The Messenger, Georgia
Jan 19 2008

Russian company wins Armenian Railway tender

By M. Alkhazashvili
(Translated by Diana Dundua)
Friday, January 18

Armenian officials announced on January 16 that Russian Railways JSC
won the recent tender for management rights of Armenian Railways JSC.
The Russian company was the only participant in the tender after
Indian company RITES withdrew their bid. They will hold management
rights for 30 years.

The Russian bid offered an investment of USD 570 million, with USD
230 million to be invested over the next five years, according to the
news agency ITAR-TASS. Russian Railway JSC is also required to pay
the Armenian government two percent of its profit.

Armenian Minister of Transport and Communication Andranik Manukyan
said Russian investments would be greater if the border with Turkey
is opened, and rail service to Armenia from Azerbaijan resumes.