The new East-West Highway (EWH) traversing Georgia is part of the CTC and runs from the Red Bridge at the Azerbaijan Border to the Poti Port at the Black Sea coast for around 400 km; it carries a high proportion of total foreign trade and is seen as a central element of Georgia’s plan to build its economy as a transport and logistics hub for trade between Central Asia, the Far East, Turkey and Europe.
There has been an on going programme of upgrades to the EWH which is due to complete by 2022. Construction of East-West E-60 (Poti-Tbilisi-Red Bridge) and E-70 (Poti-Batumi-Sarpi) Highway is at different stage. Approximately 160 kilometres of the EWH have already been upgraded; works are on going to complete an additional 177 km in 2016 with the support of the World Bank, EIB, ADB and JICA. The total estimated cost of upgrading the EWH corridor (2x2 lanes) is around USD 2.3 billion, which is equivalent to around 14.0% of Georgia’s GDP in 2014. In addition to reducing travel time between Tbilisi and Batumi by 40%, the wider impact of this project on Georgia’s economy is estimated to enable an increase of 4.0% in GDP.
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Project stage info
Stage 1: Initial Government Announcement
Government of Georgia
Form of project announcement
The Government recognizes the importance of private sector participation in bridging the road sector financing gap. A study conducted by IFC (2011) has assessed the feasibility of structuring and tendering of a PPP for the 128 km segment of the EWH Corridor (15 Km north of Tbilisi to the western portal of the Rikoti tunnel). The study has recommended various concession options. However, the Government, at that time, has taken the decision to use its budget and donors financing as a financing strategy.
Indicative timetable of project development
There are no Project documents available at this time
Project looking for additional PPF assistance
Project looking for additional MDB assistance
Is project multi jurisdictional?
Stage 2: Project Investigation
64.3 M USD 53 M EUR
Indicative Funding Source
Have any external advisors been appointed yet
Details of Advisors appointed
WS Atkins International
Is the project contained in national/sub national infrastructure plan or strategy
Please outline any studies (for example environmental, engineering etc.) that will be completed prior to a full business case development
Opportunity for Private Sector Involvement
Not yet known
Stage 3: Start of Project Feasibility / Business Case
Legal Advisors Appointed
Financial Advisors Appointed
Technical and Other Advisors (inc Project Preparation Facility) Appointed
Is a Business Case Being Prepared?
Business Case Prepared By
Preparer company/department name
Infrastructure Project Preparation Facility http://www.ebrd.com/infrastructure/infrastructure-IPPF.com
Estimated Business Case Completion Date
Estimated Time To Start Of Procurement
Unable to be estimated at this time
Any other relevant information relating to the project process