Armenian regulator slams South Caucasus Railway CJSC's activity
16.03.2016,
11:18
Artak Shaboyan, head of the Armenian State Commission for Protection of Economic Competition, speaking Tuesday in the National Assembly, criticized the South Caucasus Railway CJSC's activity.
YEREVAN, March 16. /ARKA/. Artak Shaboyan, head of the Armenian State Commission for Protection of Economic Competition, speaking Tuesday in the National Assembly, criticized the South Caucasus Railway CJSC's activity.
Referring to the results of the monitoring the agency conducted in the South Caucasus Railway in 2015 in response to complaints, he said that the company raised prices for transporting oil products by 16% in April 2015.
It has become known that the company, abusing its market dominance, is periodically changing cargo transportation prices.
Shaboyan said that the company, explaining things, said that the company's accumulated losses reached AMD 9.3 billion in 2014 and that it is now taking certain measures to lessen consequences of the losses.
In his words, these losses had been accumulated mostly from the investments (around AMD 92 billion) the company had made as part of its contractual obligations. These investments, however, had brought no expected return to the company.
The scrutiny also showed that the South Caucasus Railway, defying the procurement law demands, chooses suppliers at its own discretion and increases investments by including expenses that can't be considered as investments, for example landscaping, in them.
Speaking about procurement tenders, Shaboyan said they were very often fictitious in nature and winners were chosen among those aspirants offering more expensive services.
«The State Commission for Protection of Economic Competition has taken all necessary steps and has sent the information to Russia's antitrust agency, since the South Caucasus Railway CJSC is a subsidiary of the Russian Railways,» he said.
A joint scrutiny with Russian partners is under way now, and its results will be released to public later.
South Caucasus Railway, a subsidiary of Russian Railways, runs Armenian Railway, which was handed over to the South Caucasus Railway on February 13, 2008 for 30-year concession management with a right to prolong the management term for other 10 years. . ($1 – AMD 487.47). --0---
Referring to the results of the monitoring the agency conducted in the South Caucasus Railway in 2015 in response to complaints, he said that the company raised prices for transporting oil products by 16% in April 2015.
It has become known that the company, abusing its market dominance, is periodically changing cargo transportation prices.
Shaboyan said that the company, explaining things, said that the company's accumulated losses reached AMD 9.3 billion in 2014 and that it is now taking certain measures to lessen consequences of the losses.
In his words, these losses had been accumulated mostly from the investments (around AMD 92 billion) the company had made as part of its contractual obligations. These investments, however, had brought no expected return to the company.
The scrutiny also showed that the South Caucasus Railway, defying the procurement law demands, chooses suppliers at its own discretion and increases investments by including expenses that can't be considered as investments, for example landscaping, in them.
Speaking about procurement tenders, Shaboyan said they were very often fictitious in nature and winners were chosen among those aspirants offering more expensive services.
«The State Commission for Protection of Economic Competition has taken all necessary steps and has sent the information to Russia's antitrust agency, since the South Caucasus Railway CJSC is a subsidiary of the Russian Railways,» he said.
A joint scrutiny with Russian partners is under way now, and its results will be released to public later.
South Caucasus Railway, a subsidiary of Russian Railways, runs Armenian Railway, which was handed over to the South Caucasus Railway on February 13, 2008 for 30-year concession management with a right to prolong the management term for other 10 years. . ($1 – AMD 487.47). --0---
