ArmInfo. On January 9, at its regular session, the Armenian government approved the draft law on ratification of the financial agreement between the Republic of Armenia and the European Investment Bank with a budget of 236 million euros.
ArmInfo reported earlier that in 2025, it is planned to begin construction work on a new road section with a length of about 60 km Sisian-Kajaran (including the Bargushat tunnel) of the 4th tranche of the North- South road corridor.
The works will be carried out in three sections: the northern section - 27.12 km long; the Bargushat tunnel section, 8.65 km long, and the southern section, 24.25 km long. In total, as noted in May 2024 by the Ministry of Territorial Administration and Infrastructure, the construction of the three sections of the road section will require 708 million euros in credit funds. The southern section was planned to be implemented with joint financing from the EBRD and the European Investment Bank (EIB). According to the initial plan presented by the EBRD, the necessary credit funds to finance the southern section amount to 373 million euros, of which 236 million euros are planned to be attracted from the EBRD, and the remaining 137 million euros the RA authorities wanted to borrow from the EIB. As stated in the explanation to today's document, within the framework of the program, an asphalt concrete road with a width of 11.1 m (including reinforced shoulders), 3 traffic lanes (3.30 m), 27 bridges with a length of 4.7 km and 9 tunnels with a total length of 12.5 km will be built, the longest of which is the Bargushat tunnel with a length of 8.6 km (the tunnel section will be financed separately).
The funds provided by the document will be used to finance the construction of the northern and southern sections of the Sisian-Kajaran road. The project will also be co-financed by the European Bank for Reconstruction and Development and the Asian Development Bank, each in the amount of 236 million euros.
The contract also sets out requirements for mitigating environmental and social impacts, the effects of climate change, as well as measures to ensure road safety in accordance with EU directives.
The project is scheduled for completion by December 2033 (completion of construction: December 2031, quality guarantee period: December 2033).
The amount of the loan provided is 236 million euros. The terms of the loan are as follows: the term of use of funds is 5 years after the entry into force of the agreement; the funds will be provided in several tranches (maximum 20 tranches, not less than 5 million euros each); the interest rate - fixed or floating - is set separately for each tranche based on the Borrower's application.
The floating interest rate is equal to the 6-month EURIBOR rate plus a fixed margin (the margin is fixed by the Bank in the installment offer). Loan servicing payments (interest and principal repayment) will be made semi-annually, on March 20 and September 20 of each year; repayment period - each tranche will have its own repayment schedule based on the Borrower's application. The loan repayment period may be 4-30 years, and the grace period - from 1 month to 5 years.
is one of the largest projects in the history of independent Armenia. This road will reduce the distance from the Iranian border to the Georgian border from 556 to 490 kilometers. The road will significantly facilitate access to the Black Sea not only for Armenia, but also for Iran. As of May 2024, the investment program has been implemented by 10%, and the amount of loans attracted as of the end of May 2024 amounted to $800.7 million.
