EFSD sponsors tunnel construction on North-South motorway 

ArmInfo.The excavation of a 360-meter tunnel and concreting of road infrastructure components has  begun on the section of the North-South highway corridor from Agarak to Kajaran (4th stage). This was reported by the Road Department Foundation, adding that the project is being implemented according to schedule.

At the same time, the Foundation was informed that this was reported  during the mission of the Eurasian Fund for Stabilization and  Development (EFSD) to the Republic of Armenia.

"The Fund has allocated $150 million for the construction of this  section of the road. Within the framework of the EFSD project, it is  planned to build 32 kilometers of roadway, two tunnels (360 and 520  meters) and 17 bridges, one of which is more than 720 meters long.

The total volume of EFSD participation in the North-South road  corridor project in the Republic of Armenia is USD 350 million. The  highway passes through 6 regions of the country, including Yerevan.  More than 1.5 million people use it annually. The implementation of  the project will improve access to markets for Armenian manufacturers  and significantly increase the country's transit potential," the Road  Department further said in a statement.

The Eurasian Fund for Stabilization and Development (EFSD) is a  regional financial mechanism with a volume of over USD 9 billion,  which was established in 2009 by the Republic of Armenia, the  Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic,  the Russian Federation and the Republic of Tajikistan. The goals of  the EFSD are to promote economic and financial stability in the  Fund's member states, as well as to support their sustainable  development.

For Tranche 4 (Artashat-Agarak road section), borrowed funds from the  EFSD amounted to $150 million, $2,508,893.5 were used (the deadline  for using the funds is 30.12.2026). Armenia will attract another 236  million euros ($252.92 million) from the European Bank for  Reconstruction and Development (EBRD) (the deadline for using the  funds is 15.05.2032). 

The agreement was signed on May 15 on the sidelines of the 33rd  annual meeting of the EBRD in Yerevan.  Co-financing of the Republic  of Armenia within the framework of the 4th tranche as of April 30  this year amounted to about $131 million. It should be noted that the  North-South Highway 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.