Skip to main content

ADB loan for Armenia-Georgia highway

Approval for a US$50 million loan to develop a highway stretch in Armenia has been given by the Asian Development Bank (ADB). The loan will be used to upgrade the M6 Highway from Vanadzor in Armenia to the country’s border with Georgia at Bagratashen. The route is one of the most strategic roads for internal and external trade for landlocked Armenia while it also lies close to the country’s border with Azerbaijan. The upgrading of this highway will also provide an important link to the Black Sea Ring Road p
November 4, 2016 Read time: 3 mins
Approval for a US$50 million loan to develop a highway stretch in Armenia has been given by the Asian Development Bank (ADB). The loan will be used to upgrade the M6 Highway from Vanadzor in Armenia to the country’s border with Georgia at Bagratashen. The route is one of the most strategic roads for internal and external trade for landlocked Armenia while it also lies close to the country’s border with Azerbaijan. The upgrading of this highway will also provide an important link to the %$Linker: 2 Internal <?xml version="1.0" encoding="utf-16"?><dictionary /> 2 27889 0 oLinkExternal Black Sea Ring Road project Visit WH story page false /sections/emergent/features/black-sea-countries-complete-preparations-for-implementation-of-black-sea-ring-project/ false false%>.

Jiangbo Ning, principal transport specialist with ADB’s Central West Asia Regional Department commented, “Road transport plays an important role in the national economy of Armenia, which relies heavily on trade with neighboring countries like Georgia. ADB supports the government’s priority to develop and increase the efficiency of the transport system as a prerequisite for economic growth, and for increased access to social and economic services.”

The M6 highway provides a key link between Armenia and Georgia, providing the shortest route between the respective capitals: Yerevan and Tbilisi. In 2014, the Bagratashen border crossing handled 850,000 tonnes of import and export freight. This is close half of the country’s total import freight tonnage and goods by road.

The need for an upgrade to the highway is acute as its condition is poor in places. According to the ADB, some structures are dangerous and need to be rebuilt immediately. Every year, landslides, flooding, falling rocks, and heavy snowfall cause road closures. These factors have also contributed to a poor safety record.

These problems are mainly attributed to a lack of maintenance due to limited maintenance, old road design and technical specifications, and a lack of qualified human resources and contractors, as well as consulting companies with the necessary knowledge and skills to conduct maintenance.

The project will rehabilitate and upgrade 51.5km of the total 90km of the two-lane M6 highway. Upgrades for the remaining 38.5km will be financed by the European Investment Bank (EIB). Facilities and safety along and in the vicinity of this road section in northern Armenia will be improved, and the institutional capacity of the Ministry of Transport and Communications will be strengthened.

ADB is also providing additional support to help the Armenian Government take steps to increase the budget allocation for road maintenance.

Related Content

  • Czech minister Tok warns Eurovia to speed up D1 bridge repairs
    January 8, 2015
    The Czech transport minister has given construction firm Eurovia until April to start repairs on two bridges it built or face having its bank guarantees withdrawn. Transport Minister Dan Tok, who until December was the chief executive of Skanska in the Czech Republic, said he would call for a new tender for the repairs if no action is taken by Eurovia, according to a report by the Czech internet news portal iDNES. Tok said that the road bridges constructed six years ago on the D1 motorway slip road in
  • Ethiopia announces three road projects worth over $240 million
    April 17, 2015
    In Ethiopia, three road projects worth over US$240 million will be built as part of the country's fourth road sector development plan. The government will fund the projects using its own resources. The first project is the 83km Sodo-Tercha asphalt-concrete project, costing around $84 million and to be built by China Railway Seventh Group. Completion is scheduled for 19 months. The second project, worth $102 million is the 99km Bilbela-Sekota road project, scheduled to take 39 months and to be built
  • Kuwait Fund loans Sri Lanka US$35m for bridge reconstruction
    December 11, 2014
    Kuwait Fund for Arab Economic Development has awarded a loan worth nearly US$35 million to the Sri Lankan government for reconstructing 25 deteriorated road bridges. The bridges include three in Southern Province, four in Sabaragamuwa Province, nine in Western Province, three in Northern Province, five in North Western Province and a bridge in Eastern Province. The loan comes after the Ministry of Highways, Ports and Shipping sent out an invitation to bid in October, covering eight bridges along the
  • UK creates Major Road Network designation for A-class highways
    July 10, 2017
    The UK government plans to create of a Major Road Network class of highway which would tap into the multi-million euro annual National Road Fund. Main roads that are now overseen by local authorities would share the National Roads Fund that is financed by the VED – vehicle excise duty - which was previously envisaged to be ring-fenced for national routes. The VED was around €6.6 billion for 2016-17. Roads covered by the strategy are the A-class highways. The deal is part of an investment strategy unveiled b