Iranian Companies Begin Construction of Armenia's Kajaran Tunnel, the Caucasus's Most Ambitious Engineering Project
Iranian companies have officially begun construction of the 7.2-kilometer Kajaran Tunnel in southern Armenia, described by officials as the most challenging engineering project ever undertaken in the Caucasus region and a critical link in the North-South Transport Corridor connecting Armenia to Iran.
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| The 360m tunnel and road infrastructure on North-South Road Corridor in Armenia. |
The Groundbreaking Ceremony
The official launch ceremony was held on June 27 with senior officials from both governments in attendance, including Iranian Vice President Seyed Hamid Pourmohammadi and Armenian Deputy Prime Minister Mher Grigoryan. Participants first toured two tunnels already completed on the surrounding 32-kilometer Kajaran-Agarak road section before a formal contract signing for the new tunnel itself.
Who's Building It and How It's Funded
The project is being carried out by a consortium of Iranian firms, Abad Rahan Pars International Group and Tunnel Sadd Ariana, at an estimated cost of nearly $395 million.
⚡️BREAKING: Iranian Companies have started Constructing the Kajaran Tunnel in Armenia
The 7.2-km Tunnel is the most Challenging Engineering Project undertaken in the Caucasus region and is part of the North-South Corridor
Once completed, Iran will have Shorter access to the… pic.twitter.com/DCWcmX4U7K
Financing comes primarily from a $200 million loan through the Eurasian Fund for Stabilization and Development, supplemented by roughly $195 million in co-financing from the Armenian government. Construction is expected to take six years to complete.
What the Tunnel Will Actually Look Like
Beyond the 7.2-kilometer main bore, the project includes roughly four kilometers of approach roads, two traffic lanes, and sidewalks. Once operational, the tunnel will bypass the Meghri Mountain Pass, a route sitting at 2,535 meters above sea level, shortening the existing road by roughly 14 kilometers and cutting travel times by about 40 minutes.
Part of a Much Larger Corridor
The Kajaran Tunnel is one piece of Armenia's broader North-South Transport Corridor, a 556-kilometer project intended to connect the southern town of Meghri, on the Iranian border, to Bavra in the north on the border with Georgia. As of mid-2026, roughly half of the surrounding 32-kilometer section had already been completed.
A Project With a History of Delays
The North-South corridor has a documented track record of slipping timelines. Design work for the Kajaran Tunnel specifically was finalized back in 2021 after a bidding process that began in 2018, according to Armenia's own Road Corridor Investment Program records. Some Armenian commentary has questioned whether the broader corridor program, of which only a fraction has been completed to date, will become an infrastructure success story or a cautionary tale of delay.