Armenian parliament to discuss South Caucasus Railways commitments

YEREVAN, December 22, /ARKA/. An Armenian parliament committee on economic issues will convene a series of parliamentary hearings next year to discuss the concessional management of Armenian railroads.

Committee chairman, Vartan Ayvazian, said it will organize three hearings next year to look into whether the South Caucasus Railways company that was granted the concessional management of the railroads, is meeting its investment commitments, what it has done to improve the state and management of the railroads.

Speaking at a Monday news conference Vartan Ayvazian said the Couth Caucasus Railway has already failed to meet some of its commitments. He said the company had committed to reform the system and particularly, to increase the speed of trains.

Vartan Ayvazian said the committee had already discussed the operation of the company together with its representatives. According to him, the Armenian side has also failed to meet some of its obligations, relating, particularly, to handing the rolling stock.

He said the hearings will be centered on how the company implements procurements and on its investments.

In 2007 the Armenian government called tenders for a 30-year concession to modernize and operate Armenian Railways. An Indian RITES and Russian Railways qualified to bid, but the Indian company withdrew. The Russian Railways was the only bidder and has set up South Caucasian Railway as a sub diary to run the Armenian Railway. On the 1st of June 2008 South Caucasus Railways (SCR) has officially started business operations under a concession agreement to manage Armenian Railways. In this connection, by 1 June 2008, SCR, a wholly-owned subsidiary of Russian Railways, received property owned by Armenian Railways consisting of 2,000 freight cars, 58 passenger coaches, 85 locomotives and 30 electric trains. The concession agreement was concluded for 30 years, with a right of extension for another 20 years after the first 20 years of operation. -0-