Armenia and Iran conclude contract on construction of section of North-South Highway costing $215 mln

YEREVAN. Oct 23 (Interfax) - Armenia and Iran signed an agreement on Monday worth $214.6 million on the construction of the 32-kilometer Agarak-Kajaran highway in the Syunik region of Armenia on the border with Iran as part of the North-South transport corridor.

"The implementation of the project for the construction of the southern section of the North-South highway, implemented jointly with the Iranian side, will have a great impact on the economy of Armenia; in particular, a positive impact on GDP of about 0.4% is expected," Armenian Minister of Economy Vahan Kerobyan told reporters .

The program is financed by loans from the Eurasian Development Bank and co-financing from the Government of Armenia. Construction work is scheduled to begin at the end of 2023 and be completed within three years.

It is planned to build five interchanges, six overpasses, two tunnels with a total length of 920 meters and 17 bridges.

According to Kerobyan, shortening the route only in the specified section will compensate for 30 minutes travel time, which is an important circumstance from the point of view of economic calculations.

He also noted that the elimination of road duties for cargo transportation by Armenia and Iran "will be invaluable in terms of diversifying Armenia's exports."

Armenia's Ministry of Territorial Administration and Infrastructure said that the agreement on the overhaul of the Agarak (border with Iran) - Vardanidzor road (21 km) and the construction of the Vardanidzor - entrance to the Kajaran tunnel (11 km) road was signed by the Executive Director of the Road Department Gor Avetisyan and representatives of the Iranian companies "Abad Rahan Pars" and "Tunel Garden Ariana" Ali Mousavi and Alen Yusefyan.