INVESTMENT PROJECT OF SOUTH CAUCASUS RAILWAY CJSC TO BE REVISED

ArmInfo
2009-09-28 16:12:00

ArmInfo. The investment project of the South Caucasus Railway CJSC
(a branch of Russian Railway) will be revised, Armenian Minister
of Transport and Communication Gourgen Sargsyan told ArmInfo
correspondent.

According to him, the amendments to the investment agreement have
been submitted to the Armenian party for familiarization and signing
by the company leadership in Moscow. The amendments suggest that some
operative investments in modernization of railway facilities should
be done as early as possible.

He said that for instance, the project envisages investments in
modernization of the rolling stock within the next 25 years. "These
investments should be done today to ensure effectiveness of the whole
investment project. The concessionaire should restore the railway as
soon as possible",- Sargsyan said.

The parties have preliminarily agreed that a short-term investment
projects will be worked out for the next three years, and the main
priorities should be specified in the project, the minister said. He
added that according to the South Caucasus Railway leadership’s
assurances, investments worth about 2.9 bln RUR will be carried out
in 2009. This project should also include the funds which were not
invested in 2008, he added.

To recall, the Armenian Railway CJSC was transferred to the
concessional management of South Caucasus Railway (the 100% branch
of Russian Railway) on June 1, 2008. The term of the concessional
agreement is 30 years, with the right of prolongation for 20 more years
upon the expire of the agreement. As of the moment of conclusion of the
agreement, investments would amount to $ 572 mln, in case of re-launch
of railway communication with Turkey – $603 mln, with Azerbaijan –
$ 1,7 bln. And if the communication in Abkhaz section is resumed,
investments will amount to $ 2,1 bln.