The European Bank for Reconstruction and Development (EBRD) is providing a €236 million loan to Armenia for the construction of the southern section of the Sisian-Kajaran road.
The loan agreement was signed by Armenia’s Minister of Finance, Vahe Hovhannisyan (right), and EBRD Managing Director of Sustainable Infrastructure Group, Nandita Parshad (left), during the EBRD Annual Meeting and Business Forum in Yerevan (Photo: EBRD)
This marks the largest road infrastructure project ever financed by the EBRD in Armenia.
The project received technical cooperation funding from the European Union (EU) to conduct the feasibility study and environmental and social impact assessment.
The loan agreement was signed by Armenia’s Minister of Finance, Vahe Hovhannisyan, and EBRD Managing Director of Sustainable Infrastructure Group, Nandita Parshad, during the EBRD Annual Meeting and Business Forum in Yerevan.
The funding will enable the Government of Armenia to construct 24 kilometres of a new southern road section between Sisian and Kajaran, forming part of the North-South Road Corridor.
The new road is said to improve Armenia’s local, regional, and international connectivity, providing better access to international markets via the Black Sea.
Nandita Parshad, EBRD Managing Director, Sustainable Infrastructure Group, said, “We appreciate Armenia’s aspiration to develop a transport and logistics infrastructure that will enhance its regional connectivity and integration with external markets.
“We support this project because it meets our strategic objectives in Armenia and the region. We are also grateful to our partner, the European Union, which provided technical cooperation support to ease the implementation of this important initiative.”