Kapan Airport Could Be Operational, Says Deputy Prime Minister

The Government of Armenia is planning to sign the fifth amendment to the concession agreement originally signed with 'Corporation America S.A.' on December 17, 2001. This amendment is expected to nullify the formulas for guaranteed internal profitability and compensation for losses, as well as the clause granting the right to extend the concession agreement indefinitely.

Armen Simonian, Deputy Minister of Territorial Administration and Infrastructure, presented this information during a government session, where he introduced the relevant draft decision. He stated, 'It is noted that the parties—the Government and the concessionaire—do not have financial obligations to each other in terms of extending the agreement. Restrictions on the concession agreement for Kapan's 'Syunik' airport are being lifted, the concession period is extended until the end of 2067, and the concessionaire is required to make capital investments totaling $425 million. The master plan and the investment program to be implemented will be submitted for government approval, and the capital investments made since 2023 will also be included in that master plan.'

The agreement will also address issues related to the government extending the concession agreement or making tariff changes in the event that the concessionaire makes investments exceeding $425 million.

'It is reaffirmed that both the airport's infrastructure and its operation must meet international first-class standards throughout the entire period. The signing of the fifth amendment to the concession agreement with 'Corporation America S.A.' is planned to be completed within one month,' he added.

According to the deputy minister, the $425 million investments must be completed by 2033. After presenting the master plan to the government, the government must either approve it or provide a reasoned rejection within four months.

Deputy Prime Minister Mher Grigoryan responded, stating that if the amendment is signed, Kapan Airport could begin operations as an international airport from that day onward, meaning Armenia would have its second international airport.