Georgia, World Bank sign $372 mln loan agreement for Trans-Caspian Transport Corridor

TBILISI. June 10 (Interfax) - The Georgian Finance Ministry has signed a $372 million loan agreement with the World Bank Group's International Bank for Reconstruction and Development (IBRD) as part of the Trans-Caspian Transport Corridor - Georgia Accessibility and Transport Enhancement (TC-GATE) Project costing an overall $729 million, the ministry said.

"The project involves buying electric locomotives for Georgian Railways to increase railway capacity, the construction of power substations, the railway's institutional strengthening as well as the construction of sections of the Badiauri-Chalaubani-Bakurtsikhe highway and the highway connecting Gurjaani to Telavi. This includes transport hubs, overpasses and bridges, as well as road safety measures and institutional strengthening of the highway sector," the ministry said.

The Asian Development Bank will provide another $175 million for the TC-GATE project and the Asian Infrastructure Investment Bank $182 million.

The state-owned Georgian Railway (GR) will be able to purchase 45 new locomotives for $350 million under the TC-GATE project. Total funding for the GR projects is $387 million. The World Bank and ADB will each provide $175 million to finance the purchase. The total funding includes $10 million to modernize high-voltage substations to ensure stable power supply for the new locomotives. Another $27 million is earmarked for RG's institutional strengthening.

Another part of the TC-GATE budget is earmarked for road infrastructure: $315 million for the construction of the Badiauri-Bakurtsikhe road (32 km) and the Gurjaani-Telavi connecting road (36.6 km).