Tuesday, September 26 2017 15:45
Naira Badalian

Minister of Transport: Armenia ready to revise agreement with Racia FZE on construction of Iran-Armenia railway

Minister of Transport: Armenia ready to revise agreement with Racia FZE on construction of Iran-Armenia railway

ArmInfo. Armenia threatens to reconsider the agreement with the only company that undertook to attract investments in the construction of the Armenia-Iran railway. This was stated by the Minister of Transport, Communications and Information Technologies Vahan Martirosyan on September 26 at a press conference.

The Minister noted that, in accordance with an agreement with a private foreign company, it must attract an investor for the construction of a railway. "I met with the director of the company twice, suggested speeding up the process, otherwise, Armenia is ready to revise the points of the agreement," Martirosyan said. He pointed out that the matter was about the company "Racia FZE" and its director Joseph Borkowski. The last meeting with him, the minister said, took place in July this year.

It should be noted that the project for the construction of the Iran-Armenia railway does not appear to be among the priority ones - there are no plans for its implementation in the program of the government for 2017-2022. Nevertheless, as earlier, Vahan Martirosyan stated when answering ArmInfo's question, this does not mean that the authorities refused to implement it.

At the same time, according to him, for today there is nothing that would be optimistic. "At this stage, there are problems with the implementation of the project, deciding which, we will be able to move forward," - said the head of the Ministry of Transport. These problems, as pointed out by Martirosyan, are related both to investors and the implementation of a number of obligations, and to the study of the state of roads. As recognized by the head of the Ministry of Transport, Armenia is already lagging behind the earlier deadlines. According to him, there are certain limitations that, before they are eliminated, do not allow talking about progress. Which exactly - Vahan Martirosyan abstained from calling.  The fact that the railway project "Iran-Armenia", recognized according to the assurances of the Ministry of Transport of Armenia, economically justified, ordered to live for a long time, became clear already at the beginning of this year, when the government decree of January 12 eliminated CJSC "Railroad Construction Directorate "under the Ministry of Transport, Communication and Information Technologies of Armenia.  Then the minister of transport, communications and IT of Armenia Vahan Martirosyan tried to calm the media representatives, noting that this will not in any way affect the implementation of the program for the construction of the Iran-Armenia railway. "As part of the Ministry operates" Railway Management ", which can carry out the relevant functions," - he said. However, saying that negotiations in the direction of attracting potential investors in construction continue, the minister did not name the names and countries - possible participants in the project. "We are working in this direction, but we all realize that the project is not an easy one and requires individual work with each individual investor," he said.  It is noteworthy that the project, which was announced as early as in 2012, is not completely formed for today. "We are discussing the routes of connection with the operating railway via the Sevan coast (Sevan station), the other via the Ararat valley (Yeraskh station). At the moment, the route through Sevan is preferable," Minister Martirosyan explained. As he said, all for the same rough estimates, the payback period of the project is estimated at 22 years.

Back in May 2012, the Armenian and Iranian sides signed a concession agreement, which discussed the feasibility study and the main tasks of designing, building and financing this project. Thanks to the cooperation between Armenia and the investment company "RACIA FZE", a feasibility study for the feasibility of the "Southern Railway" project was developed. Based on the facts studied, it is proposed to build a railway for six years. The cost of the project was estimated at $ 3.5 billion. The total length of the road on the territory of Armenia will be 305 km. It will have 86 bridges, a total length of 19.6 km and 60 tunnels with a total length of 102 km. Construction according to the submitted program, it will be completed in 2022. It is assumed that the volume of cargo transportation by rail from Gagarin station (Gegharkunik region) to Agarak (Syunik region) will be 25 million tons per year. This road, which is 44 km shorter than the planned site of Gavar-Agarak, will be connected to the existing railway network. The launch of the projects "South Railway of Armenia" and "Southern Highway of Armenia" (Iran-Armenia) was announced in January 2013. At the same time, a trilateral Memorandum of Understanding on regional cooperation aimed at the development of the Southern Railway of Armenia was signed between the South Caucasus Railway, the Ministry of Transport and Communication of Armenia and the company Racia FZE, registered in the United Arab Emirates by the company. After that, nothing more substantive took place in respect to   "Racia FZE" and negotiations.

POST A COMMENT
Input digits     


News
Armenia, Hong Kong sign agreemnt abolishing double taxation Armenia, Hong Kong sign agreemnt abolishing double taxation 
French ambassador visits dam of Vedi reservoir French ambassador visits dam of Vedi reservoir 
Problems with tax evasion and illicit financial flows require  collective action and cooperationProblems with tax evasion and illicit financial flows require collective action and cooperation
Number of officially registered employees exceeds 752,000 in Armenia Number of officially registered employees exceeds 752,000 in Armenia 
First Yerevan-Batumi-Yerevan train leaves YerevanFirst Yerevan-Batumi-Yerevan train leaves Yerevan
Team Energy shaping electric vehicles culture in Armenia Team Energy shaping electric vehicles culture in Armenia 
Armenia to attract EUR 75 million from French Development Agency to  finance state budget deficitArmenia to attract EUR 75 million from French Development Agency to  finance state budget deficit
IMF Executive Board completes Third Review under Stand-By Arrangement  with ArmeniaIMF Executive Board completes Third Review under Stand-By Arrangement  with Armenia
Armenia to join Black Sea Basin. Interreg Next programArmenia to join Black Sea Basin. Interreg Next program
Armenian government, KfW to extend loan programme Armenian government, KfW to extend loan programme 
Jermuk Group CJSC to invest AMD 10.3bln in production of polyethylene  thermal insulation filmJermuk Group CJSC to invest AMD 10.3bln in production of polyethylene  thermal insulation film
AMD 600mln to be allocated for housing programme for large families AMD 600mln to be allocated for housing programme for large families 
EDB forecasts downtrend in GDP growth to 5% EDB forecasts downtrend in GDP growth to 5% 
Air Cairo airline launches Cairo-Yerevan-Cairo flights Air Cairo airline launches Cairo-Yerevan-Cairo flights 
European Commission to provide EUR 15mln to Armenia for forcibly  displaced Armenians European Commission to provide EUR 15mln to Armenia for forcibly  displaced Armenians 
USA interested in restoration of flood-destroyed bridges USA interested in restoration of flood-destroyed bridges 
Pashinyan: Pashinyan: "iGorts" program establishes organic link between our  compatriots in Diaspora and country`s state system 
Saving on Wildberries with IDBankSaving on Wildberries with IDBank
Armenian wines were awarded 5 gold and 11 silver medals at Concours  Mondial de BruxellesArmenian wines were awarded 5 gold and 11 silver medals at Concours  Mondial de Bruxelles
Armenia`s Minister of High-Tech Industry visits EUROSATORY exhibitionArmenia`s Minister of High-Tech Industry visits EUROSATORY exhibition
Armenia at the forefront of science and technology - Richard VermaArmenia at the forefront of science and technology - Richard Verma
EU to send EUR 100 thousand in humanitarian aid to Armenia to support villages most affected by floodEU to send EUR 100 thousand in humanitarian aid to Armenia to support villages most affected by flood
Sarah Morgenthau: US is ready to expand economic relations with  ArmeniaSarah Morgenthau: US is ready to expand economic relations with  Armenia
Armenia, Ukraine discuss possibilities of expanding trade and  economic cooperationArmenia, Ukraine discuss possibilities of expanding trade and  economic cooperation
EDB provides AMD 100 million to help overcome flood consequences in  ArmeniaEDB provides AMD 100 million to help overcome flood consequences in  Armenia
2024-2030 employment strategy presented in Armenia 2024-2030 employment strategy presented in Armenia 
Ardshinbank CJSC joins the Partnership for Carbon Accounting Financials.Ardshinbank CJSC joins the Partnership for Carbon Accounting Financials.
SCR launches Yerevan-Batumi-Yerevan trainSCR launches Yerevan-Batumi-Yerevan train
Large-scale road construction work suggests creation of new road  networkLarge-scale road construction work suggests creation of new road  network
EBRD appoints new Managing Director for Turkiye and the CaucasusEBRD appoints new Managing Director for Turkiye and the Caucasus
From January 1, 2026, medical insurance will become mandatory for   tourists  arriving in GeorgiaFrom January 1, 2026, medical insurance will become mandatory for   tourists  arriving in Georgia
IDBank issues the 3rd tranche of dollar bonds of 2024IDBank issues the 3rd tranche of dollar bonds of 2024
So that old age can be a joy! Present and future of funded pension  reform in ArmeniaSo that old age can be a joy! Present and future of funded pension  reform in Armenia
Premier: Armenia increases its level of sovereignty and independence  every dayPremier: Armenia increases its level of sovereignty and independence  every day
EventHub.am is the official ticketing agent for the concert of the world renowned Black Eyed Peas in TbilisiEventHub.am is the official ticketing agent for the concert of the world renowned Black Eyed Peas in Tbilisi
National Geographic recommends visiting Armenia as an attractive  tourist destinationNational Geographic recommends visiting Armenia as an attractive  tourist destination
Pashinyan: program for providing housing to forcibly displaced  persons from Nagorno-Karabakh is entering practical stage of  implementationPashinyan: program for providing housing to forcibly displaced  persons from Nagorno-Karabakh is entering practical stage of  implementation
Projects implemented jointly with Rosatom State Corporation discussed  in ArmeniaProjects implemented jointly with Rosatom State Corporation discussed  in Armenia
Assessing long-term impact of new US sanctions against Russia will  take time - Central Bank GovernorAssessing long-term impact of new US sanctions against Russia will  take time - Central Bank Governor
Martin Galstyan: Azerbaijan is not among top 50 remittance  destinationsMartin Galstyan: Azerbaijan is not among top 50 remittance  destinations
Armenian Parliament approves report on  Execution of State Budget for  2023Armenian Parliament approves report on  Execution of State Budget for  2023
Fly Arna staff demand salariesFly Arna staff demand salaries
Pashinyan: Work has begun on developing program to address priority  issues for restoring disaster zone Pashinyan: Work has begun on developing program to address priority  issues for restoring disaster zone 
Instant money transfers from Russia to Armenia with the “ФОРА-БАНК” appInstant money transfers from Russia to Armenia with the “ФОРА-БАНК” app
Since 2017, National Foundation for Servicemen Insurance has paid  monetary compensation to families of 5,345 dead, missing servicemenSince 2017, National Foundation for Servicemen Insurance has paid  monetary compensation to families of 5,345 dead, missing servicemen
Armenia`s CB revises GDP growth forecast for 2024 upward Armenia`s CB revises GDP growth forecast for 2024 upward 
Economic entities must not get accustomed to Economic entities must not get accustomed to "cottonwood existence" -  minister
State budget both financial and political document - minister State budget both financial and political document - minister 
Premier was presented with draft strategic employment programPremier was presented with draft strategic employment program
WB does not change previous improved forecast for Armenia`s GDP  growth of 5.5% in 2024 and 4.9% in 2025 WB does not change previous improved forecast for Armenia`s GDP  growth of 5.5% in 2024 and 4.9% in 2025 
Martin Galstyan: Under favorable conditions, loan interest rates may  dropMartin Galstyan: Under favorable conditions, loan interest rates may  drop
CBA: GDP above-potential growth and its non-widespread nature poses  uncertainties regarding relative position of aggregate demand versus  aggregate supplyCBA: GDP above-potential growth and its non-widespread nature poses  uncertainties regarding relative position of aggregate demand versus  aggregate supply
Central Bank Governor: Inflation in Armenia to approach 2.2%-2.5% by  end of yearCentral Bank Governor: Inflation in Armenia to approach 2.2%-2.5% by  end of year
Armenia`s Central Bank expects additional incentives after Government  increases spending on eliminating consequences of disaster Armenia`s Central Bank expects additional incentives after Government  increases spending on eliminating consequences of disaster 
idcoin: New tool in IDBank’s loyalty systemidcoin: New tool in IDBank’s loyalty system
Armenia`s Central Bank continues reducing refinancing rate Armenia`s Central Bank continues reducing refinancing rate 
Income tax on mortgage loans to be abolished in 2029 Income tax on mortgage loans to be abolished in 2029 
About 173 Million Drams and More Than 30 Beneficiary Funds. About 173 Million Drams and More Than 30 Beneficiary Funds. "The Power of One Dram" is 4 Years Old
Armenia to participate in Food Africa-2024 exhibition Armenia to participate in Food Africa-2024 exhibition
EasyPay Supports Launch of “Financial Literacy” Program by Armenian Code Academy and Technological Education Foundation EasyPay Supports Launch of “Financial Literacy” Program by Armenian Code Academy and Technological Education Foundation 
Read more
Exchange rates
24.06.2024
RUB4.41-0.14
USD388.05-0.47
EUR416.421.36
GBP491.390.49
CAD283.790.07
JPY24.33-0.11
CNY53.45-0.06
CHF434.50-0.87