The European Bank for Reconstruction and Development (EBRD) will provide a €236 million loan to Armenia for the construction of a new 24.2 km southern section of the Sisian-Kajaran road, a key part of the International North-South Transport Corridor project.
The total cost of this ambitious project is approximately €373 million. The new road will be divided into northern, southern, and central sections, with the EBRD-funded portion dedicated to the southern section. This strategic investment marks the largest road infrastructure project ever financed by the EBRD in Armenia.
The loan agreement was signed today by Armenia’s Finance Minister, Vahe Hovhannisyan, and Nandita Parshad, Managing Director of the EBRD Sustainable Infrastructure Group. The signing was a highlight of the EBRD’s Annual Meeting and Business Forum, which commenced on Tuesday in Yerevan and will conclude on Thursday. The ceremony was attended by more than 200 guests, reflecting the significant interest in this transformative infrastructure development.
Once completed, the new road is set to revolutionize travel within Armenia by shortening the Kajaran-Sisian distance from 118 to 60 kilometers and doubling the average travel speed from 50 to 100 kilometers per hour. This improvement is projected to halve the current travel distance and time between Syunik and Yerevan, thereby enhancing Armenia’s local, regional, and international connectivity and improving access to international markets via the Black Sea.
This road is not only pivotal for its immediate benefits but also aligns with broader EU initiatives aimed at enhancing land transport connectivity and fortifying resilience in Armenia’s southern regions. With completion targeted for 2030, the road promises to play a critical role in facilitating an efficient flow of trade, supporting the value chain, promoting diversification, and accelerating economic growth in Armenia.
EBRD’s Nandita Parshad said, “We appreciate Armenia’s aspiration to develop a transport and logistics infrastructure that will enhance its regional connectivity and integration with external markets. We support this project because it meets our strategic objectives in Armenia and the region. We are also grateful to our partner, the European Union, which provided technical cooperation support to ease the implementation of this important initiative.”
The EBRD remains one of the largest institutional financiers in Armenia, with investments over the past five years amounting to €640 million in sectors such as private development, infrastructure enhancement, renewable energy, and rural digitalization.
To date, the EBRD has invested over €2.1 billion across 211 projects in Armenia.
