ArmInfo. The European Investment Bank (EIB) has proposed amending the financial agreement with Armenia in the amount of 236 million euros within the framework of the program Armenia. Sisian-Kajaran Road Section Project European Fund for Sustainable Development + Special Investment Window 1. Draft letter No. 1 on amending the document was approved by the Armenian Cabinet of Ministers on September 11.
The proposal to sign a financial agreement with the European Investment Bank (EIB) in the amount of 236 million euros within the framework of this program was approved by the Government of the Republic of Armenia on November 7, 2024, and signed on November 12, 2024.
Earlier, ArmInfo reported that in 2025, it is planned to begin construction work on a new section of the road with a length of about 60 km Sisian-Kajaran (including the Bargushat tunnel) of the 4th tranche of the North-South highway corridor. The work will be carried out in three subsections: the northern section - 27.12 km long; the Bargushat tunnel section, 8.65 km long and the southern section, 24.25 km long. In total, as noted in May 2024 by the Ministry of Territorial Administration and Infrastructure, 708 million euros of loan funds will be required for the construction of the three subsections of the road section.
The current financing agreement provides for co-financing the construction of the northern section with a length of 27.1 km and the southern section with a length of 24.25 km of the new section of the North-South Sisian-Kajaran road with a length of about 60 km. The construction of road sections will reduce the length of the Sisian-Kajaran section, which will lead to a reduction in travel time, an increase in the average speed of vehicles from the current 50 km/h (to 100 km/h), and an increase in traffic comfort and safety. The construction of road sections will also contribute to an increase in trade turnover, a reduction in transport costs and the development of tourism.
Road construction works on the northern and southern sections include: the construction of a 3-lane road with asphalt concrete pavement, 8 tunnels, 27 bridges, 3 transport hubs, 151 culverts, 71 retaining walls (6.3 km), and other works to ensure safe traffic.
This financial agreement was ratified on June 12, 2025 and, according to the notification received from the EIB, entered into force on August 27, 2025. The EIB has now submitted draft letter No. 1 on amendments to the document.
The draft proposes to make a number of editorial changes (concerning the fight against money laundering of real beneficiaries, prepayment mechanisms, conflicts of interest, etc.).
"The draft does not constitute an agreement, amendment or waiver of any provision or condition of the Financing Agreement. The proposed amendments are due to the need to clarify certain provisions of the Financing Agreement," the document says.
