ArmInfo. 1.174 billion drams will be allocated to co-finance the construction of various road sections of the North-South Transport Corridor. The decision was made at a government meeting on August 27.
Presenting the project, RA Minister of Territorial Administration and Infrastructure David Khudatyan noted that the funds will be raised through the redistribution of budgetary resources. This includes, in particular, paying 5% of the funds for work already completed, salaries for technical consultants, and compensation to landowners recognized as being of priority public interest. It is also planned to allocate some of the funds for the restoration of the M-6 highway (from Vanadzor to the Georgian border), the modernization of the Pushkin Tunnel, and the construction of a new tunnel in Dilijan.
RA Prime Minister Nikol Pashinyan noted that this refers to post-payment for the work carried out on the Ashtarak-Gyumri highway.
He also noted with satisfaction that the construction of the Kajaran-Agarak road, as well as the Kajaran Tunnel, is continuing at a very good pace. Pashinyan noted that over the past eight years, capital expenditure levels recorded in Soviet Armenia have been exceeded.
The Prime Minister also recalled the economic activity indicators presented by the RA Statistical Committee. According to him, gross domestic product growth in the first half of 2026 was 6%. In 2021, the government was tasked with ensuring 7% annual economic growth. During this period, the country's GDP growth was around 7.9%. The country's economy also showed good performance in July. Two sectors- construction and services-were the driving forces behind this growth. This is largely due to the implementation of an 800 billion drams program to provide housing for internally displaced persons from Karabakh.
The construction of the 32-kilometer section of the Kajaran-Agarak road in Armenia's Syunik Province is being carried out by an Iranian consortium, specifically Abad Rahan Pars International Group and Tunnel Sadd Ariana. The project is a key part of the North-South Corridor, ensuring rapid construction. The new 60-kilometer Sisian-Kajaran road will be of the second technical category. It will traverse challenging mountainous terrain and include 27 bridges with a total length of 4.7 km and nine tunnels with a total length of 12.5 km (the longest, the Bargushat Tunnel, is approximately 8.6 km long). The prequalification stage of the international tender for this project has been completed, with bids submitted by 23 companies from Europe, China, and other countries. Of the EU's overall financial assistance package to Armenia, amounting to ?2.6 billion, ?600 million will be allocated for the construction of the Kajaran-Sisian road over the next five years. The Eurasian Fund for Stabilization and Development, managed by the Eurasian Development Bank, will provide an additional $200 million. The ADB has already allocated $500 million. The 60-kilometer section of the highway will have a design speed of 80 km/h.
The North-South project will reduce the distance from the Iranian to the Georgian border from 556 to 490 kilometers. The road will significantly facilitate access to the Black Sea not only for Armenia but also for Iran. The project will provide access to the Black Sea and European countries through Armenia (Meghri- Kapan-Goris-Yerevan-Ashtarak-Gyumri-Bavra) and Georgia. Construction of the corridor was initially scheduled for completion in 2019. The program's cost has been continually revised upward. In September 2012, when construction of the highway began, the amount quoted by Armenian government representatives was significantly lower - $962 million; today, investments are estimated at approximately $3 billion.
