ADB Approves $360M Loan to Boost Georgia’s Road Infrastructure and Trade

The Asian Development Bank (ADB) has approved a $360 million loan to strengthen Georgia’s road infrastructure and enhance its role as a vital regional transport and trade hub. The financing will support the construction of a new, climate-resilient section of the East–West Highway, linking the Batumi bypass with the Georgian–Turkish border at Sarpi.

Upgrading Georgia’s Strategic East–West Highway

The project marks a critical milestone in the completion of Georgia’s East–West Highway, the backbone of the country’s national and international road network. Stretching 11 kilometers, the new road will be built to Trans-European Motorway standards, ensuring modern, safe, and efficient transportation.

The route will be realigned inland to minimize exposure to climate-related risks such as flooding, erosion, and landslides. Safety and sustainability measures—including slope stabilization, rockfall protection, enhanced drainage, erosion control, and 500 meters of coastal protection along the Black Sea—are integral to the design.

This development will not only provide a reliable connection to Türkiye but also strengthen Corridor 2 of the Central Asia Regional Economic Cooperation (CAREC), which passes through Georgia and links Central Asia with Europe.

Building on Over a Decade of ADB Support

ADB’s new loan builds on more than a decade of sustained support for Georgia’s road modernization. Previous projects have included two key sections of the East–West Highway, the Kobuleti and Batumi bypasses, the North–South Corridor (Kvesheti–Kobi highway), and improvements to secondary roads. Collectively, ADB’s investment in Georgia’s road infrastructure now exceeds $1.1 billion.

ADB Country Director for Georgia Lesley Bearman Lahm emphasized the strategic importance of this latest project:

“The Batumi–Sarpi road that completes the last-mile connectivity in Georgia’s road network will enhance the country’s regional position as a preferred route for trade and logistics across the region and create more economic opportunities for the people of Georgia.”

Enhancing Trade and Regional Connectivity

Once completed, the new Batumi–Sarpi link will significantly improve cross-border connectivity with Türkiye, one of Georgia’s most important trading partners. The modernized route is expected to reduce travel time, cut logistics costs, and facilitate smoother trade flows across the Black Sea region and beyond.

This improved connectivity is anticipated to position Georgia as a regional gateway, attracting greater investment opportunities in logistics, manufacturing, and services geared toward regional and global markets.

Institutional Strengthening and Green Transition

Beyond physical infrastructure, the project will strengthen the capacity of Georgia’s Roads Department, particularly in road asset management, procurement, and implementation. Importantly, it will also contribute to the country’s low-carbon transition, integrating sustainability principles into transport planning and operations.

To support road safety and technical standards, the project will provide training and modern testing equipment to the Bridge Laboratory of the Georgian Technical University, enhancing transport-related quality control and sectoral research.

A Trusted Development Partner

ADB has been a key development partner for Georgia since 2007. To date, it has provided about $5 billion in loans, grants, and technical assistance, covering sectors such as infrastructure, policy reform, private sector investment, and green transition.

Under its current five-year country partnership strategy, ADB is helping Georgia evolve into a green, resilient, and inclusive regional gateway, emphasizing climate-resilient infrastructure and cross-border integration.

Founded in 1966, ADB is owned by 69 members—50 of them from the Asia-Pacific region—and continues to play a leading role in financing projects that foster sustainable growth, improve connectivity, and reduce vulnerabilities across the region.