ARMENIAN GOVERNMENT INTENDS TO MAKE NORTH-SOUTH HIGHWAY CONNECTING ARMENIA WITH GEORGIA PAID

ArmInfo
2009-10-08 17:35:00

ArmInfo. After reconstructing the North-South highway connecting
Armenia with Georgia, the Armenian Government intends to make it paid.

During the sitting of Government on Thursday, Armenian Prime Minister
Tigran Sargsyan instructed Economy Minister Nerses Yeritsyan to discuss
with the Asian Development Bank (ADB) representatives the possible
involvement of private investors in this project and discuss the issue
of construction of paid motor roads. The prime minister pointed out
this will allow decreaseing the debt burden according to the recently
approved $500 mln ADB loan for construction of the North-South highway.

The premier also instructed the economy minister to prepare the
conception of construction of paid highways in the republic within
the next 2 months.

"The investors wishing to participate in the construction should know
the game rules offered by the Government",- Sargsyan said.

At Oct 8 sitting the Armenian Government approved the packages of
legislative changes on resettlement and ecological assessment of the
North-South highway construction project. N.Yeritsyan pointed out
that the given initiative is conditioned by the bank requirements
and caused by the necessity of provision of the first tranche of the
loan for reconstruction of Yerevan-Ashtarak section. The amount of
compensation to citizens for the resettlement is being specified.

To recall, on September 29 the Board of Directors of the Asian
Development Bank (ADB) approved the framework credit agreement with
Armenia worth $500 mln for restoration of the Yerevan-Batumi highway to
develop the opportunities of the North-South transport corridor. The
credit agreement is concluded for 7 years and envisages restoration
of the Agarak-Kapan-Yerevan-Bavra highway. This road links Armenia
with Georgia and provides the Armenian party with an access to the
Georgian Ports of Poti and Batumi. The highway was built in Soviet
times and doesn’t meet the modern requirements. It is envisaged to
widen the highway and improve the quality of the roadbed. The credit
worth $500 mln will be provided to Armenia in tranches. The Government
is to seek a total of 462 mln USD via other donors to co-finance this
project. The total value of the project is 962 mln USD.

The ADB Board approved the first tranche worth $60 mln for restoration
of 18 km section of the Yerevan-Ashtarak road and raising of security
of the Yerevan-Ararat road. The Armenian Government’s co-financing
on the first tranche will be $10 mln. The ADB credit will be provided
for 32 years, the grace period being the first 8 years. The interest
rate over the grace period will be 1% p.a., afterwards will grow to
1.5% p.a.

From: Emil Lazarian | Ararat NewsPress