YEREVAN, June 10. / ARKA /. Armenia’s parliament has ratified today a 60 million euro loan agreement with the European Investment Bank (EIB) to be provided for the construction of a 27.47 km long road Lanjik-Gyumri road as part of the North-South transport corridor project.
The loan agreement was signed in 2013 November. The loan is to be repaid in 30 years and is extended at an annual rate of 1% on the basis of 0.6% + EUROLIBOR. The loan includes at least 5 tranches, 5 million euros each.
Earlier deputy transport and communications minister Artur Arakelyan said the EIB will also provide a 12 million euro grant to mitigate the interest rate. Part of this amount will be spent on measurement and design work at Giumry-Bavra section of the road.
The goal of the whole project worth 700 million euros is to upgrade Armenia’s main corridor road (556 km long) 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 transport corridor will stretch from the southern Armenian town of Meghri, on the border with Iran, to Bavra in the north on the border with Georgia. The North-South transport corridor will also enable Armenia to mitigate the effects of the blockade imposed by Azerbaijan and Turkey. -0-