€100 million to finance the construction of new railway route in Tbilisi
The EBRD is helping to improve the infrastructure of the Georgian capital, Tbilisi, with a €100 million loan for the construction of a new railway route bypassing the city.
The new railway bypass will replace an existing section of the railway line that runs through the centre of Tbilisi. As part of the main route for freight on the east-west transport corridor in Georgia, it is used for transportation of oil and other products from Azerbaijan, Kazakhstan and Turkmenistan to ports on the Black Sea.
The EBRD loan extended to Georgian Railway LLC will be used to part-finance the construction of a new double track railway route 10 km north of Tbilisi, which will divert rail traffic around the centre of Tbilisi.
The project will improve the efficiency and the safety of rail operations on the key east-west corridor within Georgia and will free up over 70 hectares of land in the central area of Tbilisi, which will become available for various urban development projects.
The construction of the railway bypass is expected to be co-financed by the European Investment Bank and grant financing from the EU’s Neighbourhood Investment Facility (NIF). Additional grant funding provided by the government of Germany and the NIF will be used to prepare an environmental land investigation survey and a master plan for future redevelopment of the new district in the centre of Tbilisi.
“The relocation of rail facilities outside the capital will enhance the security of the rail services and will boost the urban development of Tbilisi, providing new investment opportunities which will benefit the city,” said EBRD President, Thomas Mirow.
Previously the EBRD has invested over €50 million in Georgian transport infrastructure sector. Overall, since the beginning of its operations in Georgia, the Bank has committed over €700 million in approximately 120 projects in the financial, corporate, infrastructure and energy sectors, mobilising additional investment in excess of €2.7 billion.