Armenia ratifies agreement with EIB on €236 million road construction program for Sisian-Kajaran section

YEREVAN, May 29. /ARKA/. On Thursday, the Armenian National Assembly ratified the financial agreement signed on November 12, 2024, with the European Investment Bank (EIB) on the construction of the Sisian-Kajaran road section in the Syunik region of the country.

The Armenian government had approved the agreement on January 9 of this year.

Earlier, Deputy Minister of Territorial Administration and Infrastructure  Kristine Galechyan said that the bank would provide Armenia with up to €236 million loan. The funds will be used to finance the construction of a new 60-kilometer road between Sisian and Kajaran.

The project will be implemented in three sections: the northern section (from Sisian to Shenatak) — 27.1 km, the Bargushat tunnel — 8.6 km, and the southern section — 24.25 km.

The funds provided under the agreement will be used to build the northern and southern sub-sections of the project.

The program is co-financed by the European Bank for Reconstruction and Development (EBRD) and the Asian Development Bank (ADB). As part of the project, a three-lane road, 27 bridges with a total length of 4.7 km, and eight tunnels with a total length of about 4 km will be built on the northern and southern sections.

This road, which is part of the North-South interstate highway, will reduce the distance by 54 km and raise  the average 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 transport costs, the attraction of transit transport, and the development of tourism.

The project is scheduled for completion by December 2033. Its total cost is €335 million.

About the EIB in Armenia

The EIB has been cooperating with Armenia since 2010 in accordance with the European Neighbourhood Policy’s Eastern Partnership programme and other bilateral agreements with the EU.

Over the past decade, the Bank has financed a number of projects, ranging from infrastructure and small businesses to water supply and wastewater treatment services. The EIB also finances the construction of cross-border communications to improve road safety and sustainability. -0-

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