As any other city with over 1 million inhabitants, Yerevan, the capital of Armenia has an underground line (13 km), and for the development of the railway transport, the construction of a high speed underground tram system was initially foreseen, but the decision was radically changed in favour of the construction of an underground network. Both the local authorities and the national ones are determined to encourage the use of public railway transport by launching new projects for the construction of underground lines. For this purpose, negotiations are currently held with different financial institutions for the elaboration of reasonable terms on the investment allocation.
In 30 years, the infrastructure of the underground system in the capital of Armenia was operational without the implementation of major rehabilitation projects which determined its continuous deterioration. In order to optimise the quality of transport services and to encourage the use of public transport, the municipality applied the reform and rehabilitation programme of the underground system, for which it received European co-financing. Therefore, the European Bank for Reconstruction and Development (EBRD) has awarded financial support for the execution of repair and modernisation works. The total value of the project reaches EUR 16.75 Million, of which EBRD might grant EUR 5 Million, and besides the EBRD financing, the European Investment Bank has also approved the EUR 5 Million credit, and the Neighbourhood Investment Facility (NIF), which will allocate the same amount. This year, the underground company plans to launch the tender for the project execution.
Approximately 2 years since the initiation of the modernisation project of the underground system, the authorities have announced significant improvements. The project executed at a rate of 72% will continue in order to provide an efficient transport, and from the granted financial support, a rate of 82% of the local investments has already been absorbed.
To encourage the use of the public transport system for the purpose of reducing the individual motorised transport, the authorities of the capital want to execute an underground network. The initial phase foresees the extension of the first line to the north-west and the planning of the construction of line 2, which will connect the centre of the city to the northern part (Yeraz residential area), and a project of extension to the north-east-south exists for this line. In addition, the municipality has signalled the need to build the third line on the east-west axis.
The execution of the strategy for the development of the underground transport system by 2020 has determined the local municipality to initiate intense negotiations with several financial institutions to grant credits for building new underground lines. “Negotiations are already held with the Eurasian Bank for the granting of financings to the construction of the line connecting Ajapnyak and Davtashen Districts (the north-west part of the capital). We know that this project requires massive financial investments and for this purpose we will negotiate the final conditions”, declared Naira Nahapetyan, manager of the commission of the Board for Finance and Credits. In addition, the president of Armenia, Serzh Sargsyan, has announced he will encourage the capital’s authorities to extend the underground network, especially in the north-west part, where the provision of transport services is needed.
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