Georgia - Trans-Caspian Transport Corridor : Georgia Accessibility and Transport Enhancement Project

Overview & Synopsis

Trans-Caspian Transport Corridor - Georgia Accessibility and Transport Enhancement Project for Georgia has the development objective to improve the performance and resilience of the Trans-Caspian Transport Corridor (TCTC) in Georgia. Component 1: Improving Rail Freight Performance and Sustainability will be implemented by JSC Georgian Railway (GR) and includes Sub-component 1.1, acquisition, testing, and commissioning of about 45 modern electric freight locomotives to increase availability, hauling capacity, and energy efficiency; Sub-component 1.2, construction or upgrade of railway electric substation(s) to ensure reliable traction power for the new fleet; and Sub-component 1.3, institutional strengthening and sustainability of GR through targeted training and advisory services, renewal of 65 kilometers of track, an enterprise resource planning (ERP) upgrade, preparation of business planning instruments, and project audits. This component is underpinned by performance-based conditions (PBCs) that link disbursements to verifiable results in operational efficiency, financial sustainability, and corporate governance, including track renewal, full licensing and certification of locomotive drivers, regularized public service obligation (PSO) compensation, approval of a financial restructuring plan, increases in revenue per employee, annual sustainability reporting aligned over time with European Sustainability Reporting Standards (ESRS), ERP upgrade, and adoption of a Statement of Corporate Intent. Component 2: Road Connectivity Improvements will be implemented by the Roads Department of Georgia (RD) and includes Sub-component 2.1, climate-resilient and safe civil works to construct two four-lane segments on the Kakheti highway between Badiauri–Chalaubani and Chalaubani–Bakurtsikhe, plus a 36.6 kilometer Gurjaani–Telavi road, along with necessary access roads, road safety audits, and a landscape restoration plan; and Sub-component 2.2, project management support covering incremental operating costs, training, monitoring and evaluation, embedded experts, and design review and construction supervision, while integrating hazard overlays, climate-informed maintenance protocols, and emergency response playbooks into road asset management systems (RAMS). Component 3: Roads Sector Institutional Strengthening comprises Sub-component 3.1, digitalization and intelligent transport systems (ITS) through design, construction, and equipping of a centralized National Highway Control Center (NHCC), deployment of ITS, weigh-in-motion (WIM) and axle load control on the Kakheti highway, and integration of remote monitoring data with RAMS; and Sub-component 3.2, building climate resilience by establishing climate risk screening protocols and tools, enabling access to climate and hazard datasets, adopting decision-support tools for vulnerability, loss, and cost-benefit analysis, and conducting capacity-building, supported by a specialized expert and integrated with NHCC systems. Component 4: Economic Empowerment and Analytics for Regional Integration and Road Sector Sustainability includes Sub-component 4.1, a pilot to provide technical training, equipment, and tailored business support to small, often women-led, enterprises in Kakheti; and Sub-component 4.2, advisory and analytics to develop a road tolling program and action plan, undertake regional connectivity and trade studies, and advance flexible project preparation for tunnels, road safety, contract management, and technical design to build a pipeline of bankable projects and enable private participation. Component 5: Contingent Emergency Response Component (CERC) will provide a rapid financing mechanism for an eligible crisis or emergency in accordance with an approved Emergency Action Plan and a CERC operational manual.