ArmInfo. The Armenian government approved the project of loan agreement with Asian Development Bank on implementation of program of Vanadzor-Bagratashen highway modernization.
Minister of Transport, Communication and IT Vahan Martirosyan informed that according to the project roads of 51.5 km length to Georgian border (M-6 highway) will be built or modernized. Within the program ADB will provide $50mln or 44.037 mln EUR. The main goal of the project is to prevent further deterioration of the M6 highway and to ensure fast and easy transportation. The payments on the loan will be made annually on May 15 and November 15. The loan interest is 3.03% plus variable margin. The loan term is 22 years with 15 years of grace period.
To note, the European Investment Bank has already provided 51mln EUR loan to Armenia as a co- financing.
The 556km North-South corridor will ensure access to the Black Sea and European countries via the territory of Armenia (Meghri-Kapan-Goris-Yerevan-Ashtarak-Gyumri- Bavra) and Georgia. The USD 1 billion investment project aims to link the north (border with Georgia) to the south of Armenia (border with Iran) through the transport services meeting high international standards, as well as to ensure the country's entry into international markets. The North-South corridor will be a concrete highway. The Asian Development Bank has lent USD 500 million to Armenia. Another USD 150 million will be provided by the Eurasian Development Bank. Armenia has also raised EUR 60 million from the European Investment Bank. The construction of the corridor is to be completed in 2019. According to the Armenian Government's preliminary estimations, the North- South project will allow saving 2.5 USD per 1 hour of travel time per passenger and 1 USD per 1 hour of transportation of 1 ton of cargo. The Armenian authorities expect the project to enable the country to mitigate the effects of the blockade imposed by Azerbaijan and Turkey, to become a transit country and to join the Black Sea Belt Highway.