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European Investment Bank to provide 60 million EUR loan to Armenia for construction of North-South transport corridor.

Yerevan. European Investment Bank (EIB) will provide a 60 million EUR loan to Armenia for construction of the North-South

transport corridor, Deputy Minister of Finance Pavel Safaryan said in the Government, Thursday.

The Government approved a loan agreement with EIB the same day. The deputy minister said the loan will be provided

through 12 tranches in the amount of at least 5 million EUR each. The loan will be spent on construction of the 27.3km road Lanjik-

Gyumri in the north of Armenia.

Safaryan said Armenia is expecting a 12 million EUR grant from the EU. Half of the grant will be spent on construction of the

transport corridor, the other half on supervision and design documents. The deputy minister said the loan service is required in Euro. The

annual interest on the loan can be fixed or floating. It will be finally indicated in a separate document. The floating interest rate will make

up Euribor+fixed margin.

The North-South 556km motorway will be laid via the Armenians towns of Meghri-Kapan-Goris- Yerevan-Ashtarak-Gyumri-

Bavra and enter the territory of Georgia on Akhaltsikhe-Batumi section, which will settle some transport problems of Armenia. The

project is estimated at $1.5 million. Government of Armenia approved the investment program of the North-South transport corridor on

Jan 14 2010 and a framework financial agreement between Armenia and ADB in the amount of 500 million dollars. The remaining

amount should be raised from donors or private companies. On 27 April the Government signed a $250 million contractual agreement

with CORSAN CORVIAM CONSTRUCCION SA (Spain) for construction of the three sections of the transport corridor, particularly,

Yerevan-Araratm Yerevan- Ashtarak and Ashtarak Talin.

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Publication:ArmInfo - Business Bulletin
Geographic Code:4EXAR
Date:Nov 21, 2013
Words:290
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