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.
