The pre-qualification commission in charge of the Armenian Railways tender had to decide the companies to pass the pre-qualification phase by October 15. We were informed by Alexander Bakhtamyan, the head of the transport Project of the transport and communication ministry, that both the two companies interested in the Armenian Railways have passed the pre-qualification phase. To note, two companies have applied for international competition for the Armenian Railways management (The Russian Railways and “Rites”, an Indian company). “It is expected that the applications for the competition will be opened and the name of the winning company will be announced on January 15. It is not yet defined how long the negotiations for handing over the railways will last. According to the Concession agreement, the Armenian railways will be given for management for a term of 30 years and the investment amount will be clear based on the suggestions of those companies,” Bakhtamyan says. To note, according to our non-official sources of information, Russia suggests an investment of about 120 million dollar within 30 years, which may be considered more expenses on maintenance than on improvement. The Armenian Railways are not considered a profitable business for Russia. It is not excluded that the railways may generally stop passenger transportation inside the country as it does not work effectively. This project may be beneficial for Russia only after opening the Armenian-Turkish border. According to publications in the Internet, the Indian company purchased 51% of the shares of Tanzanian Railways in May and is going to invest 44 million dollar during these five years. This company was founded in 1974 and is specialized in railway management. “Rites” is also occupied in passenger transportation management in Iran, included in international relative projects. This company is involved in railway business in about 20 countries of Asia, Middle East, Africa and Latin America.
