EIB Global signs €236 million loan to finance construction of Sisian-Kajaran road in Armenia

The European Investment Bank’s global arm (EIB Global) has signed a loan of up to €236 million with Armenia to co-finance the construction of the Sisian-Kajaran road, an important segment of the north-south transport corridor of Armenia. 

“This transformative project will become a major artery in the region’s transport network, providing Armenia with better access to global markets and helping to shape a more interconnected, resilient future,” said EIB Vice-President Teresa Czerwińska, who is responsible for EIB operations in Armenia. “This is the largest ever finance contract between the EIB and Armenia.”

As a flagship project of the EU Global Gateway initiative and the EU Economic and Investment Plan for the Eastern Partnership, the construction of the Sisian-Kajaran road will bolster economic growth, regional security, and environmental resilience.

“This project is set to become a gamechanger for Armenia and the South Caucasus region, significantly improving transport connectivity between the European Union, Middle East and Asia,” the European Investment Bank said in a press release. “It will also be a key link in the Trans-European Transport Network corridor.”

The new road infrastructure will contribute to climate change mitigation by reducing travel distances, vehicle operating costs and road accidents and will offer safer and faster routes for travellers and goods. The project will also contribute to the sustainable socioeconomic development of the less well-connected Syunik province in the south of the country.

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Press release