Thursday, November 3 2016 15:09

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.