On January 14, Civic Idea, a Georgian civil society organization focused on China-related issues, released a report expressing concerns over the involvement of China Railway Tunnel Group Co., Ltd. (CRTG) in strategically important infrastructure projects in Georgia, citing risks related to national security, corruption, and environmental violations.

In Georgia, CRTG entered the market in 2018 but initially lost a bid for the Rikoti Pass project. Since then, it has secured contracts for two projects: the Kvesheti-Kobi and Stepantsminda-Gveleti highways, both key segments of the North-South Corridor, which connects Russia with Armenia, Azerbaijan, Iran, and other countries. The Kvesheti-Kobi project began in 2019 but remains incomplete despite CRTG finishing its designated nine-kilometer tunnel in 2022. The project has faced delays, with other sections handled by another Chinese company, China Railway 23rd Bureau Group Co., Ltd.

The Stepantsminda-Gveleti road project, part of the larger Mtskheta-Stepantsminda-Larsi highway connecting Georgia to Russia, has similarly raised concerns. Civic Idea reported irregularities in the tender process, with CRTG securing the contract in 2022 despite unclear reasons for rejecting other bidders. In 2024, a second tender was issued, and CRTG again won after submitting a significantly lower bid. Environmental concerns have also surfaced, with Green Alternative, another Georgian CSO, complaining to the World Bank and the Asian Development Bank about regulatory violations and misleading project documentation.

The North-South Corridor has sparked debates over its geopolitical implications. Vano Machavariani, former Deputy Secretary of the Security Council, described the project as more militarily and politically risky than economically beneficial for Georgia. Economist Gia Jandieri emphasized the route’s strategic importance for supplying the Russian military base in Armenia and transporting cargo from Russia to Armenia, which can be re-exported to Georgia.

Civic Idea criticized the Georgian government for fostering a non-competitive climate favoring CRTG, echoing previous problematic experiences with Chinese companies. The report warned of risks, including delays, increased costs, and compromised quality in the Stepantsminda-Larsi project. Additionally, it emphasized the lack of thorough investigations into CRTG’s business practices before contract approvals, endangering infrastructure development, national security, and the environment. The organization called for strict oversight, frequent assessments, and prioritization of citizen safety, particularly in the Stepantsminda Highway project.