The World Bank board of executive directors has approved €16.9m equivalent additional financing for the East-West Highway Corridor Improvement Project in Georgia.

In addition to the approved loan, the road upgrade project also includes co-financing from the European Investment Bank (EIB) and the Government of Georgia.

The project will be carried out to reduce road user costs along the East-West Highway corridor section and to boost the capacity of the Roads Department under the Ministry of Regional Development and Infrastructure.

World Bank’s additional financing will be used in the construction of a new dual carriageway stretching from Chumateleti to Khevi, including 21 bridges, two new tunnels and the development of the second tube of Rikoti Tunnel for the west to east traffic direction.

In addition, the funding will support scaling-up of activities initiated under the original project that would help complete the East-West Highway corridor improvement works, along with supporting the Roads Department to ensure the sustainability of road investments.

“The East-West Highway Corridor Improvement Project is a central piece in the government’s strategy of transforming Georgia into a regional transport and logistics hub.”

The road safety upgrades to be carried out on the route will help reduce the significant annual economic losses incurred due to road accidents.

Once completed, the highway running from Tbilisi to Batumi via Poti will offer direct access to 2.2 million travellers.

In addition to providing improved road quality and level of service, the corridor upgrade project will help avoid costly congestion expected on the basis of mid-term traffic projections, enhance road safety through new alignments and ensure increased savings from reduced transport costs.

World Bank South Caucasus regional director Mercy Tembon said: “The East-West Highway Corridor Improvement Project is a central piece in the government’s strategy of transforming Georgia into a regional transport and logistics hub.

“The project will directly contribute to economic development by reducing transportation costs and linking rural communities and their agricultural products to Tbilisi and other urban centres.”