Russian Railways wins tender to manage Armenian Railways on concessionary basis.
the Armenian capital Yerevan, Vladimir Yakunin, President of Russian Railways, took
part in the official declaration of the results of a tender announced by the Armenian
government in September 2007 to select a future concessionaire for Armenian Railways.
Invitations to participate in the tender were extended to railway companies in 40
Railways, India Railways also met the preliminary qualifications to participate in
the tender. During the process of compiling the tender documentation, Indian Railways
declined to participate in the competition and withdrew.
of Armenian Railways to concessional management under Russian Railways meets the strategic
tasks of the Company. This will increase the scale of our transport business and strength
our competitiveness on the international transport market. Russian Railways will bring
to bear its extensive experience as a controlling company. The concession will also
improve the image and status of Russian Railways,” said Vladimir Yakunin.
is for 30 years, with a right to extend it for a further 20 years after the first
of Armenian Railways will be entrusted to South Caucasus Railways, a wholly-owned
subsidiary of Russian Railways set up in Armenia as a private company.
to the conditions of the concession, Russian Railways will make an initial payment
of USD5 million to the Armenian government and annual payments to the Armenian budget
will be 2% of revenues excluding passenger revenues.
will acquire the entire rolling stock of Armenian Railways. Under the preliminary
investment plan, Russian Railways has also agreed to invest approximately USD400 million
in the development of Armenia’s rail infrastructure during the 30 years it will manage Armenian Railways. In addition, it is planned
to invest some USD170 million in renovating rolling stock, whereby Russian Railways
will act as guarantor of the declared investments. Practically
all employees at Armenia Railways will be transferred to South Caucasus Railways.
are currently underway with the Armenian government regarding the partial subsidising
of losses from passenger operations.
final agreement, Russian Railways, South Caucasus Railways and the Armenian government,
will sign the concession agreement for the management of Armenia’s railways in February
investment program will then be developed and a management system set up. The concessionaire
is expected to begin operations from the second half of 2008.