
Government Decrees to Hand Over Railway
The Georgian government posted on its web-site on August 20 a decree about the hand over of management rights of the state-run Railway Company to Parkfield Investment Ltd.
The decree, signed by Prime Minister Zurab Nogaideli on August 16, says that Parkfield Investment will be in charge of the railway for the next 99 years, instead of 89 years, as earlier suggested.
Parkfield Investment, according to the decree, will have to invest USD 1 billion in the rehabilitation and development of railway infrastructure within the next 10 years.
The investor company has also pledged to maintain existing passenger tariffs until December 31, 2008. Increased tariffs, according to the decree, have to be agreed with the Ministry of Economy. ?No prior agreement [with the Ministry of Economy] will be needed if the increase is in line with annual inflation,? the decree reads.
Giorgi Arveladze, the economy minister, who has been tasked to oversee the deal, said on August 16 that Parkfield Investment Ltd. was a British investment fund. No other information is available about the company.
This post is also available in: ქართული (Georgian) Русский (Russian)