The Asian Development Bank (ADB) has approved a $500m loan to Armenia to upgrade its roads connecting to the Caucasus and Central Asia subregions.

The repair is part of the country’s $962m seven-year North-South Road Corridor Investment Programme.

The project involves upgrading the Agarak-Kapan-Yerevan-Bavra road, which links the country with Georgia’s southern corridor to improve trade for Central Asia’s exports.

The loan’s first tranche of $60m will be used towards $70m reconstruction of an 18km road section between the capital city Yerevan and Ashtarak.

The project will be carried out by the Ministry of Transport and Communication and is expected to finish by December 2016.