Asian Development Bank approves $250 million loan to support construction of Tbilisi bypass

The Asian Development Bank (ADB) has approved a $250 million loan to support the construction of a strategically important bypass road around Tbilisi, which will improve road connectivity, reduce traffic congestion, and strengthen Georgia’s role as a regional transport hub, the Asian Development Bank said.

The project includes the construction of an 18.9-kilometer, four-lane section of the Tbilisi bypass, which will rehabilitate a significant portion of the East-West Highway. Redirecting traffic around the capital will ease Tbilisi’s traffic congestion and improve the movement of goods and people.

The Asian Development Bank’s financing will be used for two sections of the Tbilisi Bypass: Lot 4 (Tbilisi Airport–Lochini) and Lot 5 (Lochini–Rustavi). The project will also include the construction and rehabilitation of access and service roads.

As Leslie Bearman Lam, ADB Country Director for Georgia, said, Georgia’s location at the crossroads of Europe and Asia gives it significant potential to become a regional transport hub.

“The Tbilisi Bypass will help to fully utilize this potential by reducing road congestion and improving freight transportation. Through projects like these, we are making the vision of our partnership strategy with Georgia a reality, so that the country becomes better connected and competitive,” said Leslie Bearman Lam.

According to the Asian Development Bank, the new road will shorten travel times for both local and transit traffic, reduce vehicle operating costs and emissions. The project will increase the reliability of transportation, export, and tourism activities, while reducing the number of deaths and serious injuries from road accidents.

“The project will improve road transport efficiency along the Central Asia Regional Economic Cooperation (CAREC) Second Corridor, which connects Central Asia with Europe and is an important trade route. This will help attract investment to Georgia and integrate the country into regional and global markets.

ADB assisted the Government of Georgia in assessing the technical, economic, financial, environmental, and social sustainability of the project. This loan is in addition to ADB’s more than $2.3 billion in support for the development of Georgia’s road network, which includes sections of the East-West Highway, the Kobuleti and Batumi bypasses, the Kvesheti-Kobi highway, and the Batumi-Sarpi road.

ADB has been supporting Georgia since 2007 and is one of the country’s largest multilateral development partners. Since its accession to the Up to $1 billion in loans, grants, and technical assistance. ADB’s five-year strategy for Georgia’s engagement aims to help the country become a green and inclusive regional gateway, fostering public and private sector investment, reforms, knowledge transfer, climate-resilient infrastructure, and regional integration. ADB is a leading multilateral development bank that supports sustainable, inclusive, and resilient economic growth in Asia and the Pacific. Working with its member countries and partners to address complex challenges, ADB relies on innovative financial instruments and strategic partnerships to transform people’s lives, build quality infrastructure, and protect our planet. Founded in 1966, the organization is owned by 69 member countries, including 50 from the region,” the Asian Development Bank said in a statement.