WB regrets that there is only one participant in tender for right of
transfer of ‘Armenian Railway’ under concession control

2007-12-14 14:22:00

ArmInfo. The World Bank regrets that there is only participant in a
tender for the right of transfer of the "Armenian Railway" under
concession control, regional vice President of the World Bank for the
countries of Europe and Central Asia Shigeo Katsu told journalists
today.

He said that the tender process itself was well organized by the
Armenian government. However, "we expected that a greater number of
participants would be involved in the tender and, so, the competition
would be higher. Today, there is only one participant and that is a
pity", the WB’s representative said. Along with it, he said that the
tender winner will be determined by the Armenian government, while the
Bank pays attention to the quality of services and fulfillment of the
concessioner’s liabilities. "We have nothing against the "Russian
Railways" and do not pay attention to the national belonging", S.,
Katsu said. In this transaction, the Bank is a consultant of Armenia’s
government.

To recall, after withdrawal of the RITES Indian Company from the
tender, the "Russian Railways" CJSC has become the only participant.
The results of the tender, announced on October 15, 2007, will be
declared in January, 2008. BY RA government’s decision, the "Armenian
Railway" is passed under concession control for a period of 30 years
with a right of prolongation for 20 years more. The concessioner has to
pay $10 mln as an initial payment and invest $170 mln to the company’s
upgrading, repair, acquisition of a movable equipment and development
of the infrastructure. Upon results, 2006, the Company’s net profit
grew by 32,7% to 422 mln drams (about $1,2 mln).