ArmInfo.At its March 5 meeting, the Armenian government approved the proposal to sign the Agreement "On the Extension of the Implementation Deadline for the Meghri Border Crossing Point Construction Project," signed on February 7, 2020, between the Republic of Armenia and the European Bank for Reconstruction and Development.
As noted in the explanatory note to the document, the EBRD loan (EUR 10,626,263) and the EU investment grant (EUR 10,520,000), allocated under the Meghri border crossing point construction project, are intended to finance the construction of a new border crossing point in the town of Meghri that meets international standards. In accordance with the agreements, the Armenian government has co-financed the VAT costs (approximately EUR 2.1 million).
However, due to the COVID-19 pandemic and the military actions initiated by the Republic of Azerbaijan on September 27, 2020, the implementation of the Meghri Border Crossing Modernization Project, funded by a loan and grant, was delayed. As a result, changes to the construction work envisaged in the design and estimate documentation, as well as the construction and engineering tender schedules, were extended.
On January 27, 2023, a contract was signed with TANA ENERGY MANAGEMENT for the construction work. According to the contract, the work was to be completed within 920 days. However, due to a number of subsequent issues, a new deadline of 980 days was set, and the start of construction was postponed until September 1, 2023. On May 5, 2023, a contract was also signed with Roughton International Limited (engineer) for construction supervision.
Currently, the two aforementioned organizations continue to perform the work and provide the services specified in the contract. However, objective technical circumstances that arose during the Project's implementation, in particular, functional changes in the customs authorities and the National Security Service, significantly impacted the pace of construction and required modifications to the project. Due to this situation, schedule deviations were recorded, leading the contractor to submit a new work schedule, scheduling completion by the end of December 2026.
According to the terms of the grant agreement, the deadline for accessing grant funds was set for January 31, 2024, which was subsequently extended to January 31, 2026. "Based on the above, we consider it appropriate to extend the grant agreement for the Meghri Border Crossing Modernization Project until December 31, 2026, as stipulated in the Bank's draft letter," the document states.
As a reminder, on February 7, 2020, a corresponding agreement for EUR 21.1 million was signed between the Republic of Armenia and the European Bank for Reconstruction. Of this amount, the EBRD will provide the Republic with a loan of EUR 10.6 million at LIBOR+1%, which is 1.7% over a six-month period. The majority of the financing will be provided by grant funds from the EU under the European Neighborhood Program - EUR 10.6 million and EUR 700,000. The border crossing modernization project is being implemented by an Iranian company.
The foundation stone for the new Meghri border crossing point, located on the Armenian-Iranian border, was laid on June 2, 2023. "Construction work will be completed in 2026, resulting in a modern border crossing point that meets international standards," former State Revenue Committee head Rustam Badasyan noted at the time. He noted that as a result of the program's implementation, the border crossing point will be expanded from its current 6.6 hectares to 8.8 hectares. Throughput capacity will increase from 300 vehicles per day to 900.
To fully support the functions of the Meghri border crossing point, a two-story administrative building with an area of 4,000 square meters and a 1,500 square meter solar power plant on the roof will be constructed. The border crossing point will include facilities for detailed vehicle inspection, X-ray inspection of trucks, and customs clearance, as well as an X-ray inspection area for passenger cars, a veterinary-sanitary and phytosanitary control post, and other infrastructure.
