Iran + Armenia to construct part of International North-South Transport Corridor: Iran and Armenia have signed a contract for the construction of the Agarak-Kajaran Road, covering the southern section of of the International North-South Transport Corridor (INSTC), Islamic Republic News Agency (IRNA) reports. Construction work is scheduled to begin at the end of the year and to be completed within three years, Russian news agency Interfax reports.

The details: The contract includes building five interchanges, six overpasses, two tunnels with a length of 920 meters, and 17 bridges, according to Interfax. The upgrades could save 30 minutes of travel time in comparison to the currently available route, Armenian Economy Minister Vahan Kerobyan is quoted as saying.

Who’s footing the bill? The program is financed by loans from the Eurasian Development Bank and co-financing from the Armenian government, the Russian news agency said.

REFRESHER- The 7.2k-km INSTC serves as an artery for trade between South Asia and Europe, comprising ship, rail, and road routes. The INSTC links Russia, India, Iran, and Azerbaijan.

What they said: “The implementation of the project for the construction of the southern section of the North-South highway, implemented jointly with the Iranian side, will have a great impact on the economy of Armenia; in particular, a positive impact on GDP of about 0.4% is expected,” Interfax quotes Kerobyan as telling reporters.

Iran + Armenia are looking to deepen their ties: Iran and Armenia earlier this week agreed to construct another bridge over the Aras river, which passes through Armenia and Iran, to boost freight traffic, as well as scrap road duties for cargo transport. The two also announced that they intend to increase their annual bilateral trade to USD 3 bn, Tehran Times reports.

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