The World Bank Group’s Board of Executive Directors has approved a $372 million Trans-Caspian Transport Corridor – Georgia Accessibility and Transport Enhancement (TC-GATE) Project aimed at improving Georgia’s transport infrastructure and boosting its role as a key trade route between Europe and Asia.
The project will finance upgrades to Georgia’s rail freight network, modernization of key road sections, and reforms in rail and road institutions. According to the World Bank, the initiative is expected to directly benefit more than 900,000 people by improving connectivity, reducing logistics costs, and supporting job creation in transport, logistics, agribusiness, and related sectors.
The total value of the TC-GATE project exceeds $750 million, with the remaining financing provided by the Asian Infrastructure Investment Bank (AIIB) and the Asian Development Bank (ADB). World Bank Regional Director for the South Caucasus Rolande Pryce said the investment will help Georgia strengthen its position as a regional transit hub amid growing demand for diversified trade routes and supply chains.
A major component of the project involves modernizing Georgian Railway through the purchase of new energy-efficient electric locomotives and reforms aimed at improving operational efficiency, financial sustainability, and governance. The upgrades are expected to increase locomotive availability to 95%, improve service reliability, boost revenues by 20%, and reduce net emissions by more than 2.3 million tonnes.
The project will also fund the construction of two new four-lane road sections in Kakheti—the Badiauri–Chalaubani–Bakurtsikhe route and a new road connecting Gurjaani and Telavi. These improvements are expected to cut travel time between Telavi and Poti Port by approximately 43 minutes, enhance road safety, and improve climate resilience against floods and landslides. Additionally, the project includes support for digital road asset management, intelligent transport systems, and programs aimed at empowering women entrepreneurs in the Kakheti region.
