EDB and Armenian Government agree on financing the construction of the North-South road corridor (Phase 4) in Armenia
Yerevan, 14 April 2015. Today, the Republic of Armenia and Eurasian Development Bank (EDB) signed an agreement in Yerevan on the provision of an investment credit from the Eurasian Economic Community’ Anti-Crisis Fund (ACF) to finance the construction of the North-South road corridor (Phase 4). The credit totals US $150 million and will be provided for twenty years.
The agreement was signed during EDB’s visit to Armenia. The delegation was headed by Dmitry Pankin, Chairman of the Management Board. The project will help to increase transport capacity and reduce accidents at the 20.5 km section of the North-South road from Agarak towards Kajaran. In addition, it will help to provide favourable transport conditions for adjacent settlements and boost cargo transit through Armenia, to other EDB member states in particular.
“On 2 April 2015 the ACF Council approved the draft agreement for this project and it was signed today,” says Dmitry Pankin, Chairman of the Management Board at EDB. “In addition, EDB is considering possibilities to finance other projects in Armenia in the area of mining, power, transport and warehouse infrastructure.”
The North-South corridor links Central Asia and India with Iran, Georgia, Russia and Europe. It crosses Armenia from south to north (Megri—Kapan—Goris—Yerevan—Ashtarak—Gyumri—Bavra) and connects to a Georgian road in the south, running to the ports of Poti and Batumi (the Black Sea) and then to Russia, the CIS and the EU countries. The North-South road is also part of the international AH82 highway, which connects Central Asian countries: Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan.
The ACF Council decided to provide this investment credit on 3 July 2014 after EDB, as the ACF Resources Manager, approved Armenia’ application for financing this project by the fund.
Eurasian Development Bank is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth and the expansion of mutual trade and other economic ties in its member states. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan. Read more at https://www.eabr.org/
The EurAsEC Anti-Crisis Fund (ACF) amounting to US$8.513 billion was formed on 9 June 2009 by the governments of six countries: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. The objectives of the ACF are to assist the member countries in overcoming the consequences of global financial crisis, ensure their economic and financial stability, and foster integration processes in the region. The ACF member countries signed the Fund Management Agreement with Eurasian Development Bank giving it the role of the ACF Resources Manager. Read more at: https://efsd.eabr.org/.
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