Russian Railways only participant in tender for Armenian Railways concession

PanARMENIAN.Net - Russian Railways is the only participant in the tender for Armenian Railways concession. The Russian company planning a large-scale expansion in foreign states can obtain its first active in absence of any rivals - India's RITES recalled its application December 6.



In October 2006, the Armenian government decreed on a 30-year concession with a right to 20-year prolongation. The tender obliges the concessionaire to pay a $10 mln contribution and invest $170 mln in modernization of the railways, including reconstruction and purchase of 1200 carriages and engines, RBK reports.



Armenian Railways is a state company owning the rolling stock and railway infrastructure of the republic expending for over 900 km. The actives were assessed at some $40 mln with $1,2 mln net profit.