Armenia to receive 12mln EUR from EIB for North-South project

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.