Asian Development Bank approves $114 million loan for Batumi bypass
Friday, March 31The Asian Development Bank (ADB) has approved a $114 million loan to help improve regional connectivity and road transport efficiency in Georgia, the ADB announced today.
The ADB is also expected to manage and administer up to $114 million in additional financing for the project provided by the Asian Infrastructure Investment Bank (AIIB). This is the first ADB project to be cofinanced with another development partner in Georgia, and the third project to be cofinanced by ADB and AIIB.
The project will construct a new 14.3 km bypass road skirting the port city of Batumi - Georgia’s second largest city and a crucial entry-exit point for the trade commodities on the East-West Highway.
The announcement also said that the overall aim of the project is to strengthen Georgia’s bid to become a regional transport and logistics hub.
"Georgia is well poised to become a stronger transport and logistics hub for the Caucasus region — something that could help propel the country’s growth and development”, said Yesim Elhan-Kayalar, ADB Country Director in Georgia.
"ADB is committed to play a seminal role in improving the country’s transport connectivity and the sustainability of its road network through this project.”
The ADB also said that new two-lane bypass road starting from the Senaki-Poti-Sarpi road and ending at the juncture of the existing Batumi-Akhaltsikhe road is an integral part of the East-West Highway.
As part of the financing, performance-based maintenance contracts will also be implemented for the routine and periodic maintenance of about 200 km of international and connecting secondary roads. These contracts will consist of output and performance-based components including initial repairs, routine maintenance, periodic maintenance, and emergency maintenance works for effectiveness and efficiency.
Since 2007, the ADB has mobilized more than $2.1 billion in public and private sector financing operations for Georgia. (agenda.ge)