RUSSIAN COMPANY SOLE BIDDER IN ARMENIAN RAILWAY TENDER
By M. Alkhazashvili, Translated by Diana Dundua

The Messenger
Dec 18 2007
Georgia

Shigeo Katsu, regional vice president of the World Bank’s Europe and
Central Asian department, has expressed concern that only one company
remains in a tender for the management rights of Armenian Railways,
according to the news agency Regnum.

He added that the tender had been well-organized and the World Bank
expected more companies to be involved in it. On December 6, Indian
company RITES withdrew its bid, making Russian Railways the only
remaining participant.

Armenian media claim a secret agreement signed by Russian President
Vladimir Putin and his Armenian counterpart guarantees Russian Railway
management rights, making the tender simply a formality.

Critics of the Armenian government have raised worries about Russia’s
increasing economic presence in the country, which has seen Russian
companies acquire key stakes in Armenia’s energy and telecommunication
sectors.

However, Katsu said the World Bank does not take issue with the bidder
itself. "The World Bank has nothing against Russian Railways and we
do not care from which country the company comes from," Regnum quoted
Katsu as saying.

Yerevan announced the tender in October 2006; the winner will have
a 30-year concession, with a right to a 20-year extension, on the
condition it invests USD 170 million in reconstruction projects.

Ararat Khrimian, head of Armenian Railways, said the winner will be
announced after January 2008.