Expert accuses water distribution company of failing to fulfill its obligations
07.09.2017,
15:41
Arman Ghukasyan, an expert from Vox Populi non-governmental organization, accused today the national water distribution company Veolia Jur of failing to fulfill its contractual obligations.
YEREVAN, September 7. /ARKA/. Arman Ghukasyan, an expert from Vox Populi non-governmental organization, accused today the national water distribution company Veolia Jur of failing to fulfill its contractual obligations.
Speaking to a news conference, he said the 15-year contract, the French-owned company signed with the Armenian government, clearly states that the company is committed to improve the efficiency of the water supply system by attracting foreign investment and not to raise tariffs.
‘Veolia Jur also commits to reduce water prices. However, for the second time in six months, the company seeks to raise prices ", the expert said.
In early August 2017, Veolia Jur, a subsidiary of the French Veolia Generale des Eaux, said it would ask the Public Services Regulatory Commission (PSRC) to allow it to raise water tariffs. The current tariff for water is 180 drams ($0.37) per 1 cubic meter. It is said that the French-run company will ask the regulator to allow it to raise the price to 194.3 drams ($ 0.45).
Ghukasyan recalled that after the price was raised by 10 drams in January 2017, the chairman of the Public Services Regulatory Commission (PSRC) Robert Nazaryan expressed hope that that would be the last increase over the next few years. Ghukasyan drew attention to the fact that the company pledged to modernize the water supply system and improve the quality of its services, however, the promises were not fulfilled.
"Water supply management is inefficient. Some 80% of the system has not been modernized so far, and the quality of the services provided by the company is low," the expert said.
Ghukasyan noted that this situation is due to the negligence of the Armenian authorities. "We demand that the PSRC decline the company’s bid to raise the tariff and conduct also an audit to identify the real reasons for the price increase," the expert said.
Starting from 2017 January, Veolia Jur took over the management of five water distribution companies in Armenia - Yerevan Jur, the national Armenian Water and Sewage Company, and the water companies of the Armavir, Shirak and Lori regions from French Saur. Also starting from January, the company instituted a single, countrywide tariff for water supply and waste water collection and treatment. -0-
Speaking to a news conference, he said the 15-year contract, the French-owned company signed with the Armenian government, clearly states that the company is committed to improve the efficiency of the water supply system by attracting foreign investment and not to raise tariffs.
‘Veolia Jur also commits to reduce water prices. However, for the second time in six months, the company seeks to raise prices ", the expert said.
In early August 2017, Veolia Jur, a subsidiary of the French Veolia Generale des Eaux, said it would ask the Public Services Regulatory Commission (PSRC) to allow it to raise water tariffs. The current tariff for water is 180 drams ($0.37) per 1 cubic meter. It is said that the French-run company will ask the regulator to allow it to raise the price to 194.3 drams ($ 0.45).
Ghukasyan recalled that after the price was raised by 10 drams in January 2017, the chairman of the Public Services Regulatory Commission (PSRC) Robert Nazaryan expressed hope that that would be the last increase over the next few years. Ghukasyan drew attention to the fact that the company pledged to modernize the water supply system and improve the quality of its services, however, the promises were not fulfilled.
"Water supply management is inefficient. Some 80% of the system has not been modernized so far, and the quality of the services provided by the company is low," the expert said.
Ghukasyan noted that this situation is due to the negligence of the Armenian authorities. "We demand that the PSRC decline the company’s bid to raise the tariff and conduct also an audit to identify the real reasons for the price increase," the expert said.
Starting from 2017 January, Veolia Jur took over the management of five water distribution companies in Armenia - Yerevan Jur, the national Armenian Water and Sewage Company, and the water companies of the Armavir, Shirak and Lori regions from French Saur. Also starting from January, the company instituted a single, countrywide tariff for water supply and waste water collection and treatment. -0-
