ADB Allocates $360 Million for Batumi–Sarpi Road Construction

Photo: gdb.rferl.org

The Asian Development Bank (ADB) announced it has approved a $360 million loan to build a new section of the Batumi–Sarpi road. The project will upgrade a strategically important segment of Georgia’s East–West Highway, strengthening regional integration with Türkiye and ensuring convenient access to the popular resort of Gonio.

The 11-km route will connect the Batumi Bypass to the Sarpi border crossing and will be built to Trans-European Highway standards. The alignment will be shifted away from the shoreline to reduce climate risks. The project includes slope stabilization, rockfall protection, drainage systems, and coastal reinforcement along a 500-meter stretch of the Black Sea.

ADB underscores that this section will be the final link in the national road network—so-called “last-mile connectivity”—and will enhance Georgia’s role as a key transit corridor for trade and logistics under the CAREC (Central Asia Regional Economic Cooperation) initiative, specifically its second trade corridor running through the country.



Support for the road complements ADB’s decade-plus partnership with Georgia. The bank has previously invested in the Kobuleti and Batumi bypass roads, the Kvesheti–Kobi highway, and a number of secondary routes, with total funding exceeding $1.1 billion. Beyond finance, the bank has helped the Roads Department of Georgia strengthen tendering, environmental and social standards, contract management, and project delivery.

ADB Country Director for Georgia Leslie Berman Lam noted that completing the project will boost the country’s investment appeal and create new economic opportunities for the population. She recalled that for more than ten years, the bank has supported the government’s national strategy for developing road infrastructure and stressed that this work is delivering tangible results.

Additionally, the project provides for modernizing road-asset management systems, supporting the low-carbon transition, improving road safety, and building sector capacity through staff training and equipping the Georgian Technical University’s bridge engineering laboratory with modern tools.

ADB remains one of Georgia’s largest multilateral partners. Since 2007, the volume of loans, grants, and technical assistance has reached $5 billion. The bank’s five-year country strategy aims to turn Georgia into “green and inclusive regional gateways,” while supporting public and private investment, reforms, climate-resilient infrastructure, and deeper regional integration.



Construction of the Batumi–Sarpi road will ensure transport connectivity and support the development of Gonio, which is steadily becoming a new hub of investment activity. For the Georgian government, this coastal area south of Batumi has become a platform for an ambitious development program to create a next-generation resort. The state plan, prepared with international consultants, provides for an artificial lake, preserving part of the area as a nature park, and extending Batumi’s Seaside Boulevard. The road to Sarpi is also on the transformation list. Together, these measures should raise the area’s tourism appeal and cement its position as an emerging Black Sea center.

In parallel, projects by international hotel brands—Radisson, Wyndham, and Rotana—are underway in Gonio, signaling strong interest from global operators. Their presence helps ensure high service standards and builds investor confidence.

Of special importance is the Gonio Marina complex, developed by Abu Dhabi’s Eagle Hills. Covering 260 hectares, it will include hotels, residential residences, a shopping and entertainment center, and a modern yacht marina. Gonio Marina is one of the key elements in the package of agreements between the Government of Georgia and UAE investors. The total volume of Emirati investment reached $6.6 billion in September 2025.

For the authorities, Eagle Hills’ participation also carries strategic weight. Linked to Emaar Properties founder Mohamed Alabbar, the developer calls Georgia a country “with tremendous prospects and potential.” Large-scale UAE investment reinforces Georgia’s status as a reliable platform for long-term international business and signals trust from leading Gulf players.

The Sarpi road and Gonio’s development are parts of a single strategy: new transport accessibility drives investor interest, while international brands and UAE participation shape Georgia’s image as a stable destination for long-term capital.