CJSC RUSSIAN RAILWAYS OFFERS $5.6 MILLION FOR CONCESSION OF ARMENIAN RAILWAY

arminfo
2008-01-10 16:06:00

ArmInfo. CJSC Russian Railways (RR) has offered 1.7 billion drams
($5.6 million) one-time fee for 30-years concession of Armenian
Railway, Armenian Minister of Transport and Communication Andranik
Manukyan briefed in the Government, Thursday.

He said the Tender Commission headed by Armenian Transport and
Communication Minister opened the package of financial offers of JSC
Russian Railways for concession of the CJSC Armenian Railroad on
January 8. The Commission accepted the financial offer of Russian
Railways but the content will be made public on January 15 when
the commission will declare the tender winner. Andranik Manukyan
added that the concessionaire pledges to pay 2% of annual proceeds
from cargo traffic inside the country. He stressed that due to the
envisaged growth of railway traffic, the concessionaire will be able
to pay 38 billion drams ($12.6 million on the current exchange rate)
on the 30th year of concession.

Russian Railways proposes several investment scenarios worth
$570-$2.150 billion. The company will invest in the modernization
of the railroad, repair and acquisition of equipment, as well as
development of infrastructure, on the whole. Under the decision of
the Armenian Government, CJSC Armenian Railroad is transferred to
concession for 30 years with a 20-year renewable period.