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ADB investment in Batumi to improve logistics and transport

Published 04 April 2017

The Asian Development Bank (ADB) is supporting Georgia with $114m loan to help improve regional connectivity and road transport efficiency in the country, while strengthening the country’s bid to become a regional transport and logistics hub.

ADB is also expected to manage and administer up to $114m in additional financing for the project provided by the Asian Infrastructure Investment Bank (AIIB). This is the first ADB project to be cofinanced with another development partner in Georgia, and the third project to be cofinanced by ADB and AIIB. 

The project will construct a new 14.3 kilometer (km) bypass road skirting the port city of Batumi — Georgia’s second largest city and a crucial entry-exit point for the trade commodities plying through East-West Highway. 

“Georgia is well poised to become a stronger transport and logistics hub for the Caucasus region — something that could help propel the country’s growth and development,” said Yesim Elhan-Kayalar, ADB Country Director in Georgia. “ADB is committed to play a seminal role in improving the country’s transport connectivity and the sustainability of its road network through this project.”

The new two-lane bypass road starting from the Senaki-Poti-Sarpi road and ending at the juncture of the existing Batumi-Akhaltsikhe road is an integral part of the East-West Highway. The Government of Georgia aims to make Georgia the preferred gateway for businesses working between Asia and Europe. 

As part of the financing, performance-based maintenance contracts will be implemented for the routine and periodic maintenance of about 200 km of international and connecting secondary roads. These contracts will consist of output and performance-based components including initial repairs, routine maintenance, periodic maintenance, and emergency maintenance works for effectiveness and efficiency.

Since 2007, ADB has mobilized more than $2.1bn in public and private sector financing operations for Georgia.

Source: Company Press Release