The Georgian government is set to receive a total of $751 million in concessional loans from the World Bank Group (WB), the Asian Development Bank (ADB), and the Asian Infrastructure Investment Bank (AIIB) to finance railway upgrades and road infrastructure development in the Kakheti region.
The largest portion, $372 million from the World Bank, has already been approved by its Board of Executive Directors. Additional financing includes $175 million from the ADB and $182 million from the AIIB, with negotiations still ongoing.
The World Bank-backed funding will support the purchase of new locomotives for Georgian Railway, modernization of electric substations, and institutional strengthening of the railway system. Part of the funds will also be directed to road construction projects, including the Badiauri–Chalaubani–Bakurtsikhe highway sections and the Gurjaani–Telavi road.
Authorities say the investments aim to improve the efficiency of the Middle Corridor, strengthening Georgia’s role as a regional transit hub and enhancing logistics connectivity between Europe and Asia. However, it has not yet been clarified how the $372 million WB loan will be distributed between railway and road components.
The project will be implemented by Georgian Railway and the Roads Department, alongside broader plans to expand rolling stock, including new passenger trains, locomotives, and freight wagons, as part of a wider transport modernization strategy.
