Kazakhstan-Transforming Rail and Connectivity in Kazakhstan (Middle Corridor Development) Program - Chair Summary - February 19, 2026

Jul 19, 2026

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Executive Directors approved a Multiphase Programmatic Approach financing envelope of US$1,236 million for Kazakhstan’s Transforming Rail and Connectivity in Kazakhstan (Middle Corridor Development) Program, including Phase 1 with an IBRD guarantee of US$846 million. The chair summary supports the Trans-Caspian Transport Corridor (“Middle Corridor”) to improve market access, address bottlenecks, and strengthen industrial diversification, value-chain resilience, trade, competitiveness, private sector growth, and jobs. The program prioritizes reforms for rail company sustainability, governance, cost recovery, tariff structures, and reduced quasi-fiscal risks, while emphasizing sequenced investments, and robust environmental and social monitoring.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages1

Reading Time3 min

Executive Directors’ approval and financing envelope

Phase 1 IBRD guarantee

Strategic rationale for the Middle Corridor

Expected impacts: diversification, trade, jobs

Reform orientation and rail company sustainability

Implementation approach: sequencing, monitoring, partnerships

Public Disclosure Authorized Public Disclosure Authorized Kazakhstan-Transforming Rail and Connectivity in Kazakhstan (Middle Corridor Development) Program using the Multiphase Programmatic Approach, including an IBRD Guarantee for Phase 1 Chair Summary* February 19, 2026 Executive Directors approved a Multiphase Programmatic Approach (MPA) financing envelope of US$1,236 million for the Republic of Kazakhstan’s Transforming Rail and Connectivity in Kazakhstan (Middle Corridor Development) Program, including Phase 1 comprising of an IBRD guarantee of US$846 million. Mr. Wisner wished to be recorded as abstaining. Executive Directors expressed support for the Trans-Caspian Transport Corridor initiative, also known as the Middle Corridor, which aims to improve market access for several economies in the ECA region, including for several land-locked countries in Central Asia and the South Caucasus. Directors recognized the strategic importance of addressing key bottlenecks along Kazakhstan’s segment of the Middle Corridor. They noted that the MPA will boost industrial diversification, strengthen the resilience of value chains, and thus enhance regional and global trade, while bolstering competitiveness, promoting private sector-led growth, and creating jobs. Directors endorsed the Program’s reform orientation, which is expected to improve Kazakhstan’s rail company’s financial sustainability and operational efficiency and advance its transition from a state-supported utility to a profitable, self-sustaining company. They highlighted the importance of the accompanying reforms to strengthen corporate governance, enhance cost recovery and tariff structures, and reduce quasi-fiscal risks. Directors welcomed the use of the MPA, given the long-term nature and capital intensity of the railway sector. They highlighted the importance of sequencing multiple investments with necessary reforms and infrastructure upgrades that will ensure the sustainability of the program. Directors also noted that the program carries significant environmental and social risks and encouraged Management to incorporate robust monitoring and mitigation measures during implementation, and to capture and apply learnings across the two phases of the MPA. Directors commended the Program’s One-World Bank Group approach, and that its design reflects close collaboration with development partners, including EBRD, ADB, and AIIB. *This Summary is not an approved record.

FAQs

What financing envelope did the Executive Directors approve for Kazakhstan’s program?

They approved a Multiphase Programmatic Approach envelope of US$1,236 million for the Transforming Rail and Connectivity in Kazakhstan (Middle Corridor Development) Program.

What does Phase 1 include?

Phase 1 includes an IBRD guarantee of US$846 million.

What key reforms and measures are emphasized for implementation?

The program emphasizes corporate governance, cost recovery and tariff structures, reduction of quasi-fiscal risks, and robust monitoring and mitigation of significant environmental and social risks, with learnings applied across both phases.

Jul 19, 2026

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