Source: Trend International Information Agency
The upcoming COP29 conference in Azerbaijan provides an opportunity for Georgia to attract international investment in green technologies and sustainable projects.
Ahead of COP29, the AIIB Vice President noted the key role of the Caucasus region in interregional trade and economic cooperation. “The Caucasus, located at the junction of Europe and Asia, has a significant impact on interregional cooperation and has enormous potential for cross-border interaction,” he noted.
Limitovsky emphasized the importance of strategic investments in environmentally sustainable and high-tech infrastructure, which can strengthen ties between neighboring countries. “Such investments not only facilitate the movement of goods, services and people, but also contribute to economic integration,” he emphasized.
The bank’s vice president also noted the region’s opportunities for developing digital infrastructure. “In a world increasingly dependent on technology, investment in digital communications and network modernization can open up new prospects for growth, trade and innovation,” he explained.
The AIIB is committed to supporting digital projects in the region, facilitating the exchange of information and ultimately supporting economic growth. “This will ensure effective information exchange and accelerate economic development,” Limitovsky added.
He emphasized that COP29 in Azerbaijan provides Georgia with a unique opportunity to attract international investment in green technologies and sustainable projects. “Additional attention to the Caucasus at COP29 could also contribute to the development of ecotourism and support for Georgia’s environmental initiatives,” said the bank’s vice president, emphasizing that the conference could bring significant benefits to the entire region.
He also spoke about the recently completed Batumi Bypass Road project in Georgia, which has had a significant impact on improving connections between the Black Sea and Caspian regions. The Vice President emphasized the importance of the road not only for Georgia, but also for strengthening transit routes through these regions.
The Batumi Bypass is a 14-kilometer two-lane highway with 20 bridges and five tunnels that relieves city traffic by reducing congestion. “The completion of the Batumi bypass road was a significant event for the region, improving transport links between the Black Sea and the Caspian Sea,” Limitovsky noted.
The road has been designed to meet international safety standards and includes a comprehensive lighting system for safe passage. Limitovsky added that before the construction of the bypass road, traffic flow, including international transit, passed through residential and tourist areas, which created congestion and negatively affected everyday life. The opening of the road has significantly reduced traffic jams in Batumi and surrounding areas, improving the quality of life of local residents and conditions for tourism in the Adjara region.
The new road, starting in Makhinjauri and ending in Khelvachauri, provides important transport links between the adjacent villages and Batumi. Four transport hubs connect these villages to the city and provide direct access to major highways, helping to support local communities. “Together with the Kobuleti bypass road, the new bypass road reduces the load on main traffic,” added Limitovsky.
As well as local benefits, the bypass strengthens international transport routes by increasing transit capacity on the European West-East route (E70), which connects Spain and the Georgian city of Poti. “This route promotes trade between Western and Eastern Europe, as well as tourism and cultural exchanges,” he said.
The project was implemented thanks to investments from the AIIB in the amount of US$99 million with the participation of the Asian Development Bank (ADB) and with state support from the budget of Georgia. “The successful completion of the project underscores the AIIB’s commitment to supporting infrastructure that promotes economic growth and connectivity in the region,” Limitovsky said.
In total, the AIIB has so far approved five major projects in Georgia with a total value of approximately US$400 million, including the completed Batumi bypass road. “In cooperation with the government of Georgia, we are also preparing a project for the modernization of the Tbilisi metro,” Limitovsky noted. He added that the new initiative will improve the efficiency and reliability of the metro system, as well as its environmental friendliness.
Additionally, in response to the COVID-19 pandemic, the AIIB has taken measures to strengthen the preparedness of Georgia’s public health system, and has also supported small and medium-sized enterprises (SMEs) by providing liquidity through TBC Bank, helping the country cope with the economic downturn.
Noting the importance of sustainable development, the AIIB invested US$16 million in Georgia Capital Sustainability Bonds issued on the Georgian capital market to support green investments. “Our partnership with the government of Georgia began from the very first year of the AIIB’s operation and became the basis for the successful implementation of large infrastructure projects,” Limitovsky added.
He emphasized the important role of the Ministry of Finance, the Ministry of Regional Development and Infrastructure and the Department of Highways of Georgia in overcoming difficulties, especially during the pandemic. “The Batumi bypass demonstrates how effectively cooperation can facilitate the implementation of major infrastructure projects that improve local and regional connections,” he said.
Limitovskiy reiterated the AIIB’s commitment to working closely with the Georgian government on future initiatives: “Once construction is completed, we intend to place particular emphasis on environmental and social sustainability. We are committed to expanding both the sovereign and non-sovereign financing portfolio in Georgia, helping to strengthen the economic potential of the country and the region “.
According to him, the AIIB plans to actively expand its activities in the Caucasus region, where demand for energy is expected to grow and the need to increase generating capacity, especially from renewable sources. Limitovsky noted that the bank pays special attention to sustainable economic development.
He emphasized that the AIIB’s medium-term strategy is aimed at supporting environmentally friendly and technologically equipped infrastructure, calling it “the infrastructure of the future.”
“We are ready to cooperate with federal and regional authorities, the private sector and other interested parties to develop projects that will contribute to a prosperous, inclusive and sustainable future for the region,” concluded Konstantin Limitovsky.
Interview between Time.news Editor and AIIB Vice President Limitovsky
Editor: Welcome to Time.news, where we discuss the pivotal developments shaping our world. Today, we’re honored to have Konstantin Limitovsky, Vice President of the Asian Infrastructure Investment Bank (AIIB). Konstantin, thank you for joining us!
Limitovsky: Thank you for having me. It’s a pleasure to be here, especially in the context of such significant upcoming events.
Editor: Let’s dive right in. The COP29 conference in Azerbaijan is just around the corner, and you’ve mentioned that it’s a crucial opportunity for Georgia. Could you elaborate on how this conference can attract international investments in green technologies?
Limitovsky: Certainly. The Caucasus region, particularly with Georgia’s strategic position, stands to benefit immensely from COP29. The conference provides a platform for showcasing sustainability initiatives and attracting funding for green projects. With increasing global attention on climate change, Georgia has a unique opportunity to present its eco-friendly initiatives to potential investors, which could lead to substantial inflows of sustainable investment.
Editor: That sounds promising! You highlighted the important role of infrastructure investments. How do these investments facilitate regional ties and economic integration?
Limitovsky: Investments in high-tech and environmentally sustainable infrastructure are fundamental for cross-border cooperation. For instance, improvements in transportation networks not only enhance the flow of goods and services but also foster stronger relationships between neighboring countries. This interconnectedness is vital for driving economic integration, which ultimately benefits all parties involved.
Editor: Speaking of infrastructure, you referenced the completion of the Batumi Bypass Road project. Can you share more about its impact?
Limitovsky: The Batumi Bypass is a significant development for both Georgia and the entire Caucasus region. By alleviating traffic congestion in Batumi, it connects the Black Sea and the Caspian regions more efficiently. This 14-kilometer highway, featuring multiple bridges and tunnels, has improved local quality of life and boosted tourism in the Adjara area. Additionally, it enhances the European West-East transit routes, promoting trade and cultural exchange between Western and Eastern Europe.
Editor: It seems like the bypass project has both local and international benefits. How has the AIIB supported this infrastructure development?
Limitovsky: The AIIB contributed $99 million to the Batumi Bypass project, collaborating with the Asian Development Bank and the Georgian government. This investment exemplifies our commitment to fostering economic growth and connectivity in the region. we’ve approved five major projects in Georgia, valued at around $400 million, focusing on infrastructure that supports sustainable development.
Editor: That’s impressive. You also mentioned AIIB’s support for digital infrastructure in the region. Why is this focus important?
Limitovsky: In today’s digital age, robust digital infrastructure is essential for economic growth and innovation. Investments in digital communications and network modernization can revolutionize trade and information exchange, opening up new avenues for growth and enhancing competition. By supporting digital projects, we aim to facilitate smoother information flows, which can spur economic development across the region.
Editor: The AIIB has taken a holistic approach to development by also addressing the public health sector and supporting SMEs during the pandemic. Could you tell us more about those initiatives?
Limitovsky: Absolutely. In response to the COVID-19 pandemic, we recognized the need to bolster Georgia’s public health capabilities. We also provided liquidity support to small and medium-sized enterprises through partnerships with local banks. These efforts are crucial for ensuring economic resilience during tough times and demonstrate our commitment not just to infrastructure, but to sustained economic health and recovery.
Editor: as you look ahead to COP29, what is your vision for the future of investment in Georgia and the broader Caucasus region?
Limitovsky: My vision is one of continued growth through sustainable investment. COP29 has the potential to shift perceptions and increase awareness of the opportunities in Georgia and the Caucasus. By prioritizing green technologies and developing integrated infrastructure, we can attract international partnerships that will lead the way for economic development, environmental sustainability, and ultimately, for a more resilient and prosperous region.
Editor: Thank you, Konstantin, for sharing your insights. It’s clear that the AIIB is playing a pivotal role in shaping a sustainable future for Georgia and the Caucasus. We look forward to seeing how these initiatives unfold at COP29.
Limitovsky: Thank you! I appreciate the opportunity to discuss these important issues, and I am excited about the prospects ahead.
Editor: Let’s keep the conversation going as we head into COP29. Thank you for joining us today!