Page 23 - bne IntelliNews Georgia country report October 2017

China-led AIIB to finance $114mn road project in Georgia
Total FDI in Georgia last year stood at $1.57bn, almost exactly the same as was recorded in 2015. Neighbours Azerbaijan and Turkey ranked as the leading sources of FDI, with $558mn and $203.5mn invested, respectively, followed by the UK ($118.8mn), the Netherlands ($97.2mn) and Luxembourg ($88.3mn).
Annual FDI in the country peaked at $2bn in 2007, prior to the country's five-day war with Russia, and, although it came close to the same level in 2014, it has yet to fully recover.
The Asian Infrastructure Investment Bank (AIIB) has signed an agreement to finance a bypass road around the Georgian beach resort of Batumi to the tune of $114mn, agenda.ge reported on June 17.
This is the China-led multilateral lender's first project in Georgia and the South Caucasus.
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.
23 GEORGIA Country Report October 2017 www.intellinews.com