Friday, May 15 2015 15:24

Head of the Armenian National Congress Faction in the Parliament Levon Zurabyan has suspicions that the authorities and profile organizations in Armenia have embezzled the funds provided for the construction of the north-South Transport Corridor. 

Addressing the parliamentarians, today, on May 15, Zurabyan recalled last year's report of the Control Chamber of Armenia on numerous violations, financial fraud, and embezzlements, and low quality construction activities registered during implementation of that large-scale project.  In response, Minister of  Transport and Communications Artur Arakelyan assured Zurabyan that the profile organizations were informed of the embezzlements and violations yet before the Control Chamber's report.  It was partial omissions and shortcomings, which have been liquidated, he said.  

Government of Armenia approved the investment program of the North-South transport corridor on Jan 14 2010 and a framework financial agreement between Armenia and ADB in the amount of 500 million dollars. The North-South 556km motorway will be laid via the Armenians towns of  Meghri-Kapan-Goris- Yerevan-Ashtarak-Gyumri-Bavra and enter the territory of Georgia on Akhaltsikhe-Batumi section, which will settle some transport problems of Armenia.  This will be a four-lane motorway of reinforced concrete extending from the Armenian border and Iran to the Georgian port Batumi. The road corridor will facilitate improving the road connection with the two neighbors of Armenia: Iran and Georgia, providing access to international trade routes and markets. Agarak-Kapan-Yerevan-Gyumri_Bavra road links the South of the country with the North providing access to "Southern Road Corridor" of Georgia which enables access to Poti and Batumi ports or to the East towards Tbilisi. Armenia raised $500mln loan from the Asian Development Bank for the project that is estimated at $1 billion. Eurasian Development Bank is ready to provide $150 million. Armenia raised $60 million from the European investment Bank.  Due to the project, the overland communication Europe-Caucasus-Asia will be improved. The project will be completed by 2019. It will allow Armenia to soften the consequences of the blockade by Azerbaijan and Turkey and to join the Black Sea ring highway. North-South project was initiated by Russia and Iran and implies activation of transport activity, including through construction of new transport communication Russia- Iran-India.  Armenia and Iran top leaderships are studying construction of a railway to link the two countries and become part of North-South transport corridor.   

At today's hearings in the Parliament, Asian Development Bank Country Director for Armenia David Dole said the Bank has already allocated $330 million out of the envisaged $500 million. He said the Bank is open for discussions with the Armenian Government around further implementation of the project.