Armenian government approves concession on handing over Armenian railroad to Russian company
08.02.2008,
19:02
Armenia’s Government approved the draft agreement between the Republic of Armenia (concendent), “Russian Railroads” open joint stock company and the “South Caucasian Railroad” closed joint stock company (concessionaire) on handing the Armenian railroad sy
YEREVAN, February 8. /ARKA/. Armenia’s Government approved the draft agreement between the Republic of Armenia (concendent), “Russian Railroads” open joint stock company and the “South Caucasian Railroad” closed joint stock company (concessionaire) on handing the Armenian railroad system to “South Caucasian Railroad” CJSC for concession management, the government press service reported.
Armenia’s Minister of Transport and Communication has been instructed to sign the concession agreement on behalf of the concendent.
The Prime-Minister Serge Sargsian stressed the importance of the decision to operate the Armenian railroad system under the concession agreement that is in interests of Armenia.
“A problematic situation occurred in the railroad system and investments are needed. We find it difficult to make investments, but if we fail to solve the railroad problem, we won’t be able to provide rapid development of economy,” the Prime-Minister said.
On January 16 the “Russian Railroads” open joint stock company was declared as winner in the bidding on handing over the “Armenian Railroads” for concession management. The Russian company has already stated its intention to invest $570mln in the Armenian Railways, with $230mln to be invested within the next five years. Apart from that, the “Russian Railroads” will be transferring 2% of the overall revenue from the Armenian Railroads to the state budget of Armenia every year.
“South Caucasian Railroad” closed joint company to be set up for this purpose with deal with the concession management.–0—
Armenia’s Minister of Transport and Communication has been instructed to sign the concession agreement on behalf of the concendent.
The Prime-Minister Serge Sargsian stressed the importance of the decision to operate the Armenian railroad system under the concession agreement that is in interests of Armenia.
“A problematic situation occurred in the railroad system and investments are needed. We find it difficult to make investments, but if we fail to solve the railroad problem, we won’t be able to provide rapid development of economy,” the Prime-Minister said.
On January 16 the “Russian Railroads” open joint stock company was declared as winner in the bidding on handing over the “Armenian Railroads” for concession management. The Russian company has already stated its intention to invest $570mln in the Armenian Railways, with $230mln to be invested within the next five years. Apart from that, the “Russian Railroads” will be transferring 2% of the overall revenue from the Armenian Railroads to the state budget of Armenia every year.
“South Caucasian Railroad” closed joint company to be set up for this purpose with deal with the concession management.–0—
