Armenia’s Constitutional Court upholds legality of North-South transport corridor investment program

YEREVAN, January 28, /ARKA/. Armenia’s Constitutional Court has upheld the legality of an investment program designed to fund construction of the North-South transport corridor, the ministry of economy said in a statement.

It said the Court ruled that Armenia’s commitments in a framework agreement signed with the Asian Development Bank on September 15, 2009 are in conformity with the country’s Constitution. The Court handed a similar ruling with respect to a credit agreement signed by the government of Armenia and the Asian Development Bank on October 12, 2009 for the initial phase of the project. The Armenian government approved the investment program on January 14, 2010.

Armenian transport and communications minister Gurgen Sarkisian said late in December that the construction of the first phase of North-South Road Corridor will be launched in 2010 April. The project will be funded by the initial loan of $60 million, earmarked by the Asia Development Bank to reconstruct an 18 kilometer section of the road corridor between the capital city Yerevan, and Ashtarak to the north, and improve safety of Yerevan to Ararat road to the south. 

Last year the Asian Development Bank (ADB) said it will extend up to $500 million to Armenia to upgrade its main corridor road as part of a broader thrust to improve connectivity, and boost trade, growth and livelihood opportunities in the Caucasus and Central Asia subregions. Funds will be released periodically through a multitranche financing facility. The transport corridor will stretch from the southern Armenian town of Meghri, on the border with Iran, to Bavra in the north on the border with Georgia.  

The project, which the minister said, is estimated preliminary to cost $962 million, is to be over in 2106. In the second phase which is expected to be over in 2010, a road from Ashtarak to Gyumri will be reconstructed. In the third phase a new road from Goris to Kapan will be constructed.

“This is a very important project for Armenia, because it is a regional project that will connect the southern parts of Armenia with Georgian seaports on the Black Sea and will cut the travel by 30%,’ the minister said. -0-