A top executive of Russia’s state-run railway, RZD, said on Friday that it has invested more than $223 million in Armenia’s rail network since taking over its management five years ago.
Viktor Rebets, the Russian chief executive of the network called the South Caucasus Railway (SCR) told journalists that another $17 million worth of capital investments will be made next year.
A long-term management agreement signed by RZD and the Armenian government in late 2007 committed the Russians to investing $230 million in Armenia during the first five years of operations and another $240 million in the following years.
The government repeatedly accused them of failing to honor this and other contractual obligations in 2008-2009. RZD investments in the underused and cash-strapped railway appear to have risen substantially since then.
According to Rebets, the SCR operator has spent over $123 million on the modernization of Armenia’s rail infrastructure. He said that includes repairs done on some 300 kilometers of rail track and 140 kilometers of electricity transmission lines feeding the network. Rebets also listed the purchase of new trains and rail cars as well as the reconstruction of three rail bridges completed earlier this year.