The European Investment Bank, the bank of the European Union, will provide €106.7 million to the government of Georgia for upgrades of the country’s main road artery – the East-West (E60) Highway. The EIB loan will upgrade two sections of the highway: the 30km-long section between Algeti and Sadaklo, and the 32 km-long section between Rustavi and the Red Bridge.
To date, the EIB has invested close to €250 million in the East-West Highway, contributing to connectivity and road safety for Georgians and Georgian businesses. The EIB’s total investment in Georgian road infrastructure amounts to close to €1 billion, which is half of the Bank’s investments in the country.
EIB funded sections of the East-West Highway
In Georgia, the E60 corridor, or the East-West Highway, as it is also known, runs from the Red Bridge at the Georgian border with Azerbaijan to the Poti Port on the Black Sea coast, a distance of about 388km. From there, it continues towards the border with Turkey.
Once completed, the two upgrades will allow a modern and safer road connection with the Republic of Armenia, as well as faster transfer of people and goods. In addition, they will improve conditions for living and doing business in Georgia and the region.
The E60 highway is a part of the extended core Trans-European Transport Network (TEN-T) spanning the EU and strengthening social, economic and territorial cohesion in the Union and with its partner countries. The highway traverses Georgia and connects some of its major cities, while providing a regional connection between Turkey and Armenia.
The EIB loan is part of the €1.5 billion financing programme created jointly by the European Investment Bank, the World Bank, the Japan International Corporation Agency, the Asian Development Bank and the government of Georgia to modernise transport infrastructure in the country.
Since the beginning of operations in Georgia in 2007, the EIB has invested close to €2 billion in 23 projects in infrastructure, the private sector and climate action. In 2020 alone, the EIB Group supported COVID-19 recovery activities, and invested €70 million to support country’s small and medium-sized enterprises (SMEs) and €100 million in the Georgian healthcare system.
The EIB stepped up its support for the country with the 2014 Association Agreement and the Deep and Comprehensive Free Trade Area between Georgia and the European Union, making it the main EIB lending beneficiary per capita in the EU Eastern Neighbourhood.
The EIB finances most projects in Georgia under the EU External Lending Mandate. This provides the EIB with a guarantee covered by the EU budget for projects in the fields of social and economic infrastructure, local private sector development and climate action. For more information on the EIB’s activities in Georgia please follow this link.
For the press release, please follow this link