YEREVAN. – Armenia’s Municipality Kapan adopted a decision to pass drinking water supply and sewerage system under the administration of ArmWaterCanal CJSC, and free of charge for 25 years.

But no agreement has been signed, and the discussion of this matter was held at Kapan Municipality on Thursday, EcoLur reports.

As “For Environmental Safety and Developing Democracy” legal consultant Artur Ghazaryan told EcoLur, the organization was against this decision.

“We don’t trust ArmWaterCanal that the company will manage it properly after getting the complete run of the water. So far, ArmWaterCanal hasn’t performed the court ruling in cleaning sewerage and eliminating ecological disaster due to water pollution,” Ghazaryan said.

There are concerns that ArmWaterCanal plans to get a loan in the amount of $6 million, from the European Bank for Reconstruction and Development (EBRD) and the Asian Development Bank, to reconstruct water supply and sewerage system.

“[But] we can see how the EBRD loans are spent: the company will say it replaced the whole system, then it will start paying off the loan and getting super profits at our expense. We have become convinced, over the course of nine years, that ArmWaterCanal doesn’t perform its duties, and it’s impermissible to pass our water under its administration,” Artur Ghazaryan stated.