ARMENIA TO RECEIVE $400 MILLION LOAN TO BUILD RAILWAY TO IRAN

RIA Novosti
April 20, 2009
YEREVAN

Armenia has reached an agreement with Iran on a $400 million loan for
the construction of a railway between the two countries, the Armenian
transport minister, Gurgen Sargsyan, said on Monday.

An agreement on the construction of the strategic route was signed
by Armenia’s Sargsyan and his Iranian counterpart, Hamed Behbahani,
on April 14 in Tehran. A working group will take about three months
to carry out a feasibility study.

"In addition, Armenia is in negotiations with the Asian Development
Bank, the World Bank and other concerned parties," Sargsyan told
journalists.

The construction of the 500-kilometer (310-mile) railway, with 60
kilometers (37 miles) in Iranian territory, is expected to take at
least five years and cost $1.5-$1.8 billion.

The railway, with the Armenian section connecting the northern city
of Sevan to the southern city of Meghri on the border with Iran,
will ensure the transportation of energy supplies and other goods,
and increase trade between the countries.

Landlocked Armenia, currently under economic blockade by Turkey
and Azerbaijan, has rail links with other countries only through
the territory of Georgia, which is complicated by Tbilisi’s often
fractious relations with Moscow.

Russia and Ukraine have expressed interest in financing the project.