A working group has been created by decision of the prime minister to discuss issues related to the efficiency of concession management at South Caucasus Railway. The relevant decision was published on e-gov.am.
Under the document, the group must, within three months, identify possible solutions to the existing problems and clarify the next steps. Deputy Minister of Territorial Administration and Infrastructure Davit Ivanyan has been appointed to lead the group.
The agreement to set up the working group was reached a day earlier during Prime Minister Nikol Pashinyan’s meeting with Russian Railways CEO Oleg Belozerov. The sides agreed to discuss the accumulated issues in a joint format.
For some time, Yerevan has been proposing that the management of Armenian railways be transferred to a third country acceptable to both Armenia and Russia. The Russian side had responded that if the concession terms were changed or the contract terminated, it could seek to recover its investments of $400 million.
At the same time, Pashinyan told reporters today that “we have no problem with the Russian concession; our problem is that our railway must be competitive.” According to him, the Russian side said it would address the issue of making the railway competitive, and the Armenian side agreed.
