The Georgian government has renewed its loan agreement with the Asian Development Bank (ADB) to adjust funding for the Kvesheti-Kobi road project. The amendment, signed on November 10, has been submitted to Parliament for ratification and changes the distribution of financing for the remaining works.
According to the Ministry of Infrastructure, funding from the European Bank for Reconstruction and Development (EBRD) for the first lot, the 10.5-kilometer tunnel section, has been fully spent, though construction is about 85% complete. The state budget has temporarily covered ongoing expenses, prompting a request to increase ADB’s share. The amendment raises ADB’s participation in tunnel financing from 65.6% to 82%, aligning it with the road section (Lot II), and allows retroactive financing to reimburse budget expenditures already spent on the project.
Minister Revaz Sokhadze noted that the road’s full opening will likely be postponed until 2027 due to the complexity of certain structures, including a 426-meter arch bridge, which has faced delays from severe weather conditions. Negotiations are ongoing with the engineering contractor, China Railway 23rd Bureau Group Co., regarding winter construction capabilities.
The project involves constructing a 23-kilometer two-lane highway, including 5 bridges and 5 tunnels, with the longest tunnel spanning 9 kilometers. Financing comes from ADB ($415 million) and EBRD ($60 million), supporting one of Georgia’s most challenging and strategic infrastructure projects.
