$215M Highway Construction Project Approved on a Section on the North-South Transport Corridor.

Home » News » $215M Highway Construction Project Approved on a Section on the North-South Transport Corridor.

A section of the North-South transport corridor construction project agreement was signed yesterday by Iran and Armenia. The project on the 32-kilometer Agarak-Karajan highway in the Syunik region is budgeted at $214.6 million. The construction region is located at the Iran-Armenia border and will be part of the transport corridor. The scope of the project is planned at building five interchanges, six overpasses, 17 bridges, and two tunnels with a total length of 920 meters. The project is scheduled to start at the end of 2023 and completion expected in the next three years. The construction of the North-South corridor will be key in the elimination of the road duties for cargo transportation.

Armenia’s Minister of Economy Vahan Kerobyan reported that the implementation for the construction of the southern section of the North-South transport corridor will be impactful to the Armenian economy. He also added that the project, implemented jointly by the Iranian side, will have a positive impact on the GDP of both regions with a 0.4%  increase in their respective GDP’s. The program is being financed by loans from the Eurasian Development Bank. It is also being co-financed by the Government of Armenia. According to the Minister of Economy to Armenia, shortening of the route only in the Agarak-Karajan highway of the North-South transport corridor will compensate for 30 minutes in travel time. He eluded that this is an important aspect from the point of view of economic calculations.

Read also: Transport Corridor Construction Launched on Iran-Azerbaijan border

Iranian and Armenian Governments Share Prospects in Bilateral Projects Cooperation After the North-South Transport Corridor.

The Iranian and Armenian governments have shown a keen interest in wanting to partake in bilateral projects in their countries after the North-South Transport Corridor is done. The Minister of Road construction and Urban Development to Iran, Mehrdad Bazrapash noted that the construction of the Agarak-Karajan road section will be contracted to one of the Iranian companies. He also expressed confidence on the prospect that the project will completed in time. The minister also added that other companies in Iran are interested in projects in Armenia and Iran is putting into prospects involving Armenian companies in contracting them Iran construction projects such as the large-scale housing construction project.