Thursday, November 7 2024 14:39
Naira Badalian

EIB to provide EUR 236mln for construction of Sisian-Kajaran section  of North-South motorway

EIB to provide EUR 236mln for construction of Sisian-Kajaran section  of North-South motorway

ArmInfo. On November 7, the Armenian government approved a proposal to sign a financial agreement  with the European Investment Bank (EIB) in the amount of 236 million euros within the framework of the program <Armenia. Sisian-Kajaran road section project <European Fund for Sustainable Development +  Special Investment Window 1>.

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 subsections: 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 of this year. According to  the Ministry of Territorial Administration and Infrastructure, 708  million euros of credit funds will be required for the construction  of three subdivisions of the road section. The southern subdivision  is 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 for financing 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.

As stated in the explanatory note to today's document, within the  framework of the agreement with the EIB, asphalt concrete road  sections with a length of 27.1 km and 24.25 km 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 average speed of  vehicles from 50 km/h to about 100 km/h, and an increase in traffic  comfort and safety. Road construction works on the northern and  southern sections include: construction of a 3-lane road with asphalt  concrete pavement, 8 tunnels, 27 bridges, 3 transport hubs, 151  culverts, 71 retaining walls (6.3 km), and other works ensuring safe  traffic.

The amount of the loan provided is 236 million euros. The terms of  provision are as follows: the term of use of funds is 5 years after  the entry into force of the agreement; the funds will be provided in  several tranches (maximum 20 tranches, not less than 5 million euros  each); the interest rate - fixed or floating - is set separately for  each tranche based on the Borrower's application. The floating  interest rate is equal to the 6-month EURIBOR rate plus a fixed  margin (the margin is fixed by the Bank in the installment offer).   Loan servicing payments (interest and principal repayment) will be  made semi-annually, on 20 March and 20 September of each year;  repayment period - each tranche will have its own repayment schedule  based on the Borrower's application. The loan repayment period may be  4-30 years, and the grace period - from 1 month to 5 years.

The project is scheduled to be completed by December 2033a (planned  completion of construction:  December 2031, termination of liability  for defects: December 2033).

<North-South> 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.  

POST A COMMENT
Input digits     


News
Approximately 28,000 declarants received reimbursement for social expenses totaling 2.5 billion drams:  PashinyanApproximately 28,000 declarants received reimbursement for social expenses totaling 2.5 billion drams:  Pashinyan
Armenia`s Cabinet of Ministers  discussing  new Tax Code Armenia`s Cabinet of Ministers  discussing  new Tax Code 
Ameriabank Partners with HIF Yerevan 2025 to Boost Hospitality Investment in ArmeniaAmeriabank Partners with HIF Yerevan 2025 to Boost Hospitality Investment in Armenia
Side by Side: IDBank Launches New Program for women forcibly displaced from ArtsakhSide by Side: IDBank Launches New Program for women forcibly displaced from Artsakh
Armenia  not planning to enter the Eurobond market 6 times in 2025  and 2026.Armenia  not planning to enter the Eurobond market 6 times in 2025  and 2026.
Finance Minister  talks about possible impact of Iran-Israel conflict  on Armenia`s economyFinance Minister  talks about possible impact of Iran-Israel conflict  on Armenia`s economy
 Armenian freight carriers face challenges due to Iranian-Israeli  conflict  Armenian freight carriers face challenges due to Iranian-Israeli  conflict 
Armenia plans to reduce its budget deficit to 1% by 2030: Finance  MinisterArmenia plans to reduce its budget deficit to 1% by 2030: Finance  Minister
WB launches water-supply and irrigation improvement programme in  Armenia WB launches water-supply and irrigation improvement programme in  Armenia 
Construction model for new nuclear power unit to be determined after  survey - official Construction model for new nuclear power unit to be determined after  survey - official 
Armenia`s minister of economy on rise in labor productivity in 2024 Armenia`s minister of economy on rise in labor productivity in 2024 
SCR launches Yerevan-Batumi-Yerevan international routeSCR launches Yerevan-Batumi-Yerevan international route
In  Armenia`s insurance market, the loss ratio for OSAGO  decreased  to 73.2% by June 2025In  Armenia`s insurance market, the loss ratio for OSAGO  decreased  to 73.2% by June 2025
Dollar transactions decreased and ruble transactions increased in  Armenian interbank foreign exchange market, June 9-13, 2025Dollar transactions decreased and ruble transactions increased in  Armenian interbank foreign exchange market, June 9-13, 2025
Armenian Deputy PM, World Bank representatives discuss key areas of  collaborationArmenian Deputy PM, World Bank representatives discuss key areas of  collaboration
ARMECONOMBANK Summarizes 2024 Results with New Opportunities for ProgressARMECONOMBANK Summarizes 2024 Results with New Opportunities for Progress
How to Enjoy Summer to the FullestHow to Enjoy Summer to the Fullest
Finance Minister: In short, Armenia is characterized as a steadily  developing country with high economic growth and low inflationFinance Minister: In short, Armenia is characterized as a steadily  developing country with high economic growth and low inflation
Armenia to receive EUR 236 million loan from ADB for construction of   northern section of Sisian- Kajaran roadArmenia to receive EUR 236 million loan from ADB for construction of   northern section of Sisian- Kajaran road
On June 16, ArmSwissbank starts public placement of two dram bonds,  each worth 7 billion drams On June 16, ArmSwissbank starts public placement of two dram bonds,  each worth 7 billion drams 
Deputy Minister of Territorial Administration, IRI Ambassador discuss third Iran-Armenia high voltage power line construction progressDeputy Minister of Territorial Administration, IRI Ambassador discuss third Iran-Armenia high voltage power line construction progress
Health Fund for Children of Armenia is the Beneficiary of Health Fund for Children of Armenia is the Beneficiary of "The Power of One Dram" Program in June
Armenia to host  prestigious international wine competition  in 2026Armenia to host  prestigious international wine competition  in 2026
WANO experts get acquainted with production process at Armenian NPPWANO experts get acquainted with production process at Armenian NPP
Armenia`s Cabinet approves Isakov-Arshakunyats road construction project in Yerevan Armenia`s Cabinet approves Isakov-Arshakunyats road construction project in Yerevan 
Armenia`s Cabinet approves allocation of $1mln to Asian Development  Fund Armenia`s Cabinet approves allocation of $1mln to Asian Development  Fund 
AI Factory to become available to Armenian eco-startup environment - ministerAI Factory to become available to Armenian eco-startup environment - minister
Cooperation with Armenia will help lay foundation for AI development in region - NVIDIACooperation with Armenia will help lay foundation for AI development in region - NVIDIA
Armenia`s banking sector to tighten capital buffersArmenia`s banking sector to tighten capital buffers
Digitization of justice discussed in ArmeniaDigitization of justice discussed in Armenia
Team Group, NVIDIA, and Firebird Announce a $500 Million Megaproject to Build a Regional AI Supercomputing HubTeam Group, NVIDIA, and Firebird Announce a $500 Million Megaproject to Build a Regional AI Supercomputing Hub
Minister: $500 million  artificial intelligence plant to be  constructed in ArmeniaMinister: $500 million  artificial intelligence plant to be  constructed in Armenia
RA SRC Chairman, EEC Minister for Customs Cooperation discuss current  cooperation  RA SRC Chairman, EEC Minister for Customs Cooperation discuss current  cooperation  
Armenia to use space information for disaster risk managementArmenia to use space information for disaster risk management
In 2024, vegetable and fruit export from Armenia exceeded 144,000 tonsIn 2024, vegetable and fruit export from Armenia exceeded 144,000 tons
Ameriabank joins TOON EXPO to be held first time in MoscowAmeriabank joins TOON EXPO to be held first time in Moscow
"Plain and Simple": Financial Literacy with AraratBank
Deputy Economy Minister:  Out of 557 completed customs declarations for Armenian alcoholic beverages exporters, 70% have been accepted by the destination country`s customs Deputy Economy Minister:  Out of 557 completed customs declarations for Armenian alcoholic beverages exporters, 70% have been accepted by the destination country`s customs 
Hail damages 8,700 hectares of agricultural land - officialHail damages 8,700 hectares of agricultural land - official
Construction of five reservoirs planned in Armenia - minister Construction of five reservoirs planned in Armenia - minister 
Lower population growth in ArmeniaLower population growth in Armenia
Safe use of nuclear energy by Armenia discussed in Nice Safe use of nuclear energy by Armenia discussed in Nice 
Armenian trucks temporarily barred from entering Georgia Armenian trucks temporarily barred from entering Georgia
Central Bank to establish a regulatory framework for  crypto assets  sector within 1.5 year timeframeCentral Bank to establish a regulatory framework for crypto assets sector within 1.5 year timeframe
Martin Galstyan:  Armenian dram has weakened against US dollar in  terms of real effective rateMartin Galstyan: Armenian dram has weakened against US dollar in terms of real effective rate
CB Chairman on cases of financial fraud: Banks to extend moratorium  on credit obligations until court verdictCB Chairman on cases of financial fraud: Banks to extend moratorium on credit obligations until court verdict
Sinanyan: 70% of IGorts program participants remained in Armenia in recent years
Martin Galstyan: Non-interest income growth in Armenia`s banking  sector to continue in 2025Martin Galstyan: Non-interest income growth in Armenia`s banking sector to continue in 2025
Mher Grigoryan to take part in SPIEF-2025Mher Grigoryan to take part in SPIEF-2025
Zhanna Andreasyan: Compared to 2018, funding for science in Armenia  increased by 280%Zhanna Andreasyan: Compared to 2018, funding for science in Armenia  increased by 280%
Pashinyan discusses country`s tax policyPashinyan discusses country`s tax policy
Armenia`s foreign trade with EAEU decreasing, while increasing with EUArmenia`s foreign trade with EAEU decreasing, while increasing with EU
Tigran Khachatryan, Philip Morris International Regional President  discuss  potential areas for cooperationTigran Khachatryan, Philip Morris International Regional President  discuss  potential areas for cooperation
Armenia, EEC discussing prospects for cooperation in customs servicesArmenia, EEC discussing prospects for cooperation in customs services
RA State Revenue Committee reveals shadow turnover in Tsakhkadzor casino RA State Revenue Committee reveals shadow turnover in Tsakhkadzor casino 
Project of 11th station of Yerevan Metro approved Project of 11th station of Yerevan Metro approved 
Armenia`s industry in decline Armenia`s industry in decline 
23% decline in output of Armenia`s metallurgical industry 23% decline in output of Armenia`s metallurgical industry 
Wine output in decline in Armenia Wine output in decline in Armenia 
4.9% y/y increase in electric energy output in Armenia4.9% y/y increase in electric energy output in Armenia
Read more
Exchange rates
16.06.2025
RUB4.880.06
USD383.760.53
EUR444.243.33
GBP521.112.45
CAD282.781.72
JPY26.650.10
CNY53.450.09
CHF473.542.68