"ARMENIAN RAILWAY" PASSED TO "RUSSIAN RAILWAYS" COMPANY FOR CONCESSION MANAGEMENT

Noyan Tapan
Jan 16 2007

YEREVAN, JANUARY 16, NOYAN TAPAN. Armenian Railway has been passed
to Russian Railways company for concession management. The Russian
company intends to invest about 570 million dollars over 30 years. The
Armenian minister of transport and communication Andranik Manukian
and the president of Russian Railways Vladimir Yakunin on January
16 signed a memorandum of mutual understanding, according to which
a concession agreement has to be developed in one-month period.

V. Yakunin said that last year Armenian Railway operated at a profit,
the commodity transportation increased, which means that the country’s
economy is developing. According to him, the assumption of Armenian
Railway’s management by the Russian company is natural because the
railways of CIS countries are linked to each other and operate based
on the same norms. V. Yakunin said that the concession agreement
allows to change tariffs, which is envisaged. It was stated that a
closed joint-stock company will be set up in order to implement an
investment program at Armenian Railway.

Speaking about the project of constructing Iran-Armenia railway,
V. Yakunin said that the Russian side is prepared to make additional
investment for the project’s implementation. As for restoration of
railway communication with Azerbaijan and Turkey, V. Yakunin stated
that it is a political issue, while they are businessmen and not
political scientists.