TRIPP Development Company in final stage. Armenia starts design work
Armenia is starting design work on three infrastructure components of the Trump Route for International Peace and Prosperity (TRIPP) – a railway, a road and power lines – without waiting for the joint company with the United States to be set up. Deputy Prime Minister Mher Grigoryan announced this at the October 22 cabinet meeting. TRIPP is a transit route through Armenia’s southern Syunik province that will link Azerbaijan with Nakhijevan; the United States will hold 74% of the company developing it and Armenia 26%.
Grigoryan, Minister of Territorial Administration and Infrastructure Davit Khudatyan and other officials visited Syunik on October 21 to organize the start of design work. According to the deputy prime minister, the railway route is clear, and the condition of fortification structures was checked once more on site. “In that sense, design work will begin,” he noted.
Modeling questions remain for the road because the route has sections that are hard to pass. Grigoryan stressed that the final solution must make the road competitive: “We are talking about transit, and a transit road will be competitive, and our spending will be efficient, only if it has an operational advantage at the regional level.”
Some issues also need to be finalized for the power lines, and they will be modeled. The completed work will be handed over to the TRIPP Development Company once it is formed. “So as not to lose time, we consider it right to start design work from today,” the deputy prime minister added. He said more specific sketches will soon be presented for discussion, after which actual design work will begin.
According to Prime Minister Nikol Pashinyan, the National Assembly has begun ratifying the TRIPP agreement signed with the United States, and ratification will take place in the upcoming session. Work with the United States on founding the company is at the final stage, and the work done, including as Armenia’s contribution, will be transferred to the company. “This is an extremely important issue for ensuring and sustaining our economic dynamics,” the prime minister emphasized.
The Ministry of Justice has published a package of draft laws on e-draft.am under which companies created on the basis of international treaties, with a state stake of at least 25%, may be exempted from the laws on procurement, competition protection and public-private partnership. Public discussion runs until October 31. The drafts do not name a specific project, but TRIPP is mentioned in a footnote to the explanatory note. Armenia’s 26% stake exceeds the 25% threshold set by the draft. The charter of such companies and every amendment to it must be approved by the government, and the developers estimate the package will require no additional budget spending.
The Armenia-US framework agreement on TRIPP
The route will include a railway, a road, pipelines, fiber-optic and power lines. Sovereignty and border and customs control remain with Armenia. The TRIPP Development Company will be set up as a joint-stock company, and key decisions will be taken only with the consent of both parties.
The company will receive exclusive land-use rights for 49 years. The term can be extended by another 50 years, in which case Armenia’s stake will rise to 49%. At the end of the term the rights return to Armenia free of charge.
Armenia undertakes to allow exemptions from its laws on joint-stock companies, procurement and PPP, and the agreement prevails in case of conflict. Dividends, share sales and transfers of land rights are exempt from taxes.
Private operators may handle customer service at border crossings (“front office”), while control stays with the state. Disputes are settled only through negotiations, and either party may withdraw from the agreement with one year’s notice.
