Introduction

Armenia’s road network is rapidly deteriorating, despite substantial investments in infrastructure projects. Investigations by Hetq reveal a disturbing pattern of corruption, mismanagement, and conflicts of interest that have resulted in newly constructed roads falling into disrepair within months. The systemic failure to ensure quality control in road construction raises questions about accountability and transparency in public spending.

Cracks in the System: Evidence of Infrastructure Decay

While traveling across Armenia, Hetq’s investigative team documented multiple sections of newly built roads already showing severe structural failures. The north-south road project, intended to be a major infrastructural development, remains incomplete despite nearly 15 years of work and billions in allocated funds. What should have been a modern, high-quality transit route is instead riddled with unfinished segments, structural weaknesses, and hazardous conditions.

Several key routes, purportedly completed in recent years, exhibit rapid deterioration:

  • The Artashat-Ararat section, where resurfacing was required within just seven months.
  • The Armavir-Myasnikyan stretch, which developed cracks and potholes in under a year.
  • The Ani Pemza-Gyumri and Vanadzor-Dilijan highways, where recent renovations have already failed.

These cases are not isolated incidents but indicative of a wider problem in Armenia’s infrastructure management.

Failures in Oversight and Quality Control

Infrastructure projects in Armenia follow a standard procedure involving multiple actors:

  1. The Government: The Ministry of Territorial Administration and Infrastructure, along with the Road Department, oversees construction.
  2. Contractors: Private firms that win tenders are responsible for the execution of projects.
  3. Supervisors: Technical experts and design reviewers ensure quality compliance.
  4. Testing Laboratories: Independent facilities are tasked with verifying the materials and methods used.

Despite this structured approach, investigations expose a profound failure in ensuring independent quality assessments. Contractors, in many cases, are found to be closely affiliated with the laboratories supposedly responsible for verifying the integrity of their work. This raises serious concerns about the credibility of road durability certifications.

Conflicts of Interest: A Rigged System

One of the most damning discoveries in Hetq’s investigation is the intricate web of connections between road construction companies and the entities meant to hold them accountable.

  • The Armavir-Myasnikyan road, built by "Arhovshin" LLC, was tested for quality by "A & L Laboratory." A closer look revealed that "A & L Laboratory" is connected to the family of an executive at Arhovshin LLC, indicating a severe conflict of interest.
  • The Dilijan road reconstruction, which was halted due to major defects, was inspected by "Prolab LLC," a company with links to "Leopold and Partners," the firm responsible for the construction.
  • "Channakhagits Institute," another so-called independent quality control entity, was found to be owned by individuals with significant political ties rather than engineering expertise.

These revelations demonstrate how Armenia’s road construction oversight has been fundamentally compromised, allowing substandard work to pass as compliant.

Unregulated Laboratories: A Gateway for Fraud

One of the most critical regulatory gaps identified by Hetq is the absence of mandatory accreditation for road-testing laboratories. While some adhere to industry standards, many operate without proper oversight, rendering their assessments unreliable.

The National Accreditation Body confirmed that several key laboratories involved in road testing, including the Road Department’s own facility, are not accredited. Without mandatory accreditation, contractors have the liberty to use non-certified facilities that are more likely to approve low-quality materials and construction.

This regulatory failure creates a dangerous loophole where non-compliant roads are approved without genuine scrutiny.

Financial and Public Safety Ramifications

The impact of systemic corruption in road construction extends beyond financial waste:

  • Severe Economic Drain: Armenia continues to spend large sums on road projects that require frequent repairs, draining public funds that could have been used for other essential services.
  • Increased Safety Risks: Poorly built roads significantly raise the likelihood of accidents, putting Armenian drivers and pedestrians in danger.
  • Public Distrust: With roads visibly crumbling mere months after construction, the public's confidence in government infrastructure projects is rapidly eroding.

Government Evasion and Accountability Issues

Inquiries directed to the Ministry of Territorial Administration and Infrastructure regarding conflicts of interest and laboratory independence were met with evasive responses. Officials acknowledged regulatory gaps but downplayed the severity of contractor-laboratory affiliations. They further insisted that no documented cases of corruption had been recorded, a claim contradicted by clear evidence of financial misconduct and project mismanagement.

Necessary Reforms to Address the Crisis

Hetq’s investigation highlights the urgency of comprehensive reforms to prevent further financial and infrastructural decline:

  1. Enforce Mandatory Accreditation for Laboratories: All testing facilities must be licensed and subject to independent audits.
  2. Increase Government Oversight: Stronger regulatory mechanisms must be implemented to ensure proper allocation and usage of public funds.
  3. Establish an Independent Watchdog: A neutral agency should be created to investigate corruption in infrastructure projects.
  4. Publicly Disclose Construction and Testing Contracts: Transparency in procurement and testing processes would allow for public scrutiny.
  5. Impose Strict Penalties for Fraudulent Practices: Companies found engaging in corruption should face legal consequences, including blacklisting from future projects.

Conclusion: A Road to Nowhere?

The state of Armenia’s roads is emblematic of a deeper governance failure, where corruption thrives unchecked, and accountability is practically nonexistent. Without immediate intervention, the country will continue to waste resources on substandard infrastructure, leaving citizens to navigate a landscape of crumbling roads and bureaucratic neglect.

Hetq’s findings underscore an urgent call for systemic reform. Until Armenia enforces transparency, independent oversight, and real consequences for malpractice, its roads—and its public trust—will continue to deteriorate.