THE FIRST TRANCHE $60 MLN OF ASIAN DEVELOPMENT BANK FOR ROAD CONSTRUCTION TO BE RECEIVED BY ARMENIA IN 2010

ArmInfo
2009-11-04 14:29:00

ArmInfo. Armenia will receive the first tranche $60 mln of Asian
Development Bank for development of potential of North-South transport
corridor in 2010, press-service of Armenian Transport Ministry told
ArmInfo correspondent.

It is scheduled to start construction works in spring 2010. Before
that a tender will be held to choose a contractor.

To recall, on September 29 the Board of Directors of the Asian
Development Bank (ADB) has 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. The credit worth $500 mln
will be provided to Armenia in tranches. 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 Government is to seek a total of 462 mln USD to
co-finance this project. The total value of the project is 962 mln
USD. 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