Posted on 13.08.2012 in Armenia, News

Armenia: EIB provides €30.3 million to border crossing infrastructure upgrade

The European Investment Bank (EIB) is providing €30.3 million in loans to finance the modernisation of border crossing infrastructure in Armenia, according to a press release from the Bank.

€30.3 will finance the construction and modernisation of three border crossings on the Armenian side of the border with Georgia and the related infrastructure. The loan of EUR 30.3 million will support the development of the border crossings points in Bagratashen, Bavra and Gogavan and the improvement of the access roads in their vicinity and associated infrastructure, including a new bridge at Bagratashen and the reconstruction of the 7.4 km main road leading to the Gogavan crossing.

This will help to implement the Armenian Government’s key priority of fostering the development of reliable transit routes of vital importance for the whole region. Once in operation, the project will contribute to the smoother flow of people, vehicles and goods between Armenia and Georgia.

The project, “Modernisation of Bagratashen, Bavra and Gogavan Border Crossing Points”, is being co-financed by the European Bank for Reconstruction and Development (EBRD) and the Neighbourhood Investment Facility (NIF).

The signing of this loan almost triples total EIB lending in Armenia to EUR 57 million. The Bank has previously supported the rehabilitation of the metro in Yerevan (with a EUR 5 million loan) and provided a credit line of EUR 15 million to support SMEs in Armenia.

The EIB – the European Union’s bank – finances projects in Armenia on the basis of an EU Council and European Parliament mandate for the Eastern Partner Countries (Ukraine, Moldova, Georgia, Armenia, Azerbaijan) and Russia of EUR 3.8 billion for the period 2007-2013. The current mandate provides for the financing of projects that contribute to  local private sector development, in particular support for SMEs, development of social and economic infrastructure, and climate change mitigation and adaptation.