Armenia ratifies Euro 236 million loan agreement with ADB for construction of northern section of Sisian-Kajaran road

YEREVAN, April 30. /ARKA/. The Armenian government has ratified an agreement with the Asian Development Bank (ADB) on providing a loan for the “Sustainable and Inclusive Road Section Improvement Project”.

As noted in the justification, this concerns the northern section of the Sisian-Kajaran junction, the construction of which is co-financed by ADB and the European Investment Bank. The loan funds intended to finance the project amount to 236 million euros.

“The Sisian-Kajaran road junction section at about 60 km of the North-South highway is of key importance to us. It is divided into 3 sub-sections – northern, Bargushat tunnel and southern. This agreement concerns the northern subsection,” said David Khudatyan, Minister of Territorial Administration and Infrastructure of the Republic of Armenia, at a government meeting on Wednesday.

The project will build a 27.1 km section of the road on the northern section of the Sisian-Kajaran road corridor, as well as 16 bridges and 3 tunnels.

According to Khudatyan, the total cost of the project is 335 million euros, and the program is scheduled to be completed in November 2033.

This road, which is part of the North-South interstate highway, will shorten the route by 54 km and increase the average travel speed from 50 km/h to 100 km/h. As a result, travel time will be reduced by an hour and a half. The construction of this section will also contribute to an increase in trade turnover, a reduction in transportation costs, the attraction of transit transport and the development of tourism.

About the Asian Development Bank

Since 2005, ADB has provided $1.9 billion in assistance to Armenia, making it one of the country’s largest multilateral development partners. These include projects in transport, energy, water, and urban infrastructure, while in the private sector, ADB supports utilities and infrastructure, financial institutions, and agribusiness.-0-

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