ArmInfo. Armenia will receive 12 mln EUR from the European Investment Bank (EIB) for construction of North-South road corridor.
Armenia and EIB signed an agreement on provision of 12 mln EUR grant within "European Neighborhood Instrument" on November 18, the press service of the Finance Ministry informs. Financial assistance will be aimed at finishing construction of strategically important North-South road corridor.
The funds will be provided on the name of European Commission and consist of two components: the first one is an investment grant amounted to 6mln EUR, which will be used for financing construction work and the second 6 mln EUR will be directed to technical assistance.
Minister of Finance of Armenia Vardan Aramyan attached importance to implementation of infrastructure programs in Armenia. The Minister expressed gratitude to EU for consistent assistance and mobilization of grant resources, attaching great importance to cooperation with EIB aimed at development of infrastructures.
Head of EU Delegation to Armenia, Ambassador Piotr Switalski in turn stated that in such a country as Armenia transport communications are a necessity. EU is satisfied with the fact that it can assist EIB's efforts aimed at free and safe movement of citizens and economic entities in Armenia, Ambassador Switalski added.
In 2013 EIB and Armenia signed Agreement on providing 60 mln EUR for financing of work for moderniaton of North-South road corridor.
To note, the North-South 556km highway will be laid via the Armenian towns of Meghri- Kapan-Goris- Yerevan- Ashtarak- Gyumri-Bavra and enter the territory of Georgia on Akhaltsikhe-Batumi section, which will settle some transport problems of Armenia. This will be a four-lane motorway of reinforced concrete extending from the Armenian border and Iran to the Georgian port Batumi. The road corridor will facilitate improving the road connection with the two neighbors of Armenia: Iran and Georgia, providing access to international trade routes and markets. Armenia raised $500mln loan from the Asian Development Bank for the project that is estimated at $1 billion. Eurasian Development Bank is ready to provide $150 million. Armenia raised $60 million from the European investment Bank. Due to the project, the overland communication Europe-Caucasus- Asia will be improved. The project will be completed by 2019. It will allow Armenia to soften the consequences of the blockade by Azerbaijan and Turkey and to join the Black Sea ring highway. Corsan Corvian Spanish company has won the tenders for construction of the first sections of the road, Chinese Sinohydro Corporation has won the tender for construction of the Lanjik- Gyumri section in north of Armenia.
