SOUTH CAUCASUS RAILWAYS SIGNS COOPERATION MEMORANDUM WITH GNC ALFA WHOLESALE INTERNET PROVIDER

ARKA
March 15, 2010

YEREVAN, March 15. /ARKA/. On Friday, the South Caucasus Railways
signed a cooperation memorandum with GNC Alfa wholesale Internet
provider.

The memorandum implies joint construction and usage of fiber-optic
cable and other communication systems along the railway in Armenia
and neighboring countries’ territories.

Shevket Shaidullin, director general of the South Caucasus Railway,
said at this memorandum signing ceremony that the two companies
decided to cooperate not only on functioning infrastructures, but
also underdeveloped infrastructures in need of improvement.

He said that the companies have similar strategies – both companies
are national and try to be leaders in their areas.

Shaidullin pointed out fiber-optic cable to be laid in direction of
Vardenis, from which ore is transported to Sevan, as very important
part of the memorandum.

He also stressed the importance of Ararat direction development
implied in the memorandum.

"Our goals coincide. They are development of information technologies
and the two companies’ communication systems. I think both companies
will benefit from this cooperation," Hayk Farmazyan, director general
of GNC-Alfa, said in return.

He said that the company intended to lay fiber-optic cable to all large
cities in Armenia, and this agreement with the South Caucasus Railways
will bring the company closer to fulfillment of this objective.

Farmazyan also said that if Armenian-Turkish border opens, the company
can establish ties with Turkish providers through the South Caucasus
Railways’ infrastructure.

South Caucasus Railways, a 100-percent subsidiary of Russian Railways,
runs Armenian Railway.

Armenian Railways was handed over to the South Caucasus Railways on
February 13, 2008 for 30-year concession management with a right to
prolong the management term for other 10 years.

CNC-Alfa Company was established in 2007. The company focuses its
activity on construction and exploitation of backbone telecommunication
networks.

The company has already laid fiber-optic cable from Iran to Yerevan
and got permission to prolong it up to Armenia’s border with Georgia.