The Asian Development Bank (ADB) has approved a $250 million loan for Georgia to support the construction of the strategically important Tbilisi Bypass Road, a project expected to improve transport connectivity, ease congestion and strengthen the country’s position as a regional transport hub.

The project includes the construction of an 18.9-kilometer, four-lane section of the Tbilisi Bypass, which will form an important part of the modernization of Georgia’s East-West Highway, ADB reports.

By diverting traffic around the capital, the new road is expected to reduce pressure on Tbilisi’s existing road network while improving the movement of both freight and passengers.

ADB financing will support construction of two sections of the bypass: Tbilisi Airport-Lochini (Lot 4) and Lochini-Rustavi (Lot 5). The project will also include the construction and modernization of access and service roads.

Lesley Bearman Lahm, ADB Country Director for Georgia, said that the country’s strategic location between Europe and Asia gives it significant potential to become a regional transportation hub.

“The Tbilisi Bypass will help fully realize this potential by reducing road congestion and improving freight transport efficiency,” Lahm said.

ADB said the new road will shorten travel times, reduce vehicle operating costs and cut harmful emissions for both local and transit traffic. The project is also expected to improve the reliability of freight transportation, exports and tourism while helping reduce road fatalities and serious injuries.

The bypass will further improve road transport efficiency along the Central Asia Regional Economic Cooperation (CAREC) Corridor 2, which connects Central Asia with Europe and serves as a major trade route.

The project is expected to support investment in Georgia and deepen the country’s integration into regional and global markets.

ADB also assisted the Georgian government with technical, economic, financial, environmental and social assessments of the project.

The new loan adds to ADB’s existing support for Georgia’s road infrastructure, which has exceeded $2.3 billion. Previous projects have included the construction and modernization of sections of the East-West Highway, the Kobuleti and Batumi bypasses, the Kvesheti-Kobi highway and the Batumi-Sarpi road.

ADB has been a partner of Georgia since 2007. Since the country joined the bank, ADB financing, grants and technical assistance to Georgia have totaled nearly $6 billion.