The European Investment Bank’s global arm (EIB Global) has signed a loan agreement of up to €236 million with Armenia to co-finance the construction of the Sisian-Kajaran road, a vital section of the north-south transport corridor. The EIB described the project as a game-changer for Armenia and the South Caucasus, significantly enhancing transport connectivity between the European Union, the Middle East, and Asia.

This climate-resilient infrastructure will help mitigate climate change by reducing travel distances, vehicle operating costs, and road accidents. Enhanced road safety is key, providing faster and safer routes for passengers and goods. The project will also improve access to domestic and international markets, fostering sustainable socioeconomic development in Armenia’s Syunik province, a less connected region in the south.

“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. She noted that this is the largest financing agreement ever between the EIB and Armenia, supporting sustainability, economic resilience, and enhanced connectivity between Europe, Asia, and the Middle East.

Ambassador Vassilis Maragos, Head of the EU Delegation to Armenia, remarked, “This project is another example of Team Europe support under the EU’s Economic and Investment Plan (EIP) for Armenia. Mobilizing additional funding under the EIP for sustainable investments, with attention to climate change and road safety targets, will be key as we finalize the ambitious new EU-Armenia Partnership Agenda.”

Armenia's Minister of Finance, Vahe Hovhannisyan, stated, “The construction of the Sisian-Kajaran road will be a major boost to Armenia’s economic growth, strengthen both regional and international connectivity, improve transportation safety and efficiency, and play a crucial part in the country’s broader infrastructure development objectives.”

In this context, it is important to note that on November 14, Armenian PM Nikol Pashinyan met with EIB Vice President Teresa Czerwińska to discuss ongoing and future collaboration.

Pashinyan highlighted the effective partnership between the Armenian Government and the EIB, particularly in key areas such as road construction, infrastructure development, energy, and water management. He noted the importance of the EIB’s support in advancing Armenia’s development priorities.

Vice President Czerwińska reaffirmed the EIB’s readiness to continue cooperation in line with Armenia’s strategic plans. Both sides emphasized the significance of projects like the North-South road, energy efficiency initiatives in Yerevan, and other programs that align with Armenia’s development goals.

The discussion also included the government’s “Crossroads of Peace” project, which aims to bolster regional connectivity and stability. The parties explored opportunities for additional projects that could further Armenia’s infrastructure, economic resilience, and sustainability objectives.