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“South Caucasus railway” CJSC which occupies a monopoly position in the Armenian market of the railway transportation, does not comply with the requirements of the Procurement legislation of the Republic of Armenia, Chairman of the State Commission for the Protection of Economic Competition (SCPEC) Artak Shaboyan told reporters.

According to Shaboyan, the company decides itself with what company and under what circumstances to sign procurement contract and obtain certain products and services.

“Our studies show that even if tenders are announced those are purely formal in nature, and the company chooses the supplier which often offer higher prices submitted under the tender,” Shaboyan said.

Aside from that, SCPEC chairman said that the concession agreement envisages that the “South Caucasus Railway” should make investments in Armenia, while in reality the studies reveal that the volume of those investments in many cases are inflated. The company incorporates its administrative costs into the investments which being current expenses in no way may be considered investments as such.