CONCESSION AGREEMENT ON ARMENIAN RAILWAY’S TRANSFER TO "SOUTHERN CAUCASIAN RAILWAY" CJSC SIGNED IN YEREVAN

DeFacto Agency
Feb 13 2008
Armenia

Today a concession agreement on Armenian railway’s transfer to
"Southern Caucasian Railway" CJSC has been signed in Yerevan. The
document was signed by RA Minister of Transport and Communication
Andranik Manukian, RZD OJSC President Vladimir Yakunin and "Southern
Caucasian Railway" CJSC Director-General Alexander Kuznetsov.

After the ceremony of signing the document RA Minister of Transport
and Communication Andranik Manukian noted that RZD planned to make
investments in the amount of $570 million, $230 million of which
during only the first 5 years will make investments.

According to RZD head Vladimir Yakunin, signing the agreement is an
extremely important event. "We are aware of the fact that, though today
we signed a railway agreement, however, actually it is an agreement
between RZD and the state, Republic of Armenia. So we realize the
whole political significance of the agreement, we understand the
responsibility the parties assume by signing it" he said.

According to the agreement, the concessionaire pledges to invest
about $400 million in the development of infrastructure of Armenia’s
railway and about $170 million in the renewal of rolling-stock.

During the first five years the amount of investment will make 67,
3 milliard drams, 59, 3 of which will be targeted at the restoration
of infrastructure, 8 milliard at purchasing rolling-stock.