Provision of government allowances to South Caucasus Railway (SCR) CJSC is part of the concession agreement, Gagik Khachatryan, Armenian Finance Minister, said in Armenian Parliament on November 11.
He said that the Armenian Government is to compensate for the company's expenses on passenger operations. In addition, the allowances reduce the risks. The Ministry of Transport and Communication annually establishes the allowances on the basis of conclusions of independent auditors before 1 May. The minister added that the amount of subsidies for 2015 will be 558 mln AMD. To note, in 2001 the allowances amounted to 167 mln AMD, in 2012 - 155 mln AMD, in 2013 - 328 mln AMD, in 2014 - 500 mln AMD.
South Caucasus Railway CJSC is the 100% subsidiary of Russian Railway OJSC and the concessional manager of Armenian Railway CJSC under the agreement signed on 13 February 2008. The agreement was signed for 30 years and may be prolonged for 10 more years.