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Armenia will receive a loan of 200 million dollars for the construction of the tunnel


Armenia will receive a loan of 200 million dollars for the construction of the Kajaran tunnel and the reconstruction of the 4 km section of the M2 road, the Standing Committee on Finance and Budget Affairs of the National Assembly approved the project. The project will be co-financed by Armenia in the amount of 194 million 259 USD.

It is planned that as a result of the implementation of the project, the existing route will be shortened by 14 km, the average speed of vehicles will reach the calculated speed of 80 km/h, the time of the road section from Kajaran to Agarak will be reduced by about 40 minutes, the use of the Meghri Pass will decrease, the level of road safety will increase significantly and etc.

The loan disbursement and servicing currency is in US dollars, the loan interest rate is fixed at 4% per annum.

The repayment period of the loan is up to 20 years, of which the concessionary period is up to 5 years after the contract comes into force.

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