The Armenian government, at its cabinet meeting Thursday, approved the fifth amendment to its concession agreement signed with Corporacion America S.A.

The explanation states that the purpose of this decision is to expand the existing passenger and cargo capacities of Yerevan’s Zvartnots and Gyumri’s Shirak international airports through additional investments.

These two airports have been given to concession management.

This decision mainly provides for the following changes:

The restrictions of the concession agreement on Kapan’s Syunik Airport are lifted,

The concession agreement term is extended until December 31, 2067,

The concessionaire undertakes to implement approximately $425 million capital investments,

Changes in the operating tariffs will be implemented on an annual basis only by adjustment,

If at any time during the concession period, through no fault of the concessionaire, the passenger flow decreases for two consecutive years, making less than 4,000,000 passengers each year, then the Armenian government shall compensate the concessionaire for the losses incurred by the concessionaire by adjusting the tariffs, but not for more than three years.

The change in the owner of the controlling shares of the concessionaire must be agreed in advance by the Armenian government,

The concessionaire is obligated to return the airport and its assets to the Armenian government in a fully and completely operational condition after the end of the concession period, or in the event of early termination of the contract.

The purpose of adopting the draft is to expand the capacity, improve infrastructure, and increase the quality of service of Armenia’s international airports, as well as create conditions for turning the airport serving local flights—Kapan’s Syunik Airport—into an international airport.