European Investment Bank Approves $250 Million Loan for Armenia’s Sisian-Kajaran Road Construction

The European Investment Bank (EIB), through its global arm EIB Global, has signed a €236 million ($250 million USD) loan agreement with Armenia to help build the Sisian-Kajaran road. This road is a critical segment of the north-south transport corridor, designed to connect Europe, the Middle East, and Asia. According to an EIB press release, the project is expected to significantly improve transport connectivity and contribute to Armenia's socioeconomic growth.  

The Sisian-Kajaran road is not just a national infrastructure project; it has been described as a game-changer for the entire South Caucasus region. The road will enhance transport links between Armenia and global markets, improving access to both domestic and international trade. For Armenia's southern Syunik province, which is currently less connected, the road is expected to bring opportunities for sustainable development and better market access.  

The project aligns with the EU’s goals of building resilient and environmentally friendly infrastructure. It is expected to help mitigate climate change by reducing travel distances, lowering vehicle operating costs, and decreasing road accidents. With enhanced safety features, the road will provide faster and safer travel for people and goods.  

The €236 million loan is the largest financing agreement ever signed between the EIB and Armenia. Teresa Czerwinska, EIB Vice-President responsible for Armenia, emphasized the transformative nature of the project:  

“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.”  

Czerwinska also noted that the project supports sustainability, economic resilience, and connectivity between Europe, Asia, and the Middle East.  

The project is part of the European Union’s Economic and Investment Plan for Armenia and is supported under the EU’s Global Gateway initiative. Ambassador Vassilis Maragos, Head of the EU Delegation to Armenia, stated:  

“This project is another example of Team Europe support under the EU’s Economic and Investment Plan for Armenia. Further mobilization of funding under the EIP for sustainable investments with due care of climate change and road safety targets will be key as we prepare the ambitious new EU-Armenia Partnership Agenda.”  

Armenian leaders also expressed their enthusiasm and gratitude for the collaboration. Armenia’s Minister of Finance, Vahe Hovhannisyan, spoke about the road’s potential to boost economic growth, improve transportation safety and efficiency, and strengthen regional and international connectivity.  

Deputy Prime Minister Mher Grigoryan referred to the project as a vital part of Armenia’s “Crossroads of Peace” initiative. He explained that the road aims to enhance sustainable connectivity and promote cooperation and stability in the region.  

As part of the EU’s Global Gateway initiative, the Sisian-Kajaran road project will contribute to environmental sustainability and regional security. It is also part of the Trans-European Transport Network corridor, connecting Armenia more closely to Europe and neighboring regions.  

The project aims to:  

- Support climate change mitigation.  

- Promote safer and more efficient transportation.  

- Bolster economic growth and resilience.  

- Strengthen Armenia’s role as a regional transit hub.  

The Sisian-Kajaran road is set to become a cornerstone of Armenia’s infrastructure development, improving the lives of its citizens and strengthening its position on the global stage. With the support of the EIB and the EU, this flagship project shows Armenia’s ambition to grow its economy, ensure stability, and protect the environment.