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North-South Highway/Iran-Armenia Railway

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  • North-South Highway/Iran-Armenia Railway

    Seeing how these two projects are very crucial to the future of the Armenian economy and the overall existence of the Armenian State, I thought it would be a good idea to have a separate thread to discuss their development, specially seeing how both projects are still in a dynamic stage where many factors continue to change.
    Last edited by Mher; 12-07-2013, 09:10 AM.
    <<եթե զենք էլ չլինի' ես քարերով կկրվեմ>>

  • #2
    Re: North-South Highway/Iran-Armenia Railway

    North-South highway’s construction in Armenia to take 6-7 years

    EREVAN, May 3. 2012 /ARKA/.

    The construction of the North-South highway in Armenia may take 6-7 years, Armenia’s Prime Minister Tigran Sargsyan said in the interview with Shant TV channel.

    The total cost of the North-South highway construction is estimated $1.5 billion, he said. The Prime Minister reminded that Armenia and Asian Development Bank had already signed 500-million-dollar financial agreement.

    “It will be an absolutely new road the analogies of which have been never built in Armenia before. It will be constructed gradually.. Possibly, the construction will take 6-7 years,” Sargsyan said.

    On April 26 during the Cabinet session the government approved the results of an open international tender for choosing a company to handle the implementation of the first and second phases of the project. The tender was won by Spanish Corsan Corvian Construccion Company. A joint venture Safege (Belgium) and Eptisa (Spain) was chosen as a contractor.

    In the first phases of the project known as South-North Tansport Corridor three sections of roads will be reconstructed- Yerevan-Ashtarak (11.7 km), [B]Ararat -Yerevan (38 km)[see below] and Ashtarak-Talin (42 km). The project is funded by Armenia’s government and Asian Development Bank.

    On January 14, 2010, Armenian government approved the program of North-South highway construction as well as the $500-million agreement signed between Armenia and Asian Development Bank. The credit agreement on the first $70-million tranche was signed on October 12, 2009, and the second $210 million tranche- on May 30 2011.

    Railway North-South will allow the Armenian side to use the alternative route of transportation of energy resources and other goods, obtaining access to outside world. Currently, railway communications between Armenia and foreign countries is provided only through the territory of Georgia.

    The project, initiated by Russia and Iran, implies expanding transport flows also by constructing new transport communication through Russia-Iran-India route .

    Armenia and Iran are also considering construction of the railway between the two countries, which will become a part of North-South transport corridor. -0-
    Last edited by Mher; 12-06-2013, 09:08 PM.
    <<եթե զենք էլ չլինի' ես քարերով կկրվեմ>>


    • #3
      Re: North-South Highway/Iran-Armenia Railway

      Construction Begins on Armenia’s North-South Highway
      September 13th, 2012

      YEREVAN (RFE/RL)—A Spanish construction company launched on Thursday the first phase of a multimillion-dollar government project to upgrade Armenia’s main highways stretching more than 550 kilometers to neighboring Georgia and Iran.

      The Madrid-based group Isolux Corsan inaugurated the start of work on a 53-kilometer highway connecting Yerevan to the southern town of Ararat in the presence of its senior executives and Armenian government officials.

      Corsan signed last April a $280 million contract with the Armenian Ministry of Transport and Communications to rebuild and expand this and another road running northwest of Yerevan. The total length of the two roads exceeds 90 kilometers. They are due to be refurbished before 2016.

      The construction will be financed from a $500 million loanwhich the Manila-based Asian Development Bank (ADB) allocated to Armenia in 2009. The ADB loan is designed to support the implementation of the so-called North-South Project envisaging the reconstruction of the highways stretching from the Armenian-Iranian border to one of the three Armenian-Georgian border crossings.

      The Armenian government says the planned upgrades will facilitate access to the Georgian and Iranian ports. Another aim of the ambitious project worth at least $1 billion is to enable Iran to use Armenian and Georgian territory for large-scale freight shipments to and from Europe.

      “This will give us greater economic opportunities,” Transport and Communications Minister Gagik Beglarian told journalists at the ceremony. “The fact that we are going to have a fast transit motorway will also solve a very important national issue for Armenia.”

      Beglarian said the road works will also translate into 1,000 new jobs. Daniel Domingo, a senior Corsan executive, said some of the company’s local staff will undergo special training. “We will hold special courses to bring their skills into conformity with European standards,” he told RFE/RL’s Armenian service.

      The government has yet to indicate external sources of funding for the rest of what would be the single largest road project in Armenia’s history. Its implementation was originally due to start in 2010.
      Last edited by Mher; 12-07-2013, 09:11 AM.
      <<եթե զենք էլ չլինի' ես քարերով կկրվեմ>>


      • #4
        Re: North-South Highway/Iran-Armenia Railway

        Armenia to Get $100M From Regional Fund for North-South Highway

        YEREVAN, September 4 (RIA Novosti) – Armenia will get $100 million from a Eurasian Economic Community anti-crisis fund, a Eurasian Development Bank official said Wednesday.

        The 556-km corridor, designed to improve transport links between Europe, the Caucasus and Asia, in particular between Eastern Europe and western Asia, is to be completed by 2017.

        In January 2010, the Armenian government approved an investment program for the North-South transport corridor, and a framework finance agreement between Armenia and the Asian Development Bank worth a total of $500 million.

        Wednesday’s decision came after discussions between the Eurasian Development Bank’s Deputy President Sergei Shatalov and Armenia’s Transport and Communications Minister Gagik Belaryan, the ministry’s press service told RIA Novosti.

        EIB to provide Armenia with $90 million loan to finance construction of North-South highway

        18.02.2013 16:32
        EIB to provide Armenia with $90 million loan to finance construction of North-South highway

        YEREVAN, September 15. / ARKA /. The European Investment Bank (EIB) is set to provide Armenia with a $90 million loan to finance the construction of the North-South highway, Ara Hovsepian, head of a government non-commercial organization set up to handle the project, told ARKA.

        In 2010 January the Armenian government signed a $500-million financial agreement with Asian Development Bank to fund the construction of the highway. Hovsepian said the release of the EIB loan will be considered at its meeting in early March.

        According to him, the loan will be used to finance the construction of a 45-kilometer road from Talin to Gyumri. The first tranche of the ADB in the amount of $70.4 million is being used to reconstruct parts of Yerevan-Ararat (38 km) and Yerevan-Ashtarak (12 km) roads. The second tranche in the amount of $179.6 million will be used to reconstruct a section of the highway from Ashtarak to Talin. The work will be completed in June 2017. The project was launched in September 2012.

        The Japanese International Cooperation Agency (JICA) has also expressed willingness to provide $50-70 million for the construction of the highway.

        The goal of the project is to upgrade Armenia’s main corridor road (556 km long) as part of a broader thrust to improve connectivity, and boost trade, growth and livelihood opportunities in the Caucasus and Central Asia sub-regions. Funds will be released by the Asian Development Bank 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 North-South transport corridor will enable Armenia to mitigate the effects of the blockade imposed by Azerbaijan and Turkey. -0-

        See more at:

        Armenia starts North-South Highway construction
        13 September 2012 - 2:39pm

        Armenia is startingthe construction of the North-South Highway financed by the Asian Development Bank (ADB) today, News Georgia reports.

        Armenian Minister for Transportation and Communication Gagik Beglaryan met Ramon Aige of the Corsan Corvian Construccion (Spain), representing the contractor of construction, on Tuesday.

        The highway will be 556 km long giving access to the Black Sea and European states using the Megri-Kapan-Goris-Yerevan-Ashtarak-Gyumri-Bavra route and Georgia.

        Armenia approved the tender for construction on April 26, RIA Novosti reports.

        The investment program worth $500 million was approved by the Armenian government on January 14, 2010. The North-South Corridor program is worth $1 billion. The Japanese International Cooperation Agency (JICA) wants to pay $50-70 million for its realization while Armenia will co-finance $462 million.

        The Europe-Caucasus-Asia connection on the crossing of Eastern Europe and Western Asia will be completed in 2017.

        Realization of the program will save $2.5 per hour for each passenger and $1 per hour for a ton of cargo.

        The North-South Corridor was initiated by Russia and Iran. The Russia-Iran-India route will be improved.
        Last edited by Mher; 12-06-2013, 09:29 PM.
        <<եթե զենք էլ չլինի' ես քարերով կկրվեմ>>


        • #5
          Re: North-South Highway/Iran-Armenia Railway

          Over 40bln drams [$100 Mill] earmarked for North-South road construction in Armenia in 2014

          EREVAN, November 6. 2013 /ARKA/.
          Under the 2014 draft budget, about 40.4 billion drams is to be appropriated for construction of the North-South highway in Armenia.

          In particular, the budget document says the Asian Development Bank (ADB) will allocate about 3.3 billion drams for the construction, a 26% increase compared to the 2013 government budget and a 47.5% increase against the 2012 budget execution level.

          ADB’s second and third tranches for the project will exceed 19 billion drams in 2014.

          The remaining funds for the 2014 construction of the road – over 9.5 billion drams – will be provided by the European Investment Bank.

          Earlier Armenia’s minister of transport and communication Gagik Beglaryan said about 60% of the construction will be completed by the end of this year. The 2013 budget appropriations for the construction were 43.3 billion drams. The project is being implemented by Corsan Corvian Construccion.

          On January 14 2010 Armenia’s government approved the investment project for construction of North-South road corridor and the framework agreement between Armenia and the Asian Development Bank for 500 million dollars.

          The road will extend 556 kilometers to the Black Sea and Europe via Armenia (Meghri-Kapan-Goris-Yerevan-Ashtarak-Giumry-Bavra) and Georgia. ($1=405.77drams).

          11:21 06.11.2013

          Last edited by Mher; 12-06-2013, 08:56 PM.
          <<եթե զենք էլ չլինի' ես քարերով կկրվեմ>>


          • #6
            Re: North-South Highway/Iran-Armenia Railway

            Summarizing above information about North-South Highway:

            Description: 556 km Megri-Kapan-Goris-Yerevan-Ashtarak-Gyumri-Bavra highway connection Iran to Georgia
            Cost: approximately 1.0-1.5 billion dollars
            Funding: $500 Million Loan (Asian Development bank); $100 Million Loan (Eurasian Development Bank); $90 Million Loan (European Bank);
            Potential Future Funding: $50-70 million (Japanese International Cooperation Agency)
            Projected Completion Date: June 2017
            Engineering/Construction Company: Spanish Corsan Corvian Construccion Company
            Progress so far (Dec 2013): Roughly 60 %

            Official Site:

            Official Youtube video with a nice visual of the specific sectional breakdown of the project
            Last edited by Mher; 12-06-2013, 10:28 PM.
            <<եթե զենք էլ չլինի' ես քարերով կկրվեմ>>


            • #7
              Re: North-South Highway/Iran-Armenia Railway

              Agreement signed on Armenia – Iran rail link

              Written by Keith Barrow
              Thursday, January 24, 2013

              A tripartite memorandum of understanding was signed in Yerevan on January 24 concerning the construction of the Southern Armenia Railway, which will form part of a new north-south corridor linking the Black Sea and the Persian Gulf.

              The agreement was signed by representatives of Dubai-based investment fund Rasia FZE, Russian Railways (RZD) subsidiary South Caucasus Railway (SCR), and Armenian minister of transport and communications Mr Gagik Beglaryan. The ceremony was also attended by government officials, ambassadors, and fund managers from Armenia, China, Russia, UAE, and Iran.

              The MoU covers the construction of both a 316km railway linking Gavar, 50km east of Yerevan near Lake Sevar, with the Iranian border near Meghri, and a 110km highway in the southern province of Syunik. The total cost of the two projects is expected to be around $US 3bn.

              In 2012 Rasia FZE signed two concession agreements with the Armenian government to develop these projects on a PPP basis. The concessions set deadlines for completing feasibility studies, engineering design, project financing, and construction, and both have an operating term of 30 years with an option for a 20 year extension. Feasibility studies began at the end of December, and Rasia FZE has appointed China Communications Construction Company as the "lead member of the development consortium" for the project.

              The line will be operated by SCR, which was awarded a 30-year operating concession for Armenia's 1520mm-gauge national network in February 2008. During the ceremony, Mr Victor Rebets, general director of SCR said RZD has invested more than Drams 90bn ($US 225m) in its Armenian operations since it won the concession.

              At present the only rail connection between Armenia and Iran is the line which passes through the autonomous region of Nakhchivan, an exclave of Azerbaijan. However, because the border between the two countries is closed the line from Yerevan is operational only as far as Yeraskh.

              [*Note: meaning there is no railway at the moment connecting Armenia to Iran, our only friendly neighbor.]

              Last edited by Mher; 12-06-2013, 08:49 PM.
              <<եթե զենք էլ չլինի' ես քարերով կկրվեմ>>


              • #8
                Re: North-South Highway/Iran-Armenia Railway

                Excellent idea and posts Mher, very useful. Importance of these project cannot be understated. Now that Iran is becoming less isolated internationally, hope the railway project and many of our other projects with Iran that are lagging behind pick up speed.

                I hope some day eastern parts of Armenia get their own major highways as well. Vardenis-Martakert by the ArmeniaFund is one small step towards this direction.
                Azerbaboon: 9.000 Google hits and counting!


                • #9
                  Re: North-South Highway/Iran-Armenia Railway

                  Iran, Armenia to Get Railway Project off Ground
                  September 07, 2013 - 14:04

                  TEHRAN (Tasnim) – A top Armenian official said Tehran has expressed readiness to finance the construction of a railway which is due to connect Iran with Armenia.

                  Iran is ready to cover the expenses for the construction of the Iranian part of the Iran-Armenia railway, Armenpress quoted Secretary of the National Security Council of the Republic of Armenia Arthur Baghdasaryan as saying on Friday.

                  “Armenia continues the negotiations with Iran on the launch of the construction works of the Iran-Armenia railway”, Baghdasaryan pointed out.

                  He further added that Yerevan has made the necessary arrangements to provide funding for the Armenian part of the project.

                  The Armenian official was also quoted as saying that several companies from Russia, China and Iran have shown interest in the railway construction project in his country.

                  According to experts, around $1.7-2.8 bln is required for implementation of the project.

                  Iran attaches great importance to constructive interaction with foreign countries, particularly its neighboring states.

                  Iranian President Hassan Rouhani said in August that Tehran would focus efforts on strengthening relations with Armenia.

                  “Tehran’s effort will be focused on enhancement of relations (with Armenia) and raising the level of cooperation in all fields,” Rouhani said in a meeting with his Armenian counterpart Serzh Sargsian at the time.

                  He also pointed to cultural commonalities between the two neighboring countries, and said, “Relations between Iran and Armenia have been always friendly, close and on the basis of fulfillment of mutual interests.”

                  <<եթե զենք էլ չլինի' ես քարերով կկրվեմ>>


                  • #10
                    Re: North-South Highway/Iran-Armenia Railway

                    Iran ready to finance construction of its part of railway to Armenia

                    YEREVAN, December 4. / ARKA /. Iran is ready to finance construction of its own section of a 160 km railway to Armenia, Armenian energy minister Armen Movsisyan said today to a parliament Q&A session.

                    According to the minister, the Iranian side is ready to begin the construction once Armenia finds investors for the construction of a part of the facility running in the Armenian territory.

                    Movsisyan also said the work for a $1.5 million worth feasibility study of the project (financed by Asian Development Bank) was almost over.

                    According to expert estimates, the cost of this project is $1.7-$2.8 billion During December 2 visit to Armenia Russian president Vladimir Putin, described this project as financially complicated, but feasible.

                    Currently, Armenia has a railway leading to neighboring Georgia. A railway to Iran will open for it an alternative route for transportation of energy and other commodities.


                    Armenia Announces Support to Build Armenia to Iran Railway
                    By Sam Applegate on Sep 18, 2013

                    Iranian, Chinese and Russian firms have all shown interest in building the Armenian section of the Iran to Armenia Railway, which will link the country to the Middle and Far East in addition to its current railway links to Europe.

                    Transport Ministers from Armenia, Iran and Russia got together in November 2011 to discuss the idea which has now been brought to design stage. Such a railway will move energy and raw material freight from Armenia to the east, increasing trade in the country. It currently has freight services running to Georgia and out to Europe.


                    Iran meanwhile has been upgrading junctions to accommodate trains from India, China and central Asia. This will make the country a Middle Eastern hub for freight crossing to the east. Armenia will benefit strongly from this investment in infrastructure.

                    The railway was first mooted by Armenia’s National Security Council for regional security reasons and has recently been declared a priority project. They announced the business interests earlier this week, which will cost between $1.7 to $2.8bn. The country is in talks with the World Bank and Asian Development Bank for funding.

                    Last edited by Mher; 12-06-2013, 09:52 PM.
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