ArmInfo.The European Bank for Reconstruction and Development (EBRD) will provide Armenia with a loan of 236 million euros for the construction of the southern section of the Sisian-Kajaran highway of the North-South transport corridor. At a meeting on June 27, the RA Government approved a draft decision on ratification of the agreement with the Bank, which will be sent to the National Assembly of the country in due course.
According to the explanatory note, the agreement was signed on May 15, 2024. As part of the agreement, an asphalt concrete road with a length of 24, 25 km will be built, which will reduce the length of the Sisian- Kajaran section of the road. The implementation of the project will also make it possible to increase the speed from 50 km/h to 100 km/h. In addition, driving comfort and safety will increase. The construction of the road section will also help increase trade turnover, reduce transport costs, attract transit transport and develop tourism. The construction work of the road section includes the construction of a three-lane road with asphalt concrete surface, the construction of 5 tunnels, 11 bridges, 68 guardrails and 43 retaining walls. The project is scheduled to be completed by November 2032.
The construction of this road of strategic importance will ensure unhindered communication from the southern border of Armenia to the border of Georgia, as well as to the Black Sea ports, will allow for freight and passenger transportation that meets European standards, and will provide serious opportunities for the development of all settlements from the south to the north of Armenia. The investment program of the new section of the Sisian-Kajaran road, including the Bargushat tunnel, with a length of 60 km, is planned to be implemented in three directions: the northern section with a length of 27.12 km, the section of the Bargushat tunnel with a length of 8.65 km, the southern section with a length of 24.25 km.
In order to ensure long-term sustainable development, the Republic of Armenia faces large-scale tasks to modernize and develop basic infrastructure. Considering the lack of direct access to the sea, improving transport links and reducing transport costs are among the priorities of the RA government. In order to increase transport links between territories within the country, break out of relative transport isolation and realize the country's transit potential, the Government of the Republic of Armenia decided to implement a national large-scale project for the construction of the North-South automobile corridor.
The estimated cost of the entire project for the construction of the southern section is 452 million euros. The project is planned to be financed through loans provided by the EBRD and the European Investment Fund with co-financing from the Government of the Republic of Armenia. The required loan funds to finance the southern section amount to 373 million euros, of which 236 million euros are planned to be raised from the EBRD, and 137 million euros from the EIB, co-financing from the Government of the Republic of Armenia will amount to 79 million euros.
Let us also recall that $150 million was provided for the construction of the southern section of the North- South transport corridor by the Eurasian Fund for Stabilization and Development, the funds of which are managed by the Eurasian Bank for Reconstruction and Development. Previously, the Asian Development Bank provided $500 million for the creation of the corridor.
