EFSD experts discussed main directions of financing southern section  of North-South highway in Armenia

ArmInfo. Issues related to the construction of the Kajaran- Agarak road section of the North-South transport corridor were discussed during the mission of  the Eurasian Fund for Stabilization and Development (EFSD).

As reported by the press service of the Ministry of Territorial  Administration and Infrastructure of the Republic of Armenia, on  August 25 to August 28, a long-term mission of the Eurasian Fund for  Stabilization and Development took place, during which the  construction of the Kajaran-Agarak section within the framework of  the 4th tranche of the investment program of the North-South  automobile corridor was discussed. The construction of this section  is financed by the Eurasian Fund for Stabilization and Development  from the accounts of the Eurasian Development Bank. The road section  is being designed by the Italian company IDR Engineering and GP  Engineering.

During the mission, Andrey Glavatskikh, Head of the Transport and  Communications Direction of the EFSD Project Block, and other  specialists of the Fund discussed with Deputy Minister of Territorial  Administration and Infrastructures of the RA Kristine Galechyan the  main issues related to the construction of the Kajarak-Agarak road  section within the framework of the 4th tranche of the program. It  was recorded that the design work is ongoing. Geodetic and geological  surveys are being carried out. The draft design will be presented to  the customer in November. Together with the preliminary design of the  road section, a draft land acquisition and resettlement plan will be  presented, which will be finalized based on the results of the final  design. 

Deputy Minister Galechyan stressed the need for effective  implementation of the program.  Earlier, Arminfo, referring to Acting  Executive Director of the Project Block at the Eurasian Fund for  Stabilization and Development (EFSD) Andrey Shirokov,  reported that  the Eurasian Fund for Stabilization and Development (EFSD), the funds  of which are managed by the Eurasian Development Bank (EDB), will  direct about $ 150 million for the construction of the southern  section of the highway in Armenia "North-South" within the 4th  tranche of the program. According to him, at the moment the project  is in the stage of active discussions with the government of Armenia,  with which there is a constant dialogue, the bureau is working on the  implementation of the project. 

To recall, the North-South highway will reduce the distance from the  Iranian to Georgian border from 556 to 490 kilometers. It will  significantly facilitate access to the Black Sea not only for  Armenia, but also for Iran. The project is initially funded with a  loan from the Asian Development Bank. A corresponding agreement with  ADB on the provision of half a billion dollars was signed by the  Armenian government in September 2009.  Subsequently, the EFSD joined  the project, agreeing to provide $ 150 million. It was envisaged that  the construction of the highway would be completed by 2016, but to  date, only part of the work has been completed. In general, according  to various estimates, the project is estimated at $ 2 billion,  although it was initially planned to spend $ 980 million on its  implementation.  

The Eurasian Fund for Stabilization and Development (EFSD) in the  amount of US $ 8.513 billion was established on June 9, 2009 by the  governments of six countries, including Armenia. The goals of the  EFSD are to assist the participating countries in overcoming the  consequences of the global financial crisis, in ensuring their  economic and financial stability, and supporting the integration  processes in the region.  The EFSD member states have endowed the EDB  with the functions of the Fund Manager.  

The Eurasian Development Bank (EDB) is an international financial  organization designed to promote the economic growth of the member  states, expand trade and economic ties between them and develop  integration processes in the Eurasian space through investment  activities. The Bank was established on the basis of an interstate  agreement signed on January 12, 2006 by authorized representatives of  the Russian Federation and the Republic of Kazakhstan. The initiative  to create the Bank belongs to the Presidents of Russia and  Kazakhstan. In 2009, the Republic of Armenia and the Republic of  Tajikistan, in 2010 - the Republic of Belarus, and in 2011 - the  Kyrgyz Republic became full members of the Bank.