Thursday, June 27 2024 12:18
Alexandr Avanesov

EBRD to issue EUR 236mln loan to Armenia for Sisian-Kajaran road  construction 

EBRD to issue EUR 236mln loan to Armenia for Sisian-Kajaran road  construction 

ArmInfo.The European Bank for Reconstruction and Development (EBRD) will provide Armenia with a  loan of 236 million euros for the construction of the southern section of the Sisian-Kajaran highway of the North-South transport corridor. At a meeting on June 27, the RA Government approved a draft decision on ratification of the agreement with the Bank, which will be sent to the National Assembly of the country in due course.

According to the explanatory note, the agreement was signed on May  15, 2024. As part of the agreement, an asphalt concrete road with a  length of 24, 25 km will be built, which will reduce the length of  the Sisian- Kajaran section of the road. The implementation of the  project will also make it possible to increase the speed from 50 km/h  to 100 km/h. In addition, driving comfort and safety will increase.  The construction of the road section will also help increase trade  turnover, reduce transport costs, attract transit transport and  develop tourism. The construction work of the road section includes  the construction of a three-lane road with asphalt concrete surface,  the construction of 5 tunnels, 11 bridges, 68 guardrails and 43  retaining walls. The project is scheduled to be completed by November  2032.

The construction of this road of strategic importance will ensure  unhindered communication from the southern border of Armenia to the  border of Georgia, as well as to the Black Sea ports, will allow for  freight and passenger transportation that meets European standards,  and will provide serious opportunities for the development of all  settlements from the south to the north of Armenia. The investment  program of the new section of the Sisian-Kajaran road, including the  Bargushat tunnel, with a length of 60 km, is planned to be  implemented in three directions: the northern section with a length  of 27.12 km, the section of the Bargushat tunnel with a length of  8.65 km, the southern section with a length of 24.25 km.

In order to ensure long-term sustainable development, the Republic of  Armenia faces large-scale tasks to modernize and develop basic  infrastructure. Considering the lack of direct access to the sea,  improving transport links and reducing transport costs are among the  priorities of the RA government. In order to increase transport links  between territories within the country, break out of relative  transport isolation and realize the country's transit potential, the  Government of the Republic of Armenia decided to implement a national  large-scale project for the construction of the North-South  automobile corridor.

The estimated cost of the entire project for the construction of the  southern section is 452 million euros.  The project is planned to be  financed through loans provided by the EBRD and the European  Investment Fund with co-financing from the Government of the Republic  of Armenia. The required loan funds to finance the southern section  amount to 373 million euros, of which 236 million euros are planned  to be raised from the EBRD, and 137 million euros from the EIB,  co-financing from the Government of the Republic of Armenia will  amount to 79 million euros.

Let us also recall that $150 million was provided for the  construction of the southern section of the North- South transport  corridor by the Eurasian Fund for Stabilization and Development, the  funds of which are managed by the Eurasian Bank for Reconstruction  and Development. Previously, the Asian Development Bank provided $500  million for the creation of the corridor.   

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