Armenia to take $200 million loan from EDB for Kajaran tunnel construction

YEREVAN, NOVEMBER 6, ARMENPRESS. The financial-credit and budgetary affairs committee of the Armenian parliament has approved the 200-million-dollar loan agreement signed between Armenia and the Eurasian Development Bank’s Fund for Stabilization and Development for the construction of the Kajaran tunnel and the reconstruction of a 4km section of the M2 road.

The project will be co-financed by Armenia by over 194,2 million USD.

The investment agreement was signed in July 2024.

As a result of implementation, the current route distance will be reduced by 14km, the average speed limit of vehicles will reach 80km/h and the Kajaran-Agarak driving duration will be reduced by 40 minutes.