Tbilisi railway bypass snags over study
26 September, 2013
Tbilisi railway bypass snags over study
The USD 350 million worth railway bypass project of the state-owned JSC Georgian Railway expected to re-route the railway track off the center of the Georgian capital to the outskirts is snagging over the feasibility study concluding that the bypass project falls far behind the expectations.
The slowdown at the Tbilisi railway bypass made Mikheil Saakashvili, President of Georgia, indignant. He visited the construction site on 15 September together with Tbilisi Mayor Gigi Ugulava and reported that construction is suspended
and the culprit is Georgia’s PM Bidzina Ivanishvili.
“I have never been as angry as I am now,” Saakashvili raged. “This crosses all boundaries. 80% of construction is actually completed, hundreds of millions are spent. I would like to say to Tbilisi people what these functionaries are going to deprive Tbilisi and each Tbilisi resident. Once this railway bypass is completed, there will be an end to traffic jams in the capital.” Saakashvili appealed to PM to get to senses for this railway bypass is the salvation for Tbilisi.
The new board of Georgian Railway that took its office early this year, counters that the project is a failure; nevertheless, the project is not laid up but only put under discussions as the recent study implemented by MC Mobility Consultants GmbH, one of the global aces, says the project will bring losses rather than profits: it cuts the productive capacity of Georgian railway down by almost one-quarter whereas more than doubles the overall expenses, spent on railway operation and infrastructure maintenance.
However, as nearly 60% (and not 80% as the President claims) of the project is already completed and USD 213 million spent, the government is reconsidering the project at the moment so as either to reshape it in a more profitable manner or cancel for good.
The Tbilisi bypass project was initiated by the ex-power to move rail traffic outside Tbilisi centre to improve the efficiency and safety of rail operations as well as overcome environmental issues and vacate about 83 hectares of land in Georgian capital for urban renewal projects. But the project was launched without feasibility research, for it does not meet any of the set goals as the recent study revealed, Dachi Tsaguria, spokesperson of Georgian Railway (GR), told Georgian Journal.
According to the incomplete rap sheet drawn by the MC Mobility, the bypass project decreases railway capacity by 24%, total operational and maintenance expenses increase by 57%, the total expense increases within the next 11 years from USD 126 million to USD 197 million plus more than envisaged investments are required. More than that, the environmental and safety risks do not diminish after re-routing the rail track to the outskirts, and the benefit GR expected to get after releasing 84 ha of territories in the capital makes only USD 30 million or 12 times less than the investment cost of construction of the project as the auditor company Ernst and Young underscored.
On the other hand, the contractor construction company the Joint Venture (JV) of JSC group of 23 bureaus of the Chinese Railway and JSC Khidmsheni failed to meet the set deadline for it had to go through with the construction works by July of 2013 but it did not. And now there are ongoing talks with the contractor company whether or not they will complete the works for which the money is already paid.
“The project is a failure in fact, although it is not suspended but put under discussions. The Authorities are trying to reshape it in a more reasonable way,” Tsaguria said.

Other Stories
Inovative and reliable online shop in Georgia - Momitane.ge
Status of Georgia as a business and tourism interesting country is growing from year to year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
Georgia second among the fastest growing tourist destinations in Europe
Georgia is among the fastest growing tourist destinations in Europe. The data is published by the UN World Tourism Organization.
Bitmain launches world digital mining summit in Tbilisi, Georgia
Bitmain CEO Jihan Wu and Roger Ver, CEO of Bitcoin.com Head Speaker List featuring Circle, DEX.top and Genesis Mining when Digital Mining Leaders Convene In Tbilisi on September 21-23
TBC Bank and Gazelle Finance have teamed-up to support Medical City, a leading healthcare provider in the western region of Georgia to launch the Western Regional Center Of Modern Medical Technologies.
Equiavlent to buried treasure – resources that are underused in Georgia
For 2018 the IMF Commission has forecast an annual economic growth for the Georgian economy of about 5,5%.
Does the quality of Georgian wine increase and how the export affects it
If we look at the data collected about modern Georgian wine, we will find out that the Georgian wines produced between 2015-2017 are much better in terms of their quality and Oenologic features rather than the wines produced between 2009-2011.
Japan simplifies the visa requirements for Georgian citizens
Diplomatic and economic relations between Georgia and Japan are now moving to a new phase. Recently Japan has decided to simplify the visa requirements for Georgian citizens.
M&S (Marks and Spencer) and H&M collections to be produced in Georgia
Garments manufacturer MGMTEX will start production of the M&S and H&M trendy collections from this September.
The World Digital Mining Summit to be held in Georgia
The summit is scheduled to take place between 21st-23rd September in the Hualing Hotel, Tbilisi, Georgia.
Galt and Taggart - Tourism Boom Continues in Georgia
Tourism has become one of the key drivers for the Georgian economy. Galt and Taggart has recently published research about the Georgian tourism sector in the first half of 2018.
"The worst dream for Putin is that Russians want to live in Georgia"
This year, visitors to the Adjara region would notice that there is a boom in construction in and around Batumi.
Underground gas storage facility to be built in Georgia
KfW, a German government-owned development bank signed a EUR 150 million promotional loan with the state-owned Georgian Oil and Gas Corporation (GOGC) for the construction of the first underground gas storage facility in Georgia.
New gambling rules for Georgia
Georgian lawmakers are preparing a new draft law relating to online-casinos and gambling that will seek to curb gambling addiction in Georgia.
How expensive is it to visit Georgia?
The Georgian Lari (GEL) is the official currency of Georgia and is the only legal means of payment in the entire territory of Georgia.
Trade with the EU and the Commonwealth of Independent States (CIS) has grown significantly
Trade with the EU and the CIS has grown by 26% and 33.5 % respectively, says GeoStat, the Georgian National Statistics Office.
The unemployment rate decreases in Georgia
The unemployment rate decreased in Georgia by 1,9% and amounted to 12.1% in the 2nd quarter of 2018 compared with the previous quarter,
Memorandum of Understanding to be signed between Georgia and Malaysia
According to the Georgian Ambassador to Malaysia Nikoloz Apkhazava, Georgia plans to sign a Memorandum of Understanding (MoU) with Malaysia.
“Blauenstein Georgia” due to expand in Georgia
“Blauenstein Georgia” is planning to open more shops in Georgia. It is an agriculture company that sells meat products, meat and convenience food.
The amount of Direct Foreign Investment rises in Georgia
According to the information of the National Statistics Office of Georgia, the amount of direct foreign investment in Georgia has risen
It’s going to get  harder for foreigners to get residence permit in Georgia
It’s going to get harder for foreigners to get permit of residence in Georgia.
Mziuri Park in Tbilisi to be renovated soon
It was the dream of prominent Georgian writer Nodar Dumbadze that when the original Mziuri park was constructed and opened in 1892 that it should be a park for children,
Exchange Rates
GEL Exchange Rate
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
November 2018
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30