‘SOUTH-CAUCASIAN RAILWAY’ CJSC SUSPENDS REPAIR OF ELECTRIC LOCOMOTIVES

ArmInfo
2008-12-23 14:42:00

‘The South-Caucasian Railway’, being a subsidiary of ‘RRW’ OJSC, has
suspended repair of electric locomotives, Minister for Transport
and Communication of Armenia Gurgen Sarkisyan said at today’s
press-conference.

"We shall still return to the issue of efficiency of using the
investments and the funds allotted to the company, as well as to their
structure and form. Not everything, that is invested, may be considered
investments", the minister said when commenting on the accusations,
published in the mass media, to SCRW on non-target use of funds. In
particular, the repair of the Armenian electric locomotive in Georgia
cost $1,8 mln to the "South-Caucasian Railway". G. Sarkisyan also said
the Ministry should receive the company’s financial report in early,
2009 and start its assessment. A special subdivision is created in
the Ministry to control the financial and investment activity of SCRW.

To recall, SCRW CJSC is the 100 percent subsidiary of Russian
Railways CJSC.

In February 2008 SCRW obtained a concession of the state CJSC Armenian
Railway. The agreement of concession of the Armenian Railroad CJSC
for 30 years with a 20-year renewable period was signed in Yerevan in
February 2008. The Russian Railways will invest $572 million in the
Armenian railway network, including $220 million within the coming
5 years.