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New concession operator of Armenia’s water economy to start operating in 2017

16.10.2015, 10:50
A new concession operator of Armenia’s water economy will start operating in 2017, David Harutyunyan, head of the Armenian government’s administration, said Thursday at a regular Cabinet session.  
New concession operator of Armenia’s water economy to start operating in 2017
YEREVAN, October 16. /ARKA/. A new concession operator of Armenia’s water economy will start operating in 2017, David Harutyunyan, head of the Armenian government’s administration, said Thursday at a regular Cabinet session.  

He reminded the Cabinet ministers that the government decided yet in 2014 to lease the property of all the five water operators of Armenia. 

In his words, the term of leasing and management contracts expires on May 31, 2016, and the government today extended the contractual terms until the end of this year, since preparations for a tender are dragging along.  

Harutyunyan also said that the government set requirements to the companies wanting to race at the tender for leasing. 

In particular, he said, the concession operator will be chosen through competitive dialogue and preliminary qualification, and the entire process of the tender and its results will be upheld by the government.  

One of the key requirements is that companies must have operated water resources at least 15 years along, have certain figures in terms of servicing the population and the experience of working in three countries but Armenia.  

“Besides, the applicant companies must also have the experience of implementation of at least three water system recovery programs costing no less than $5 million each, and their turnover in water economy in the last 15 years must amount to $50 million,” Hatutyunyan said. 

He added that the companies must also have at least 100,000 customers serviced for the last 15 years and a five-year development program. 

Prime Minister Hovik Abrahamyan said that Armenia had to hand water economy over to a tender winner company, but the government extended the term because it is late in preparing the tender. ---0----