The European Investment Bank (EIB) has agreed to offer loan assistance of €250m to Georgia for the construction and upgrading of priority roads. The loans are covered by the European Union's comprehensive guarantee.

The funds will be mobilised towards rehabilitation of priority roads identified by the government which will enhance both international connectivity with primary focus on the East West Highway, part of the extended Trans-European Transport Network, and domestic mobility.

EIB vice-president Jan Vapaavuori said: “The record EIB lending provided in Georgia is of significant importance for improving the quality of life of Georgian citizens and strengthening the competitiveness of the country.

“Together with our European Commission partners, we will help to upgrade infrastructure in municipalities, extend the network and quality of roads important for better interconnectivity and trade opportunities of Georgia, as well as improved access to finance for companies operating in agriculture to support investments from the introduction of modern technologies from harvest to food production and marketing.”

The road improvement works will contribute to strengthening the vital links between Georgia, Ukraine and Europe through the Black Sea ports, and also to Armenia, Azerbaijan and Turkey.

Georgia First Deputy Prime Minister and Minister of Finance Dimitry Kumsishvili said: “Projects of great significance for Georgia are implemented with financial support of the European Investment Bank (EIB) in the sectors of roads, power energy and municipal infrastructure.

“EIB is also supporting the private sector of the country.

"Operation and future plans of the EIB manifest themselves in a great support to the Four Point Reform Agenda initiated by the Prime Minister of Georgia for the acceleration of infrastructure projects and support of entrepreneurship.

"The road improvement works will contribute to strengthening the vital links between Georgia, Ukraine and Europe through the Black Sea ports, and also to Armenia, Azerbaijan and Turkey."

“Acceleration of investments in the infrastructure sector is of a paramount importance for the development of the country. We are advancing the transport and tourism infrastructure.

"We hope that our investments will inspire the private sector to invest more in the country.”

The project is beneficial to the EU-Georgia Association Agreement that includes a Deep and Comprehensive Free Trade Area Agreement, helping develop more efficient, reliable and safe transport connections for the benefit of Georgian citizens.

Image: EIB to support transport projects in Georgia. Photo: courtesy of European Investment Bank.