and sustainable development agenda. Investments in modern, climate-resilient infrastructure will also improve market access, lower trade costs, and stimulate job creation and local economic development, particularly in communities along the new railway corridor.
The project is being implemented through a Multi-Phase Programmatic Approach (MPA), enabling sequenced implementation and learning while gradually reducing reliance on sovereign guarantees. It forms part of the joint implementation plan for the development of the Middle Corridor in Kazakhstan, which brings together the combined expertise and financing instruments of the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), and Multilateral Investment Guarantee Agency (MIGA).
The project mobilizes $1.41 billion in private financing, supported by an IBRD guarantee of $846 million and a co-guarantee from the Asian Infrastructure Investment Bank (AIIB) of $564 million.
