Armenia`s Cabinet approves Isakov-Arshakunyats road construction project in Yerevan 

ArmInfo. On June 12, the Armenian government approved the estimated financial framework and implementation schedule for the construction of the new Isakov-Arshakunyats road in Yerevan under the .

The loan agreement for the investment program worth 60,090,000 euros was signed on November 27, 2023 and approved by the government on  January 18, 2024. The goal of the project is to develop urban infrastructure by constructing a new section of the Isakov-Arshakunyats road, which will connect 3 administrative districts of Yerevan (Malatia-Sebastia, Center and Shengavit) and significantly reduce urban traffic jams. As a result of the project, it will be possible to shorten the existing road (by about 1.8 km), urban traffic jams, and create new urban infrastructure. The planned works include: construction of the necessary wings of the existing  interchange on Isakov Avenue, which will provide access to the  Noragyugh district; a 269-meter-long reinforced concrete bicycle bridge will be built across the Hrazdan River; an interchange with a tunnel crossing and a roundabout will be built on Arshakunyats Avenue. It was noted that the implementation of the program within the framework of the Agreement will be completed on September 30,  2027.

As stated in the explanatory note to the document, the actual launch of the program was announced on May 22, 2024. Now, for the proper organization of construction works, it is necessary to carry out land alienation and resettlement works in the territories covering the construction site.

By the Decree of the Government of the Republic of Armenia dated August 11, 2023, the priority public interest was recognized in relation to real estate objects affected by the construction of the road section. The above-mentioned decree set the deadline for the start of the alienation process for May 1, 2025.

As a result of the land alienation and resettlement process, 50  households are affected, the total losses of which will be: 59 land plots, 80 residential and non-residential buildings and structures, 3 business activities will be suspended, as a result of which 4 people will lose their permanent jobs.

An independent assessment was conducted by an international company to prepare the process. A preliminary budget of 7,304.9 billion drams was drawn up. The costs of the land acquisition and resettlement process are subject to financing: about 4,067.0 million drams from the Yerevan Municipality, about 2,317.1 million drams from the ADB loan, about 920.9 million drams from the state budget.  However, a reassessment was carried out in February.

As a result of the reassessment, the estimated costs of implementing the process were reduced by about 983.1 million drams, including about 269.0 million drams from the Yerevan community budget, about 675.0 million drams from the ADB loan, and about 39.1 million drams from the state budget.

For the implementation of the process of alienation and resettlement of lands within the state budget for 2025, 1.8 billion drams are planned, and from the budget of the Yerevan community - 3.5 billion drams.  From the point of view of organizing road construction and proper implementation of the credit program, it is necessary to ensure at least 60-70% of the work of the process in the current year.