Interfax News Agency, Russia
Russia & CIS General Newswire
February 13, 2008 Wednesday 4:29 PM MSK
RZD, Armenian Railways sign concession agreement
MOSCOW Feb 13
Vladimir Yakunin, the president of Russian Railways (RZD) (RTS:
RZHD), and Andranik Manukian, the Armenian transport and
communications minister, have signed an agreement on the concession
management of Armenian railroads, RZD said in a statement.
The concession agreement is designed for 30 years with the right to
extend it for another 20 years after the first 20 years. The South
Caucasian Railways, a 100% affiliate of RZD specially established in
Armenia, will manage Armenian railroads.
RZD will pay an initial contribution of $5 million, while annual
payments will amount to 2% of revenue, except for revenue from
passenger services. The concessionaire will gain control over all
Armenian rolling stock.
According to a preliminary investment plan, RZD will invest about
$400 million in the development of Armenia’s railroad infrastructure
in 30 years. Approximately $170 million is expected to be invested in
upgrading the rolling stock.