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South Caucasus Railways - Manager Of The Armenia-Iran Railway

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  • South Caucasus Railways - Manager Of The Armenia-Iran Railway

    SOUTH CAUCASUS RAILWAYS - MANAGER OF THE ARMENIA-IRAN RAILWAY
    by Gayane Sahakyan

    Aravot
    Dec 6 2008
    Armenia

    Statements of state leaders about the construction of the Iran-Armenia
    railway are attempts to mislead the people. Some economists argue
    that up to now, the government has not pointed out specific financial
    sources for the construction of this project.

    No budget earmarked for project

    Besides, analysts believe that the construction of the railway
    requires quite a big amount of money, and the next year's budget has
    no corresponding provisions. They believe that although statements
    alleging Russia's readiness to support the construction of the railway,
    the Russian state budget does not envisage this either. Besides,
    Russian Minister of Transport Igor Levitin has said quite recently
    that they will not carry out such a policy.

    We tried to clarify from Minister of Transport and Communications
    Gurgen Sargsyan how realistic this project is and at what stage the
    design work of the Iran-Armenia railway is. Sargsyan said: "All big
    and good projects have been stalled at the initial stage. It is true
    that it is quite expensive for our republic, but the global experience
    shows that such projects are not implemented alone, not a single
    state deals with such an issue on its own. The construction of the
    railway has fundamental regional importance and aims at connecting
    Asian countries with Europe. One of its importance is that Armenia
    will become a transit country for cargo and passenger transit and
    will ensure transport from Asia to Europe via Armenia. There is no
    other route that would ensure such a transit at present."

    Financial institutions ready to fund project

    In a reply to a question on funding the railway construction, Sargsyan
    said: "Naturally, our state cannot implement such a project on its own;
    however, taking into consideration its significance, fortunately, there
    are states and finance organizations, which are ready to co-finance the
    construction. At present, the Asian Development Bank shows interest in
    financing a feasibility study of the project and also participation in
    the construction in the future. Discussions have been held with the
    World Bank and the European Bank for Reconstruction and Development
    as well."

    As for that Russia does not have a real desire to take part in the
    project, Sargsyan said: "There is no point to speculate on this issue,
    there is a fact recorded. This issue was discussed during the meeting
    between the Armenian and Russian presidents, and [Russian President]
    Dmitriy Medvedev clearly said in this regard that let's clarify what
    amount of money is needed so that we are able to elaborate the degree
    of our participation in the project. According to Sargsyan, Iran is
    also interested in implementation of this project.

    [Passage omitted: Sargsyan said Armenia and Iran will have discussions
    on the design of the railway]

    Construction of railway would stimulate economy

    Sargsyan is sure that our economy will essentially develop due to the
    construction of the railway: "The railway is of strategic significance
    for the development of economy. If we are a transit country, everyone
    will use this route, as there is no other alternative route. At
    present a railway line, which goes from China via Middle East and
    connects to Iran's railway network, is being constructed and we have
    an opportunity to become a corridor - from the Black Sea, Europe to
    China - via the railway line. This is a very serious transport route."

    [Passage omitted: Sargsyan puts the construction of the China-Iran
    railway at about 1.5-2bn dollars]

    The minister said that by the end of 2009, we will have some solution
    regarding the construction of the railway. As for the issue who will
    operate the new railway, Sargsyan said: "The South Caucasus Railways
    [a Russian railway company]. It will be logical if this is done by
    this concessionaire, which operates our railways. I do not think that
    there will be two operators for a few kilometres of the line. However,
    the final decision will be made at a political level." Sargsyan did
    not wish to speak about disagreements regarding the operation of the
    South Caucasus Railways and the activities of the company.

    While answering our question how realistic he himself considers the
    implementation of the project, Sargsyan said: "As a citizen, minister
    of transport and communications, I am personally quite enthusiastic
    about this project and will do my best so that it comes true by
    all means."

    [Passage omitted: Armenia is optimistic about the project]
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