ADB TO ALLOCATE U.S. $ 500 M

News.am
19:19 / 09/29/2009

The Asian Development Bank (ADB) Board of Directors approved the
framework loan agreement with Armenia for U.S. $ 500m to finance the
Armenia-Georgia highway reconstruction.

The project is aimed at the development of transport corridor
"North-South", ADB Yerevan office informed NEWS.am. The 7 years’
loan agreement provides the Agarak-Kapan-Yerevan-Bavra highway
reconstruction. The road will give access to Georgian Batumi and Poti
ports for Armenian freighters.

The credit will be allocated to Armenia in tranches for 32 years
and 8-year period of grace. The annual interest rate will be 1% in
period of grace with further increase to 1.5%. The Bank Board agreed
to allocate the first U.S. $60m tranche to reconstruct 18-km passage
of Yerevan-Ashtarak motorway.

First tranche co-financing of RA Government will reach U.S. $10m,
with further increase to U.S. $462m.

Thus, the overall value will make U.S.$962m.