The Armenian government today approved a July 26, 2024 agreement allowing for a US$200 million Eurasian Development Bank (EDB) investment loan for the construction of the seven-kilometer Kajaran Tunnel, part of the strategic North-South highway corridor.

The funds will also be used to rebuild a four-kilometer section of a roadway connecting Yerevan to the Iranian border.

Funding for the project will be provided by the Eurasian Fund for Stabilization and Development (EFSD), a regional financial arrangement in the amount of US$ 8.513 billion established by Armenia, Belarus, Kazakhstan, Kyrgyz Republic, Russia, and Tajikistan to overcome negative crisis consequences, to provide long-run sustainability and to foster economic integration of EFSD member countries.