The World Bank Group’s Board of Executive Directors has approved a USD 372 million project aimed at improving Georgia’s transport infrastructure and strengthening its role in the Trans-Caspian Transport Corridor, a key trade route connecting Europe and Asia.
World Bank says the Trans-Caspian Transport Corridor – Georgia Accessibility and Transport Enhancement (TC-GATE) Project will finance upgrades to rail freight capacity, modernisation of strategic road segments, and reforms designed to improve the efficiency and resilience of Georgia’s transport sector.
The project is expected to directly benefit more than 900,000 people by enhancing transport connectivity, improving market access, and reducing logistics costs for businesses, farmers, and local communities. The World Bank says the initiative is also expected to create jobs across the logistics, transport, agribusiness and related sectors.
“These investments will help Georgia realise its full potential as a critical regional transit hub bridging Europe and Asia, while responding to growing demand along the Trans-Caspian Transport Corridor,” said Rolande Pryce, the World Bank’s Regional Director for the South Caucasus. He noted that modernising key rail and road links and strengthening the institutions that manage them would improve connectivity, create employment opportunities and support economic growth across the region.
The total cost of the TC-GATE Project exceeds USD 750 million. The World Bank is providing USD 372 million, while the remaining funding will be co-financed by the Asian Infrastructure Investment Bank (AIIB) and the Asian Development Bank (ADB), reflecting broad international support for the development of the Middle Corridor.
Georgian Finance Minister Lasha Khutsishvili said the project would strengthen Georgia’s position as a reliable gateway between Europe and Asia and support growing international trade flows.
“Together with our international partners, we are committed to building a modern transport network that will serve the region for decades to come,” Khutsishvili said, adding that the planned upgrades would improve the efficiency of the Middle Corridor and strengthen the resilience of regional connectivity.
A major component of the project focuses on modernising rail freight services. The World Bank said funding will be used to purchase new energy-efficient electric locomotives to replace ageing rolling stock and improve the operational efficiency, governance and financial sustainability of Georgian Railway. The upgrades are expected to increase locomotive availability to 95 percent, improve service reliability and contribute to a 20 percent rise in railway revenues. They are also projected to reduce net emissions by more than 2.3 million tons.
The project will also improve road connectivity in Kakheti through the construction of two new four-lane road sections between Badiauri, Chalaubani and Bakurtsikhe, as well as a new road connecting Gurjaani and Telavi. World Bank says the improvements will cut travel time between Telavi and the Black Sea port of Poti by approximately 43 minutes while improving road safety and climate resilience.
In addition, the project will support the digitisation of road asset management, the introduction of Intelligent Transport Systems through a National Highway Control Center, and measures aimed at ensuring the long-term sustainability of Georgia’s road network.
The World Bank said the initiative will also promote economic opportunities for women entrepreneurs in the Kakheti region and explore greater private-sector participation in road management and maintenance.
