ADB may stop financing North-South program earlier-newspaper

19.07.2012 15:00
ADB may stop financing North-South program earlier-newspaper

YEREVAN, July 19. /ARKA/. The Asian Development Bank may earlier stop financing credit program on constructing “North-South” highway in Armenia, Orakarg newspaper (Agenda) reports.
According to the newspaper, this can be triggered by the fact that the Armenian side hasn’t fully fulfilled its commitments. In 2009 ABD decided to allocate $500 million-credit to Armenia for this program. The credit was given for 32 years, and the Armenian side would get privileges within the  first 8 years. The contribution from the Armenian government is estimated $462 million. The construction of North-South transport corridor was scheduled for launch in 2009 and end in 2017. In the framework of the program it was planned to built 556 km long highway (Agarak-Ghapan-Yerevan-Gyumri-Bavra).

Corsan Corviam Construction Spanish company was responsible for Tranche 1 and Tranche 2 projects since April of 2012. Immediately after signing the agreement the head of the company said the construction and reconstruction of 82 km long road will be launched in approximately a month. However, soon it became clear, that the construction will start in September, whereas the asphalting – in spring of 2013.

The source states that the Spanish company while not even starting the construction, has already jeopardized the terms and quality of its implementation. The matter is that ABD and the Armenian government had agreed to finish the construction of Yerevan-Ashtarak 11.7 km long and Yerevan-Artashat 19.6 km long highways in 2013, and the reconstruction of Ashtarak-Talin 41.9 km long in December of 2014. The terms can be deferred- 2014 and 2015 respectively.
Thus, the newspaper referring to the competent sources familiar with the matter, informs that the real purpose of ADB’s visit to Armenia is to discuss  a  stop in allocating the third Tranche of $160 million.(The Board of Directors of the bank intends to discuss this issue in November). The bank offers to use for the construction the already distributed $230 million.

According to the source, ADB thinks because of lingering over the past years the government will fail to finish the construction by 2017.

“Of course ADB aid is a credit, but the borrower on behalf of the government, doesn’t fulfill its commitments fully,” the newspaper says.--0--


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