On October 11, the Financial-Credit and Budgetary Commission of the National Assembly of Armenia approved a loan agreement between the Republic of Armenia and the European Bank for Reconstruction and Development (EBRD) for €236 million. The funds will be used for the construction of the Sisian-Kajaran section of the North-South transport corridor.
Deputy Minister of Territorial Administration and Infrastructure Kristine Ghalechyan presented the project, which was signed on May 15, 2024. She noted that this is one of the key segments of the North-South Corridor investment program, which includes the construction of approximately 60 km of new road, 27 bridges totaling 4.7 km in length, and 9 tunnels spanning 12.5 km.
The implementation of the project will significantly shorten the existing route, reducing travel time by about two hours. The average vehicle speed will increase from 50 km/h to 100 km/h, improving both safety and comfort. Galechyan emphasized that the road construction will contribute to boosting trade turnover, reducing transportation costs, increasing transit freight, and fostering tourism development.
The construction period is set at 5 years, with an additional 2-year warranty period. The total cost of the southern section is estimated at €373 million, with the remaining €137 million to be co-financed by the European Investment Bank.
The loan is offered with a 20-year term, a floating interest rate, and a 5-year grace period. After the commission's approval, the agreement will be reviewed at the next plenary session of the National Assembly.
