TEHRAN (IRNA)—Iran has allocated $60 million for the construction of a highway between Iran and Armenia.
A member of the Iranian parliament, Ali Reza Manadi, said that the road linking Iran and Armenia would help develop the cities and towns along its route, Iranian news agency IRNA reported.
In September 2009, the Armenian government and Asian Development Bank signed an agreement on the allocation of $500 million for construction of the 550-kilometer long Iran-Armenia highway.
According to the Asian Bank, the estimated cost of the project is $1.5 billion.
However, only $300,000 has been allocated for the first stage.
As part of the program, Armenia’s existing roads from the border with Iran to the border with Georgia will be reconstructed and expanded.