ArmInfo. Armenia and the Eurasian Development Bank will revise the terms of the investment loan provided for the construction of the North-South road corridor. At the meeting on September 24, the RA government considered it expedient to conclude a third supplementary agreement between the RA and the EDB.
As noted in the substantiation of the draft decision, on April 14, 2015, the Eurasian Development Bank and the Republic of Armenia signed an agreement on an investment loan from the Eurasian Fund for Stabilization and Development in the amount of $ 150 million to finance the construction of the southern section of the North-South highway (Tranche-4), in according to which the loan is repayable from June 30, 2020 to December 30, 2034 in 30 equal semi-annual payments of $ 5 million each. However, as of February 29, 2020, only $ 0.65 million was paid out of the loan amount (or 0.4% of the total amount loan), so it was necessary to revise the loan repayment schedule. The issue was referred to the Yerevan office of the Eurasian Development Bank, and it was proposed to revise the repayment schedule of the principal amount stipulated in the agreement, applying the schedule of proportional repayment of the already used part of the loan. The proposal was accepted by the EDB, on the basis of which the latter presented an additional agreement to the agreement on an investment loan of the Eurasian Fund for Stabilization and Development. The proposed option is in line with the mechanisms used by other international financial institutions for repayment of the loan principal, which makes the loan repayment process more flexible.
To recall, on August 25-28, a long-term mission of the Eurasian Fund for Stabilization and Development took place, during which they discussed the construction of the Kajaran-Agarak section as part of the 4th tranche of the investment program of the North-South road corridor. 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. Within the framework of the mission, it was recorded that the design work is continuing: geodetic and geological surveys are being carried out. The draft design will be presented to the customer in November of this year. Together with the preliminary design of the road section, a draft plan for land acquisition and resettlement will be presented, which will be finalized based on the results of the final design. To note, the North-South project will reduce the distance from the Iranian border to the 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 so far only part of the work has been completed. In general, according to various estimates, the project is estimated at $ 2 billion, although it was originally planned to spend $ 980 million on its implementation.