On August 15, the Armenian government approved a significant bill, paving the way for a major infrastructure project.
The legislation involves ratifying an agreement with the Eurasian Development Bank (EDB), signed in late July this year, which provides for an investment loan of $200 million for the construction of the Kajaran Tunnel.
The project encompasses not only the construction of the 7-kilometer tunnel itself but also the reconstruction of a 4-kilometer section of road along a key transport artery connecting Yerevan to the Iranian border. This is part of the strategic "North-South" highway corridor, which aims to significantly enhance regional transportation links.
Experts believe that the project will substantially boost Armenia’s transit potential and reduce accident rates on the challenging mountainous section of the route. The Kajaran Tunnel is particularly crucial for developing trade and economic relations with Iran, opening up new opportunities for cross-border cooperation.
Funding for the project will be provided by the Eurasian Fund for Stabilization and Development, underscoring the importance of this initiative not only for Armenia but for the entire Eurasian region.
Earlier, BMG reported that the EBRD will finance the construction of the southern section of the Sisian-Kajaran road, part of the "North-South" transport corridor. Armenia signed an agreement for €236 million.
The Sisian-Kajaran segment is key as it will significantly shorten the existing road from the Iranian border into Armenia, reducing the distance from Kajaran to Sisian from 118 to 60 kilometers, while increasing the average driving speed from 50 to 100 km/h.
The new "North-South" highway is the largest road construction project in Armenia's history. It will include the construction of 27 bridges and 9 tunnels. The total project cost is estimated at around $1 billion. The European Investment Bank (EIB), the Asian Development Bank (ADB), and the Armenian government are expected to finance other sections of the highwa
