INVESTMENTS OF SOUTH-CAUCASIAN RAILWAY IN ARMENIA MADE 443.8 MILLION RUBLES WITHIN NINE MONTHS OF 2009

ARKA
Oct 16, 2009

YEREVAN, October 16. /ARKA/. Investments of CJSC "South-Caucasian
Railway" (SCR) in Armenia made 443.8 million rubles within nine months
of 2009.

Press-service of SCR informed ARKA that within the last 9 months actual
funding of investment program of Concessionaire made 443.8 million
rubles, including 371.3 million rubles on the account of borrowings
from Open JSC "RR" (Russian Railway) allotted by the agreement 2008 and
72.5 million rubles – on the account of own resources of CJSC "SCR".

Thus, for the upper construction of the railway 193.0 million rubles
is allotted from which 120.6 million rubles is for buying material
for upper construction of the railway and 15.3 million rubles for
buying railway equipment. During the reporting period, for repairing
administrative and industrial buildings 13.7 million rubles was
allotted and for repairing the buildings – 88.1 million rubles.

During nine months of 2009 SCR investments for the vehicles was
99.2 million rubles, including 80.4 million rubles for capital
reconstruction of 20 passenger wagons. Total expenses of the company
during 9 months of 2009 were 1083.7 million rubles, 727.8 million
rubles of which was for infrastructure and 355.9 million rubles for
the vehicles.

During nine months of 2009 the main funds were 1236.8 million rubles,
441.7 million rubles from which was for the buildings, 28.6 million
rubles for railway vehicles and equipment, 5.9 million rubles for the
equipment of wireless connection, 170.3 million rubles for special
car transport, 574.1 million rubles for locomotives and cargo wagons
and 16.2 million rubles for computer equipment and main assets.

Non-finished capital investments for the end of the reporting period
were 178.1 million rubles which include non-finished assets and
inventory holdings in the stores. Management of "Armenian Railway"
(AR) is implemented by CJSC "South-Caucasian Railway" (SCR) which is
100% daughter enterprise of Open JSC "Russian Railway".

SCR accepted on its balance the rolling stock of AR on July 1, 200
according to the concession agreement as of February 13, 2008 about
the transfer of state CJSC "Armenian railway" under the management of
RR for 30 years with the right of prolongation of 10 years by mutual
agreement of the parties (1 ruble – 13.16 drams).