Concession
In 2007 the government called tenders for a 30-year concession to modernise and operate Armenian Railways, expecting to award a contract in 2008. RITES and Russian Railways (RZD) qualified to bid but RITES, the Indian company, withdrew. RZD was the only bidder and has set up South Caucasian Railway as a subdiary to run the railway. On 1 June 2008 South Caucasus Railways (SCR) has officially started business operations under a concession agreement to manage Armenian Railways. In this connection, by 1 June 2008, SCR, a wholly owned subsidiary of Russian Railways, received property owned by Armenian Railways consisting of 2,000 freight cars, 58 passenger coaches, 85 locomotives and 30 electric trains. All 4,300 employees employed by Armenian Railways have retained their jobs. The concession agreement was concluded for 30 years, with a right of extension for another 20 years after the first 20 years of operation.
Read more about this topic: Armenian Railways
Famous quotes containing the word concession:
“Let the amelioration in our laws of property proceed from the concession of the rich, not from the grasping of the poor. Let us understand that the equitable rule is, that no one should take more than his share, let him be ever so rich.”
—Ralph Waldo Emerson (1803–1882)