Armenian government approves $200m loan agreement for Kajaran tunnel construction

YEREVAN, July 25. /ARKA/. The Armenian government approved a loan agreement with the Eurasian Fund for Stabilization and Development to finance the construction of  a highway tunnel near Kajaran, the country’s Minister of Territorial Administration and Infrastructure Gnel Sanosyan reported on Thursday.

The agreement provides for a loan of $200 million, with an additional $190 million in co-financing from the Armenian government.

According to Sanosyan, the tunnel will be approximately 7 kilometers long. The project also includes the construction and renovation of around 4 kilometers of access roads leading to the tunnel.

The tunnel will be equipped with lighting, an air conditioning system, a modern fire safety system, and advanced monitoring systems, and emergency exits every 400 meters.

Minister Sanosyan highlighted that the project will reduce the road length by approximately 14 kilometers, increasing the average travel speed from 50 km/h to 80 km/h, ultimately saving around 40 minutes of travel time. The construction is expected to take six years.

The Kajaran Tunnel is part of the North-South interstate transit corridor, connecting Armenia along the Meghri-Kapan-Goris-Yerevan-Ashtarak-Gyumri-Bavra route. This corridor links to the Georgian road network leading to the ports of Poti and Batumi on the Black Sea, further connecting to Russia, CIS countries, and the European Union. The comprehensive project aims to enhance connectivity between Europe, the Caucasus, and Asia, facilitating trade and transportation between Western Asia and Eastern Europe.

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