Armenian Parliament approves $200 million loan agreement with EFSD for Kajaran tunnel construction
YEREVAN, December 4. /ARKA/. On Wednesday, the Armenian parliament approved a $200 million loan agreement with the Eurasian Fund for Stabilization and Development (EFSD) for the construction of the Kajaran road tunnel in the Syunik region of Armenia.
According to the program, the loan will be serviced in US dollars with an interest rate of 4%. The repayment term is 20 years, including a 5-year grace period.
The 8.6 km Kajaran tunnel will be a key component of the North-South transport corridor, linking Armenia's borders with neighboring Iran and Georgia. The tunnel will reduce travel time for this section of the corridor by 50% and increase the average speed from 50 km/h to 80 km/h. The construction is expected to take approximately 6 years.
About EFSD Projects in Armenia
The Eurasian Fund for Stabilization and Development (EFSD) is implementing over 10 programs in Armenia across sectors such as agriculture, water management, road construction, healthcare, energy, and state budget support (partly co-financed by the republic's authorities and other international organizations). The total value of the fund's project portfolio in Armenia is $840 million.
Among the largest EFSD projects are: stabilization financing and reform support ($300 million), budget support ($100 million), construction of the North-South road corridor (two projects totaling $350 million), and modernization of irrigation systems ($40 million).
The Republic of Armenia is one of the founding members of the EFSD.
