New price for drinking water to be set in Armenia in 2016
At its regular session held last week, the Armenian government prolonged terms of the leasing contracts on management of Yerevan Jur and Armenian Water and Sewerage Company until January 1, 2017.
The prolongation was prompted by a tender that was announced in January to choose a single operator to the country’s water economy.
Robert Nazaryan said that the results of prequalification round of the tender are believed to be released in late March.
«Priority will be given to a company which will offer the lowest water price,» he said.
Now consumers in Yerevan pay 170.256 drams for one cubic meter of water.
Nazaryan said that the new operator will receive its license for 15 years and will embark on management on January 1, 2017.
In his words, a methodology is now being worked out to down the consumer price for drinking water. It will encourage the new operator's investments, its efforts to reduce leakage and electric power costs and usage of pump stations.
Armenian government has already embarked on second-generation reforms in drinking water economy and has already taken some steps to make ties between public and private sectors closer in the territories serviced by Yerevan Jur, Armenian Water and Sewerage Company, Lori Water and Sewerage, Shirak Water and Sewerage Company and Nor Akunk.
The aim of the reforms is to improve the quality of water supply services and management of water resources and to enhance financial sustainability of the water economy.
n accordance with the government’s decision, one operator will be chosen in the tender and all the mentioned companies will be handed over to the tender winner for a 15-year management.
Prices for water supply and sewerage will be single in the entire territory of the country.
Fichtner (Germany), Ramboll (Denmark) and Accounting & Audit Reform Consultants (AARC Ltd) (Ireland) consulting companies will provide assistance in organization of the tender.
The deadline for supplying pre-qualification applications is January 21, 2016.
At the pre-qualification round, a short list of the companies eligible to compete in the tender will be composed. The tender will be conducted in March 2016. --0---