ArmInfo. Armenia will receive a loan from the Asian Development Bank (ADB) for a sustainable and inclusive road sector improvement project. The proposal to sign the relevant agreement was approved by the Cabinet of Ministers on January 16.
Earlier, ArmInfo reported that in 2025, it is planned to begin work on the construction of a new road section with a length of about 60 km Sisian-Kajaran (including the Bargushat tunnel) of the 4th tranche of the North-South road corridor.
The work will be carried out in three sections: the northern section - 27.12 km long; the Bargushat tunnel section, 8.65 km long, and the southern section, 24.25 km long. In total, as noted in May 2024 by the Ministry of Territorial Administration and Infrastructure, the construction of the three sections of the road section will require 708 million euros in credit funds. The southern section was planned to be implemented with joint financing from the EBRD and the European Investment Bank (EIB). According to the initial plan presented by the EBRD, the necessary credit funds to finance the southern section amount to 373 million euros, of which 236 million euros are planned to be attracted from the EBRD, and the remaining 137 million euros the RA authorities wanted to borrow from the EIB. On January 9, at a regular meeting, the draft law on ratification of the financial agreement between the Republic of Armenia and the European Investment Bank was approved. Sisian-Kajaran Road Section Program with a budget of 236 million euros.
As stated in the explanatory note to the current document, the objective of the project, co-financed under the loan agreement with ADB for the Sustainable and Inclusive Economic Corridor Improvement Project, is to assist the Republic of Armenia in the construction of the northern section of the Sisian-Kajaran road.
Within the framework of the agreement, a 27.1 km long asphalt concrete road with a surface resistant to climatic and catastrophic impacts will be built, which will reduce the length of the Sisian-Kajaran road section, resulting in a reduction in travel time, an increase in the current average speed of vehicles from 50 km / h (to 100 km / h), and an increase in traffic comfort and safety.
The construction works on the road section include: construction of an asphalt concrete road 11.1 m wide (including reinforced shoulders) with 3 traffic lanes (3.30 m); construction of 3 tunnels, 16 bridges, 83 culverts, 28 retaining walls; performance of other works to ensure road safety.
It is planned that the works will be carried out by introducing construction methods that are resilient to climate change, green road principles and best practices in operation and maintenance.
The construction of the road section will contribute to an increase in trade turnover, a decrease in transport costs, the attraction of transit transport and the development of tourism.
The Northern subdivision is planned to be implemented with co-financing from the ADB and the EIB. The estimated volume of loan funds for financing the project is 236 million. The project will also be co- financed by the Republic of Armenia.
The terms of the loan are as follows: loan amount: 236 million euros; project co-financing: a loan of 99 million euros provided by the EIB; loan interest rate type: floating; annual interest rate on the loan: 6- month Euribor + 0.5% margin + 0.3% (repayment surcharge). The commitment fee is 0.15% per annum, accrued on the unused loan amount, the calculation starts from the 60th day from the date of signing the agreement, paid semi-annually, simultaneously with the payment of interest; loan term - 24.5 years; loan repayment term - 12.5 years, grace period of the loan - 12 years. Deadline for issuing the loan: 06/30/2034.
The project is scheduled for completion by November 2033 (estimated completion: November 2031, end of liability for defects: November 2033).
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. As of May 2024, the investment program has been implemented by 10%, and the amount of loans attracted as of the end of May 2024 amounted to $ 800.7 million
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