Unsolved problems of the North-South Corridor

The Kvesheti–Kobi highway, part of the International North–South Transport Corridor, cuts through Georgia’s picturesque Khada Valley. Financed by the EBRD and the Asian Development Bank (ADB), the highway has been an environmental disaster for the landscape, biodiversity, and heritage of the region. If that weren’t enough, the local community has to contend with land grabs and intimidation for simply raising their concerns.

As it revises its environmental and social safeguards, the EBRD must ensure its future development projects never play out like this again. Going forward, we call on the EBRD to take the following actions:

  • Engage with communities and all relevant experts at an early stage to inform its due diligence and investment decisions so that project impacts never again remain concealed or unexamined.
  • Ensure the concerns of affected communities are considered in project design, location and mitigation action plan.
  • Take a zero-tolerance approach to salami-slicing and share the responsibility for remediating harm caused by safeguard non-compliance.
  • Report on environmental and social underperformance as well as mitigation measures.