Armenia Railway Concession Role of the Government

1
Armenia Railway ConcessionRole of the Government

• Minister of Transport and Communication of
  Armenia
• Andranik Manukyan

2
A State-Owned Company

• Armenian Railway is a Closed Joint-Stock Company
  administered by Ministry of Transport
  Communications
• Economic reforms underway throughout the economy
  restructuring of energy, water, phone
• Our desire is to make the railway productive and
  less dependent on government

3
History of Rail Reforms

• Started in 1999 with revised organization and
  commercial intent
• Business Plan was developed in 2000, updated in
  2003
• Further Restructuring studied in 2005/6
• Government adopted Vertically-integrated
  concession form restructuring

4
Concession Progress

• Ministerial Commission to ensure rapid
  decision-making
• Working group to develop legislation and
  agreements
• In preparation for concession
• Audit completed
• Inventory completed
• Environmental Assessment underway
• Land survey underway
• Revision of legal and regulatory framework
  underway

5
Legal and Regulatory

• Adoption of Railway Transport Law
• Licensing
• Regulatory functions
• Safety oversight
• Provision for other licensed operators to use
  infrastructure
• Only infrastructure charges regulated, except in
  exceptional circumstances

6
Managing Railway Risk

• Government, with World Bank support, acts to
  strengthen the railway
• Business plan
• Restructuring strategy
• 15 million infrastructure investment in
  2002-2004
• Will strengthen critical bridges and continue
  infrastructure investment
• Employment redundancies

7
Armenia Wants A Successful Railway

• Government has taken actions to strengthen the
  railway
• Improve the regulatory environment
• Reduce private sector risks
• And to protect the economy of Armenia and enhance
  the contribution that will be made by railway
  transport