he Black Sea Submarine Cable, the Green Energy Corridor Initiative not only enhance energy security, but also position the region as a strategic supplier of clean energy to Europe. Alkis Vryenios Drakinos, Regional Director for the Caucasus, said this in the exclusive interview with the Business Insider Georgia.

- What are the main structural challenges affecting the region as a whole, and Georgia in particular?

- The South Caucasus faces a complex set of structural challenges that shape its long-term growth trajectory. Regionally, persistent geopolitical uncertainty and trade fragmentation continue to expose economies to external shocks. Energy dependency remains a critical issue: although renewable potential is significant, integration and storage infrastructure are still underdeveloped, slowing the green transition. Skills and productivity gaps further hinder competitiveness, particularly as global demand shifts toward ICT, logistics, and climate-resilient sectors. Connectivity bottlenecks—especially in transport corridors—limit the region`s ability to fully leverage its strategic position as a transit hub between Europe and Asia.

For Georgia, these challenges are compounded by the need to strengthen governance and rule-of-law frameworks to maintain investor confidence. Capital markets, while improving, remain shallow, restricting access to long-term local-currency financing. Accelerating renewable energy deployment and modernizing grid infrastructure are essential for energy security and export ambitions, particularly in light of projects such as the Black Sea Submarine Cable. Human capital alignment is another priority: vocational education and digital skills must scale up to support growth in ICT and green industries. Finally, Georgia`s potential as a logistics and energy hub depends on harmonized standards and infrastructure upgrades to deepen regional integration. According to the EBRD`s latest assessments, addressing these structural issues will be critical to sustaining Georgia`s strong growth momentum and attracting larger-scale private investment.

- In terms of infrastructure and energy integration, where does the EBRD see the greatest opportunities in the region?

- The EBRD identifies infrastructure and energy integration as pivotal drivers of sustainable growth and regional connectivity in the South Caucasus. The most transformative opportunity lies in the development of cross-border energy corridors, particularly the Black Sea Submarine Cable and the associated Green Energy Corridor. This initiative not only strengthens energy security but also positions the region as a strategic supplier of clean energy to Europe, aligning with global decarbonization goals.

Beyond interconnection, grid modernization within Georgia and Armenia is critical to integrate variable renewable sources such as hydropower, wind, and solar. Investments in smart grids, storage solutions, and transmission upgrades will enable more reliable and efficient power flows across borders. The EBRD is actively supporting these efforts through financing and technical assistance, ensuring compliance with international environmental and social standards.

On the transport side, the Bank sees significant potential in multimodal logistics corridors, including Armenia`s North-South Road Corridor and Georgia`s Black Sea port infrastructure. These projects enhance the region`s role as a transit hub along the Middle Corridor, linking Central Asia to Europe. Upgrading roads, railways, and port facilities, combined with digitalized customs and border systems, will reduce trade costs and improve resilience against geopolitical disruptions. Finally, the EBRD emphasizes synergies between energy and transport investments. For example, integrating renewable-powered charging infrastructure for freight and passenger transport supports both decarbonization and connectivity objectives. By leveraging blended finance and public-private partnerships, these projects can attract large-scale private investment while delivering long-term economic and environmental benefits", - said Alkis Vryenios Drakinos.