SOUTH CAUCASUS RAILROAD NOT PLANNING INVESTMENT CUTS IN ARMENIA IN 3 YEARS

/ARKA/
April 29, 2009
YEREVAN

The South Caucasus Railroad is not planning any investment cuts
in Armenia during three years, Deputy General Director of the
South Caucasus Railroad cjsc for Infrastructures Marat Khakov told
journalists at "Novosti" International Press Center Tuesday.

The company intends to implement restructuring of investments, he said.

The investments planned for 2010-2011 under a three-year program will
not be reduced, they will be just brought forward to earlier dates
for prompt rehabilitation of the infrastructures, Khakov said.

He stressed that the funds need to be invested today instead of
being spaced out through years for getting return in longer periods
of time. This will enable the company working over improvement of
traffic capacity and safety level, Deputy General Director said.

"We should demonstrate the efficiency of use of the funds, which will
allow attracting greater amounts at the next meeting of the directors’
board," Khakov said.

Investments of the South Caucasus Railroad cjsc are to total 2.6bln
rubles in Armenia in 2009, including almost 1.5bln under investment
program.

Total investments of the South Caucasus Railroad cjsc had amounted
to about 3bln rubles (about $107.3mln) in Armenia by the end of
2008. Under the concession agreement, the company’s investments are
to total $580mln evenly distributed over the concession years.

South Caucasus Railroad fully owned by the Russian Railways is the
concession management operator of the Armenian Railways under a
30-year concession agreement signed on February 13 2008.