Thursday, November 3 2016 15:58
Naira Badalian

Starting from 2017 Armenia will have single operator of water supply and new tariff

Starting from 2017 Armenia will have single operator of water supply  and new tariff

ArmInfo. A 15-year term  agreement will be signed with a new single operator of water supply  and sanitation Armenia in November. The new operator of water supply  single throughout the country with common tariff will start operating  from January 1, 2017. 

Consultant of Water Supply and Sanitation Systems in State Committee  of Water Resources under the Ministry of Energy Infrastructures and  Natural Resources Mushegh Karapetyan informed ArmInfo's correspondent  that preparatory work on holding international tender for choosing  single operator of water supply in Armenia was being done since 2014.  Three international companies:  French operators Saur (manages  "Armwaterchannel") and "Veolie Generale des Eaux (owner of  'Yerevan-Jur'), Italian Akea company (manager of Yerevan Jur in  2000-2005) and Armenian-German Consortium "AEG Service" (maintenance  service of gas supply systems and water supply via Shirak water  channel and Lori water channel") were competing for the position of  single operator of water supply and water disposal. All the four  companies passed the round of evaluation of technical proposals, on  the results of the second round of tender French Veolia Environment  SA was announced the winner. The company offered the lowest tariff on  water. The relevant contract was approved by the Armenian government  on October 27 and will be signed by the company in the middle of  November. As a matter of fact, starting from January 1, 2017 new  single water operator will take management of five acting operators:  "Yerevan- Jur", "Armwaterchannel", "Shirak Water Channel", "Lori  Water Channel" and "Nor Akunq". 

The State Committee already mentions the positive sides of the  reforms. It turns out that as of today the five operators were  servicing 410-420 communities in Armenia, mainly large towns and  villages. No water was supplied to around 570 communities due to  small number of population. The current policy of the responsible  agencies is to include these territories in the zone of water supply.  Karapetyan noted that in some of these communities there is no  infrastructure at all and only when relevant water systems are  installed the single operator will be able to manage these  communities. For this reason the situation in these communities has  been already studied and in 30 of them in various regions of Armenia  investments will be made in the nearest future via state funds and  loans. In this context it is expected to attract funds from Asian  Development Bank, German Development Bank (KfW) and European Bank for  Reconstruction and Development (EBRD). 

Mushegh Karapetyan thinks that the decision to have one single  operator instead of the current 5 will be justified. A huge work was  done to study the sector prior to making reforms. It became clear  that it is important to have one operator for conducting common  policy. Besides, Karapetyan clarified that the tenant according to  the new contract is obliged to pay rent for state property entrusted  to it and pays part from gained income. The second, the tenant will  operate financial flows itself and if before the state was  subsidizing the field, from now on there will be no subsidies. And  most importantly, the expert noted that the managing company is  obliged to make investments in modernization of water supply systems  amounted to at least 37.5 bln drams within 15 years, although  according to Head of State Committee of Water Management Arsen  Harutyunyan the amount of investments may total up to 80 blnd rams  ($170 mln). 

However, society is seriously concerned not so much over the new  reform as over reform of tariff policy.  Meanwhile, Head of Tariff  Policy Department of Public Services Regulatory Committee Garegin  Baghramyan has told ArmInfo that one of the important results of the  reform will be introduction of a common tariff. Earlier the tariff  for Yerevan was 170.256 drams for 1cu.m and up to 200 drams in the  regions. The official did not told the amount of the common tariff  for all the consumers as negotiations with the tenant still continue,  however he said that he does not think that the new tariff will be  set at the highest threshold of the existing tariff.  In the rental  contract basic tariffs for 15 years will be set where the basic  tariff for the 1st year will be set based on costs of retail supplies  in water system and disposal of sewage.  Starting from the 2nd year  tariff will be corrected considering a number of factors:  change of  electricity tariff and amount of retail supplies, as well as  inflation. The tariffs will be revised no sooner than once in a year. 

POST A COMMENT
Input digits     


News
Up to 10% cashback from GetTransfer with IDBank cardsUp to 10% cashback from GetTransfer with IDBank cards
South Africa expresses interest in developing cooperation with  Armenia in jewelry and cutting industry South Africa expresses interest in developing cooperation with  Armenia in jewelry and cutting industry 
Armenia, UAE discuss possibilities of increasing mutual trade volumesArmenia, UAE discuss possibilities of increasing mutual trade volumes
Yerevan is trying to demonstrate to its Anglo-Saxon `bosses` its  readiness to reduce economic cooperation with Iran - political  scientistYerevan is trying to demonstrate to its Anglo-Saxon `bosses` its  readiness to reduce economic cooperation with Iran - political  scientist
KfW stands ready to support Armenian government  in implementation of  new projectsKfW stands ready to support Armenian government  in implementation of  new projects
Cooperation with German Fichtner company discussed Cooperation with German Fichtner company discussed 
Armenia, China can record much greater results both in economic and  political dialogue and cultural cooperation - MPArmenia, China can record much greater results both in economic and  political dialogue and cultural cooperation - MP
U.S. capital important for Armenia`s mining industryU.S. capital important for Armenia`s mining industry
Expert: When there is no trust between private and public sectors,  unfortunately, there is no need to talk about right decisionsExpert: When there is no trust between private and public sectors,  unfortunately, there is no need to talk about right decisions
Armenia introduces new rules for labeling carbonated, non-carbonated  watersArmenia introduces new rules for labeling carbonated, non-carbonated  waters
Arsen Bazikyan: Armenia`s agriculture is transforming into  agribusinessArsen Bazikyan: Armenia`s agriculture is transforming into  agribusiness
Armenia to join e-CMR protocolArmenia to join e-CMR protocol
Armenia`s government changes Kaps reservoir project funding Armenia`s government changes Kaps reservoir project funding 
Armenian FM, minister of economy of Saudi Arabia discuss development  of economic ties Armenian FM, minister of economy of Saudi Arabia discuss development  of economic ties 
IMF upgrades Armenia`s GDP growth forecast for 2024 from 5% to 6%,  expecting inflation at 3.1% and unemployment at 13%IMF upgrades Armenia`s GDP growth forecast for 2024 from 5% to 6%,  expecting inflation at 3.1% and unemployment at 13%
Armenia`s Deputy PM, Veolia Vice President discuss problems with  water supply to consumers Armenia`s Deputy PM, Veolia Vice President discuss problems with  water supply to consumers 
EEC Board decided to liberalize certain categories of precious  metals` import/exportEEC Board decided to liberalize certain categories of precious  metals` import/export
Earthquakes, drought could affect Armenia`s debt sustainability -  EFSDEarthquakes, drought could affect Armenia`s debt sustainability -  EFSD
Converse Bank starts initial placement of next AMD, USD bonds in  amount of AMD 5 billion, $10 millionConverse Bank starts initial placement of next AMD, USD bonds in  amount of AMD 5 billion, $10 million
USAID releases fact sheet following Joint EU-US-Armenia High Level  Meeting in Support of Armenia USAID releases fact sheet following Joint EU-US-Armenia High Level  Meeting in Support of Armenia 
Expert: Armenia has the potential to get high-quality and abundant  harvest of apricots this yearExpert: Armenia has the potential to get high-quality and abundant  harvest of apricots this year
EFSD presents assessment of potential impact of natural disasters on  debt sustainability of Armenia, Kyrgyzstan and TajikistanEFSD presents assessment of potential impact of natural disasters on  debt sustainability of Armenia, Kyrgyzstan and Tajikistan
Armenia is considering appointing attache in Silicon ValleyArmenia is considering appointing attache in Silicon Valley
Astana proposes joint investment programmes in Yerevan Astana proposes joint investment programmes in Yerevan 
Armenia, Kazakhstan have unrealized economic potential - premier Armenia, Kazakhstan have unrealized economic potential - premier 
Armenia, EU discuss expansion of economic cooperation Armenia, EU discuss expansion of economic cooperation 
Transavia airline starts operating route Lyon-Yerevan-LyonTransavia airline starts operating route Lyon-Yerevan-Lyon
EAEU and its economic principles should not be mixed with political  ambitions - Nikol PashinyanEAEU and its economic principles should not be mixed with political  ambitions - Nikol Pashinyan
Armenia, Australia to strengthen cooperation in high-tech field Armenia, Australia to strengthen cooperation in high-tech field 
Leasing EXPO -2024 officially opened in YerevanLeasing EXPO -2024 officially opened in Yerevan
Araratbank to double leasing portfolio by end of 2024Araratbank to double leasing portfolio by end of 2024
Armenian, Kazakh passenger and cargo carriers to be exempted from  road and environmental taxes on reciprocal basis Armenian, Kazakh passenger and cargo carriers to be exempted from  road and environmental taxes on reciprocal basis 
Economy Ministry jointly with Armenal, develop schemes to diversify  sales markets for enterprise`s productsEconomy Ministry jointly with Armenal, develop schemes to diversify  sales markets for enterprise`s products
Info about IT specialists leaving Armenia en masse has nothing to do  with reality - premierInfo about IT specialists leaving Armenia en masse has nothing to do  with reality - premier
WB improves Armenia`s   economic growth forecast for 2024 from 4.7%  to 5.5% WB improves Armenia`s   economic growth forecast for 2024 from 4.7%  to 5.5% 
Government is ready to share risks with agricultural insurersGovernment is ready to share risks with agricultural insurers
EIB to issue loan under energy efficiency programme to Armenia EIB to issue loan under energy efficiency programme to Armenia 
Deadline for filing personal income declarations in Armenia may be  extendedDeadline for filing personal income declarations in Armenia may be  extended
ADB intends to expand its areas of activity in ArmeniaADB intends to expand its areas of activity in Armenia
ADB forecasts 5.7% economic growth for Armenia in 2024ADB forecasts 5.7% economic growth for Armenia in 2024
Conversebank to present its Converse Leasing product at annual  Leasing ExpoConversebank to present its Converse Leasing product at annual  Leasing Expo
By rebranding, INGO Armenia IC begins new stage of developmentBy rebranding, INGO Armenia IC begins new stage of development
Some countries refusal to service Russian Mir bank cards against  common interests - Elvira NabiullinaSome countries refusal to service Russian Mir bank cards against  common interests - Elvira Nabiullina
USAID to invest additional $33mln in Armenia`s economy USAID to invest additional $33mln in Armenia`s economy 
Idplus Bonuses in Idram&IDBank ApplicationIdplus Bonuses in Idram&IDBank Application
Deputy PM: we are ready for any assistance to contribute cargo  aviation establishmentDeputy PM: we are ready for any assistance to contribute cargo  aviation establishment
Mkhitar Hayrapetyan on TV broadcasting agreement with RF: If our  proposals are not taken into account, we do not rule out possibility  of terminating agreement unilaterallyMkhitar Hayrapetyan on TV broadcasting agreement with RF: If our  proposals are not taken into account, we do not rule out possibility  of terminating agreement unilaterally
Armenia, Iran discuss organization of joint production in various  branches of economy Armenia, Iran discuss organization of joint production in various  branches of economy 
ADB ready to fund northern section of Sisian-Kajaran highway of  North-South transport corridor  ADB ready to fund northern section of Sisian-Kajaran highway of  North-South transport corridor  
Armenia`s Ministry of High-Tech Industry developing sectoral strategy Armenia`s Ministry of High-Tech Industry developing sectoral strategy 
Armenia`s footwear exports to Russia 11 times up Armenia`s footwear exports to Russia 11 times up 
EDB sets course for digital future of transportation at joint EEC and  ESCAP eventEDB sets course for digital future of transportation at joint EEC and  ESCAP event
Team`s Next Generation Networ is already available in AshtarakTeam`s Next Generation Networ is already available in Ashtarak
Kazakhstan`s potential exports to Armenia total $350mln - minister Kazakhstan`s potential exports to Armenia total $350mln - minister 
Armenia`s economy to face crisis if Moscow severs economic ties with  Yerevan - ex-premier Armenia`s economy to face crisis if Moscow severs economic ties with  Yerevan - ex-premier 
Acquisition of Ameriabank by BOGG PLC int`l financial group completedAcquisition of Ameriabank by BOGG PLC int`l financial group completed
Armenian service sector generated revenue of $1.2 billion in first  two monthsArmenian service sector generated revenue of $1.2 billion in first  two months
EEC: EAEU common electricity market is at high level of readinessEEC: EAEU common electricity market is at high level of readiness
Armenia`s metallurgical industry increased production volumes by 37%  in first 2 monthsArmenia`s metallurgical industry increased production volumes by 37%  in first 2 months
Idram and IDBank participated in the signing ceremony of the Declaration of Women`s Empowerment PrinciplesIdram and IDBank participated in the signing ceremony of the Declaration of Women`s Empowerment Principles
Read more


Exchange rates
19.04.2024
RUB4.210.02
USD392.60-1.47
EUR418.04-2.71
GBP488.12-3.60
CAD285.09-1.38
JPY25.40-0.12
CNY54.22-0.22
CHF432.05-1.61