The European Investment Bank and the World Bank support Georgia’s main highway upgrade
Friday, February 12World leading financial institutions the World Bank (WB) and the European Investment Bank (EIB) are helping Georgia to upgrade the country’s main transport route - the East-West highway.
The WB is allocating $140 million while the EIB is offering ˆ49.45 million to Georgia to develop the environment and improve logistics services.
Today, Georgia’s Finance Minister Nodar Khaduri and the WB's Regional Director for the South Caucasus Mercy Tembon signed an agreement on the East-West Highway Corridor Improvement Project.
Today’s agreement outlines the creation of a new 14.1 km four-lane highway along the Zemo Osiauri-Chumateleti section of the highway (before the Rikoti tunnel). The WB will finance the construction of 8.3 km of the road.
“The remaining 5.8 km will be financed by the EIB, with whom an agreement will be signed tomorrow,” a spokesperson from Georgia’s Ministry of Finance told Agenda.ge.
The project comprises four components that will be implemented in phases between 2016 and 2020. Once all phases are completed, the East-West highway will meet top European standards.
The East-West highway starts at Tbilisi and travels to the Black Sea resort town of Batumi via Poti.
A press release published by the Ministry of Finance today stated that the East-West highway was the main "transportation artery” in Georgia.
Meanwhile, project details published by the WB on its official webpage stated that the development objectives of the East-West Highway Corridor Improvement Project for Georgia were to:
Reduce road user costs along the East-West highway corridor section upgraded under the project; and to strengthen the capacity of the Roads Department of the Ministry of Regional Development and Infrastructure and the Ministry of Economy and Sustainable Development to manage the road network.
In total, the WB offered $367 million to Georgia to develop the East-West highway. (agenda.ge)