Investments in Georgia's rail and road infrastructure will enhance connectivity between Europe and Asia, opening economic opportunities for people and businesses
TBILISI, June 2, 2026-The World Bank Group's Board of Executive Directors today approved the $372 million Trans-Caspian Transport Corridor - Georgia Accessibility and Transport Enhancement (TC-GATE) Project to improve performance and resilience of the Georgia segment of the regional connectivity and trade route connecting Europe and Asia. The Project will finance upgrades to rail freight capacity, modernization of key road segments in the country, and targeted reforms of rail and road institutions, alleviating infrastructure bottlenecks along the corridor.
By enhancing transport connectivity, simplifying market access, and reducing logistics expenses for businesses, farmers, and communities, the TC-GATE Project is expected to directly benefit over 900,000 people and help generate jobs across logistics, transport, agribusiness, and related services, both directly and through wider multiplier effects along the corridor.
"These investments will help Georgia realize its full potential as a critical regional transit hub bridging Europe and Asia, while responding to growing demand along the Trans-Caspian Transport Corridor, reflecting evolving global trade flows and need for diversified supply chains," said Rolande Pryce, World Bank Regional Director for the South Caucasus. "By supporting modernization of the key rail and road links and reforms aimed to strengthen institutions that manage them, the World Bank Group, jointly with development partners, is helping Georgia and other countries along the corridor create tangible benefits for citizens through better connectivity, safer and more resilient transport, more jobs, and stronger economic opportunities."
The total cost of the large-scale TC-GATE Project is over US$750 million, of which this new World Bank Group operation finances US$372 million and the remainder being co-financed by the Asian Infrastructure Investment Bank (AIIB), and the Asian Development Bank (ADB). This demonstrates strong multilateral support for Georgia's connectivity ambition, as well as for the development of the Trans-Caspian Transport Corridor broadly.
"Through the new project, Georgia is strengthening its role as a reliable and competitive gateway between Europe and Asia, and together with our international partners we are committed to building a modern transport network that will serve the region for decades to come," said Lasha Khutsishvili, Minister of Finance of Georgia. "These investments are not only important for our country's economic development and for creation of the new opportunities for our citizens, but also for supporting growing international trade flows and more diversified, secure supply chains, as the upgrades to Georgia's railway and road links will improve Middle Corridor efficiency and strengthen regional connectivity resilience."
In particular, the TC-GATE Project will help modernize Georgia's rail freight services by financing new, energy-efficient electric locomotives to replace an aging fleet, and strengthening JSC Georgian Railway's operational efficiency, financial sustainability, and governance. The upgrades are expected to improve locomotive availability to 95%, improve service reliability for shippers, and support a 20% increase in revenues, while also resulting in a reduction in net emissions of more than 2.3 million tons.
To improve road connectivity, the Project will finance the construction of two four-lane road segments in Georgia's strategic corridor and agricultural production region - Kakheti, specifically the Badiauri-Chalaubani-Bakurtsikhe sections, as well as a road connecting Gurjaani to Telavi. This will reduce travel times between Telavi (Eastern Georgian) and Poti Sea Port (Western Georgia) by about 43 minutes and elevate road safety standards. Designed to meet climate-resilient standards, the road works will incorporate measures to reduce disruptions from floods and landslides, thus improving the reliability of year-round access to markets for people and goods. For Georgia's Road sector institutional strengthening, the Project will assist in digitization of road asset management, deployment of Intelligent Transport Systems via the establishment of a National Highway Control Center (NHCC), implementation of climate resilient systems and support of long-term fiscal sustainability.
The TC-GATE Project will also support economic empowerment for women entrepreneurs in the Kakheti region and fund analytics to explore greater private sector participation opportunities in road management.
