Highway of injustice: How EIB-financed East–West road projects in Georgia impact local communities

Field visit report    |    13 October 2025

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In 2021, the European Investment Bank (EIB) approved EUR 106.7 million in funding for two major highway projects in southern Georgia: the Algeti–Sadakhlo and Rustavi–Red Bridge sections of the East–West Highway. These projects, which aim to improve safety and connectivity, are part of a EUR 1 billion EIB package for Georgia’s transport sector. However, field research conducted by Green Alternative and CEE Bankwatch Network in 2025 revealed significant social and environmental issues in the affected municipalities, particularly with regard to compensation, resettlement, consultation and access to information.

The investigations revealed that Georgia’s Ministry of Infrastructure’s Roads Department, the project promoter, has relied extensively on expropriation while neglecting engagement with local communities. Weak legal safeguards, a lack of judicial oversight and limited transparency have left many families — particularly in Marneuli, where the ethnic Azerbaijani majority faces systemic discrimination — without fair compensation or effective redress. Women in these communities face additional challenges related to early marriage, economic exclusion, and inadequate institutional protection.