OREANDA-NEWS. September 16, 2009. The World Bank Board of Executive Directors approved a US147 million IBRD loan for the Third East-West Highway Project (TEWHIP) for Georgia. This is the third in a series of investments aimed at improving the E60 Highway, Georgia’s key transport corridor, reported the press-centre of World Bank.

The project will upgrade the E60 highway between Sveneti and Ruisi to a four lane divided highway. It will also assist the government in implementing reforms in the transport sector, including strengthening of the Roads Department, improving private sector participation in road maintenance and operations, road safety, and engineering education. As a result of the three year project, road transport costs will be reduced, and access, ease of transit, and road safety along the central part of Georgia’s East-West corridor improved. The capacity of the Roads Department and relevant Government entities to plan and manage the road network and to improve traffic safety will also be strengthened.

 “This operation is a major element of the new Country Partnership Strategy for Georgia,” said Asad Alam, World Bank Regional Director for the South Caucasus. “It will not only strengthen Georgia’s competitiveness, economic growth, and job creation prospects over the medium-term, but will also help to stimulate economic recovery and create new employment in the immediate future.”

“The E60 highway carries over 60 percent of the foreign trade that uses Georgia’s roads,” added Christopher Bennett, Task Team Leader of the project. “The government’s program to upgrade the E60 will help cement Georgia’s postion as a key transport corridor. The government’s support for addressing road safety issues on the E60 as an integral part of upgrades to the corridor is particularly encouraging.”

The Third East West Highway Program significantly scales up Bank support to Georgia in the roads sector.  It builds upon the US19 million First East-West Highway Improvement Project, the US35 million Second East-West Highway Improvement Project (SEWHIP), and the US\\$20 million SEWHIP Additional Financing. These efforts are part of a larger roads program that also includes financing for ongoing investments in Local and Seconday Roads.

Since the inception of its program in Georgia in 1995, the World Bank has financed 46 projects with total commitments up to US1.2 billion. The current portfolio consists of 11 active projects with commitments of US295.3 million.
 
IBRD Flexible Loans with an interest rate equal to 6 months Libor carry a final maturity of 30 years, including a grace period of 5 years.