ARMENIAN WATER SEWERAGE COMPANY CUTS SALARIES 20% AS FINANCIAL CRISIS BITES

/ARKA/
April 16, 2009
YEREVAN

Armenian Water Sewerage Company (AWSC) had to cut salaries 20% due
to the global financial crisis, said General Director and Management
Contractor of AWSC Patrick Lorin.

He stressed that the company started the financial year with a number
of difficulties with slowing profits and fewer state subsidies.

Alongside with wage cuts, AWSC has started to make structural changes
to raise labor efficiency.

According to Lorin, non-payers aggravate the financial situation of
the company, with 100,000 regular defaulters being recorded last year.

The AWSC director general said the company would keep publishing the
names of incorrigible defaulters.

In 2004, the French SAUR S.A. signed a contract with the Government of
Armenia, becoming the manager of Armenian Water and Sewerage Company
(AWSC).

AWSC has four branches in Armenia with centers in Sevan, Abovyan,
Sisyan and Artashat cities. Last year’s profit of the company totaled
$2.7bln drams, compared to 1.1bln drams in 2005. For the past four
years, AWSC attracted $15mln investments, with its own resources
totaling 700mln drams.

AWSC currently has 270,000 subscribers in Armenia (around 1mln
residents in 286 villages and 37 cities).

Last year, the government granted 1.366bln drams worth state subsidies
to the company. This year, AWSC will get only 863mln drams from the
go vernment.

>From April 1, Armenia’s drinking water tariffs rose from 140 drams
to 179.78 drams (VAT inclusive) per cubic meter.