OREANDA-NEWS. The European Investment Bank (EIB) is lending EUR 51 million to the Republic of Armenia to finance rehabilitation of the M6 interstate road, the crucial transport corridor in Armenia representing the interconnection of the country with Georgia and thus the EU and being significant particularly for Armenia’s exports and imports.

The EIB funds will support the rehabilitation and upgrading along some 90 km of the M6 road between Vanadzor in central Armenia and Bagratashen at the North eastern border between Armenia and Georgia. The road follows a deep valley and features several hairpin bends, steep inclines, narrow bridges and three tunnels which will be upgraded. The M6 rehabilitation will help to improve traffic fluidity, levels of service, time savings and increase overall road safety, expected to result in a reduced number of road accidents, injuries and fatalities.

EIB Vice-President László Baranyay, responsible for EIB operations in Armenia commented: “The EIB loan will support the upgrade of Armenia’s priority M6 road infrastructure representing connection of Yerevan with Tbilisi. This transport infrastructure serves as major link of Armenia with Europe and other countries of the Commonwealth of Independent States through Georgia’s Black Sea ports carrying over 60% of Armenia’s international traffic”.

In addition to EIB, the Asian Development Bank is expected to provide support to the project. The total costs of the project that will be promoted by the Ministry of Transport and Communication is EUR 102 million.

Currently, the EIB lending commitment in Armenia covers twelve projects, most of them supported by EU grants, and amounts to some EUR 270 million. It supports a well-diversified investment portfolio important for the country’s development in the areas of transport, energy, water and solid waste sector infrastructure and indirectly financing the undertakings of small and medium-sized enterprises (SMEs) through EIB partner financing institutions. Both parties have ongoing discussions regarding the future priorities of EIB activities in Armenia and the promising pipeline of new operations for the upcoming years.