EDB loans $150 M to Armenia for North-South Motor Road construction

EDB loans $150 M to Armenia for North-South Motor Road construction

PanARMENIAN.Net - Eurasian Development Bank's Anti-crisis Fund will lend $150 million to Armenia for construction of North-South motor road, Dmitry Pankin, chairman of the bank's board, said at an online conference, ARKA reports.

As he noted, the deal is already formalized and the money will be sent to Armenia soon.

“This is a 560-kilometer motorway, which will cross Armenia's entire territory, connecting Iran, Armenia, Georgia and Russia,” he said.

Pankin stressed that this is one of the six investment projects that are already approved and waiting for implementation by the Anti-crisis Fund.

After technical matters are settled and the agreement is ratified, the financial resources are planned to be transferred to Armenia in 2015.

On January 14, 2010, the Armenian government approved the investment program on construction of the North-South transport corridor as well as $500-million loan agreement between Armenia and Asian Development Bank.

The goal of the project is to upgrade Armenia’s main corridor road as part of a broader thrust to improve connectivity, 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, near the border with Georgia.

The North-South transport corridor will enable Armenia to mitigate the effects of the blockade imposed by Azerbaijan and Turkey.

The Anti-crisis Fund's investments total $2.63 billion, out of which $190 million will be lent to Armenia under two approved projects. The Anti-crisis Fund amounting to $8.513 billion was established by six countries – Armenia Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan.

The fund's main goal is to assist the member countries in overcoming consequences of crises, strengthening their economies and developing integration processes.

In June 2009, the countries empowered the Eurasian Development Bank to run the fund's financial resources.

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