ARMENIA TO HAND RAILWAYS TO CONCESSIONAL MANAGEMENT

Armenpress
Feb 13 2007

YEREVAN, FEBRUARY 13, ARMENPRESS: Transport and communication minister
Andranik Manukian said today a tender for concessional management
of Armenian Railways will be announced in summer. He said ministry
experts have teamed up with World Bank experts to prepare the tender
package and a draft concessional agreement text.

Manukian said Russian, French, Ukrainian and Kazakh companies have
shown interest in Armenian Railways. He said World Bank experts suggest
that the winner transfer $10 million as concessional payment and pay
2 percent of its incomes to the government. He said railway tariffs
will be set by the Pubic Services Regulatory Commission. Manukian
said the Railway will remain under the government’s ownership.

"In a couple of years Armenian Railways will lose its carriages and
locomotives as they are in their last days. Armenia does not have
extra $170 million to repair the railroads and buy new carriages and
this is the main reason that prompts us to hand it to confessional
management,’ Manukian said.