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The study formulated potential yen loan investment projects for national highway improvements in Georgia. It examined the improvement needs for each section of the highway network, in particular along the east-west corridor, and prioritized each section in terms of engineering issues, economic benefits, environmental impacts, and social/relocation/poverty impacts. Through these exercises, candidate yen loan projects, including bypass construction and road widening interventions, were identified. In addition, detailed studies for target sections were carried out, including concept design, scoping of environmental and social impacts, and calculation of economic internal rate of return (EIRR). An implementation program was also proposed.