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Kazakhstan: EUR 10.0 million EBRD loan to Pavlodar Tram Management Company

The European Bank for Reconstruction and Development is considering providing a EUR 10.0 million (KZT 2.46 billion) loan to Pavlodar Tram Management Company support to improve public transport services in the city .  Pavlodar Tram Management Company is wholly owned by the Pavlodar Oblast Akimat (the Oblast Akimat) through its asset management company Joint-Stock Company National Company Social-Entrepreneurial Corporation Pavlodar (SPK). 
The Project also includes co-financing of up to EUR 6.0 (KZT 1.47 billion)  from the Oblast Akimat and/or the Government of Kazakhstanunder the Enhanced Partnership Framework Arrangements.
The Project will significantly improve the quality of the public transport services in the City through the: (i) rehabilitation of the existing tram infrastructure and the acquisition of new trams; (ii) introduction of an integrated ticketing system; and, (iii) improved financial and operational management of the Company.
In order to achieve the results outlined above, the Priority Investment Programme (the PIP) and the Long-Term Investment Programme (LTIP) was developed. The PIP was defined and agreed on the basis of assessment of the current situation, priority needs, and achievable goals in the medium term. The PIP will also contribute greatly to the objectives and goals of the long-term investment plan, while providing first aid for the most urgent modernisation needs.
The following criteria were considered when selecting the priority investment components:
  • high priority of implementation;
  • high financial and technical feasibility;
  • substantial and measurable cost savings;
  • reasonable investment costs;
  • reasonably short payback.
As a result, the PIP includes the following actions, to be undertaken by Pavlodar Tram Management Company:
  • Procurement of 25 new tram units;
  • Urgent infrastructure investments (tram tracks, junctions, etc.);
  • Procurement of a GPS monitoring system.
The Long-Term Investment Programme (LTIP) includes the recovery of the infrastructure network. An important component of the LTIP will be an integrated ticketing system along with the envisaged interchange terminals to ensure trams continue to be system’s backbone and envisaged savings from service overlap could be achieved. LTIP will be financed by the Akimat and potentially financial institutions.

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