YEREVAN JUR COMPANY WANTS TO RAISE WATER PRICE 14.3%

ARKA
March 5, 2010

YEREVAN, March 5. /ARKA/. Yerevan Jur wants to raise water price
by 14.3% because of inflation and devaluation of Armenian national
currency.

Gagik Markaryan, commercial director of this water company, told
journalists on Thursday that as a rule, the company sets prices taking
into account three basic components – volumes of produced water,
inflation, dram/euro exchange rate and electric power price.

He said that electricity price remains unchanged, but instead,
inflation rose and Armenian dram devaluated.

Markaryan said that Yerevan Jur is implementing a large scale
construction and purchasing necessary equipment in Europe to ensure
round-the-clock water supply.

That is why changes in currency exchange rates strike at the company.

The commercial director said that annual correction of prices is
carried out in accordance with the contract on leasing and managing
water-supplying network and has no connection with gas price rise.

On February 26, Jerevan Jur appealed to Armenian Public Service
Regulatory Commission asking it to authorize water price raise.

The company wants one cubic meter of water to cost AMD 206,976 instead
of present AMD 181.

The commission considers requests within 90 days, but a decision on
this application is expected to be made earlier.

Markaryan also said that after authorization by the commission new
prices will take force on July 1, 2010.

Yerevan Jur CJSC is the residents company established by French
Generale des Eaux, who has won the tender announced by the World Bank.

Now the French company enjoys the right to run Yerevan Jur for
ten years.

Yerevan Jur runs water and sewerage systems in Armenia’s capital as
well as in Ararat, Aragatsotn and Kotayk provinces.

Yereva Jur has 332,750 customers.

The company produces some 370 million cubic meters of drinking water
every year.

The company’s network covers 2120 kilometers. ($1 = AMD 385.68).