Armenian water sewerage company cuts salaries 20% as financial crisis bites
16.04.2009,
18:27
Armenian Water Sewerage Company (AWSC) had to cut salaries 20% due to the global financial crisis, said General Director and Management Contractor of AWSC Patrick Lorin.
YEREVAN, April 16. /ARKA/. Armenian Water Sewerage Company (AWSC) had to cut salaries 20% due to the global financial crisis, said General Director and Management Contractor of AWSC Patrick Lorin.
He stressed that the company started the financial year with a number of difficulties with slowing profits and fewer state subsidies.
Alongside with wage cuts, AWSC has started to make structural changes to raise labor efficiency.
According to Lorin, non-payers aggravate the financial situation of the company, with 100,000 regular defaulters being recorded last year.
The AWSC director general said the company would keep publishing the names of incorrigible defaulters.
In 2004, the French SAUR S.A. signed a contract with the Government of Armenia, becoming the manager of Armenian Water and Sewerage Company (AWSC).
AWSC has four branches in Armenia with centers in Sevan, Abovyan, Sisyan and Artashat cities. Last year’s profit of the company totaled $2.7bln drams, compared to 1.1bln drams in 2005. For the past four years, AWSC attracted $15mln investments, with its own resources totaling 700mln drams.
AWSC currently has 270,000 subscribers in Armenia (around 1mln residents in 286 villages and 37 cities).
Last year, the government granted 1.366bln drams worth state subsidies to the company. This year, AWSC will get only 863mln drams from the government.
From April 1, Armenia’s drinking water tariffs rose from 140 drams to 179.78 drams (VAT inclusive) per cubic meter.
($1-375.54 drams) . –0—
He stressed that the company started the financial year with a number of difficulties with slowing profits and fewer state subsidies.
Alongside with wage cuts, AWSC has started to make structural changes to raise labor efficiency.
According to Lorin, non-payers aggravate the financial situation of the company, with 100,000 regular defaulters being recorded last year.
The AWSC director general said the company would keep publishing the names of incorrigible defaulters.
In 2004, the French SAUR S.A. signed a contract with the Government of Armenia, becoming the manager of Armenian Water and Sewerage Company (AWSC).
AWSC has four branches in Armenia with centers in Sevan, Abovyan, Sisyan and Artashat cities. Last year’s profit of the company totaled $2.7bln drams, compared to 1.1bln drams in 2005. For the past four years, AWSC attracted $15mln investments, with its own resources totaling 700mln drams.
AWSC currently has 270,000 subscribers in Armenia (around 1mln residents in 286 villages and 37 cities).
Last year, the government granted 1.366bln drams worth state subsidies to the company. This year, AWSC will get only 863mln drams from the government.
From April 1, Armenia’s drinking water tariffs rose from 140 drams to 179.78 drams (VAT inclusive) per cubic meter.
($1-375.54 drams) . –0—
