“By the instruction of Armenian President Serzh Sargsyan, today Minister of Transport Gagik Beglaryan announced the launch of “Southern Railway of Armenia” and “South Express Railway of Armenia” projects in the total amount of $3bln.”

The statement by Rasia FZE Company, founded in Dubai, reads this.

Today, “South Caucasus Railway” CJSC, the Ministry of Transport and Communications of Armenia and Rasia FZE signed a trilateral Memorandum of Understanding for regional cooperation aimed at the development of the Southern Railway of Armenia.

It is assumed that the Southern Railway of Armenia will be a single-track 316km long electrified railway, extending from the area of Gavar, located next to Lake Sevan, to Armenia’s southern border near the town of Meghri, which will be connected to the existing main railway system of the Republic of Armenia. The Southern express railway of Armenia will be 110km long and will pass from the town of Sisian to Armenia’s southern border near the town of Meghri.

Both projects will make part of the international “North-South” transport corridor.

Rasia FZE announced that in 2012 the government of Armenia signed a concession agreement with the company on these projects aiming to develop them based on a state-private partnership. The concession envisages concrete deadlines for the development of feasibility studies, engineering projects, project financing and construction, which will be followed by a 30-year period of operation with the possibility of prolongation for 20 years by Rasia. Among other benefits, the terms of the concession enable Rasia to set freight rates and travel fees, thus ensuring protection from competing projects.

The Chairman and CEO of Rasia Joseph Borkovsky noted that “being a key missing link in “North-South” international transport corridor, these projects have attracted significant interest of strategic and financial partners to the region, who anticipate participation in them.”

Rasia informed that it has recently signed frame and commercial agreements with the “Chinese Communication Construction Company”, which is one of the world’s leading companies engaged in the construction of railways, expressways, tunnels, bridges and ports, and will become the leading member of the construction consortium.