The parliamentary standing committee on financial and budgetary issues approved today the ratification of a $200 million loan agreement between Armenia and the Eurasian Fund for Stabilization and Development (EFSD) by the parliament for building the Kajaran tunnel near the border with Iran.
The project will be co-financed by Armenia by over $194,2 million.The investment agreement was signed in July 2024.
The program aims to enhance the potential of transit transportation and reduce accidents on the North-South road corridor.
According to the project, a tunnel approximately 7 km long is planned to be built near the city of Kajaran, and a section of the M2 highway (Yerevan-Yeraskh-Goris-Meghri-Iranian border) about 4 km long will be reconstructed.
As a result of implementation, the current route distance will be reduced by 14km, the average speed limit of vehicles will reach 80km/h and the Kajaran-Agarak driving duration will be reduced by 40 minutes.
The construction work is expected to take about 6 years.
