Armenia to take €236 million loan from EIB for Sisian-Kajaran road

YEREVAN, NOVEMBER 7, ARMENPRESS. The Armenian government will take a 236-million-euro loan from the European Investment Bank for the construction of the Sisian-Kajaran section of the North-South Road Corridor.

The Cabinet approved on November 7 the signing of the agreement.

The 60km section will include the construction of 27 bridges with a total length of 4,7km and 9 tunnels with a total length of 12,5km. The longest tunnel will have a length of 8,6km.

“The construction of this section of the road will reduce the length of the current road by 54km, which in turn will reduce the driving duration by 1,5 to 2 hours,” Minister of Territorial Administration and Infrastructures Gnel Sanosyan said at the Cabinet meeting. The average traffic speed, currently 50km/h, will become 100km/h. 

The Cabinet had earlier approved another loan agreement with the same amount with the European Bank for Reconstruction and Development. “This is the second one, and with another partner, the European Investment Bank.”

The government is also working with the Asian Development Bank around the project.

The total loan amount will comprise 708 million euros, while the government’s share will amount to 150 million euros. 

The grant part of the project is also under discussion with EU partners.

The construction is planned to be completed by 2031, while the overall project’s completion is planned by 2033.