Tbilisi, November 6, 2008 — Acting World Bank Country Manager for Georgia Tamara Sulukhia, and the Minister of Finance, Nika Gilauri today have signed an Additional Financing for the Second East-West Highway Improvement Project (SEWHIP). This US$20 million project, approved by the Bank’s Board of Executive Directors on October 30, 2008 continues to support the Government’s priority of improving Georgia’s major transport corridor. The First East –West Highway Improvement Project, in the amount of US$19 million, was approved by the Bank on December 2006, followed by the Second East-West Highway Improvement Project, in the amount of US$35 million which was approved on December 18, 2007. The Additional Financing will help to cover a financing gap which was anticipated during the preparation of SEWHIP due to limitations on the amount of IDA (International Development Association) funding, which Georgia was able to access at that time. This project is the third operation leading up to total of US$100 million approved in October 2008 on an accelerated basis in response to the recent conflict.
“This Additional Financing for the East-West Highway Improvement Project shows the strong partnership between the Bank and the Georgian Government to further develop the road network," said Tamara Sulukhia after the signing ceremony. "It will also strengthen the capacity of government agencies, particularly the Road Department of Ministry of Economic Development, to develop and implement a traffic safety program. The Project also includes funding for preparing the design of the next section of the East-West Highway up to Rikoti tunnel," she added.
The Project’s development objectives are to contribute to the gradual reduction of road transport costs and to improve the ease of transit and safety along the central part of Georgia’s East-West corridor by upgrading a segment of the East-West Highway (E60) from Tbilisi to Rikoti.
The project is a key component of the Country Partnership Strategy (CPS) for Georgia, which was approved by the World Bank’s Board of Executive Directors on 15 September 2005. Since the inception of the Bank’s program in Georgia in 1995, 55 IDA credits and grants have been approved for 46 projects, with total commitments up to US$1062.5 million. The current portfolio consists of 13 investment projects and one policy lending operation financed by 19 IDA credits and grants with total commitments of US$328 million.
Please find attached the Georgian version of press release on Additional Financing:
SEWHIP.doc
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