The Asian Development Bank (ADB) has granted a $114m loan to Georgia to improve the country’s road infrastructure and regional connectivity.

The Asian Infrastructure Investment Bank (AIIB) will also support the project with an additional $114m loan, which is expected to be managed and administered by ADB.  

The project will be the first ADB project in Georgia that has been co-financed by another financial institution and also the third project to be co-financed by ADB and AIIB.

It will involve the construction of a 14.3km bypass road around the port city of Batumi, which is reported to be Georgia’s second largest city and is considered a key entry-exit point for trade commodities plying through the East-West Highway.

ADB Georgia Country director Yesim Elhan-Kayalar said: “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.

“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.”

"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 new two-lane bypass road will begin at Senaki-Poti-Sarpi road and end at the juncture of the existing Batumi-Akhaltsikhe road, making it an integral part of the East-West Highway.

The Government of Georgia intends to make the country a preferred gateway for businesses working between Asia and Europe.

As part of the financing, ADB intends to implement performance-based maintenance contracts for the routine and periodic maintenance of international and connecting secondary roads.

These contracts will include initial repairs, routine maintenance, periodic maintenance, and emergency maintenance works for effectiveness and efficiency.

Image: ADB to provide loan to improve road infrastructure in Georgia. Photo: courtesy of Asian Development Bank.