Georgia's highways receive funding boost
23 November 2009
The World Bank has approved funding of US$ 58 million for Georgia's highway network.
An additional US$ 28 million International Bank for Reconstruction and Development (IBRD) loan for the Additional Financing of the First East-West Highway Improvement Project (FEWHIP AF) was approved, alongside a US$ 30 million IBRD loan for the Kakheti Regional Roads Improvement Project.
The original FEWHIP, approved in 2006, upgraded a 13 km section of the East-West Highway from Agaiani to Igoeti. The Additional Financing will support rehabilitation of the Rikoti Tunnel and repair its 4.2 km by-pass road.
The project is expected to contribute to the gradual reduction of road transport costs and improve access, congestion, and safety along the central part of Georgia's East-West corridor.
It will also strengthen the capacity of the government, the Roads Department, and the local road construction industry to plan and better manage the road network.
The project is part of the new Country Partnership Strategy for Georgia (CPS), which provides for new lending of US$ 396 million over fiscal years 2010-2013.
Kakheti Regional Roads Improvement Project will rehabilitate the 65-km Vaziani-Gombori-Telavi (VGT) road, and implement traffic safety improvement measures on the VGT road and along the existing alignment of the Vaziani-Sagarejo-Bakurtsikhe-Gurjaani-Telavi road.
The project is part of the new Country Partnership Strategy for Georgia (CPS), which provides for new lending of US$ 396 million over fiscal years 2010-2013.
