The World Bank Group’s Board of Executive Directors approved a USD 372 million loan for Georgia for the Trans-Caspian Transport Corridor project, as Georgian officials seek a total of USD 751million from international financial institutions for rail and road modernization to improve connectivity.
According to the June 2 World Bank’s press release, the financing is part of the Trans-Caspian Transport Corridor – Georgia Accessibility and Transport Enhancement (TC-GATE) Project, which will finance “upgrades to rail freight capacity, modernization of key road segments in the country, and targeted reforms of rail and road institutions, alleviating infrastructure bottlenecks along the corridor.”
The project is expected to benefit over 900,000 people and “help generate jobs across logistics, transport, agribusiness, and related services,” by “enhancing transport connectivity, simplifying market access, and reducing logistics expenses for businesses, farmers, and communities.”
The total cost of the TC-GATE Project exceeds USD 750 million. According to the Finance Ministry, the World Bank will provide USD 372 million, while “work is underway” to obtain USD 182 million from the Asian Infrastructure Investment Bank (AIIB), and USD 175 million from the Asian Development Bank (ADB). The World Bank said the co-financing arrangement demonstrates “strong multilateral support” for both Georgia’s connectivity ambitions and the broader development of the Trans-Caspian Transport Corridor.
“These investments will help Georgia realize its full potential as a critical regional transit hub bridging Europe and Asia, while responding to growing demand along the Trans-Caspian Transport Corridor, reflecting evolving global trade flows and need for diversified supply chains,” said Rolande Pryce, World Bank Regional Director for the South Caucasus in the press release.
“By supporting modernization of the key rail and road links and reforms aimed to strengthen institutions that manage them, the World Bank Group, jointly with development partners, is helping Georgia and other countries along the corridor create tangible benefits for citizens through better connectivity, safer and more resilient transport, more jobs, and stronger economic opportunities,” Pryce added.
Project Details
According to the World Bank, the project will help modernize Georgia’s rail freight services by financing “new, energy-efficient electric locomotives to replace an aging fleet, and strengthen JSC Georgian Railway’s operational efficiency, financial sustainability, and governance.” The upgrades are expected to increase locomotive availability to 95%, improve service reliability, boost revenues by 20%, and reduce net emissions by more than 2.3 million tons. The project will be implemented by Georgian Railways and the Roads Department of Georgia, the Finance Ministry said.
The project also includes investments in road infrastructure in Kakheti. It will fund the construction of two four-line road sections on the Badiauri-Chalaubani-Bakurtsikhe sections, as well as a new road connecting Gurjaani and Telavi towns. According to the press release, it “will reduce travel times between Telavi (Eastern Georgia) and Poti Sea Port (Western Georgia) by about 43 minutes and elevate road safety standards. Designed to meet climate-resilient standards, the road works will incorporate measures to reduce disruptions from floods and landslides, thus improving the reliability of year-round access to markets for people and goods.”
The project will additionally support institutional reforms in Georgia’s road sector, including the “digitization of road asset management, deployment of Intelligent Transport Systems via the establishment of a National Highway Control Center (NHCC), implementation of climate resilient systems and support of long-term fiscal sustainability.” It will also support women entrepreneurs in Kakheti and fund studies “to explore greater private sector participation opportunities in road management.”
“Through the new project, Georgia is strengthening its role as a reliable and competitive gateway between Europe and Asia, and together with our international partners, we are committed to building a modern transport network that will serve the region for decades to come,” Lasha Khutsishvili, Georgian Dream Finance Minister, was quoted as saying in the press release.
“These investments are not only important for our country’s economic development and for the creation of new opportunities for our citizens, but also for supporting growing international trade flows and more diversified, secure supply chains, as the upgrades to Georgia’s railway and road links will improve Middle Corridor efficiency and strengthen regional connectivity resilience,” he added.
The loan comes as Georgia seeks a greater role in regional connectivity, including as part of the Middle Corridor, with hopes to attract European and American interest as the country finds itself alienated from traditional Western partners amid a prolonged political crisis.
The approval also follows a series of recently completed and announced modernization projects on Georgia’s main railway corridors, including strategically important challenging sections linking the country’s eastern and western regions, as well as the recent full launch of the Baku-Tbilisi-Kars railway.
Also Read:
- 02/06/2026 – Baku-Tbilisi-Kars Railway Launched in ‘Full Mode’ After Modernization, New Section
- 21/04/2026 – Kos: EU to Involve Georgia in Connectivity to Extent Tbilisi’s Willing to Engage ‘On Other Areas’
- 13/01/2026 – Economy Ministry Officials Meet with USTDA Regional Head to Discuss Middle Corridor Prospects
