BAKU, Azerbaijan, November 4. The upcoming COP29 conference in Azerbaijan presents an opportunity for Georgia to attract international investment in green technologies and sustainable projects, said Konstantin Limitovskiy, Asian Infrastructure Investment Bank (AIIB) Vice President, in an exclusive interview with Trend.
In anticipation of the upcoming COP29 conference, the AIIB VP highlighted the Caucasus region's significant role in fostering inter-regional trade and economic cooperation. "The Caucasus, located at the crossroads of Europe and Asia, contributes significantly to inter-regional trade and economic cooperation and offers further potential for cross-border connectivity," Limitovskiy stated.
He emphasized the importance of strategic investments in green and technologically advanced infrastructure, which can strengthen ties between neighboring countries. "These investments facilitate the movement of goods, services, and people, ultimately fostering economic integration," he noted.
Limitovskiy also pointed out the region's potential for developing digital infrastructure. "As the world becomes increasingly reliant on technology, investing in digital connectivity and modernizing communication networks can unlock new avenues for growth, trade, and innovation," he explained. He assured that AIIB is keen to help the region become more digitally interconnected both internally and with the rest of Asia. "This will enable efficient information exchange and support economic development," Limitovskiy added.
The AIIB VP further highlighted the opportunity presented by COP29 for Georgia to attract international investment in green technologies and sustainable projects. "The increased focus on the Caucasus during COP29 will also boost eco-tourism and highlight Georgia’s environmental initiatives," Limitovskiy said, emphasizing the potential benefits of the conference for the region.
Limitovskiy expressed confidence that these initiatives, coupled with AIIB’s support, could lead to transformative outcomes for the Caucasus region. "We believe that the strategic investments made today will lay the groundwork for a more sustainable and prosperous future".
Further, the VP also spoke about the newly completed Batumi Bypass Road project in Georgia, which had a transformative impact on regional connectivity in the Black Sea and Caspian areas. Describing the project as a "major milestone", Limitovskiy noted the road's importance not only for Georgia but for strengthening transit routes across these regions.
The Batumi Bypass Road, a 14-kilometer, two-lane highway featuring 20 bridges and five tunnels, reroutes traffic around the city, significantly easing congestion. "The completion of the Batumi Bypass Road is a major milestone not only for Georgia but for connectivity in the Black Sea and Caspian region," said Limitovskiy.
Designed to international road safety standards, the bypass incorporates advanced features like a comprehensive lighting system, ensuring safer passage for vehicles. According to the VP, "Before the bypass, traffic - including international transit - passed through residential and tourist zones, causing congestion and disrupting daily life". Now, with this route open, Batumi and nearby areas experience less congestion, enhancing daily life for residents and improving tourist experiences in the Adjara region.
The road, which begins in Makhinjauri and ends in Khelvachauri, provides essential links for surrounding villages to connect with Batumi. Four transport nodes connect these villages to the city and provide direct access to Batumi’s main thoroughfares, further supporting local communities. "Together with the Kobuleti bypass, the Batumi Bypass alleviates this pressure," added Limitovskiy.
In addition to local benefits, the bypass strengthens international routes by enhancing transit along the West-East European Route (E70), which stretches from Spain to Poti, Georgia. "The bypass boosts cargo capacity and facilitates increased transit along the E70," the VP emphasized, highlighting the road's role in bolstering trade between Western and Eastern Europe while promoting tourism and cultural exchanges.
The project was made possible by a $99 million investment from AIIB, supplemented by co-financing from the Asian Development Bank (ADB) and the Georgian state budget. "The successful completion of the Batumi Bypass underscores AIIB’s dedication to supporting infrastructure that drives economic growth and regional connectivity," said Limitovskiy.
Meanwhile, to date, AIIB has approved five significant projects in Georgia, totaling nearly $400 million, including the recently completed Batumi Bypass Road. "Together with the Government of Georgia, we are also preparing the Tbilisi Metro Modernization Project," Limitovskiy stated. "This initiative will enhance the efficiency, reliability, and sustainability of the metro system through the acquisition of modern rolling stock."
In response to the COVID-19 pandemic, AIIB took proactive measures by providing financing aimed at strengthening Georgia’s public health preparedness. Additionally, the bank collaborated with TBC Bank to deliver liquidity to small and medium-sized enterprises (SMEs) affected by the economic downturn, aiding the country’s recovery from the pandemic's adverse effects.
Highlighting the commitment to sustainability, AIIB invested $16 million in the issuance of sustainability bonds by Georgia Capital JSC in the Georgian capital markets, aimed at supporting green investments. "Our partnership with the Government of Georgia dates back to the very first year of AIIB operations and has been key to the success of major infrastructure projects, including the Batumi Bypass Road," Limitovskiy remarked.
He acknowledged the crucial roles played by the Ministry of Finance, the Ministry of Regional Development and Infrastructure, and the Roads Department in overcoming challenges, particularly during the global pandemic. "The Batumi Bypass demonstrates how effective this collaboration can drive transformative infrastructure projects that enhance local and regional connectivity," he added.
Looking ahead, Limitovskiy reaffirmed AIIB's commitment to collaborating closely with the Georgian government on future initiatives. "We aim to ensure that post-construction activities are completed with a focus on environmental and social sustainability. We look forward to expanding our sovereign and non-sovereign portfolios in Georgia, further enhancing the country's and the region's economic potential".
AIIB's dedication to the Caucasus region is evident, with plans to expand its operations significantly in the coming years. "We foresee growing energy demands that will require increased generation capacity, particularly from renewable energy sources," he noted, emphasizing the bank's focus on sustainable economic development.
The VP highlighted AIIB's mid-term strategy, which aims to facilitate and expand green, technologically enabled infrastructure, describing it as "infrastructure for tomorrow".
"We look forward to working with the federal and regional governments, the private sector, and other stakeholders to develop projects that will contribute to a more prosperous, inclusive, and sustainable future for the region," Konstantin Limitovskiy concluded.