Vanadzor-Fioletovo railway construction issues in the amount of $100 million to be discussed during the visit of Yakunin in Yerevan

YEREVAN, June 28. /ARKA/. Vanadzor-Fioletovo railway construction issueswill be discussed during the visit of Vladimir Yakunin, President of Open JSC “Russian Railway” in Yerevan, press-service of Armenian Ministry of Transport and Communications informed.

In Yerevan Yakunin will participate in shareholders’ meeting of CJSC “South-Caucasian Railway” (SCR).

“Now we plan the construction of new 31.2 km section of railway Vanadzor-Fioletovo in the amount of about $100 million which will significantly reduce the length of the road”, said Yakunin during the press-conference on Monday. He will be in Yerevan on July1, 2010.

Manuk Vardanyan, Armenian Minister of Transport and Communications informed that Armenian side will provide half of the above mentioned amount and the second half will be provided by the concessionaire of Armenian railway.

Concession management of “Armenian railway” is implemented by CJSC “South Caucasian Railway” which is 100% affiliate of Open JSC “Russian Railway”. SCR accepted the railway stock of CJSC “Armenian railway” on its balance from June 1, 2008 according to Concession Agreement signed on February 13, 2008. The terms of concession management is for 30 years with the right of prolongation for another 10 years.

As for the construction of Iran-Armenia railway, Vardanyan said that according to the assessment of Armenian side, the cost of the project will be about $1.7-1.8 billion.

Armenia planned railway construction Iran-Armenia which will be the shortest way from Persian Bay, India and China to Europe through Armenia and Georgia. It will allow the Armenian side to use alternative ways of transportation to external markets. Currently railway communications of Armenia with foreign countries are provided only through the territory of Georgia.

World Bank, Asian Development bank, Russia, Iran and Ukraine are interested in the construction project.

Gurgen Sargsyan, former Minister of Transport and Communications announced that they had already signed an agreement with Iranian side about allocation of $400 million for implementation of construction works in the territory of Armenia.  --0—