Ara Hovsepyan: We should build a high quality highway

ArmInfo’s interview with Ara Hovsepyan, CEO of the State Noncommercial Organization for Implementation of International Investment program of North-South road corridor

• by Arthur Yernjakyan

• Thursday, May 17, 18:02

The Government of Armenia signed a $250 mln owner-contractor agreement with Corsan Corviam Construccion S.A for construction of the three sections of the North-South motorway on April 27: Yerevan-Ararat, Yerevan-Ashtarak and Ashtarak Talin. Why did they choose the sections that are in good state and not those that really need reconstruction?  

 

 

Frankly speaking, I did not participate in selection of the road sections and cannot say exactly why we start with the given sections. Anyway, starting the southern border in Meghri up to the northern border in Bavra we will be building a four-lane highway covered with concrete. Sooner or later all the sections will be developed into a high quality regional highway. The goal of the given road’s construction is to involve Armenia into transit traffic.

 

When do you plan to launch construction?

 

 

Construction of the first three sections of the North-South motorway in Armenia will be launched by late summer. The contract with the general contractor Corsan Corviam Construccion S.A, Spain, has been divided into three parts: Yerevan-Ararat, Yerevan-Ashtarak, and Ashtarak-Talin. Within three months construction will be launched at all the three sections. In Talin we are to complete alienation of lands and provision of compensations.  Yerevan-Ararat and Yerevan-Ashtarak sections are to be built within 18 months, while

construction of Ashtarak-Talin section will take 36 months because of enlargement of the two-way roads and other additional works.

 

Does Armenia use all the transit opportunities of the existing roads now?

 

Now Armenia has transit traffic with Iran and Georgia, but I cannot bring exact statistics of the country’s transit activity. It is not within my competence. Sure, after construction of the highway transit traffic will increase. The Meghri-Bavra highway will increase Armenia’s role in the freight activity in the region. It is an ultimate priority, but we are going to develop also internal traffic by means of the highway. In winters roads in the north and south of Armenia are often impassable and we should settle that problem. 

 

Are you going to close any roads during the construction?

 

 

Under the contract the general contractor pledges to build an alternative road and bridge not to suspend traffic in the

period of construction.

 

 

It was reported earlier that some sections of the road might be paid for both trucks and cars. Do you study that issue?

 

 

There is no such decision yet, but the issue is under consideration. I can say that many issues related to the long-term strategy of road development are currently being discussed. So far, we are focusing on short-term tasks, such as our project. You can get more information on your question from the Ministry of Transport and Communication of Armenia.

 

 

The project is now estimated at $1.5 bln. The prime minister of Armenia has lately mentioned that figure as well. In line with the

Agreement with the Asian Development Bank (ADB), the latter is to allocate $500m under the project. Where will Armenia raise the remaining funds?

 

 

On September 15, 2009, the Armenian government and the Asian Development Bank signed a $962m framework agreement. ADB is to allocate $500m under the project. The project is now estimated at $1.5 bln. Negotiations are currently underway with the parties interested, donors, and private investors for additional funds. So far, there is no specific arrangement.

 

 

The maximum term on the two tranches is 36 months. What about the implementation deadline for the total project North-South?

 

 

Under the framework agreement with ADB, the project is to be implemented within 5-7 years depending on construction of the three sections of the highway. We have almost prepared the construction project of the fourth sector Talin-Gyumri which is 45 km long.  At present this sector is two-lane and it will be extended to

the four-lane. I hope that in several months we will announce an international tender for attraction of a contractor. At present the cost of this sector of the highway is secret information.

 

 

The government co-financing on the first two tranches is $50 mln. Has the government approved that sum? 

 

 

The government’s co-funding is envisaged for payments of taxes, for taxes are not included in ABD’s credit program. The co-funding on the first tranche is $10 mln, and on the second tranche - $40 mln.

 

How professional is Corsan Corviam Construccion S.A and will it participate also in the contest for the third tranche?

 

 

The company has international experience and implements big contracts in India, Pakistan, Mexico and Spain. It is the seventh largest construction company in Spain. It is early to speak of its participation in the next contest, though Spanish companies take an interest in our region.

 

 

How much will the new highway cut the travel time from the southern border in Meghri to the northern one in Bavra?

 

Theoretically, at the permissible speed of 100km/h the 560km way will be passed within 6 hours. But it is a very approximate calculation. Everything depends on the relief. At some sections the permissible speed may be lower. Forks will be available every 5km.

 

 

Construction of 1 km highway is estimated at $2.7 mln in average. Does this figure apply also to construction of tunnels?

 

The given figure is calculated taking into account bridges, forks and metal road barriers. The first two tranches will not be spent on construction of tunnels. Specialists say construction two-lane tunnel will cost at least $40 million per km, while construction of a four-lane tunnel will cost twice as much. In addition, it requires at least feasibility studies for every section of the highway to construct tunnels.

 

 

Social issues are often the most painful ones in implementation of any big project. The highway will extend via certain populated areas and the project envisages alienation of lands. Won’t it infringe the citizens’ rights?

 

We are studying this issue thoroughly. We will have to buy land lots from the population for the state needs to build the highway. A

purchase-and-sale contract will be made with everyone concerned.  We will have to buy also enterprises if they are on the way of the

future motorway. The land alienation plan will be submitted for approval of the government shortly.

 

Road construction in Armenia has been, to put it softly, at a low level so far. What about the guarantee maintenance of the new highway?

 

We hope that high-quality concrete roads will be built. In such case, there will be no need for annual repair within 30-40 years. Concrete roads will be built in Armenia for the first time.

 

 

By our data, some roads in Armenia were on concrete basis yet in Soviet time as they were of military-strategic importance.

 

 

As far as I know Yerevan-Ararat road is covered with asphalt over concrete. There are such sections also on Yerevan-Sevan road. Under our project, these concrete layers will be fully liquidated and highway will be covered with new 24-26cm concrete layers.

 

Will you import construction materials or use the local products?

 

 

We will use crashed trap rock, sand and cement. All these materials are produced in Armenia but we will use them only if their quality meets international standards. We should build a high quality highway. The contractor has not adopted the final decision yet. If there is need for importing construction materials, the company cannot import them from the neighboring Iran as that country is not an ADB member.

 

Thank you