YEREVAN, September 14, /ARKA/. The Yerevan Office of the Asian Development Bank (ADB) announced today the launch of the construction of North-South transport corridor. The bank has committed to provide Armenia with a $500 million loan to finance this strategic project.
The project is designed to upgrade Armenia’s main corridor road as part of a broader thrust to improve connectivity, and boost trade, growth and livelihood opportunities in the Caucasus and Central Asia sub-regions. The corridor stretches for 556 km from Armenian Meghri in the south to the border with Georgia.
The first and second phases of the project, involving reconstruction of the first three sections of North-South transport corridor - Yerevan-Ashtarak (11.7 km), Ararat -Yerevan (38 km) and Ashtarak-Talin (42 km) are being handled by Spanish Corsan Corvian Construccion that won a tender.
ADB said the first section to be reconstructed is Ararat-Yerevan stretch. The reconstruction of the road between Talin and Ashtarak will be funded by $179.6 million disbursement.
"Improvement of road networks is one of the priorities of states, as this is expected to improve business, increase investment flows and job creation. Good roads promote regional cooperation and integration as well as increase the competitiveness of the country ", ADB Resident Representative in Armenia David Dol was quoted as saying.
In 2010 January the Armenian government approved the investment program to build the North-South transport corridor, as well as a $500 million framework loan agreement with the Asian Development Bank. According to Armenian authorities, the total cost of the project is estimated at $1.5 billion.
Japanese International Cooperation Agency (JICA) said earlier it was ready to invest up to $70 million in this project. -0-