ArmInfo. There are currently no written offers from investors willing to pay $400 million for the Armenian Railway concession. RA Prime Minister Nikol Pashinyan stated this at a briefing on August 27.
According to him, the $400 million figure he voiced in parliament was a verbal agreement. Pashinyan emphasized that working discussions are underway regarding the possibility of transferring the concession to a third party. Roughly speaking, the issue being discussed is the price of the goods. "It's not like anyone has given a written commitment or offer saying 'I'm ready to pay $400 million,' but there are such verbal discussions," Pashinyan said. He added that figures of $350-400 million are being discussed. These benchmarks are being discussed with potentially interested parties, who are being asked to provide their opinions on the possible cost of the concession. Pashinyan expects the negotiation process to develop further, noting that the issue has already been raised at the official level.
As a reminder, the topic of revising the current Russian concession to manage Armenia's railways arose amid plans to restore railway sections on the borders with Azerbaijan and Turkey. On August 24, Nikol Pashinyan, speaking from the parliamentary rostrum, called on Russia to show flexibility and sell the concession for Armenian railways to a friendly third party. He also announced an offer to purchase the concession for $400 million. Pashinyan emphasized that if Russia manages the Armenian railway network under a concession, Armenia could lose its historic opportunity to integrate into the international railway network. It is worth noting that Armenian Prime Minister Nikol Pashinyan first voiced the proposal to sell the railway concession to Russia on February 13. At the time, in a conversation with journalists, he stated that Russia's concessionary management of Armenia's railways created competitive problems for Armenia, and many international partners wanted to bypass Armenian territory when implementing infrastructure projects. In this vein, he suggested that Russia consider selling the concession to a third, friendly country. He suggested Kazakhstan, the UAE, or Qatar as examples. Russia dismissed Pashinyan's assertions as groundless and stated that it did not intend to sell the concession for Armenian railways.
As a reminder, South Caucasus Railways CJSC is a wholly owned subsidiary of Russian Railways OJSC. On February 13, 2008, a concession agreement was signed in Yerevan between Russian Railways OJSC and the Republic of Armenia transferring the republic's railway system to the management of South Caucasus Railways CJSC. According to the agreement, the concession management term is 30 years, with the right to extend it for an additional 10 years after the first 20 years of operation by mutual agreement of the parties. South Caucasus Railways (SCR) is tasked with modernizing the Republic of Armenia's railway infrastructure, developing cooperation with neighboring countries, and developing domestic and international passenger and freight service. The Company's investment totals $572 million. SCR commenced operations on June 1, 2008.
