ARMENIA SISIAN-KAJARAN ROAD PROJECT

Promoter – Financial Intermediary

REPUBLIQUE D'ARMENIE

Location

• Armenia

Description

The project will finance the construction of a 60 km-long single carriageway road link between Sisian and Kajaran in the southern and mountainous region of Syunik, divided into two sections and Bargushat tunnel, which is a key part of Armenia's North-South Highway.

Objectives

The aim is to address the market/network failure related to accessibility along the extended core trans-European network (TEN-T) road network. The new climate resilient road link will improve connectivity along the North-South transport corridor, by reducing travelling times, vehicle operating costs and road crashes while contributing to mitigate climate change.

Sector(s)

• Transport - Transportation and storage

Under Global Europe NDICI guarantee

Under EFSD+ Guarantee

Proposed EIB finance (Approximate amount)

EUR 236 million

Total cost (Approximate amount)

EUR 1349 million

Environmental aspects

An Environmental and Social Impact Assessment (ESIA) report with respect to the IFI standards has been prepared under EBRD support and included in the public consultation launched by EBRD in August 2023 for 120 days. The project crosses some national and internationally recognised protected areas and some natural and critical habitats, where potential impacts are anticipated due to project activities. Appropriate mitigation measures (avoidance, reduction, restoration) have been proposed to minimise the impacts to acceptable levels within the scope of the environmental and social impact assessment (ESIA). ESIA also proposes measures to achieve net gain for the two affected critical habitats. Further conservation measures are planned for the threatened species impacted, to ensure that the project does not result in any net loss. The ESIA concluded that the project does not jeopardise the integrity of the species and habitats nor it will compromise the viability of the critical habitats and/or habitats of high biodiversity value or their associated features at the scale of the Ecologically Appropriate Area of Analysis (or greater).

Procurement

The operation is considered a public sector operation for which the national procurement legal framework applies. As with other infrastructure projects the promoter manages all civil works, supply and supervision/technical assistance contracts related to the implementation of this project. These contracts will be tendered internationally according to the normal procedures and requirements for public works in Armenia. It is expected that the project works will be tendered in three lots (two road sections co-financed by EIB, one tunnel section). The procurement is expected to be delegated to EBRD, as lead financier, for the southern road section and to ADB, as lead financier, for the northern road section.

Status

Under appraisal - 10/10/2023