The World Bank Group said its board of directors decided to launch a new Country Partnership Strategy with Georgia for 2009-2012 in frames of which the Bank will lend Georgia USD 740-900 million through its various arms.

The new strategy, according to the Bank, aims at investments in transport infrastructure, deepening of reforms in social assistance and health coverage for the poor, improvements in the business environment and strengthening of expenditure efficiency.

Also on September 10, the World Bank Group approved USD 147 million loan for the east-west highway project, envisaging upgrading of the country’s key highway on the section between Ruisi in Shida Kartli region and Sveneti in western Georgia, to a four lane divided highway.

This is the third in a series of investments aimed at improving the Georgia’s key transport corridor, which carries over 60% of the foreign trade that uses Georgia’s roads.

The World Bank supported upgrading of other sections of the same highway in frames of two separate projects with financing of USD 19 million and USD 35 million, respectively.

The east-west highway project is “a major element” of the new Country Partnership Strategy for Georgia, Asad Alam, World Bank regional director for the South Caucasus, said.