The World Bank approved a scheme to finance the TC-GATE Project, Georgia’s plan to further develop the Middle Corridor, with 372 million USD (320 million euros). The programme will require 750 million USD (646 million euros) in total, and the rest is coming from the Asian Development Bank and the Asian Infrastructure Investment Bank.
TC-GATE stands for Trans-Caspian Transport Corridor – Georgia Accessibility and Transport Enhancement. The initiative entails measures to improve rail and road connectivity in the country. For rail, the money will be spent to buy electric locomotives and strengthen Georgian Railways, the World Bank specified. “The upgrades are expected to improve locomotive availability to 95% (…) and support a 20% increase in revenues”.
Not only rail
The project also includes the construction of two four-lane road segments in the Kakheti region, in the east of Georgia. The two initiatives are the Badiauri–Chalaubani–Bakurtsikhe sections and a road connecting Gurjaani to Telavi, according to the World Bank. “These investments will help Georgia realize its full potential as a critical regional transit hub bridging Europe and Asia”, said Rolande Pryce, World Bank Regional Director for the South Caucasus.
Europe missing out?
As mentioned, the funds are coming from the World Bank and two Asian financial institutions. Once again, Europe seems to be showing little to no interest in the development of the Middle Corridor. Unlike China and countries from the Arab World as well as Central Asia, the Old Continent does not seem to consider this route as a priority, especially because the route via Russia still handles most of the rail freight volumes between China and Europe.
BTK’s official ceremony
In addition to the announced investments from the World Bank, this week brought the official opening ceremony of the Baku-Tbilisi-Kars (BTK) line, running between Azerbaijan and Türkiye via Georgia. The line was once again put into full operation after working at reduced capacity during an upgrade that started in 2023. Armenia also participated in the ceremony, despite not being directly touched by the BTK. The Turkish government has in fact recently lifted a ban on Armenia imports and exports via rail. With this move, Yerevan is now connected to the line and thus to Europe.
