French Group Hopes to Manage All Armenian Water Distribution Networks

President Serzh Sarkissian meets with Veolia Group Chairman and CEO Antoine Frerot in January 2015 (Source: President.am)
President Serzh Sarkissian meets with Veolia Group Chairman and CEO Antoine Frerot in January 2015 (Source: President.am)

President Serzh Sarkissian meets with Veolia Group Chairman and CEO Antoine Frerot in January 2015 (Source: President.am)

YEREVAN (ARKA)—The French Veolia Group hopes to manage all of Armenia’s water distribution networks, Gor Grigoryan, CEO of Yerevan Jur said at a news conference today.

There are five water distribution operators in Armenia—Yerevan Jur (Yerevan Water), Armenian Water and Sewerage Company, Lori Water Canal, Shirak Water Canal, and Nor Akunk. Contracts for the management of Yerevan Jur and Armenian Water and Sewerage Company expire on May 31, 2016. In accordance with a government decision, the two companies will be combined and then handed over to single operator, which will be chosen in a tender.

“Veolia Group, being one of the leading operators in the world, will naturally take part in the tender and hopes to win,” said Grigoryan. He said the requirements for the new operator will be determined by the government.

On February 19, the Armenian government decided to set up an inter-agency commission for the selection of an operator to run water distribution companies in the country.

Armenian Water and Sewerage Company has been run by the French company Saur SA since 2004. The agreement Saur SA was extended in 2011 till 2013, with the option of an extension for another year. The company’s service area includes 37 cities and 268 rural communities in 10 regions of Armenia.

Yerevan Jur is run by French Veolia Generale des Eaux, which won an international tender announced by the World Bank to oversee long-term management of the Yerevan network in 2006. It pledged to upgrade the obsolete network and ensure 24-hour water supplies to households.  The company also manages drinking and waste water removal systems in Ararat, Aragatsotn and Kotayk provinces.

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