EFSD to provide Armenia with $200 mln loan for construction of Kajaran tunnel

ArmInfo. The Eurasian  Development Bank will provide Armenia with a $200 million loan from  the Eurasian Fund for Stabilization and Development for the  construction of the Kajaran tunnel. Discussions are currently  underway at the plenary session of the National Assembly of the  Republic of Armenia on December 3 regarding the agreement with the  Bank that has been submitted for ratification.

According to Deputy Minister of Territorial Administration and  Infrastructure Kristine Galechyan, the project is  planned to be  implemented within the framework of the investment program for the  North-South road corridor. The document was signed on July 26, 2024.   According to the project, it is planned to build a tunnel  approximately 7 km in length and modernize a section of the M2  Yerevan-Yeraskh-Goris-Meghri Iranian border road, which is about 4 km  in length (starting from the entrance to the Kajaran tunnel to the  intersection of the planned new section of the Sisian-Kajaran road).   For the project needs, it is planned to alienate about 160 land  plots. The estimated timeframe for completing the work will be around  6 years. The projected cost of the construction work (including VAT)  is AMD 144.6 billion (or about $369 million).

It is planned that as a result of the project, the existing route  will be shortened by 14 kilometers, allowing vehicles to reach an  average speed of 80 km / h. This will shorten the Kajaran-Agarak road  route  by about 40 minutes. According to the terms of the loan, the  interest rate is set at 4% per annum, with a  repayment period of 20  years, including a 5-year grace period.