BAKU, Azerbaijan, September 28. The Asian Infrastructure Investment Bank (AIIB) and, Georgia have signed a financing agreement for 158.42 million euro (about $182 million) to improve transport connectivity along the Trans-Caspian Transport Corridor (Middle Corridor).
According to AIIB, the financing will support the Trans-Caspian Transport Corridor – Georgia Accessibility and Transport Enhancement Project, which aims to improve road connectivity in Georgia's Kakheti region and strengthen links with national and cross-border trade routes.
The project will finance 67.4 kilometers of climate-resilient road infrastructure in eastern Georgia, including two new four-lane sections between Badiauri and Bakurtsikhe and the 36.6-kilometer Gurjaani-Telavi section.
The upgraded roads will improve connections between the Azerbaijan border, the East-West Highway and Black Sea ports, strengthening Georgia's role along the Trans-Caspian Transport Corridor.
More than 900,000 people are expected to benefit directly from improved road safety, shorter travel times and better access to markets, services and trade routes.
The project will also support the development of a National Highway Control Centre and an Intelligent Transport System, as well as climate-informed road management and planning. Analytical support for future transport investments and assistance for rural women entrepreneurs in Kakheti are also included in the project.
“AIIB helps develop more connected, reliable and resilient end-to-end corridors through selective investments in critical links. This investment supports the Trans-Caspian Transport Corridor and contributes to more efficient and resilient connectivity between Asia and Europe,” AIIB Chief Investment Officer for Public Sector (Region 2) and Project and Corporate Finance Clients (Global) Konstantin Limitovskiy said.
Georgian Finance Minister Lasha Khutsishvili said the agreement would contribute to improving the efficiency of the Middle Corridor and developing Georgia's transport infrastructure.
The agreement was signed on the sidelines of AIIB's 11th Annual Meeting in Doha, Qatar.
The project, co-financed by the World Bank as the lead co-financier, has an estimated total cost of $362.14 million.
Georgia has been an AIIB member since 2017. Following the new project, AIIB's portfolio in Georgia will comprise nine projects totaling about $848.6 million across transport, health infrastructure, sustainable finance, energy and economic resilience.
Meanwhile, Deputy Economy and Sustainable Development Minister Vakhtang Tsintsadze said at the second Azerbaijan International Investment Forum in Baku that Georgia is one of the key links in the Middle Corridor.
"We are working to upgrade the majority of our infrastructure—particularly critical infrastructure—essential for the Middle Corridor to operate at its full capacity. Once this highway project is completed, the transit time from Rikoti to Sarpi will be reduced from eight hours to four. A significant aspect of the railway modernization is that the project has already been completed, cutting freight transit time from 24 hours to 12.
I must also mention the Anaklia deep-sea port, a key element of the Middle Corridor, which is set to begin operations in 2029. In its first phase, the Anaklia port will have the capacity to handle up to 600,000 TEUs of containers and 10 million tons of dry cargo," he forecasted.
The deputy minister added that all this infrastructure is intended to increase the Middle Corridor's throughput capacity and support its efficient operation.
