AIIB Approves €158.5 Million Loan for Highway Construction in Kakheti

Georgia and the Asian Infrastructure Investment Bank (AIIB) have signed a loan agreement under the Trans-Caspian Transport Corridor. The agreement provides approximately €158.5 million in financing to Georgia.

The document was signed by Georgia’s Minister of Finance, Lasha Khutsishvili, and Konstantin Limitovskiy, AIIB’s Senior Investment Officer for Public Sector, Global Projects and Corporate Finance.

The project covers the construction of two four-lane sections of the Kakheti Highway: Badiauri to Chalaubani (Lot 4, 21.7 km) and Chalaubani to Bakurtsikhe (Lot 5, 9.1 km). It also includes a 36.6 km road section from Gurjaani to Telavi.

Two international financial institutions are financing the project. The World Bank approved a €158 million loan in July, and AIIB has now approved a €158.5 million loan.

“These road investments are another important step towards improving the efficiency of the Middle Corridor. They will also help improve the productivity and resilience of Georgia’s transport infrastructure and support the country’s long-term economic growth,” the Ministry of Finance said in a statement.

The Ministry of Regional Development and Infrastructure will serve as the project’s executing agency, while the Roads Department will implement it.