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ARMENIAN PARLIAMENT RATIFIES AGREEMENT WITH ASIAN DEVELOPMENT BANK ON $500 MLN FRAMEWORK FINANCING OF RENOVATION OF INTERSTATE ROADS
ArmInfo
2010-02-03 09:04:00
The National Assembly of Armenia has ratified the agreement with
the Asian Development Bank on framework financing worth $500 mln for
renovation of interstate roads with 106 votes "for", 5 "against" and
no . The funds will be allocated for development of the North-South
transport corridor including construction and repair of roads from
the southern border (with Iran), to the northern border (with Georgia)
of Armenia. Additional 462 mln USD will be allocated by the Armenian
government and Japan Agency for International Cooperation. 942 mln USD
of the total amount will be directed to development of the transport
corridor, 10 mln - to improvement of the border infrastructure and 10
mln - to institutional development. 60 mln will be allocated from the
ADB funds for 32 years at the interest rate of 1.5% p.a., the grace
period being the first 8 years at 1% p.a.
The conditions of provision of the rest of the funds will be determined
on the basis of LIBOR rate, the commission fee being 0.15% p.a. The
tranches will be provided till 2017.
The parliament also ratified an agreement on provision of the first
tranche worth 60 mln USD, the government's co-financing being 10 mln
USD. 38 mln of this amount will be allocated for construction work,
7 mln - for institutional support, 10 mln - for taxes and customs
duties, 13 mln - for incidental expenditures, and 2 mln - for payment
of interests. Within the frames of the first tranche, it is envisaged
to rehabilitate 18.4 km section of the 4-strip highway between Yerevan
and Ashtarak, north of the capital, as well as to enhance the security
of the Yerevan- Ararat section, south of the capital. Within the
frames of the second tranche, it is envisaged to repair the 88 km
Ashtarak-Gyumri section and improvement of the border infrastructure.
Economy Minister of Armenia Nerses Yeritsyan presented the project
in the parliament and said that the government will receive at least
15 million dollars in terms of taxes from trade and growing export,
opening of new enterprises after the project is implemented, as well
as cut expenses thanks to reduction of transport expenses on the new
road. The program will be implemented maximum transparently for all
the parties interested. A number of parliamentarians asked if the new
highway will be paid. This issue has not been discussed yet, though a
concept of paid highways is currently being developed. However, it will
be discussed for over a year and all the parties interested will have
an opportunity to participate in the public hearings," Nerses Yeritsyan
said. He came out for creation of a cooperation model with a number of
local universities, including the American university in Armenia and
the State Engineering University of Armenia to educate new engineers.
Asian Development Bank reports that the transport corridor will
increase the cross-border commodity turnover in Armenia from 4.6
million ton/km yearly in 2008 to 10 million in 2017 and the load
of the North-South corridor from 3 to 6 thousand cars daily. The
passage time will be reduced from 3-4 to 2 days. The corridor will
meet 100km/h speed standard. In total 550 km highways will be repaired
under the program.
ArmInfo
2010-02-03 09:04:00
The National Assembly of Armenia has ratified the agreement with
the Asian Development Bank on framework financing worth $500 mln for
renovation of interstate roads with 106 votes "for", 5 "against" and
no . The funds will be allocated for development of the North-South
transport corridor including construction and repair of roads from
the southern border (with Iran), to the northern border (with Georgia)
of Armenia. Additional 462 mln USD will be allocated by the Armenian
government and Japan Agency for International Cooperation. 942 mln USD
of the total amount will be directed to development of the transport
corridor, 10 mln - to improvement of the border infrastructure and 10
mln - to institutional development. 60 mln will be allocated from the
ADB funds for 32 years at the interest rate of 1.5% p.a., the grace
period being the first 8 years at 1% p.a.
The conditions of provision of the rest of the funds will be determined
on the basis of LIBOR rate, the commission fee being 0.15% p.a. The
tranches will be provided till 2017.
The parliament also ratified an agreement on provision of the first
tranche worth 60 mln USD, the government's co-financing being 10 mln
USD. 38 mln of this amount will be allocated for construction work,
7 mln - for institutional support, 10 mln - for taxes and customs
duties, 13 mln - for incidental expenditures, and 2 mln - for payment
of interests. Within the frames of the first tranche, it is envisaged
to rehabilitate 18.4 km section of the 4-strip highway between Yerevan
and Ashtarak, north of the capital, as well as to enhance the security
of the Yerevan- Ararat section, south of the capital. Within the
frames of the second tranche, it is envisaged to repair the 88 km
Ashtarak-Gyumri section and improvement of the border infrastructure.
Economy Minister of Armenia Nerses Yeritsyan presented the project
in the parliament and said that the government will receive at least
15 million dollars in terms of taxes from trade and growing export,
opening of new enterprises after the project is implemented, as well
as cut expenses thanks to reduction of transport expenses on the new
road. The program will be implemented maximum transparently for all
the parties interested. A number of parliamentarians asked if the new
highway will be paid. This issue has not been discussed yet, though a
concept of paid highways is currently being developed. However, it will
be discussed for over a year and all the parties interested will have
an opportunity to participate in the public hearings," Nerses Yeritsyan
said. He came out for creation of a cooperation model with a number of
local universities, including the American university in Armenia and
the State Engineering University of Armenia to educate new engineers.
Asian Development Bank reports that the transport corridor will
increase the cross-border commodity turnover in Armenia from 4.6
million ton/km yearly in 2008 to 10 million in 2017 and the load
of the North-South corridor from 3 to 6 thousand cars daily. The
passage time will be reduced from 3-4 to 2 days. The corridor will
meet 100km/h speed standard. In total 550 km highways will be repaired
under the program.