Wednesday, November 9 2016 16:16

ArmInfo. On November 9 Republic of Armenia and ADB signed a $50 million loan Agreement regarding  the Project  on  improvement of  the transport efficiency and safety of the M6 Highway from Vanadzor in Armenia to the border with Georgia at Bagratashen, the press-office of the Fiance Ministry inrofmed. An amount of USD 50 mln, or EU 44.037.000 will be borrowed for 22 - year term, with 15-year grace period.

The Loan Agreement was signed by Armenian French minister Vardan Aramyan and Shane Rozenthal< the head of  adb Armenian office.

The main target of the Project is the rehabilitation and modernization of the two-line  51,5 km sector of the road in the Northern area of Armenia -  from Vanadzor through Alaverdi to the Georgian boarder check point  Of Bagratashen, as well as the improvement of the road safety and traffic. It is planned to equip this sector with safety and climate change facilities.

The Project will support the availability of social services, agriculture, tourism and employment, will decrease industrial and social obstacles in the area. At that, within the purpose of co-financing of this Project, the European Bank of Investment has already allocated EU 51 mln assets.  According to the Agreement approved previously, Armenia will get   a EU 12 mn  European Investment Bank Loan  for thee rehabilitation of the road from Vanadzor to the Georgian Boarder. The Project will be funded jointly by EBI and ADB. An appropriate Agreement   have been signed with these two entitites in January 2016. The amount of the Loan Agreement forms EU 51 mln, and the Loan will be implemented in maximum 15 transhes. The works under this Project were expected to be started at 2016 and to finish in 2- 2,5 years. This sector of the road caries about 60% of cargo flows.  To note, under ADB's country partnership strategy, 2014-2018, Armenia will receive about $500 million financial assistance to develop infrastructures, energy and social services that will ensure flexible, comprehensive and sustainable development of the country.  In the transport sector, ADB will continue to support improving the north-south road corridor, and promoting transport links between and within secondary towns, especially those with the highest poverty rates.  To promote regional cooperation and integration, ADB will coordinate with Georgia to help improve roads linking Armenia and Georgia.  ADB will support urban development in towns with the highest poverty rates by helping local governments prepare integrated urban development plans, and financing modernization of infrastructures, including in water supply, urban roads, and solid waste management.  Armenia's aging electricity infrastructure and heavy dependence on imported fuels affect its energy security. ADB will help addressing this issue by supporting the development of renewable energy resources and helping to rehabilitate and upgrade energy infrastructure.

Armenia joined ADB in 2005. ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.