YEREVAN. – Last year South Caucasus Railways, railway of the concessionaire of the Armenian Railways CJSC, fulfilled its investment obligations for 102%.
First Deputy Minister of Transport and Communication of Armenia Arthur Arakelyan submitted to the parliament a report on the implementation of the 2015 budget.
According to him, this happened despite the fact that in 2015 the railroad freight traffic in Armenia decreased by around 19%.
“Subsidies from the budget to cover planning and unprofitable passenger traffic amounted to 580 million drams [about $1.2 million - Ed.]. Passenger rail transport is unprofitable in many countries,” the official said.
During the last seven years of concession South Caucasus Railways, a subsidiary of Russian Railways, has invested 104 billion 456 million drams (at the current rate around $ 218 million) into Armenia’s rail transport. In 2016, the costs should make 2 billion. 520 million drams.