"RUSSIAN RAILROADS" COMPANY MADE A BRILLIANT PROPOSAL, ASSURES TRANSPORT AND COMMUNICATIONS MINISTER

AZG Armenian Daily
11/01/2008

Economy

On January 8 was considered the proposal package of the "Russian
Railroads" company, the only contender for governance of the "Armenian
Railroads" governmental enterprise. The proposal package provides
for AMD 1,7 billion for the concession of "Armenian Railroads"
and $570 million investments. In 2008 $230 million are supposed to
be invested in case the railroad communications of Armenia remain
under blockade, and $2,3 billion in case the blockade is removed from
Armenia-Azerbaijan and Armenia-Turkey routes.

The proposal of the Russian company was esteemed as "brilliant". Due to
the investments of the Russian side, the Minister said, the railways,
the depots and the terminals shall be repaired and modernized. The
technical staff shall also be renewed. The agreement, which is
supposed to be signed between the Armenian Government and the
"Russian Railroads" enterprise also provides for allocation of 2%
of "Armenian Railroads" annual income to the state budget of the
Republic of Armenia. It is expected that in the 30th year of "Armenian
Roailroads" concession to the Russian company the 2% income shall
reach AMD 38 million.

The final decision of concession is to be made on January 16, 2008.

The Transportation and Communications Minister also informed that the
"Armenian Railroads" company is functioning with profit. In 2008 the
company transported 3 million tons of goods against 2,7 million tons
in 2006.