Georgia has received $372 million in financing from the World Bank Group to strengthen its role in the Trans-Caspian Transport Corridor, a key trade route connecting Europe and Asia. The investment aims to improve rail and road infrastructure, enhance regional connectivity, and support long-term economic growth.
The funding is part of the new Trans-Caspian Transport Corridor – Georgia Accessibility and Transport Enhancement (TC-GATE) Project, which has a total value of more than $750 million. Additional financing is being provided by the Asian Infrastructure Investment Bank (AIIB) and the Asian Development Bank (ADB).
The project will modernize Georgia’s railway network by introducing energy-efficient electric locomotives and improving the operational performance of Georgian Railway. These upgrades are expected to increase freight service reliability, boost revenue, and reduce carbon emissions by more than 2.3 million tons.
Road infrastructure improvements are also a major component of the initiative. New four-lane road sections will be constructed in the Kakheti region, enhancing connectivity between key economic areas and reducing travel times between Telavi and Poti Sea Port by approximately 43 minutes. The roads will be built to climate-resilient standards to minimize disruptions caused by floods and landslides.
According to the World Bank, the TC-GATE Project is expected to directly benefit more than 900,000 people by improving market access, lowering transportation costs, and creating employment opportunities across logistics, transport, agribusiness, and related sectors.
The programme will also support digital transformation within Georgia’s road sector, including the development of a National Highway Control Center and advanced transport management systems. Additional measures will focus on promoting women’s economic participation in the Kakheti region and exploring greater private sector involvement in road management.
The investment reinforces Georgia’s ambition to become a leading transit hub between Europe and Asia while supporting more resilient supply chains and growing international trade across the region.
