Japan allocates $38m to Georgia’s main highway upgrade

Japan is supporting Georgia’s transformation into a regional transport and logistics hub by offering the country $38 million USD.

This morning high officials from Georgia’s Finance Ministry and the Japan International Cooperation Agency (JICA) signed a financial agreement confirming Japan’s commitment to helping Georgia upgrade its main highway connecting the eastern and western parts of the country.

With this money Georgia will build the Zestaponi-Kutaisi-Samtredia section of the East-West Highway.

Work to upgrade the country’s main transport route - starting from capital Tbilisi to Black Sea resort town Batumi via Poti - has been underway for some time however new funds awarded to the project will ensure the East-West Highway upgrade is completed.

Japan International Cooperation Agency’s support is very important for Georgia and especially when supporting such strategically important transport infrastructure like the East-West Highway. This highway should turn Georgia into a regional trade, transit, economic and logistic centre,” said the Ministry of Finance in a media release.

The East-West Highway will provide direct access to 2.2 million people or more than half of the total population of Georgia, read the project’s description.

Those behind the project believed the East-West Highway corridor could have wider development impacts on Georgia’s economy. Its completion was estimated to contribute to an increase of real Gross Domestic Product (GDP) by around three percent.

Earlier the World Bank allocated $140 million USD to the project while the European Investment Bank also offered €49.45 million to Georgia to develop the environment and improve logistics services for the East-West Highway.