Construction of the 7.2 km Kajaran Tunnel has begun in the Syunik region of Armenia, which will become part of the strategic "North-South" highway. The project is being implemented jointly with Iranian contracting companies Tunel Sadd Ariana and Abad Rahan Pars International Group.

The tunnel is being built on the Agarak-Kajaran section and should significantly speed up traffic in the southern direction of the country. After the completion of the work, the travel time from the border with Iran to Kajaran will be reduced by approximately half and will be about 30 minutes.

The project cost is estimated at $394 million. Funding is provided by a $200 million loan from the Eurasian Fund for Stabilization and Development, as well as funds from the state budget of Armenia, which amount to about $194 million. The construction period is calculated for 6 years.

The Kajaran Tunnel is considered one of the key infrastructure facilities of the "North-South" corridor, designed to improve the transport connectivity of the region and strengthen the country's transit capabilities.