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Founded two years ago with $100bn in capital aimed at financing the new Silk Road, AIIB has focused its financing efforts on Central and South Asia until now. Its investment in Georgia speaks to the importance of the small, but strategically located South Caucasus country, with which China also agreed to the first free trade agreement (FTA) in the region earlier this year.
Authorities in Batumi are seeking to build a bypass road in order to avoid national roads crossing tourist and residential areas in Batumi. The project is expected to be launched this year and be completed in 2022.
AIIB also signed an agreement with the Asian Development Bank (ADB) on June 16 to cooperate on the project. ADB has more experience financing projects in Georgia, having invested some €108mn in infrastructure projects in the country to date.
6.0 Public Sector 6.1 Budget
Georgian parliament passes revised 2017 budget
The Georgian parliament has amended the 2017 state budget by increasing the forecasted GDP growth level from 4.0% to 4.5%, civil.ge reported on December 2.
In addition, the revised budget stipulates slightly higher revenues – a 0.26% increase to GEL11.4bn (€3.55bn) and a 2.6% increase in spending to GEL11.7bn.
Eight ministries received more funding under the revision: the ministry of economy (GEL106mn hike to GEL476mn), agriculture (GEL65mn more), regional development (GEL30mn), youth and sport (GEL10mn), energy (GEL65mn), foreign affairs (GEL5mn), internal affairs (GEL14mn) and the ministry of internally displaced persons and refugees (GEL15mn).
The revised draft projects a GDP growth level of 4.5% in 2018, similar to 2017.
22 GEORGIA Country Report December 2017 www.intellinews.com