YEREVAN — Armenia will receive a new €236 million loan from the Asian Development Bank. At today’s cabinet meeting, the government approved a new loan agreement with the international bank. The €236 million loan will be allocated for the construction of a 27.1 km section of the North-South highway.
According to Minister of Territorial Administration and Infrastructure Davit Khudatyan, the funding will be directed toward the construction of the northern subsection of the Sisian-Kajaran segment, which spans approximately 60 km and has a total cost of €335 million.
“The Sisian-Kajaran section of the North-South highway—approximately 60 kilometers long—is of strategic importance to us. We’ve divided it into three subsections: northern, the Bargushat tunnel subsection, and southern. This loan will cover the construction of the northern subsection,” the minister noted.
The loan will fund the construction of a 27.1 km modern roadway featuring several tunnels and numerous bridges. The road will be 11 meters wide and include three traffic lanes. Upon completion, the travel speed in this section is expected to increase from the current 50 km/h to 100 km/h, which, according to the minister, will reduce travel time by 1.5 to 2 hours.
The project is scheduled to be completed by November 2033.
During the cabinet meeting, it was noted that negotiations are underway with international investors to secure funding for the remaining two sections of the Sisian-Kajaran segment. Prime Minister Nikol Pashinyan expressed hope that the North-South project is entering a decisive phase of implementation.
“I have the sense that our plans related to the North-South project are becoming at least 70-80% tangible, and we now have a real chance of entering the final and most significant stage of execution,” the Prime Minister emphasized.
