OREANDA-NEWS. November 12, 2009. The World Bank Board of Executive Directors approved a US30 million IBRD loan for the Kakheti Regional Roads Improvement Project for Georgia. The project will help to reduce transport costs and improve access and traffic safety for the Kakheti regional roads, reported the press-centre of World Bank.
 
The project will rehabilitate the 65-km Vaziani-Gombori-Telavi (VGT) road, and implement traffic safety improvement measures on the VGT road and along the existing alignment of the Vaziani-Sagarejo-Bakurtsikhe-Gurjaani-Telavi road. It will also strengthen the capacity of the Regional Office of the Roads Department in Sagarejo.
 
“The project will improve connectivity of the region and reduce the costs to farmers bringing crops to markets. It will also create local employment in the current economic crisis environment,” said Asad Alam, Regional Director for the South Caucasus.
 
“The road rehabilitation will reduce travel distance from Vaziani to Telavi by 57 kilometers, and will contribute to the economic rejuvenation of the region, especially agricultural activities,” said George Banjo, Task Team Leader for the project. 

The project is part of the new Country Partnership Strategy for Georgia (CPS), which provides the framework guiding the World Bank Group's assistance to Georgia for 2009-2012. Under this strategy, new initiatives will support investments in transport infrastructure. These new investments will focus mostly on road improvements to help reduce transport costs, improve internal connectivity, and strengthen Georgia’s role as a transport corridor within the South Caucasus. Roads investments will also help create much needed temporary jobs and, over time, will boost competitiveness, growth, and job creation prospects.
 
The World Bank Board of Directors discussed the new CPS for Georgia in September 2009.  It provides for new lending of US396 million over fiscal years 2010-2013, focusing on supporting both immediate needs relating to the current global economic downturn and on improving Georgia’s competitiveness. It also includes a strong program of knowledge services.
 
Since the inception of its program in Georgia in 1995, the World Bank has financed 48 projects with total commitments up to US 1.37 billion. The current portfolio consists of 12 active projects with commitments of US 442.3 million.