Officials of Iran and Armenia have entered a contract to move ahead with the construction of the Agarak-Kajaran route in Armenia.

The Agarak-Kajaran route is part of tranche four of the International North-South Transit Corridor.

The scope of this project involves the renovation of approximately 21km of Agarak-Vardanidzor road, as well as the development of roughly 11km of road from Vardanidzor to the tunnel exit.

This contract was signed in Armenia's capital city, Yerevan, by Armenia Road Department Foundation executive director Gor Avetisyan alongside representatives of two Iranian contractors.

The signing ceremony was attended by Iranian Transport and Urban Development Minister Mehrdad Bazrpash and Armenian Minister of Territorial Administration and Infrastructure Gnel Sanosyan.

According to Bazrpash, the Armenian Government will finance this project, which is valued at approximately $210m, reported the Tehran Times.

During the discussion, Bazrpash emphasised the significance of finishing the North-South Corridor in order to increase trade between Iran and Armenia by a potential $3bn.

Bazrpash also urged Armenian companies to invest in Iran, as well as support the export of Iranian technical and engineering services to Armenia.

Last month, Armenia's official to Iran Vardan Kostanyan was quoted by Armenpress as saying: “We are now looking into the untapped potential and opportunities to utilise them in bilateral cooperation.

“On the other hand, our neighbour is still under sanctions, therefore while carrying out economic policy we are unconditionally taking into consideration this fact. Iran provides state support and protection to companies investing in its economy.”