INVESTMENTS IN ARMENIA RAILWAYS IN 2012 TOTALED 13.5 BILLION DRAMS

/ARKA/
October 31, 2011
YEREVAN

YEREVAN, October 31. / ARKA /. The state-owned Russian Railways Company
will invest 13.5 billion drams next year in its Armenian subsidiary
South Caucasus Railways, Shevket Shaydulin,the chief executive officer
of the South Caucasus Railways, operating Armenian railroads, said
to reporters Saturday.

He said 90 percent of 16 billion drams earmarked as investments for
2011, have been channelled into upgrading the system. According to
Shaydulin, over the last three years the company has invested by 5%
more than planned.

President of Russian Railways, Vladimir Yakunin, said the decision to
transfer the "Armenian Railways" under the concessional management of
Russian Railways was political, and now the parties need to implement
the political decision on the basis of mutually beneficial economic
principles.

"In terms of professional and financial interests, relations between
the two railroads are a priority for us," he stressed.

The South Caucasus Railways is run by Russian Railways. The
concessional agreement was concluded in 2008 for 30 years, with a
right of extension for another 20 years after the first 20 years of
operation.