It is planned to sign the fifth amendment to the concession agreement that was signed on December 17, 2001 between the Armenian government and Corporacion America S. A. company. Deputy Minister of Territorial Administration and Infrastructure Armen Simonyan stated this during Thursday’s cabinet meeting of the government, as he presented the relevant draft decision.

Accordingly, the formulas of guaranteed internal profitability and compensation for losses of the concession agreement, and the clause on the right to extend the concession agreement for an indefinite period are expected to be declared invalid.

"It is noted that the parties—the [Armenian] government and the concessionaire—have no financial obligations to each other as of the date of signing the extension cases, the restrictions of the concession agreement on the Kapan’s Syunik Airport are lifted, the term of the concession agreement is extended until the end of 2067, the concessionaire undertakes to implement capital investments in the amount of $425 million. The master plan and the investment program by which it is to be implemented will be submitted to the [Armenian] government for approval, and the capital investments made since 2023 will also be included in this master plan," Simonyan said.

According to the deputy minister, changes in the current tariffs will be implemented on an annual basis, adjusted by the appropriate formula, and based on the indicators of the US consumer price indices, average inflation in European countries, and consumer price indices in Armenia.

The issues related to the extension of the concession agreement or tariff changes by the Armenian government in the event of an investment of more than $425 million by the concessionaire are also regulated.

“It is reaffirmed that both the airport infrastructure and operation must comply with international leading standards throughout the entire period. It is planned to sign within one month the fifth amendment to the concession agreement signed between the [Armenian] government and Corporacion America S.A.,” Simonyan added.

According to the deputy minister, investments in the amount of $425 million shall be implemented by 2033. And within four months after submitting the master plan to the Armenian government, the latter must either approve it or reject it on a substantive basis.

And Deputy Prime Minister Mher Grigoryan noted that if the amendment is signed, starting from that day, Kapan airport can be operated as an international airport.

“That is, we will have the second international airport in Armenia,” he added.