YEREVAN, OCTOBER 12, NOYAN TAPAN. At the October 12 sitting, the Armenian government made a decision to transfer Armenian Railway CJSC for concessional management. The RA Minister of Transport and Communication Andranik Manukian told reporters following the sitting that the decision was made taking into account the conclusion of a research done by the advisor selected by the World Bank. Based on it, the railway will not be fit for operation in three years, as it has not been repaired over the past 16 years. Only a 70-km section has undergone repair with WB credit resources. According to A.Manukian, it is envisaged to complete the transfer of Armenian Railway CJSC for concessional management in 18 months. The manager has to invest 170 million USD in the next 10 years in order to replace all lines, buy 1,200 new carriages and install modern equipment at depots. The manager also has to pay 10 mln USD for concessional management, 2% of revenues from goods transportation and all taxes. The manager has the right to extend the agreement for another 20 years 20 years after assuming the management. A. Manukian objected to the World Bank's proposal to stop transportation of goods by the Armenian railway. He said that in the future the RA Public Services Regulatory Commission will decide tariffs of goods transportation. The minister noted that since 2001, Armenian Railway has operated at a profit. In 2003, the company's profit made 1.5 bln drams (about 3.5 mln USD). At the same time, it was noted that in the Soviet time, the annual volume of goods transportation by railway made 25 mln tons, whereas in 2005, it made 2.2 mln tons. In the minister's words, it is desirable that a big company assume the management of Armenian Railway CJSC, for example, Russian Railways that have an annual income of 25 bln USD.

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