European Investment and World Banks support Georgia’s main highway upgrade

A new 14.1 km four lane highway will be built along the Zemo Osiauri-Chumateleti section. Photo by Ministry of Regional Development and Infrastructure., 10 Feb 2016 - 18:57, Tbilisi,Georgia

World leading financial institutions the World Bank (WB) and the European Investment Bank (EIB) are helping Georgia upgrade the country’s main transport route - the East-West highway.

The WB is allocating $140 million while the EIB is offering €49.45 million to Georgia to develop the environment and improve logistics services.

Today Georgia’s Finance Minister Nodar Khaduri and the WB's Regional Director for the South Caucasus, Mercy Tembon signed an agreement on the East-West Highway Corridor Improvement Project.

Today’s agreement outlines the creation of a new 14.1 km four lane highway along the Zemo Osiauri-Chumateleti section (before Rikoti tunnel). The WB will finance construction of 8.3 km of the road.

The remaining 5.8 km will be financed by the EIB, with whom an agreement will be signed tomorrow,” a spokesperson from Georgia’s Ministry of Finance told

The project comprised of four components which will be implemented in phases over between 2016 and 2020. Once all phases were completed the East-West highway will meet top European standards.

The East-West highway covers the road section starting from capital Tbilisi and travels to the Black Sea resort town Batumi via Poti.

A press release published by the Ministry of Finance today read the East-West highway was the main "transportation artery” in Georgia.

Meanwhile, project details published by the WB on its official webpage said the development objectives of the East-West Highway Corridor Improvement Project for Georgia were to: 

  • Reduce road user costs along the East-West highway corridor section upgraded under the project; and
  • Strengthen the capacity of the Roads Department of the Ministry of Regional Development and Infrastructure and the Ministry of Economy and Sustainable Development to respectively manage the road network.

In total the WB offered $367 million USD to Georgia to develop the East-West highway.