Armenia`s cabinet approves $200mln loan for Kajaran tunnel construction

ArmInfo. The Republic of Armenia  and the Eurasian Development Bank (EDB) will sign a loan agreement  for the provision of an investment loan in the amount of $200 million  from the Eurasian Fund for Stabilization and Development (EFSD) to  finance the project within the  framework of the road corridor investment program.  The  proposal to sign the document was approved by the Cabinet of  Ministers on July 25. 

As stated in the explanatory note to the document, the project plans  to build the Kajaran tunnel (length about 7 km) and reconstruct the  existing section of the M2 Yerevan-Yeraskh-Goris-Meghri-Iranian  border road with a length of about 4 km (entrance to the Kajaran  tunnel - intersection of the planned new section of the  Sisian-Kajaran road).

It is planned to alienate about 160 land plots for the needs of the  project. The estimated period for the implementation of the planned  construction works will be about 6 years. The estimated cost of the  planned construction works (including VAT) is 144.6 billion drams (or  about 369 million US dollars).

Earlier, ArmInfo, citing MTUI, reported that work on the construction  of a tunnel (about 7 km long) and the reconstruction of a 4-kilometer  section of the existing M-2 road Yerevan-Yeraskh-Goris-Meghri-  Iranian border is planned to begin only in 2025. In general, the  investment program of the North-South road corridor, which was  planned to be completed within 4-5 years (the start was given on  September 13, 2012), spending less than $ 1 billion, has been  implemented by 10% to date, and the amount of attracted loans as of  the end of May 2024 amounted to $ 800.7 million. Within the framework  of the project, borrowed funds from the EDB (EFSD), according to the  Ministry of Finance of the Republic of Armenia, amounted to $ 150  million. (Tranche 4, Artashat-Agarak road section).

is one of the largest projects in the history of  independent Armenia. This road will reduce the distance from the  Iranian border to the Georgian border from 556 to 490 kilometers. The  road will significantly facilitate access to the Black Sea not only  for Armenia, but also for Iran.