CONSTRUCTION OF NORTH-SOUTH TRANSPORTATION CORRIDOR IN ARMENIA TO BE LAUNCHED IN 2010

ARKA
Nov 11, 2009

YEREVAN, November 11. /ARKA/. The construction of North-South
transportation corridor in Armenia is to be launched in 2010, Armenian
Transport and Communication Minister Gurgen Sargsyan said on Wednesday.

The first stage of the construction is estimated to cost $60 million.

The corridor will be laid from Armenian city of Meghri to Bavra,
on the border with Georgia.

Asian Development Bank will lend $500 million to Armenia for this
purpose.

The loan will be given to Armenia for 32 years with eight years of
grace period.

The annual interest of the grace period is set at 1%, and later it
will rise to 1.5%.

Sargsyan said that the first stage will be launched in 2010.

The second and third stages will be planned in 2010 as well.

The minister said the Asian Development Bank will transfer the loan
in several tranches.

The first, $60-million tranche is intended for reconstruction of a
18-kilometer section connecting Yerevan with Ashtarak.

The second stage will prolong the road up to Gyumri and the third
tranche will be targeted for construction of a new section of
Goris-Kapan road.

"Successful implementation of the first phase will make it possible
to launch the second stage right in 2010, and the Asian Development
Bank will transfer the funds intended for that," Sargsyan said.

The road is planned to be put into exploitation in 2016.

The Asian Development Bank was established in 1966.

The bank has 67 members.

Armenia joined the bank on September 20, 2005.

Armenia has signed a number of agreements and the mutual understanding
memorandum with the Asian Development Bank.

The bank’s rural road and water supply projects in Armenia are
estimated to cost $83 million.

Armenia has received $381 million from the bank.