“A loan agreement has been signed between Georgia and the International Bank for Reconstruction and Development (IBRD) for the Trans-Caspian Transport Corridor – Georgia Connectivity and Transport Improvement Project, which allocates USD 372 million to Georgia,” the Ministry of Finance of Georgia reported.

According to the Ministry, Lasha Khutsishvili, the Georgian Minister of Finance, and Rolande Pryce, the World Bank Regional Director for the South Caucasus, signed the document.

“This funding is part of a broader project with a total estimated value of approximately USD 751 million, which includes the USD 372 million from the World Bank Group. In tandem, work is underway to secure USD 175 million in financing from the Asian Development Bank (ADB) and USD 182 million from the Asian Infrastructure Investment Bank (AIIB).

The signing ceremony was attended on the Georgian side by Minister of Infrastructure Revaz Sokhadze, Deputy Minister of Finance Ekaterine Guntsadze, Deputy Minister of Infrastructure Mzia Giorgobiani, Deputy Minister of Economy and Sustainable Development Tamar Ioseliani, Director General of JSC Georgian Railway Lasha Abashidze, Chairman of the Roads Department Levan Darakhvelidze, and Deputy Chairperson Salome Tsurtsumia.

The project aims to increase rail capacity through the procurement of electric locomotives for Georgian Railway, the construction of electrical substations, and the institutional strengthening of the railway network. Additionally, it will fund the construction of key road sections, including Badiauri to Chalaubani, Chalaubani to Bakurtsikhe, and Gurjaani to Telavi.
This infrastructure package will include transport interchanges, flyovers, and bridges, as well as the implementation of road safety measures and efforts to strengthen institutional capacity within the highways sector.

The project will be co-delivered by JSC Georgian Railway and the Roads Department. The corresponding project agreement between JSC Georgian Railway and the IBRD was signed by the Director General of JSC Georgian Railway, Lasha Abashiidze, and the World Bank Regional Director for the South Caucasus, Rolande Pryce.

“These targeted investments in our rail and road networks mark another vital step towards enhancing the efficiency of the Middle Corridor. This will strengthen the productivity and resilience of the country’s transportation infrastructure, supporting Georgia’s long-term economic growth by enabling faster and safer freight movement along the corridor. These investments are crucial not only for Georgia’s economic development, but also for supporting expanding international trade flows and establishing more diversified and secure supply chains,” the Ministry of Finance statement concluded.