ADB to Help Construct, Improve Part of Georgia's East–West Highway

The Asian Development Bank (ADB) has approved a $278 million loan (in euro equivalent) to construct and rehabilitate about 30 kilometers (km) of main and secondary roads between the towns of Shorapani and Argveta on Georgia’s East–West Highway, one of the country’s main trade and transport networks.

The East–West Highway, which is part of Corridor 2 of the Central Asia Regional Economic Cooperation (CAREC) Program, is a lifeline for Georgia’s economy. It represents 30% of the country’s international road network carrying more than 60% of national foreign trade and serving over 13,000 vehicles daily. The road network is integral to Georgia’s objective of becoming a regional transport and logistics hub for trade and commerce between Europe, Central Asia, and East Asia, and a popular tourism destination.

“A reliable road network is essential to make sure that Georgia benefits economically from its unique location at the crossroads of transit routes linking Europe and Asia,” said ADB Senior Transport Specialist for Central and West Asia Ms. Valerie Lisack. “This project supports the government’s ongoing commitment to improve its infrastructure, particularly roads and highways, to fast track the country’s development.”

The Government of Georgia has made road improvement a priority in its 2018–2021 action plan, allocating about 72% of the total budget for the country’s infrastructure development. Upgrading core regional roads is critical for international economic integration and delivers benefits to rural areas. Road safety is also a priority. Last year, Georgia’s road fatality rate of 12.3 deaths per 100,000 people far exceeded rates in developed countries.