Kuwait Fund finances road rehabilitation in Adjara region
Wednesday, January 18The Kuwait Fund for Arab Economic Development has offered the equivalent of $27 million to Georgia to improve road infrastructure in Georgia’s Adjara region.
A loan agreement was signed yesterday in Georgia’s capital of Tbilisi between Georgia and the Kuwait Fund for Arab Economic Development, whereby the Fund will extend a loan of 8 million KD to Georgia.
The money will be spent on the rehabilitation of the 29km-long stretch of the Khulo-Goderdzi section of the Batumi-Akhaltsikhe road. The works will also include the construction of concrete culverts and roadside channels for water drainage, the reconstruction of four bridges and traffic safety signs.
Thanks to these efforts the road leading to Georgia’s Goderdzi resort will be restored and will reduce transport cost and time for passengers headed to the winter resort.
Georgia’s Finance Minister Dimitry Kumsishvili believes road reconstruction will boost tourism development in Goderdzi, encourage the local sector to build more hotels, tourist facilities and attractions and create more jobs.
Fixing the Khulo-Goderdzi road section is part of a government-initiated Spatial Arrangement Plan and four-point reform plan, which includes new tax benefits, infrastructure plans, governance reforms and an overhaul of the education system.
The total cost of the project is about 93 million GEL (about $35 million/ˆ32 million*) and the Kuwait Fund Loan will cover approximately 64 percent of the total amount.
The loan term is 25 years including an initial grace period of five years, and will be paid off in 40 semi-annual instalments.
This is now the third loan the Kuwait Fund would give to Georgia to finance projects in the transport sector, totalling more than 17.3 KD (approximately $59 million).
Currency conversions reflect National Bank of Georgia values as of yesterday . (Agenda.ge)