ADB backs Georgia’s transport corridor with USD 250 million Tbilisi bypass loan

The Asian Development Bank has approved a USD 250 million loan to construct key sections of the Tbilisi Bypass, aiming to divert transit traffic from Georgia's capital, improve freight movement along regional trade routes and strengthen the country's role as a logistics gateway linking Europe and Asia.

The Asian Development Bank (ADB) has approved a USD 250 million loan to finance the construction of Lots 4 and 5 of the Tbilisi Bypass Project in Georgia, according to an official announcement. The investment is intended to improve traffic flow along the Central Asia Regional Economic Cooperation (CAREC) Corridor 2 and the East-West Highway by redirecting long-distance and heavy freight traffic away from central Tbilisi. The project also includes measures to enhance road asset management, project development capabilities and road safety awareness.

The bypass addresses one of the country's most significant transport bottlenecks, where freight vehicles currently share urban roads with local traffic, contributing to congestion, longer travel times, increased logistics costs and environmental pressures. Expanding the bypass is expected to improve transport efficiency while supporting safer and more reliable movement of goods across Georgia's strategic transit network.

The investment carries broader implications for infrastructure development and regional trade. Georgia occupies a key position between Europe and Asia, making its highway network an essential component of cross-border freight transport. Improved road capacity is expected to benefit logistics providers, exporters, importers, manufacturers and businesses dependent on efficient supply chains. The project also aligns with wider efforts to strengthen regional connectivity and facilitate international commerce through the Caucasus.

For investors and businesses, the upgraded transport corridor could lower freight costs, improve delivery reliability and reinforce Georgia's attractiveness as a regional logistics and distribution hub. Enhanced infrastructure may also encourage additional private investment in industrial, commercial and logistics facilities located along the country's major transport corridors, supporting long-term economic growth and trade integration.

Founded in 1966, the Asian Development Bank is a multilateral development finance institution that supports sustainable economic development across Asia and the Pacific through loans, grants, technical assistance and policy support. Georgia has been one of ADB's long-standing infrastructure partners, with transport projects forming a significant part of its investment portfolio in the country.