SCR TO INVEST 2.6 BILLION RUBLES IN ARMENIA BY END-2009

/ARKA/
April 28, 2009
YEREVAN

The South Caucasus Railway (SRR) plans to earmark up to 2.6bln
Russian rubles for Armenia this year, Deputy Director General for SCR
Infrastructure Marat Khakov said today at the Novosti International
Press Centre in Yerevan.

As part of its investment program for 2009, SCR will allocate around
1.5bln drams for Armenia, Khakov said, adding SCR Board of Directors
approved the company’s investments program at the last week meeting
in Moscow.

"As part of the concession agreement, the company will focus on
infrastructural development, with over 80% or more than 813mln rubles
to be earmarked for boosting the infrastructure, railway reconstruction
and facilities," he added.

Besides, SCR will reconstruct artificial installations and tunnels
to ensure swift rail services.

To achieve this goal, the company has established a station with
high-voltage equipment to enhance the tracks.

According to Khakov, some of the SCR specialists have been trained
in Russia and are now practicing in Armenia.

"As part of the concession program, 20 passenger carriages have been
transported to Russia to undergo repairs. If necessary, the company
will put these carriages into operation," Khakov concluded.

On 1 June 2008, SCR, a wholly-owned subsidiary of Russian Railways,
received property owned by Armenian Railways under the Februa ry 13,
2008 concession agreement the parties concluded for 30 years, with a
right of extension for another 20 years after the first 20 years of
operation.