RUSSIAN RAILWAYS COMPANY DISMISSES ARMENIAN AUTHORITIES’ CRITICISM

Mediamax
March 19 2009
Armenia

Yerevan, 19 March: General Director of "South Caucasus Railroad"
CJSC (SCR) Shevket Shaydullin stated that the statements of Armenian
Minister of Transport concerning the SCR "may undermine the image of
a large-scale project, which is realized at the level of two friendly
countries – Armenia and Russia".

As Mediamax was told in the press service of SCR today, Shevket
Shaydullin’s open letter to the Minister of Transport and Communication
of Armenia Gurgen Sargsyan reads this.

"Today we are establishing the necessary perquisites to secure
long-term efficiency and financial stability of Armenia’s railroad
transport. Our goal is improvement of the quality of consumer services,
increase of transport production scales and deep integration into
Eurasian transport-logistics system. However, to realize the mentioned
strategy, we need the understanding and correct attitude from the
part of corresponding state structures", Head of SCR stated.

Shevket Shaidullin expressed discontent by the statements of the
Minister, made on 17 March, according to which in 2008 the investment
program of SCR was fulfilled only for 28 per cent of the planned
volume, and the leadership of the company had not implemented certain
items of the concession agreement.

"The volume of SCR investments in 2008 made R2.5bn (by movement of
funds), of which about R1bn was used (introduction of assets). The
remaining part of the means is being transferred to the investment
program for the year of 2009. Within the framework of Concession
agreement implementation, assets at the sum of R612m are introduced,
which makes 61 per cent of the Concessionaire’s commitments in
2008. Early this year, SCR and the Ministry of Transport and
Communication of Armenia set up a joint commission to monitor
the concession agreement implementation. Within the framework of
our cooperation, 3 meetings have already been held. During those
meetings a common vision of the problems and the ways to solve them
were elaborated. However, the form of the dialogue you have adopted
does not provide for constructiveness and effectiveness. The problems
the railroad transport of Armenia faces are so complex as to require
constant attention and consideration", the open letter of SCR Head
reads.