Patrick LORIN

______Patrick LORIN

QUARTERLY REPORT January-March 2010

TABLE OF CONTENTS

1. COMMERCIAL ...... 5 QUARTERLY ACTIVITIES ...... 6 G E N E R A L ...... 6 T A S K S F O R 2 0 1 0 ...... 10 DIAGRAM 1 ...... 10 DIAGRAM 2 ...... 11 DIAGRAM 3 ...... 11 2. OPERATION & MAINTENANCE ...... 12 2.1 WATER PRODUCTION ...... 13 PRODUCTION DEPARTMENT ...... 14 1.PRODUCED WATER QUANTITY AND POTABLE WATER LOSSES ...... 14 WATER PRODUCTION & LOSSES DIAGRAMS – 4,5 ...... 15 WATER PRODUCTION & LOSSES TABLE-1 ...... 16 2. POTABLE WATER DISINFECTION ...... 20 QUARTERLY USE OF DISINFECTION MATERIALS TABLE – 2 ...... 20 3. ELECTRICITY CONSUMPTION & EXPENSES ...... 22 ELECTRICITY CONSUMPTION & EXPENSES DIAGRAM – 6 ...... 23 ELECTRICITY EXPENSES TABLE-3 ...... 24 ELECTRICITY CONSUMPTION TABLE-4 ...... 25 WATER DELIVERED THROUGH PUMPING AND CORRESPONDING ELECTICITY CONSUMPTION TABLE- 5 ...... 26 DIAGRAMS – 7,8 ...... 27 4. WATER METERS EQUIPMENT INSTALLATION ...... 27 PROGRESS OF THE WATER METERS EQUIPMENT INSTALLATION BY THE AWS CJSC IN ITS MAINTENANCE AREA TABLE - 6, DIAGRAM – 9 ...... 28 2.2 WATER DISTRIBUTION ...... 29 DISTRIBUTION DEPARTMENT ...... 30 5. REPAIRS OF DAMAGES, CAPITAL REPAIRS AND REHABILITATION OF SYSTEMS ...... 30 OPERATION AND MAINTENANCE OF WATER TRANSMISSION AND DISTRIBUTION SYSTEMS TABLE-7, DIAGRAM 10 ...... 31 NETWORK ANALYSIS TABLE – 8 ...... 32 DIAGRAMS – 11,12 ...... 32 2.3 WASTEWATER & SEWERAGE ...... 33 WASTEWATER DEPARTMENT ...... 34

QUARTERLY REPORT January-March 2010

6. WASTEWATER COLLECTION SYSTEMS ...... 34 MAINTENANCE OF WASTEWATER COLLECTION SYSTEMS TABLE-9 ...... 36 DIAGRAMS – 13,14 ...... 37 NETWORK ANALYSIS TABLE -10 ...... 38 DIAGRAMS – 15,16 ...... 38 7. SPECIAL WORKS DEPARTMENT ...... 39 3. TECHNICAL ...... 40 3.1 TECHNICAL INVESTIGATIONS, DESIGN & MAPPING OF TECHNICAL SYSTEMS ...... 41 3.2 MANAGEMENT OF COMPANY’S ASSETS ...... 45 ASSET MANAGEMENT ...... 46 3.3 WATER QUALITY CONTROL...... 48 WATER QUALITY CONTROL...... 49 POTABLE WATER INVESTIGATION IN QUARTER I, 2010 – TABLE 11 ...... 49 REPORTS ON NATURAL RESOURCE UTILIZATION ...... 51 THE AMOUNTS OF NATURAL RESOURCE UTILIZATION AND ECOLOGICAL FEES PER SECTOR OF THE REGIONAL BRANCHES TABLE-12 ...... 51 THE VOLUMES OF HARMFUL SUBSTANCES DISCHARGED INTO THE WATER BASIN AND THE MAXIMUM PERMISSIBLE DISCHARGE, (MPD) TABLE-13 ...... 53 3.4 QUALITY, SAFETY & ENVIRONMENT ...... 55 REPORT ON THE ACTIVITIES IMPLEMENTED BY THE QUALITY, SAFETY AND ENVIRONMENT DEPARTMENT IN THE I QUARTER OF 2010...... 56 3.5 COMPANY’S PROCUREMENT ...... 60 INFORMATION ABOUT PROCUREMENT WITHIN AWSC BUDGET, Q I, YEAR 2010 TABLE – 14 ...... 61 3.6 TRANSPORTATION ...... 62 TRANSPORTATION ...... 63 4. ADMINISTRATION ...... 64 4.1 FINANCE & ACCOUNT ...... 65 SUBSIDY TABLE-15 ...... 66 INFORMATION CONCERNING INCOMES AND EXPENSES OF AWS CJSC IN I QUARTER, 2010 TABLE-16 ...... 67 CAHS FLOW– DIAGRAM 17 ...... 68

QUARTERLY REPORT January-March 2010

4.2 HUMAN RESOURCES ...... 69 1. HUMAN RESOURCE POLICY AND ACCOUNT DIVISION ...... 70 DIAGRAM 18 ...... 72 DIAGRAM 19 ...... 72 2. TRAINING AND DEVELOPMENT DIVISION...... 73 TRAINING OF PERSONNEL TABLE-17 ...... 74 4.3 LEGAL & INSURANCE ...... 75 5. PROJECTS...... 77 5.1 W B ...... 78 Environmental and Social Safeguards ...... 80 TABLE-18 ...... 80 5.2 A D B ...... 81 STATUS OF PREPARATION OF PRELIMINARY AND DETAILED DESIGN TABLE-19 ...... 82 Environmental and Social Safeguards ...... 83 Physical Implementation of Works Table-20 ...... 83 TABLE-21 ...... 88 5.3 E B R D ...... 89 PHYSICAL IMPLEMENTATION OF WORKS TABLE-22 ...... 91 6. PUBLIC RELATIONS ...... 94

QUARTERLY REPORT January-March 2010

1. COMMERCIAL

QUARTERLY REPORT January-March 2010

QUARTERLY ACTIVITIES

G e n e r a l

In general the indicators recorded in first quarter 2010 are satisfactory. Winter period did not create specific difficulties for natural course of the Company‟s activities (unlike previous years when many water meter went out of the order, water supply continuity was interrupted, etc).

At present one of the major preconditions of improving the Company‟s indicators is the improvement of the customers‟ servicing quality by raising their awareness level. The Company‟s Commercial Department is being implemented a number of joint programs with the Public Relations Department for raising the customers‟ awareness level.

On February 2010 all the households of Charentsavan town and adjacent villages were provided with the balance of their customers‟ card (as of the months) in registered envelopes containing information about the water consumption in cubic meter, amount subject to payment, payments, final debts, etc., as well as an awareness paper informing the customers about the terms and conditions for participating in drawing of lots, making payment only through the HayPost offices etc.

The purpose of such activities is to keep the customers informed about their debts, as well as debt accumulation reasons. The program was a success and lot of feedbacks have been received form the customers, as well as debt repayment increase has been recorded. This program is in progress and similar activities are planned to carry out for all the customers serviced by the Company.

The Company‟s supervision team continues paying random visits to the communities due to which a lot of illegalities are being revealed and eliminated. Spacial attention is paid on technical conditions provided to the cutomers to be connected to the water and wastewater systems.

2 0 1 0 January February March T o t a l

Number of discovered violations 7 14 22 43 including

illegal connections 4 14 22 40

non-calculated customers 3 0 0 3

The amount of recorded penalty 423 1 787 2 127 4 337 (thous. AMD)

QUARTERLY REPORT January-March 2010

In general due to the commercial activities carried out in the first quarter 2010, 546 illegalities have been recorded and relevant “Violation acts‟ have been made amounting AMD 10.7 mln.

Illegal connections in VAYK, MARTUNI towns

This is also one step forward for fighting against illegal connections.

Regardless the fact that all the indicators are being increased and the improvements are obvious, the water losses constitute 85% (in some sectors 95%). Commercial violations have a considerable weight and the fighting against all the vilolations can have a success only in case of joint activities of all the employees.

C O M M E R C I A L I N D I C A T O R S

I n s t a l l a t I on of w a t e r m e t e r s

It should be mentioned that good results have been recorded in regard to installation of water meters. i.e instead of planned 3090 water meters 6360 have been installed (versus 4040 watermeters of the previous year). Such a result is also explained by favourable weather conditions. In 2010 it is planned to install 35630 water meters. Along with installation of water meters, the water meters of private houses are moved from the customers‟ territories and installed in special water meter chambers.

QUARTERLY REPORT January-March 2010

C o l l e c t I o n

The collection dynamics of 2010 has the following picture:

2010 01.10 02.10 03.10 % I quarter Task Collection 79 410 93 384 107 049 279 844 Actual collection 72 028 89 769 104 221 266 018 Defference -7 382 -3 615 -2 829 -13 826 -4,9%

North We st 2009 collection 55 506 66 458 68 622 190 587 Deff.2010-2009 16 521 23 311 35 599 75 431 39,6% Task Collection 91 793 107 764 126 129 325 686 Actual collection 104 979 108 965 115 360 329 305 Defference 13 186 1 202 -10 769 3 618 1,1% 2009 collection 70 676 78 174 83 761 232 611 Center West Deff.2010-2009 34 303 30 791 31 599 96 693 41,6% Task Collection 73 518 91 154 113 813 278 486 Actual collection 58 779 75 572 99 061 233 412 Defference -14 740 -15 582 -14 753 -45 074 -16,2% Sou th 2009 collection 46 604 61 594 54 624 162 822 Deff.2010-2009 12 175 13 978 44 437 70 590 43,4% Task Collection 244 722 292 302 346 992 884 015 Actual collection 235 786 274 307 318 642 828 734 Defference -8 936 -17 995 -28 350 -55 281 -6,3% AWSC 2009 collection 172 787 206 227 207 006 586 020

Deff.2010-2009 62 999 68 080 111 635 242 714 41,4%

Though each month the collection indicators are being improved, the undertaken task has not been fulfilled by AMD 55.0 mln. It should be noted that out of AMD 55.0 mln. AMD 20.0 mln is one month consumption of Ministry of Defense. This amount will be received by the Company on December as two months payment. The total amount of nonfulfilment constitutes AMD 35 mln which should be covered during the forthcoming months.

QUARTERLY REPORT January-March 2010

Number of customers making payments

This indicator has also been improved. The number of customers making regular payments are being increased on monthly basis involving the customers not making payments for years.

N u m b e r o f r e g u l a r y p a y e r s 150 000 129 611 (76%) 130 000 111 922 108 835 (66%) 133 283 (64%) 126 756 (78%) 110 000 92 711 (75%) 85 507 (55%) 107 805 90 000 (50%) (63%)

70 000

50 000 52 997 (31%) 30 000 Number of Customers receiving services : around 170 000

10 000

The comparison with the same period of previous year has the following picture:

N u m b e r o f p a y m e n t s 140 000 133 283 129 125 129 611 130 000 126 756 126 436 123 308 122 085 121 763 125 353 120 000 121 620 119 828 111 616 111 820 111 922 110 000 107 805 105 239 110 409 108 095 108 843 109 368 100 000 100 877 105 884 96 733 89 728 90 000 98 663 87 404 80 000 84 769

70 000 Number of Customers receiving services : around 170 000 60 000

2008 2009 2010

QUARTERLY REPORT January-March 2010

T A S K S F O R 2 0 1 0

As it was mentioned above special attention should be paid on raising the customers‟ awareness level. It is planned to inform all the customers about their one year balance by sending them registered enveloped letters, broadcast regular reminders and announcements to make the payments through HayPost offices and banks.

Such activities were pursued during 2009 yielding good results.

On April the names of the customers not making payments within a year will be published in “Hayastani Hanrapetutjun” newspaper which has already become a tradition in the Company. This time Ashtrak, Masis, Dilijan and Goris towns were selected.

Also, see below

Diagrams 1-3

DIAGRAM 1

Billing & Revenue collection (Collection n, Billing n-1) Billing Revenue Collection 400 360 347 357 350 326 310 319 301 300 327 278 310

250 274 259 262 242 236 200 196 179 MillionsAMD 150

100

85 50

0 01/05 12/05 12/06 12/07 12/08 12.09 01.10 02.10 03.10

QUARTERLY REPORT January-March 2010

DIAGRAM 2

Cummulative billing & collection Billing Revenue Collection

5 000 4 624

4 500 4033 4 000 3 626 3 432 3 268 3 220 3388 3 500

3 000 2 683 2 443 2 308 2 500 2 135 1 834

Millions AMD Millions 1 599 2 000 1 593

1 500 970 829 1 000

500

0 2003 2004 2005 2006 2007 2008 2009 as of 01.04.2010

DIAGRAM 3

BILLING PAYMENTS IN AWSC

2004 2005 2006 2007 2008 2009 2010

360 Pic due to the payment of budget organizations for 3 357 340 months 320 319 New tariff from: 1st April 2009 300

280 260 260

240 243 220

mln.AMD 200 196 179 180

160 141 140

120 Management Contract New tariff from: 100 started date: 1st May 2005 19th October 2004 80

QUARTERLY REPORT January-March 2010

2. OPERATION & MAINTENANCE

QUARTERLY REPORT January-March 2010

2.1 WATER PRODUCTION

QUARTERLY REPORT January-March 2010

PRODUCTION DEPARTMENT

1.PRODUCED WATER QUANTITY AND POTABLE WATER LOSSES

In the 1th quarter 2010 the produced water constituted 46 233.5 thousand cubic meter (by gravity 30 496 thousand cubic meter and by pumping 15 738 thousand cubic meter).

The main activities of the production department and “Jrar” production units operating in the Company‟s regional branches were mainly directed at ensuring the uninterrupted operation works of the main facilities during winter period.

As a result of close cooperation planned and operation works of the main facilities and equipment had continuous and efficient character. It is important to state that the vast majority of the works implemented in above mentioned facilities are planned works but not breakdown repairing works.

During the launch of the WB first loan program (2005) due to a number of investments it was expected to reduce water losses. The improvements of the recent years, however, caused only to more or less correct calculations of water supply, reduction of water volume taken from nature and used by the consumers. Thus, all these did not result in the reduction of water losses. The indicators of water losses are quite different during the year and constitute 82- 85%.

For the purpose of detecting and eliminating water losses a decision was made by the company‟s General Director to set up a committee which started its activities at the beginning of 2010. Based on the thorough investigations carried out in Masis, Dilijan and Vayq towns the commission made its first conclusion.

At present a number of activities are being carried out by the committee for detecting the reasons of incorrect calculations, technical (corrosion of pipelines and valves), and commercial causes of water losses (various illegalities by the customers) after which appropriate measures will be taken for water loss reduction.

QUARTERLY REPORT January-March 2010

WATER PRODUCTION & LOSSES DIAGRAMS – 4,5

W A T E R P R O D U C T I O N 50000 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 January Februaray March I Quart Gravity 10786 9640 10070 30496 Delivered thrugh pumps 5607 4999 5132 15738 Total 16393 14639 15202 46234

W A T E R L O S S E S 90 88 86 88 87,1 87,3 84 86,6 82 % 80 78 76 74 72 70 January February March I Quart

QUARTERLY REPORT January-March 2010

WATER PRODUCTION & LOSSES TABLE-1

WATER PRODUCTION WATER DELIVERED UN-ACCOUTED FOR WATER /thousand m3/ /thousand m3/

Name of

Source

N January February March I Quarter (pumping station) water water water water

SECTORS thous thous thous thous

Iquart Iquart March March losses losses losses losses

SUBSECTORS 3 3 3 3 January

January m m m m February February % % % % 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 NORTH-WEST REGION Makravan - 4 643 597 639 1879 106 102 105 312 756 88 696 87 752 88 2203 88

p/s Bujakan s. 16 14 16 46

Aramus p/s 155 140 150 445 Abovyan Akunq p/s 48 46 52 146 1 Abovyan Total 861 798 856 2515 106 102 105 312 756 88 696 87 752 88 2203 88

Byuregavan Nurnus s. 103 93 99 295 20 21 21 62 82 80 72 78 78 79 232 79

Total 103 93 99 295 20 21 21 62 82 80 72 78 78 79 232 79 Total 964 891 955 2810 126 123 126 374 838 87 768 86 830 87 2436 87

Solak p/s 18 15 14 47 71 64 65 201 356 83 309 83 326 83 991 83

Alapars s. 151 123 119 392 Makravan-4 - 214 194 214 622 2 Abovyan main

Charencavan Gyumush s. 37 35 37 109 Charencavan Fantan b-h 6 7 7 21 Total 427 373 391 1192 71 64 65 201 356 83 309 83 326 83 991 83

Makravan-2 81 66 60 207 26 22 16 64 60 70 48 69 51 76 160 71 p/s Tegenis s. 3 2 5 9

Tsaghkadzor Ulashik WCS 3 2 2 7

Total 87 70 67 223 26 22 16 64 60 70 48 69 51 76 160 71 Makravan-4 -

3 80 73 80 233 73 70 70 213 1078 94 945 93 1017 94 3040 93 Hrazdan Abovyan main Solak p/s 7 7 7 21

Hrazdan Makravan 2-3 1064 935 999 2998 p/s Total 1152 1014 1087 3253 73 70 70 213 1078 94 945 93 1017 94 3040 93 Total 1239 1084 1154 3476 100 91 86 277 1139 92 993 92 1068 93 3200 92 Golovino 91 112 117 320 33 31 31 95 207 86 252 89 238 88 697 88 WCS

Florovi Balka

81 90 82 253 WCS

Bldan WCS 60 71 62 193 Dilijan 4 Dilijan Shamakhyan 6 7 6 19 s. Jiliut Tala s. 2 3 2 7 Total 240 283 269 792 33 31 31 95 207 86 252 89 238 88 697 88 Qarqarut s. 80 73 107 260 39 37 41 117 255 87 225 86 319 89 799 87 Spitak dzur s. 67 61 80 208 Getahovit s. 67 61 80 208 Anapat s. 34 27 40 102

Ijevan Khozmarag s. 21 19 27 68

5 Getapnya p/s 5 5 6 16 Ijevan Dzr i dzor s. 8 7 8 23 Gmbet s. 5 5 5 16 Azatamut s. 5 5 5 16 Total 294 262 359 915 39 37 41 117 255 87 225 86 319 89 799 87 Berd Berd WTP 66 75 90 231 15 15 15 45 55 78 65 82 80 84 200 82 16

QUARTERLY REPORT January-March 2010

WATER PRODUCTION WATER DELIVERED UN-ACCOUTED FOR WATER /thousand m3/ /thousand m3/

Name of

Source

N January February March I Quarter (pumping station) water water water water

SECTORS thous thous thous thous

Iquart Iquart March March losses losses losses losses

SUBSECTORS 3 3 3 3 January

January m m m m February February % % % % 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Chatakh s. 4 5 5 14 Total 70 80 95 245 15 15 15 45 55 78 65 82 80 84 200 82 Total 364 342 454 1160 54 52 55 161 310 85 290 85 399 88 999 86

Berdavan b-h 22 26 25 72 12 11 10 33 33 74 37 76 41 80 110 77 Ayrumi p/s 22 21 22 65 Srocahanq s. 0 0 0 0 Noyemberyan Gij sari s. 1 0 3 4 Spitakashen s. 1 1 1 2 6 Varar agbyur s. 0 1 1 1 Alaverdi Total 45 48 51 144 12 11 10 33 33 74 37 76 41 80 110 77 Lori berd s, 589 532 606 1727 41 39 42 122 736 95 662 94 779 95 2177 95 Alaverdi Agarak s. 188 169 214 571 Total 777 702 820 2298 41 39 42 122 736 95 662 94 779 95 2177 95 Total 822 749 871 2442 52 51 52 155 769 94 699 93 819 94 2287 94 Chakhkali s. 68 70 75 213 29 26 25 80 230 89 235 90 235 90 700 90

Drashen b-h 99 100 90 289 Nalband b-h 77 78 80 235 Spitak Ghazanchi s, 8 8 10 26 Spitak b-h 6 5 5 17

Total 258 261 260 779 29 26 25 80 230 89 235 90 235 90 700 90 Gyulidar s, 8 7 8 23 33 37 37 107 335 91 319 90 300 89 954 90

7 Stepanavan Getavan p/s 143 153 113 409

Stepanavan Novoseltsovo 217 196 216 629 s, Total 368 356 337 1061 33 37 37 107 335 91 319 90 300 89 954 90 Novoseltsov p/s 115 90 75 280 36 34 38 107 151 81 121 78 109 74 382 78 Tashir Sevaberd s. 41 37 41 119 Bazumi s. 31 28 31 90 Total 187 155 147 489 36 34 38 107 151 81 121 78 109 74 382 78 Total 813 772 744 2329 97 97 100 293 716 88 676 87 644 87 2036 87 MAIN TOTAL 4868 4495 4838 14201 534 508 515 1556 4334 89 3987 89 4324 89 12645 89

CENTER-WEST REGION

Masis c. Araratyan 1,2 p/s 409 382 384 1175 63 59 61 182 346 85 323 85 323 84 992 84

Total 409 382 384 1175 63 59 61 182 346 85 323 85 323 84 992 84

Araratyan 1,2 499 467 469 1435 1 Masis Masis v. p/s 49 49 52 151 459 90 428 90 428 89 1315 90 Yerevan Djur 10 10 10 31 Total 509 477 480 1466 49 49 52 151 459 90 428 90 428 89 1315 90 Total 917 859 864 2640 112 108 113 333 805 88 751 87 751 87 2307 87 Ghazaravani 58 35 50 142

b-h

Bazmagbyur 3 s. 896 822 914 2632 Ghazaravani 199 197 210 605 808 80 708 78 789 79 2304 79

2 s. Echmiadzin Echmiadzin Artameti p/s 6 6 5 16 Kozdasheni 47 42 31 120 p/s Total 1006 904 999 2910 199 197 210 605 808 80 708 78 789 79 2304 79

Artashati

129 104 106 340 b-h Garni s. 952 862 934 2748 168 164 193 526 913 84 802 83 847 81 2562 83

3 Artashat

Artashat Gay- 0 0 0 0 Haykashen s. Total 1081 966 1040 3088 168 164 193 526 913 84 802 83 847 81 2562 83

QUARTERLY REPORT January-March 2010

WATER PRODUCTION WATER DELIVERED UN-ACCOUTED FOR WATER /thousand m3/ /thousand m3/

Name of

Source

N January February March I Quarter (pumping station) water water water water

SECTORS thous thous thous thous

Iquart Iquart March March losses losses losses losses

SUBSECTORS 3 3 3 3 January

January m m m m February February % % % % 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Garni s. 176 154 191 521 Vedi 127 117 125 369 117 48 102 46 134 52 353 49

Dzermanis s. 68 65 68 201

Total 244 219 259 722 127 117 125 369 117 48 102 46 134 52 353 49

4 Vedi Ararat Garni s. 158 155 164 477 51 44 44 139 107 68 111 72 120 73 338 71 Total 158 155 164 477 51 44 44 139 107 68 111 72 120 73 338 71 Total 402 374 423 1199 178 162 169 508 224 56 212 57 254 60 691 58 Artik 367 192 107 666 reservoir Artik 77 72 73 222 593 89 386 84 329 82 1308 86 Mantash 303 266 295 864 reservoir Total 670 458 402 1529 77 72 73 222 593 89 386 84 329 82 1308 86 Zovasar s. 17 25 26 69 Talin Jinj Akner s. 27 28 30 85 17 39 54 66 54 64 126 60 Kentagbyur s., 26 56 58 141 N 809 s.

Total 44 82 85 210 27 28 30 85 17 39 54 66 54 64 126 60

Dagdzutner s. 48 45 43 136

5 Artik Sari s. 5 5 7 16 Ghazanchi s. 19 18 19 56

Lusagbyur s. 10 9 7 26 Zuygaghbyur 15 13 19 47 91 86 84 87 77 80 251 84 8 6 6 20

Ashotsk s. Gazanchi s. 11 9 8 28 Dzragacneri 0 0 0 0 s. Bavra b-h 5 5 7 17 Total 106 96 96 298 15 13 19 47 91 86 84 87 77 80 251 84 Total 819 636 582 2037 118 112 122 353 701 86 524 82 460 79 1684 83 Karbi b-h 97 92 102 291 Artak p/s 140 106 76 322 Artashavan s. 166 128 83 377

Sagmusavan s. 119 108 110 337

Wosketas s. 12 10 8 29 81 81 120 281 1089 93 893 92 815 87 2798 91 Bazmagbyur 47 22 25 94 Ashtarak b-h

Kazaravan b- 33 19 24 76 h Bazmagbyur-3 6 s.

Ashtarak 558 490 506 1554 Kazaravan s Total 1170 974 936 3080 81 81 120 281 1089 93 893 92 815 87 2798 91 Ortachit s.

28 26 28 82 Geghagzor s. 17 16 25 58 153 90 117 88 126 84 396 87

Eznak p/s 141 107 123 371 Aparan Jami p/s 0 0 0 0 Total 169 133 151 453 17 16 25 58 153 90 117 88 126 84 396 87 Total 1339 1107 1087 3533 97 96 145 339 1242 93 1011 91 942 87 3194 90 MAIN TOTAL 5565 4847 4994 15407 873 840 951 2664 4692 84 4008 83 4043 81 12743 83

SOUTH REGION

Sarnagbyur s. 107 93 77 277 12 9 15 36 95 89 84 90 62 81 241 87 Eghegnadzor Qarasun s. 134 116 97 347 7 5 9 22 127 95 111 95 88 91 325 94 1 Vostan s. 166 144 120 430 8 7 11 27 158 95 137 95 109 91 403 94

Eghegnadzor Total 407 353 294 1054 27 21 35 84 380 93 332 94 259 88 970 92

QUARTERLY REPORT January-March 2010

WATER PRODUCTION WATER DELIVERED UN-ACCOUTED FOR WATER /thousand m3/ /thousand m3/

Name of

Source

N January February March I Quarter (pumping station) water water water water

SECTORS thous thous thous thous

Iquart Iquart March March losses losses losses losses

SUBSECTORS 3 3 3 3 January

January m m m m February February % % % % 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Vayk Bazmagbyur s. 335 315 317 966 22 19 21 61 313 94 296 94 296 93 905 94 Total 335 315 317 966 22 19 21 61 313 94 296 94 296 93 905 94 Jermuk Dzrasar s. 80 78 77 234 14 10 14 37 66 83 67 87 63 82 197 84 Total 80 78 77 234 14 10 14 37 66 83 67 87 63 82 197 84

Total 822 745 687 2254 63 50 70 182 759 92 695 93 617 90 2071 92

Shaqe s. 272 229 201 702 47 49 46 143 225 83 180 79 155 77 559 80 Mukhutyan s. 28 26 20 74 4 4 4 12 24 86 22 85 16 81 62 84

2 Sisyan Sisyan Zor - zor s. 7 6 6 18 1 1 1 3 6 87 5 84 5 86 16 86

Total 307 260 226 793 52 54 51 157 255 83 206 79 176 78 636 80

Akner s. 258 230 244 732 25 23 24 72 233 90 207 90 220 90 660 90 Goris 3 Goris Mukhutyan s. 546 487 516 1549 42 42 44 128 504 92 445 91 471 91 1420 92 Total 804 718 759 2281 66 65 68 200 737 92 653 91 691 91 2081 91 Geghi s, 1 15 50 66 0 1 7 8 1 88 14 95 43 86 58 88

Surin kap s. 54 48 40 142 10 9 9 28 43 81 39 81 31 79 114 80

Geghi WCS 1223 1040 1074 3337 78 70 73 222 1145 94 970 93 1000 93 3115 93 Chanakhchi

Kapan 206 169 188 563 27 25 20 71 179 87 144 85 169 90 491 87 WCS

Vachagan 4 4 3 10 2 1 2 5 2 47 3 71 1 30 5 50 WCS

4 Total 1487 1275 1355 4117 118 106 110 334 1369 92 1170 92 1244 92 3783 92 Kapan Agarak b-h 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Agarak WCS 177 141 121 438 69 67 75 212 108 61 73 52 46 38 227 52 Megri Setenc s. 25 15 21 61 2 2 2 6 23 92 13 87 19 90 55 90 Megri WCS 248 202 231 681 7 7 7 22 241 97 195 96 223 97 659 97 Total 450 358 373 1181 78 77 85 240 372 83 281 79 288 77 941 80 Total 1937 1633 1727 5297 196 182 195 573 1741 90 1451 89 1532 89 4724 89 Dzknget s. 0 0 0 0

Hatsarat p/s 130 112 130 372 Maqravan-2- 36 34 39 110 341 90 284 89 317 89 943 90

Sevan 38 36 39 112

Gagarin

Lchashen b-h 185 147 160 493

5 Sevan Total 353 294 330 976 36 34 39 110 316 90 260 88 290 88 867 89 Kushchinski s. 18 18 20 56 Chambarak 3 3 3 9 22 87 21 88 24 89 67 88 Taqa s. 7 6 7 20 Total 25 24 27 76 3 3 3 9 22 87 21 88 24 89 67 88 Total 378 318 356 1052 39 37 42 119 338 90 281 88 314 88 933 89 Akunq s. 189 176 175 539 St. Vardan s. 85 79 79 243 Vartenis 37 30 31 98 622 94 584 95 580 95 1786 95 Akner s. 193 180 179 552 Shat Jreq s. 193 180 178 550 Total 659 614 611 1884 37 30 31 98 622 94 584 95 580 95 1786 95

Tsakqari s. 180 180 180 540 Martuni 23 21 22 66 187 89 189 90 188 89 564 90 Hopoy var s. 30 30 30 90 6 Gavar Total 210 210 210 630 23 21 22 66 187 89 189 90 188 89 564 90 Kaler p/s

Hatsarat p/s 738 641 681 2061 Khacher p/s 86 95 93 275 758 90 703 88 698 88 2159 89

Gavar Sarukhan p/s 71 129 82 282 Gandzak b-h 35 28 28 91 Total 844 798 791 2434 86 95 93 275 758 90 703 88 698 88 2159 89 Total 1713 1623 1612 4948 146 146 147 439 1567 91 1477 91 1465 91 4509 91 MAIN TOTAL 5960 5296 5369 16625 563 534 573 1670 5398 91 4762 90 4796 89 14955 90

GRAND TOTAL 16393 14638 15201 46233 1970 1881 2039 5890 14424 88 12757 87 13163 87 40343 87,3

QUARTERLY REPORT January-March 2010

2. POTABLE WATER DISINFECTION

In the 1st reporting quarter ¿ 17 799 kg liquid chlorine and 3789.5 kg hypochlorite pills were used for disinfection purposes.

The process of repairing 7 chlorination stations, replacing old equipment of chlorination stations with new modern equipments planned for this year is in progress, which will considerably reduce the drinking water disinfection with hypochlorite pills, as well as improve the efficiency of chlorination stations operation and water disinfection process. Inspection visits are continuously paid to the chlorination stations for studying their operation and technical conditions, as well as maintenance of earlier installed chlorination equipment.

The preparatory works of re-operation of chlorination stations, replacement of old equipment of chlorination stations with new modern equipments

QUARTERLY USE OF DISINFECTION MATERIALS TABLE – 2

QUARTERLY REPORT January-March 2010

BALANCE in the BALANCE as of the RECEIVED UTILIZED SECTORS AND beginning of IV quarter end of IV quarter N SUBSECTORS LIQUID Hypochlorite LIQUID Hypochlorite LIQUID Hypochlorite LIQUID Hypochlorite CHLORINE PILLS CHLORINE PILLS CHLORINE PILLS CHLORINE PILLS (kg) (kg) (kg) (kg) (kg) (kg) (kg) (kg) 1 2 3 4 5 6 7 8 9 10 8 Dilijan 70 0 390 0 390 0 70 0 9 Nojemberyan 14 0 0 80 14 30 0 50 10 Alaverdi 0 0 800 0 652 0 148 0 11 Stepanavan 8 5 110 80 78 51 40 34 12 Spitak 0 0 0 80 0 75 0 5 13 Tashir 0 0 250 150 165 90 85 60 TOTAL 891 407 5 220 900 4 476 630 1 575 377 CENTER-WEST 1 Artashat 876 0 3 128 200 3 325 200 679 0 2 Echmiatsin 747 200 2 300 200 2 660 400 387 0 3 Masis 390 110 1 830 200 1 471 310 749 0 4 Vedi 11 18 110 80 72 98 49 0 5 Ashtarak 0 140 1 170 240 530 310 35 70 6 Aparan 0 10 120 120 70 130 50 0 7 Artik 125 50 860 40 430 71 555 19 8 Talin 0 57 100 80 90 110 10 27 9 Ashotsk 0 73 0 80 0 141 0 12 TOTAL 2 149 658 9 618 1240 8 648 1 770 2 514 128 SOUTH 1 Egheghnadzor 0 21 0 120 0 141 0 0 2 Vayk 50 0 100 40 145 8 5 32 3 Jermuk 0 20 50 40 25 50 25 10 4 Sisian 50 15 100 80 133 90 17 5 5 Goris 100 0 800 200 660 160 240 40 6 Kapan 857 138 2 400 240 2 629 119 628 259 7 Meghri 30 161 300 200 131 272 199 89 8 Sevan 0 62 160 80 160 41 0 101 9 Gavar 104 114 1 030 200 572 168 562 146 10 Martuni 0 71 60 80 0 111 0 40 11 Vardenis 0 33 220 160 220 159 0 34 12 Chambarak 0 47 0 40 0 71 0 16 TOTAL 1 191 682 5 220 1 480 4 675 1 390 1 676 772 GRAND TOTAL 4 231 1 747 20 058 3 620 17 799 3 790 5 765 1 277

Remark* The information is presented based on operative data.

60kg of liquid chlorine was transferred from “Abovyan” subsector to “Dilijan” sector in March and 60kg of liquid chlorine was transferred from “Martuni” subsector to “Sevan” sector. Due to failure caused by extreme humidity in “Saghmosavank” chlorination station of Ashtarak sector 605 kg of liquid chlorine was leaked. 21

QUARTERLY REPORT January-March 2010

3. ELECTRICITY CONSUMPTION & EXPENSES

During the first 3 months of 2010 actual electricity consumption constituted 10 794 thousand kwt/hour amounting AMD 266 673 thousand. This indicator is by 799 thousand kwt/hour AMD 21 441thousand (7.4%) less than it was planned by budget. In comparison with the same period of the last year 1 891thousand kwt/hour less electricity (14.9%) was consumed which is conditioned by increase of the pumping stations operation efficiency and optimization of the pump working hours. The failures of the pumps and engines have been reduced due to the qualified maintenance of the whole electricity system.

In particular the following works have been organized and implemented:

Preparation and installation of protective commutation panels for 7 intercommunity pumps in Abovyan town.

Preparation and installation of protective commutation panels of “Getavan” pumping station of “Stepanavan” sector.

Preparation and installation of protective commutation panels of “Fantan” and “”Nurnus” pumping station of “Charentsavan” sector.

Preparation and installation of protective commutation panels of “Ayrum” pumping station of “Noyemberyan” sector.

Automation of “Golovino” and “Frolovo” WTPs filter loading systems of “Dilijan” sector.

Maintenance of “Araratyan” 1/2 pumping station of “Masis” sector as well as assembly and adjustment of water level control.

Maintenance and adjustment of water level control of “Hatsarat” pumping station of “Gavar” sector.

New automatic regulation systems

This process will have an ongoing character due to its high efficiency. The centralized maintenance of the Company‟s centrifugal pumps and engines has already been carried out.

QUARTERLY REPORT January-March 2010

ELECTRICITY CONSUMPTION & EXPENSES DIAGRAM – 6

160000 12000

COST 2010 BUDGET 2010 KWH BUDGET 2010 KWH 2010

120000

8000

80000

1000KWH 1000AMD

4000

40000

0 0

July

May

June

April

March

August

October

January

February

December November September

2 3

QUARTERLY REPORT January-March 2010

ELECTRICITY EXPENSES TABLE-3

January February March Total 2010 Variation between total BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL N Sector 2010 actual 1000 1000 1000 1000 1000 1000 1000 1000 and budget AMD AMD AMD AMD AMD AMD AMD AMD % 1 2 3 4 5 6 7 8 9 10 11 North West Region 51 138 47 799 45 745 42 488 45 806 43 705 142 690 133 992 -6,10 1 Abovyan 9 170 9 052 8 258 8 171 8 554 8 887 25 981 26 110 0,50 2 Bjureghavan 292 267 236 307 264 255 793 829 4,59 3 Hrazdan 20 872 20 612 20 007 18 084 20 007 19 386 60 886 58 082 -4,60 4 Tsaghkadzor 5 928 3 584 3 952 2 757 3 705 2 409 13 585 8 750 -35,59 5 Charaentsavan 6 923 6 358 6 264 5 761 6 518 5 878 19 705 17 997 -8,67 6 Ijevan 264 195 225 185 240 191 729 571 -21,68 7 Berd 165 166 150 176 120 149 435 490 12,69 8 Nojemberyan 3 501 3 717 3 214 3 893 3 214 3 370 9 930 10 980 10,57 9 Dilijan 795 765 690 699 705 750 2 190 2 214 1,10 10 Stepanavan 2 360 2 188 2 120 1 909 1 960 1 968 6 440 6 064 -5,83 11 Spitak 240 166 210 152 210 145 660 464 -29,77 12 Tashir 493 618 329 252 219 199 1 041 1 070 2,80 13 Alaverdi 135 111 90 144 90 117 315 371 17,90 Center West Region 29 276 27 147 25 882 23 610 26 789 24 583 81 948 75 339 -8,06 14 Artashat 1 710 1 651 1 500 1 350 1 440 1 385 4 650 4 387 -5,65 15 Vedi 56 100 45 78 54 76 155 254 63,76 16 Masis 12 519 9 964 10 865 8 798 11 810 9 617 35 194 28 379 -19,36 17 Ararat 30 100 30 78 30 76 90 254 182,21 18 Echmiatsin 4 408 5 108 4 176 4 207 4 002 4 162 12 586 13 478 7,08 19 Ashtarak 7 693 7 745 7 021 7 053 7 021 7 075 21 735 21 874 0,64 20 Aparan 1 840 1 672 1 585 1 358 1 713 1 512 5 138 4 542 -11,59 21 Talin 90 152 60 92 60 108 210 352 67,40 22 Artik 90 131 60 118 60 101 210 350 66,43 23 Ashotsk 840 524 540 478 600 470 1 980 1 472 -25,68 South region 20 396 18 832 18 894 16 555 19 388 16 979 58 678 52 367 -10,76 24 Kapan 450 484 270 459 270 361 990 1 304 31,67 25 Meghri 2 160 351 2 130 338 2 130 291 6 420 980 -84,74 26 Goris 90 119 60 140 75 119 225 378 67,85 27 Sisian 210 357 159 325 144 281 513 963 87,77 28 Egheghnadzor 63 51 51 60 42 26 156 137 -12,40 29 Jermuk 63 78 51 78 42 78 156 234 50,00 30 Vayq 114 145 99 79 84 76 297 300 0,85 31 Gavar 12 406 12 428 11 634 10 923 12 135 11 634 36 175 34 985 -3,29 32 Sevan 4 480 4 686 4 200 4 007 4 256 4 002 12 936 12 695 -1,86 33 Martuni 210 69 150 99 120 63 480 231 -51,92 34 Vardenis 150 65 90 47 90 49 330 161 -51,33 Head Office 1 973 1 724 1 710 1 750 921 1 500 4 603 4 974 8,08 35 Administ.Building 1 973 1 724 1 710 1 750 921 1 500 4 603 4 974 8,08 Total 102 783 95 502 92 231 84 403 92 904 86 767 287 918 266 673 -7,38

QUARTERLY REPORT January-March 2010

ELECTRICITY CONSUMPTION TABLE-4

January February March Total 2009 Variation Variation Total between between N Sectors BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL of year total 2009 2009 2008 and actual and 1000 1000 1000 1000 KWH 1000 KWH 1000 KWH 1000 KWH 1000 KWH 2009 budget KWH KWH KWH 1 2 3 4 5 6 7 8 9 10 11 12 13 North West 5614 2 052 1 926 1 836 1 698 1 837 1 731 5 725 5 355 - 5 -6,46 1 Abovyan 993,0 372 367 335 332 347 354 1 054 1 053 6 -0,13 2 Bjureghavan 28,2 11 10 9 12 10 12 29 33 17 15,42 3 Hrazdan 2316 845 837 810 733 810 774 2 465 2 344 1 -4,93 4 Tsaghkadzor 601,9 240 145 160 112 150 96 550 353 - 41 -35,79 5 Charaentsavan 717,4 273 256 247 229 257 231 777 717 0 -7,74 6 Ijevan 22,1 9 7 8 6 8 6 24 19 - 14 -21,44 7 Berd 13,7 6 6 5 6 4 5 15 16 19 12,69 8 Nojemberyan 365,0 122 127 112 130 112 113 346 370 1 6,82 9 Dilijan 68,9 27 26 23 23 24 25 73 74 7 1,10 10 Stepanavan 306,4 118 110 106 96 98 98 322 304 - 1 -5,58 11 Spitak 21,4 8 6 7 5 7 5 22 15 - 28 -29,77 12 Tashir 146,2 18 27 12 10 8 8 38 45 - 69 19,28 13 Alaverdi 14,0 5 4 3 5 3 4 11 12 - 12 17,90 Center West 3638 1 134 1 061 1 002 924 1 041 954 3 176 2 939 - 19 -7,48

14 Artashat 263,7 57 56 50 46 48 47 155 148 - 44 -4,27 15 Vedi 9,6 2 3 2 3 2 3 5 9 - 8 70,60 16 Masis 1633,9 530 429 460 378 500 414 1 490 1 221 - 25 -18,02 17 Ararat 9,6 1 3 1 3 1 3 3 9 - 8 194,00 18 Echmiatsin 538,3 152 187 144 150 138 146 434 484 - 10 11,44 19 Ashtarak 837,7 286 291 261 268 261 262 808 822 - 2 1,70 20 Aparan 248,3 72 64 62 53 67 57 201 173 - 30 -13,78 21 Talin 18,2 3 5 2 3 2 4 7 12 - 36 67,40 22 Artik 17,2 3 4 2 4 2 3 7 12 - 32 66,43 23 Ashotsk 61,8 28 17 18 16 20 16 66 49 - 21 -25,68 South region 3255 872 831 810 729 834 756 2 516 2 311 - 29 -8,14 24 Kapan 56,7 15 17 9 16 9 12 33 45 - 21 36,13 25 Meghri 244,0 72 12 71 11 71 10 214 33 - 87 -84,74 26 Goris 14,8 3 4 2 5 3 4 8 13 - 15 67,85 27 Sisian 27,2 7 13 5 12 5 10 17 35 30 106,80 Egheghnadzo 2 2 2 2 1 1 5 28 r 7,4 5 - 38 -12,40 29 Jermuk 8,2 2 3 2 3 1 3 5 8 - 5 50,00 30 Vayq 21,4 4 5 3 3 3 3 10 10 - 53 0,85 31 Gavar 2392,4 595 596 558 523 582 556 1 735 1 675 -29,98 -3,45 32 Sevan 466,2 160 176 150 150 152 150 462 476 2 3,11 33 Martuni 9,9 7 2 5 3 4 2 16 8 - 22 -51,74 34 Vardenis 6,7 5 2 3 2 3 2 11 5 - 20 -51,33 Head Office 183 75 67 65 68 35 58 175 193 6 10,42 Administ.Buil 35 75 67 65 68 35 58 175 ding 182,8 193 6 10,42 Total 12 690,2 4 133 3 884 3 713 3 419 3 747 3 496 11 592 10 794 -14,94 -6,88

QUARTERLY REPORT January-March 2010

WATER DELIVERED THROUGH PUMPING AND CORRESPONDING ELECTICITY CONSUMPTION TABLE- 5

WATER CUMULATIVE DELIVERED ELECTRICITY ELECTRICITY during 2010 THROUGH CONSUMPTION CONSUMPTION N SUBSECTORS PUMPING ELECTRICITY WATER 3 3 thousand m / KWH/m thous.KWH/ thousand KWH thousand m3 I quarter I quarter

1 2 3 4 5 6 7 1 Ashtarak 613 1,3 776 776 613

2 Aparan 371 0,4 159 159 371

3 Artashat 340 0,4 130 130 340

4 Echmiadzin 447 0,6 248 248 447

5 Gavar 2 806 0,5 1 514 1 514 2 806

6 Sevan 493 0,6 312 312 493

7 Tashir 280 0,1 20 20 280

8 Stepanavan 409 0,7 272 272 409

9 Noyemberyan 138 2,6 356 356 138

10 Spitak 17 0,5 9 9 17

11 Abovyan 3 325 0,3 958 958 3 325

12 Charentsavan 474 1,1 500 500 474 Hrazdan and 13 3 317 0,8 2 498 2 498 3 317 Tsakhkadzor

14 Meghri 0 0,0 0 0 0

15 Ijevan 16 0,8 13 13 16

16 Masis 2 610 0,5 1 187 1 187 2 610

17 Ashotsk 84 0,5 42 42 84

TOTAL 15 739 0,57 8 993 8 993 15 739

QUARTERLY REPORT January-March 2010

DIAGRAMS – 7,8

WATER DELIVERED THROUGH PUMPING AND CORRESPONDING ELECTICITY CONSUMPTION

16000 14000 12000 10000 8000 6000 4000 2000 January February March I Quart Water 5607 4999 5132 15738 El. energy 3238 2892 2927 9057

ELECTRICAL CONSUMPTION KWH/m3

0,8

0,6 0,58 0,57 0,57 0,57 0,4

0,2

0 January February March I Quart

4. WATER METERS EQUIPMENT INSTALLATION

During the 1st quarter the main activities were mainly aimed at ensuring the uninterrupted operation of main water meters during winter period. The installation and investigation works of water meters in main facilities are still in process. Two electrical Magnetic water meters have been repaired in the company‟s main facilities.

For repairing purposes rotating mechanism of 48 mechanical, broken water meters have been dismantled and appropriate covers have been installed instead for ensuring uninterrupted water supply to the customers.

12 water meters have already been repaired in the laboratories and have been installed. Works are being carried out to repair the rest of the

broken water meters.

Replacement of broken water meters with new ones 27

QUARTERLY REPORT January-March 2010

PROGRESS OF THE WATER METERS EQUIPMENT INSTALLATION BY THE AWS CJSC IN ITS MAINTENANCE AREA TABLE - 6, DIAGRAM – 9

WATER METERS REQUIRED & INSTALLED In entrance of Individual Bulk water Budget Other apartment apartment of Private houses Total Including meters organizations organizations

buildings building

SECTORS N

NAME

condition

Installed in in Installed

Installed in Installed

requirements requirements requirements requirements requirements requirements requirements

Not working in

reporting quart

meters installed meters installed meters installed meters installed meters installed meters installed meters installed reporting month number number number number number number number number number number number number number number number number number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 NORTH WEST 1 Abovyan 1 17 308 34 16 528 20 065 2 321 3 146 7 63 61 578 19 226 23 903 83 371 67 2 Charencavan 4 9 178 18 1 918 8 317 1 148 2 732 12 60 86 326 3 346 11 462 44 144 30 3 Hrazdan 2 9 339 0 4 580 12 120 2 081 3 136 14 90 71 559 7 087 15 914 148 416 31 4 Dilijan 2 9 97 1 1 500 1 952 1 278 1 971 16 45 29 126 2 922 4 104 23 97 35 5 Ijevan 0 12 177 0 1 590 3 932 494 3 430 5 61 12 291 2 278 7 726 44 136 22 6 Stepanavan 1 48 148 34 1 178 3 672 2 656 7 621 8 94 35 376 4 026 11 845 46 162 86 7 Alaverdi 0 40 246 0 1 595 6 318 2 294 4 881 8 88 20 213 4 163 11 540 112 184 34 Total 10 144 1493 87 28 889 56 376 12 272 26 917 70 501 314 2 469 43 048 86 494 500 1 510 305 CENTER WEST

1 Artashat 0 78 123 0 2 096 4 032 12 904 11 755 48 107 101 312 15 272 16 284 134 980 140 2 Vedi 0 28 159 0 1 328 4 871 6 076 6 642 41 59 64 280 7 668 11 880 253 593 210 3 Echmiadzin 0 85 247 0 761 8 713 17 143 10 772 56 81 56 718 18 263 20 369 127 306 231 4 Masis 14 17 69 0 851 3 736 3 391 6 617 19 64 30 489 4 374 10 923 264 724 104 5 Ashtarak 2 58 209 0 976 4 080 7 873 5 799 43 81 58 334 9 161 10 352 91 269 42 6 Artik 15 61 257 0 2 099 3 320 8 670 4 369 56 94 74 317 11 171 8 161 144 350 57 Total 31 327 1064 0 8 111 28 752 56 057 45 954 263 486 383 2 450 65 909 77 969 1 013 3 222 784 SOUTH 1 Goris 1 13 154 0 499 3 005 924 3 545 19 61 19 188 1 616 6 812 30 403 34 2 Eghegnadzor 0 17 124 1 1 062 5 491 680 2 119 2 82 24 475 1 892 8 185 39 217 43 3 Sisian 1 13 97 0 217 3 682 314 1 585 0 67 4 225 633 5 572 - 101 - 69 22 4 Kapan 1 16 339 1 1 698 15 517 1 469 2 255 16 117 84 836 3 607 18 742 73 385 26 5 Gavar 13 42 120 28 2 035 2 553 10 270 7 602 77 104 104 339 12 619 10 668 372 560 138 6 Sevan 0 7 134 12 1 446 6 024 448 2 114 19 55 48 394 2 095 8 606 74 132 41 Total 16 108 968 42 6 957 36 272 14 105 19 220 133 486 283 2 457 22 462 58 585 487 1 628 304 MAIN TOTAL 57 579 3 525 129 43 957 121 400 82 434 92 091 466 1 473 980 7 376 131 419 223 048 2 000 6 360 1 393

Note: 1. The report is prepared according to the data from the customer database and the branches. 2. Considering that the water to individual customers is supplied through more than one pipeline (feeder), the required quantity of water meters is calculated based on the number of customers, applying the k-1.2 index.

NUMBER OF WATER METERS INSTALLED IN REPORTING QUARTER 3500

3000

2500

2000

1500

1000

500

0 January February March I Quart North West 557 453 500 1510 Center West 1126 1083 1013 3222 South 593 548 487 1628

QUARTERLY REPORT January-March 2010

2.2 WATER DISTRIBUTION

QUARTERLY REPORT January-March 2010

DISTRIBUTION DEPARTMENT

5. REPAIRS OF DAMAGES, CAPITAL REPAIRS AND REHABILITATION OF SYSTEMS

Operation and repairing activities in the 1st quarter was organized more efficiently. Despite water supply difficulties in winter period (preservation of water mains and water pipelines from freezing) it was necessary to supply the customers with uninterrupted and better water quality. For solving the above mentioned issues it was necessary to make even distribution of water to the distribution systems, as well as carry out urgent repairing works which resulted in uninterrupted water supply. In the distribution networks the following works have been carried out: 1 728 repairing, 187 partial and linear repairing and 158 partial and linear repairing and 38 reinforcement repairing works.

It is also worth mentioning that illegal connections and illegal water use had their negative impact on water supply which was prevented by organized activities eliminating 62 illegalities in water mains.

The average water supply schedule in the first quarter reached 13, 22 hours meanwhile the water supply schedule increased by 0.82 hour compared with the same period of the s previous year (11.4 hour).

The same working style will be kept during the forthcoming months.

Exploitation Department and Distribution Network Division plans to make the operation, maintenance and prevention works meantime making also repairing works.

QUARTERLY REPORT January-March 2010

OPERATION AND MAINTENANCE OF WATER TRANSMISSION AND DISTRIBUTION SYSTEMS TABLE-7, DIAGRAM 10

NUMBER OF BREAK-DOWNS NUMBER OF LIQUIDATED BREAK-DOWNS

NETWORK PARTLY NETWORK LINEAR ARMATURE

ILLEGAL MAIN TOTAL

REPAIRED REPAIRED REPAIRED DOWNS NOT NOT DOWNS

WATER -

WATER WATER WATER DISTRIBUTION

SYSTEMS SYSTEMS

REPAIRED TRANSMISSION ARMATURE TOTAL

INSPECTION SYSTEM

DISTRIBUTION DISTRIBUTION SYSTEM

TOTAL

WATER WATER WATER

SYSTEM SYSTEM

TRANSMISSION AND AND TRANSMISSION

ARMATURE

BREAK

TRANSMISSON TRANSMISSON

DISTRIBUTION DISTRIBUTION

) ) )

) ) ) ) )

AMD AMD AMD AMD Materi Total

pc pc pc km pc pc pc pc pc pc pc pc pc pc

cost cost cost cost cost cost cost

aterial aterial aterial aterial aterial aterial aterial

Total Total Total Total Total

Total Total Total Total

Total al cost cost

AMD) AMD) AMD) AMD) AMD) AMD) AMD) AMD) AMD)

NAME OF REGIONAL BRANCH REGIONAL OF NAME

M M M M M M M

(thousand (thousand (thousand (thousand (thousand (thousand (thousand (thousand (thousand (thousand

thous. AMD)

thous. AMD thous. AMD

(thous. (thous. (thous. (thous. (thous.

(

( (

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 NORTH WEST 19 236 481 21 1450 2434 11 26 197 10 3 0 0 52 494 15 561 0 52 245 969 494 1663 6301 15 110 302 561 2018 7572 3730 10686 CENTER WEST 44 37 462 39 121 355 2 7 13 0 0 51 130 60 571 16 647 0 60 107 561 571 2998 9546 16 110 751 647 3215 10858 3380 11818

SOUTH 14 124 243 21 579 797 25 1772 1982 6 1 11 0 84 433 3 520 0 84 228 1436 433 840 3299 3 26 49 520 1094 4783 3569 7806

TOTAL 77 397 1 186 81 2 150 3 586 38 1 805 2 191 16 4 62 130 196 1 498 34 1 728 0 196 579 2 966 1 498 5 501 19 146 34 246 1 101 1 728 6 327 23 213 10 679 30 310

CUMU- LATIVE 77 397 1 186 81 2 150 3 586 38 1 805 2 191 16 4 62 130 196 1 498 34 1 728 0 196 579 2 966 1 498 5 501 19 146 34 246 1 101 1 728 6 327 23 213 10 679 30 310

REMARK* The information is presented in base of operative data.

NUMBER OF REPAIRED BREAK-DOWNS, ARMATURE AND WATER TRANSMISSION & DISTRIBUTION SYSTEMS

2500

2000

1500

1000

500

0 January February March I Quart SOUTH 204 166 210 580 CENTER 222 240 270 732 WEST NORTH 148 196 268 612 WEST

QUARTERLY REPORT January-March 2010

NETWORK ANALYSIS TABLE – 8

WATER TRANSMISSION AND DISTRIBUTION SYSTEMS

Water Water Water # REGIONS Transmission Distribution Total Break - downs Losses System System (km) piece/km m3/day km (km) (km)

1 2 3 4 5 6 7 1 NORTH-WEST 785 1 232 2 016 70 0,28 2 CENTER-WEST 1025 1 462 2 487 57 0,26 3 SOUTH 844 977 1 821 91 0,29

TOTAL 2 654 3 671 6 324 71 0.27

DIAGRAMS – 11,12

NUMBER OF BREAK-DOWNS ON 1 KM WATER PIPE

0,35 0,3 0,25 0,2 0,15 0,1 0,05 0 January February March I Quart NORTH-WEST 0,07 0,09 0,12 0,28 CENTER-WEST 0,08 0,09 0,1 0,26 SOUTH 0,1 0,08 0,1 0,29

WATER LOSSES-M3/DAY*KM 120

100

0 January February March I Quart NORTH-WEST 69 71 69 70 CENTER-WEST 61 58 52 57 SOUTH 96 93 85 91

QUARTERLY REPORT January-March 2010

2.3 WASTEWATER & SEWERAGE

QUARTERLY REPORT January-March 2010

WASTEWATER DEPARTMENT 6. WASTEWATER COLLECTION SYSTEMS

During this reporting quarter due to cooperation of Company‟s wastewater department and company‟s regional branches sewer pipeline repair works of Sisian, Charentsavan and Sisian towns were carried out.

In sewage network of Sisian town, in the broken section of the sewer in the territory of the kindergarten N 3 located in Israel Ori street, the accidents and obstructions were very frequent causing insanitary conditions in this territory. By mutual efforts of wastewater division of the given subsector and “South” regional branch the above mentioned broken sewer was fully repaired by making huge civil engineering works. As a result 110 linear meter of sewer pipes with d= 200 mm, as well as 3 metal reinforcement manhole cover were replaced.

Accident of SISIAN sewer pipeline The process of the repair works of SISIAN sewer pipeline

The broken section of internal sewage network of 5th district of Charentsavann town resulted in obstructions and irregular operation causing insanitary conditions. Due to the joint efforts of the sector and “North- West” regional branch repairing works have been carried out as a result of which 30 linear meter of pipes with d=200mm and metal reinforcement cover were replaced.

After the repair works of CHARENTSAVAN sewer pipeline

QUARTERLY REPORT January-March 2010

The broken section of internal sewage network of Spitak town located in Aygestan 2 district as a result of not having connection in the sewer network were flowing by overground way resulted in insanitary conditions causing threat to health of surrounding population . Due to the joint efforts of wastewater department, of the given subsector and “North- West” regional branch repairing works have been carried out as by making huge civil engineering works a result of which 150 linear meter of pipes with d=150mm and 5 new metal reinforcement manhole cover were replaced.

Accident in SPITAK sewer Rehabilitation of SPITAK sewer

During the reporting quarter 25.4 km of sewers and 238 manholes were cleaned, 74 sewers and 29 manholes were repaired as well as 1 802 obstructions were eliminated without any additional investment.

QUARTERLY REPORT January-March 2010

MAINTENANCE OF WASTEWATER COLLECTION SYSTEMS TABLE-9

Including Cleaned Cleaned sewers <300m Repaired sewers Repaired man-holes Cleared blockages Total >300mm manholes

n n

(thous. (thous.

n of Head of Head n

Branch

Name of Name of -

Regional Regional km km km Unit l/m Unit Unit Unit

n of H n

consum

AMD) AMD)

materials materials

Total cost Total

Other costs costs Other costs Other

cons

(thous. AMD) (thous. AMD) (thous. AMD) (thous. reserve of HO AMD) (thous. AMD) (thous. AMD) (thous. AMD) (thous. reserve of HO

Total fuel cost cost fuel Total cost fuel Total cost fuel Total cost fuel Total cost fuel Total cost fuel Total

Total Total

reserve materials reserve

Total other costs other Total

Total fuel cost and cost fuel Total

Other costs (thous. (thous. costs Other costs Other consumption Total

Office reserve mat reserve Office Total cons Total 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 North- 0 0 0 0 13 77 214 194 247 18 85 40 1 0 3 622 67 2 579 1 016 2 860 287 3 148 4 164 West 735

Center- 10,32 475,5 3,46 6,86 1 29 100 26 12 0 0 0 0 49 0 34 491 0 1 339 100 1 874 12 1 886 1 986 West

South 9,94 733,1 0,135 9,951 60 101 458 510 167 11 210 39 0 188 0 175 689 0 735 668 2 191 167 2 359 3 027

TOTAL 20,4 1208,6 3,595 16,811 74 207 772 730 427 29 945 123 40 238 0 212 1802 67 4 653 1 784 6 926 467 7 392 9 177

Cumu- 20,4 1208,6 3,595 16,811 74 207 772 730 427 29 945 123 40 238 0 212 1802 67 4 653 1 784 6 926 467 7 392 9 177 lative

QUARTERLY REPORT January-March 2010

DIAGRAMS – 13,14

MAINS CLEARED 12

6 KM

0 January February March I Quart NORTH WEST 0 0 0 0 CENTER WEST 3,32 3,5 3,5 10,32 SOUTH 3,025 3,7 3,214 9,939

NUMBER OF REMOVAL OF OBSTRUCTIONS, MAINS AND MANHOLES REPAIRED 1000 900 800 700 600 500 400 300 200 100 0 January February March I Quart NORTH WEST 171 225 258 654 CENTER WEST 164 159 219 542 SOUTH 307 344 297 948

QUARTERLY REPORT January-March 2010

NETWORK ANALYSIS TABLE -10

WASTEWATER COLLECTION SYSTEM Wastewater Number of Cleaned # REGIONS Collectors Total System Obstructions Collection Network km km km piece/ km % 1 2 8 9 10 11 12 1 NORTH-WEST 175 742 917 0,7 0,0 2 CENTER-WEST 86 282 368 1,5 2,8 3 SOUTH 95 534 629 1,5 1,6 TOTAL 356 1 558 1 914 1.12 1,06

DIAGRAMS – 15,16

NUMBER OF OBSTRUCTIONS IN 1 KM 1,6 1,4 1,2 1 0,8 0,6 0,4 0,2 0 January February March I Quart NORTH-WEST 0,2 0,2 0,3 0,7 CENTER-WEST 0,4 0,4 0,6 1,5 SOUTH 0,5 0,5 0,5 1,5

LENGTH OF CLEANED WESTEWATER PIPELINE IN % 3

2,5

1,5

0,5

0 January February March I Quart NORTH-WEST 0 0 0 0 CENTER-WEST 0,9 1 1 2,8 SOUTH 0,5 0,6 0,5 1,6

QUARTERLY REPORT January-March 2010

7. SPECIAL WORKS DEPARTMENT

In the 1st quarter of 2010 the Special Works Division carried out works directed at water metering in the areas that are in the service perimeter of the company, adjustment of water supply schedules, detection of losses and their elimination.

Investigations were carried out in “Ghamer” DRR of Aparan town.

The reason of water losses from water main was detected and was assigned to sector to carry out necessary works for elimination and reduction of water losses.

Losses in “Ghamer” DDR of Aparan town

The committee set up by the General Director order carried out works in Masis, Dilijan and Vayq towns which were directed at investigation of water loss structure and their reduction. Particularly in selected areas of Masis town water losses were twice reduced which should serve as a precedent for the water loss reduction in whole Masis town.

The similar works were carried out in Dilijan and Vayq towns where the special department also participated in the works of water metering, adjustment of water supply schedules, detection of losses and their elimination.

The works were also carried out in Sevan town for enabling the regular operation of Gomadzor DRR and ensuring the water supply of multistoried building from the aforementioned DRR without operating the booster pumps.

The elimination and detection works of water losses from DRR of “Zoramas” district in Berd town were accomplished by painting with polymeric materials

DRR of BERD town’s Zoramas district

QUARTERLY REPORT January-March 2010

3. TECHNICAL

QUARTERLY REPORT January-March 2010

3.1 TECHNICAL INVESTIGATIONS, DESIGN & MAPPING OF TECHNICAL SYSTEMS

QUARTERLY REPORT January-March 2010

DURING THE FIRST QUARTER OF 2010 THE TECHNICAL DEPARTMENT CARRIED OUT THE FOLLOWING WORKS:

 Technical investigations, design and mapping  Audit of the capital works  Water quality control  Assets management  Quality, safety, environment  Procurement  Transportation

TECHNICAL INVESTIGATIONS AND DESIGN

1. A plan of activities has been developed to improve water supply of Spitak town (RA Lori marz).

2. Necessary documents have been worked out for sanitary zones of hydrotechnical structures and a tender package was prepared for the World Bank credit program.

Kentaghbjur sanitary zone Zujgaghbjur DRR sanitary zone Talin subsector Ashotsk subsector

3. Draft design of the project “Improvement of Hrazdan town water&wastewater system“ financed by the World Bank has been studied and discussed and relevant proposal has been prepared.

QUARTERLY REPORT January-March 2010

4. Changes have been made in the working draft of “Water supply to Gagarin Community of the RA Gegharkunik marz from Lchashen-Sevan water main“ by changing the route and diameter of the water main.

5. Water & wastewater individual norms are being worked out for extending the effectiveness of the water use permits of the water sources operating by the «AWSC CJSC».

6. Water&wastewater technical conditions have been worked out based on the applications submitted by 20 legal entities.

7. Technical study of “Zvar WTP- Meghri“ water main (Meghri town of the RA Sjunik marz) has been made for the purpose of repairing 750 m broken section of the water main and relevant proposal has been submitted.

8. For the purpose of building a new water main for Agarak «Copper&Molybdenium» plant (RA Sjunik marz) the location has been studied, as well as adjustment of technical data has been made.

AUDIT OF CAPITAL WORKS

1. A regulation has been developed for the “Capital works audit“ devision.

2. Applications have been worked out for implementing capital works based on initial applications received from regional branches for the following works:

QUARTERLY REPORT January-March 2010

Approved applications

. Replacement of corroded section of Alaverdi-Archis 350 m, 530 mm water main; . Repalcement of Ijevan town Spandaryan street water line; . Repalcement of Ijevan town Mehrabyan street water line; . Repairing of 14 residential bulding sewerage lines of Charentsavan town 5th district; . Building of a new sewerage line in Ajgestan 2 district of Spitak town; . Building of a new sewerage line in the area of Kindergarten 3 of Sisian town; . Repairng of sewerage lines of buildings 27, 29, 31, Charents district of Echmiatsin town.

Water line replacement in IJEVAN town

Applications submitted for approval

. Replacement of 5 manhole covers of Abovyan, Sayat-Nova streets sewarege of Martuni town; . Building of a water line in P. Sevak street of Chambarak town; . Renovation of the water main feeding the DRRs of Akhtala communities; . Repairing of sewarage lines of buildings 4, 5, 10, 22, Bjureghavan town; . Repairing of the 5th street sewarage lines of private houses and 8, 23 residential buildings of Bjureghavan town;

. Building of new water lines for 19, 21 residential buldings of Bjureghavan town; . Renovation of central sewer manhole of Bjureghavan town; . Capital repairing of the 2nd and 3rd street water lines, Masis town; . Capital repairing of Nor Hogher 2nd street water line, Masis town; . Building of water lines in Gortsaranayin and Baghtamyan streets of Meghri town.

QUARTERLY REPORT January-March 2010

3.2 MANAGEMENT OF COMPANY’S ASSETS

QUARTERLY REPORT January-March 2010

ASSET MANAGEMENT

In the 1st quarter of 2010 the Assets Management Division implemented the following works:

. Handover and acceptance act was made by the “AWSC” CJSC and “Parviz” LLC (Contract N144 of 08. 07. 2009) according to which “Parviz” LLC handed over to the “AWSC” CJSC 1000 linear meter of steel pipes with 325 mm diameter amounting AMD 18 million.

Jermuk sewerage pumping station

. In 27. 06. 2009 by the order of the “AWSC” CJSC Finance Director the fixed assets of the Company‟s Head Office and 3 regional branches have been depreciated as of 01. 01. 2009 due to which the write-off lists of the fixed assets have been changed and new acts have been prepared and submitted to the SCWE at the RA Ministry of Territorial Administration.

. Upon making additional inventory in Gjumush-1 pumping station and entering the lacking fixed assets into the balance sheet, an act has been made under which the “AWSC” CJSC handed over the inventory of Gjumush-1 pumping station to the “Yerevan Jur ” CJSC, as well as the whole package of documents has been submitted to Charentsavan branch of the RA State Cadastre of Immovable property for registering the relevant rights.

. A Regulation has been developed for assigning the property to the employees and coordinating the responsibility in regard to such property used by the Head Office, regional branch, sector and subsector employees which was submitted to the approval of the directors.

. A letter has been prepared and submitted to the SCWE at the RA Ministry of Territorial Administration for making adjustment in the balance sheet relating to Shake-Brnakot drinking water steel pipeline of 9400 linear meter and 219mm diameter.

. Based on the RA Government Resolution N314-Ü of 13. 03. 2003 works are being carried out to clarify the availability of non used irrigation systems and property in the “AWSC” CJSC RB balance sheets for transferring such irrigation systems and property to the SCWE.

QUARTERLY REPORT January-March 2010

. A letter has been sent to the governor of the RA Gegharkunik marz relating to Decision N29 of Gavar town mayor dd 23.01.2009 for allotting 2.82 ha land parcel to the “AWSC” CJSC. Activities should be implemented to change the category of soil for building wastewater treatment plant on this land.

. A package of documents is being prepared to submit to the RA State Cadastre of Immovable Property for registering relevant land rights for building wastewater treatment plants in Sevan, Martini, Vardenis and Jermuk towns.

Martuni wastewater treatment plant

. Based on the orders of the Company‟s General Director, the properties of Head Office have been transferred to the regional branches.

. Works have been carried out to document and formalize internal turnover of the property among the Company‟s Head Office employees.

QUARTERLY REPORT January-March 2010

3.3 WATER QUALITY CONTROL

QUARTERLY REPORT January-March 2010

WATER QUALITY CONTROL

Within the 1st quarter of 2010 water control laboratories of the Company made bacteriological analyses of about 4.0 thousand samples and

273 general and physico-chemical analyses (Table # 11). According to the bacteriological indicators the deviations constituted 1.53%.

POTABLE WATER INVESTIGATION IN QUARTER I, 2010 – TABLE 11

NUMBER OF SAMPLES TAKEN AND FAILED

M I C R O B I O L O G Y # REGARDING CHLORINE RESIDUAL

Factually investigated SECTORS - in entrance of NAME IN DISTRIBUTION NETWORK IN DISTRIBUTION NETWORK

distribution network andlized Demand Water physico chemical intake correspond town village town village total doesn’t correspond doesn’t correspond

to norms discovered discovered Genera total total total to norms total to norms NORTH-WEST 1 Abovyan 455 446 6 6 228 196 8 194 6 189 0 45 1 2 Hrazdan 573 573 58 56 0 0 6 209 3 265 1 6 0 3 Charentsavan 205 100 35 32 126 98 9 118 3 48 0 75 0 4 Ijevan 824 793 0 0 26 22 22 507 31 36 0 3 0 5 Dilijan 462 380 0 0 0 0 18 509 32 38 0 0 0 6 Alaverdi 699 401 122 121 74 66 11 236 34 92 0 19 0 7 Stepanavan 808 388 219 176 0 0 8 211 3 95 11 0 0 TOTAL 4 026 3 081 440 391 454 382 82 1 984 112 763 12 148 1

QUARTERLY REPORT January-March 2010

NUMBER OF SAMPLES TAKEN AND FAILED

M I C R O B I O L O G Y # REGARDING CHLORINE RESIDUAL

Factually investigated SECTORS - in entrance of NAME IN DISTRIBUTION NETWORK IN DISTRIBUTION NETWORK

distribution network andlized Demand Water physico chemical intake correspond town village town village total doesn’t correspond doesn’t correspond

to norms discovered discovered Genera total total total to norms total to norms CENTER-WEST 1 Artashat 137 137 138 138 155 155 7 292 63 80 0 141 2 2 Echmiadzin 48 48 288 288 265 265 16 330 60 280 1 255 0 3 Masis 56 55 407 403 98 96 2 146 0 6 0 3 0 4 Vedi 152 152 279 279 67 67 1 190 0 6 0 1 0 5 Ashtarak 146 144 224 221 128 118 19 318 4 109 0 116 7 6 Artik 356 356 372 371 294 281 28 418 19 34 0 61 6 TOTAL 895 892 1 708 1 700 1 007 982 73 1 694 146 515 1 577 15 SOUTH 1 Sisyan 350 350 153 153 78 78 3 125 6 28 0 0 0 2 Goris 268 268 397 393 6 6 11 298 6 230 13 14 0 3 Kapan 678 678 1 865 1 830 0 0 80 779 42 929 12 0 0 4 Eghegnadzor 56 56 50 50 0 0 7 316 21 106 0 0 0 5 Sevan 252 251 91 90 6 6 4 101 33 51 0 9 0 6 Gavar 204 185 401 334 30 25 13 296 75 120 0 49 0 TOTAL 1 808 1 788 2 957 2 850 120 115 118 1 915 183 1 464 25 72 0 TOTAL 6 729 5 761 5 105 4 941 1 581 1 479 273 5 593 441 2 742 38 797 16

REMARK * The calculation of demand has been done according to the bacteriological analysis schedule, which is approved by the branches and agreed upon with the State Hygienic and Anti-epidemic inspectorates.

QUARTERLY REPORT January-March 2010

REPORTS ON NATURAL RESOURCE UTILIZATION

Nature utilization fee of the Company for the 1-st quarter of 2010 constituted about AMD 5.2 million, (AMD 52.6 thousand by coefficient “3”), nature protection fee - AMD 7.7 million (about AMD 1.1 million by coefficient “3”) Table #12. The volumes of hazardous substances discharged into the water basin (ton/quarter) constituted: biological demand of oxygen: 135.9 tons, suspended substances-127.0 tons, ammonium – 3.4 tons, nitrites- 0.6 ton, nitrates- 5.0 ton (Table #13).

Annual statistic report on “Water use” (from 2-î² ) has been prepared.

THE AMOUNTS OF NATURAL RESOURCE UTILIZATION AND ECOLOGICAL FEES PER SECTOR OF THE REGIONAL BRANCHES TABLE-12

Calculated Fee for Natural Resource Utilization Calculated Ecological Fee (thous. AMD) (thous. AMD)

S E C T O R S Underground Surface Underground By index By Index Water by TOTAL TOTAL Water Water §1¦ §3¦ Index §3¦

“North-West” Regional Branch Abovyan 0 414.5 0.0 414.5 0.0 0.0 0.0 Hrazdan 11.8 435.3 0.0 447.1 629.3 15.5 644.8 Charentsavan 0 282.7 0.0 282.7 0.0 0.0 0.0 Ijevan 15.8 74.8 0.0 90.6 412.4 0.6 413.0 Dilijan 35.5 2.0 0.0 37.5 139.6 1.7 141.3 Alaverdi 0 246.4 0.0 246.4 256.7 13.8 270.5 Stepanavan 29.5 252.7 0.0 282.2 745.6 0.0 745.6 Total 92.6 1 708.4 0.0 1 801.0 2 183.6 31.6 2 215.2 “Center-West” Regional Branch Artashat 0 346.9 0.0 346.9 223.0 165.1 388.1 Echmiatsin 0 425.7 23.0 448.7 680.2 237.6 917.8 Masis 0 192.2 0.0 192.2 507.5 55.8 563.3 Vedi 0 182.2 0.0 182.2 435.8 95.5 531.3 Ashtarak 0 302.0 0.0 302.0 332.5 0.0 332.5 Artik 0 199.0 29.6 228.6 356.7 166.4 523.1 Total 0 1 648.0 52.6 1 700.6 2 535.7 720.4 3 256.1

QUARTERLY REPORT January-March 2010

Calculated Fee for Natural Resource Utilization Calculated Ecological Fee (thous. AMD) (thous. AMD)

S E C T O R S Underground Surface Underground By index By Index Water by TOTAL TOTAL Water Water §1¦ §3¦ Index §3¦ “South” Regional Branch Sisian 0 207.7 0.0 207.7 172.4 199.3 371.7 Goris 0 194.7 0.0 194.7 134.4 84.5 218.9 Kapan 135.0 129.5 0.0 264.5 524.9 16.0 540.9 Yeghegnadzor 0 189.4 0.0 189.4 202.0 2.2 204.2 Sevan 0 263.4 0.0 263.4 317.2 0.0 317.2 Gavar 0 546.8 0.0 546.8 522.2 0.0 522.2 Total 135.0 1 531.5 0.0 1 666.5 1 873.1 302.0 2 175.1

Grand Total 227.6 4 887.9 52.6 5168.1 6 592.4 1 054.0 7 646.4

QUARTERLY REPORT January-March 2010

THE VOLUMES OF HARMFUL SUBSTANCES DISCHARGED INTO THE WATER BASIN AND THE MAXIMUM PERMISSIBLE DISCHARGE, (MPD) TABLE-13

Tons/Quarter Name of Sector Wastewater

and Sub-sector removal BOD5 Suspended Substances Ammonium Nitrites Nitrates N Thous. M3 Actual MPD Actual MPD Actual MPD Actual MPD Actual MPD 1 2 3 4 5 6 7 8 9 10 11 12 13 1 Abovyan 422.19 0 0 0 0 0 0 0 0 0 0 2 Byureghavan 50.92 0 0 0 0 0 0 0 0 0 0 3 Charentsavan 151.45 0 0 0 0 0 0 0 0 0 0 4 Hrazdan 229.62 11.34 12.77 5.58 25.75 0.45 1.02 0.030 0.375 0.620 2.350 5 Tsaghkadzor 73.56 0.75 0.47 0.37 0.94 0.03 0.09 0.002 0.075 0.040 0.700 6 Ijevan 108.07 5.13 5.03 4.77 10.32 0.11 0.64 0.060 0.355 0.100 0.645 7 Berd 35.03 0.80 2.45 0.80 5.03 0.01 0.13 0.001 0.013 0.030 0.475 8 Dilijan 109.77 4.18 4.16 4.61 8.52 0.08 0.39 0.004 0.030 0.100 0.683 9 Alaverdi 77.89 4.73 5.41 5.03 11.10 0.10 0.58 0.006 0.068 0.180 2.058 10 Noyemberyan 16.00 0.34 0.94 0.31 2.98 0.01 0.12 0.001 0.013 0.010 0.005 11 Spitak 48.20 2.50 3.96 2.31 8.11 0.05 0.32 0.010 0.068 0.100 0.750 12 Stepanavan 83.04 3.62 4.16 3.37 8.39 0.10 0.58 0.010 0.735 0.100 0.788 13 Tashir 15.72 0.51 2.82 0.27 5.64 0.01 0.17 0.001 0.018 0.020 0.450 14 Artashat 172.06 9.74 6.75 8.87 13.84 0.16 0.67 0.076 0.040 0.270 1.400 15 Echmiatsin 268.39 19.37 15.07 21.09 30.90 0.27 1.25 0.075 0.448 0.630 3.775 16 Masis 156.66 9.72 8.71 9.18 17.85 0.23 1.22 0.065 0.478 0.300 2.228 17 Vedi 62.73 4.43 2.82 4.22 5.78 0.10 0.33 0.022 0.200 0.180 1.293 18 Ararat 122.53 5.81 5.69 5.53 11.67 0.12 0.66 0.028 0.150 0.240 1.125 19 Ashtarak 71.86 5.32 6.15 5.03 12.62 0.09 0.62 0.011 0.083 0.140 1.040 20 Aparan 27.03 1.05 2.58 0.86 5.28 0.02 0.15 0.006 0.060 0.030 0.563 21 Artik 83.35 4.10 1.45 4.49 3.05 0.16 0.25 0.020 0.500 0.120 0.360 22 Talin 27.39 0.48 1.49 0.45 2.23 0.02 0.09 0.001 0.005 0.040 0.775

QUARTERLY REPORT January-March 2010

Tons/Quarter Name of Sector Wastewater

and Sub-sector removal BOD5 Suspended Substances Ammonium Nitrites Nitrates N Thous. M3 Actual MPD Actual MPD Actual MPD Actual MPD Actual MPD 1 2 3 4 5 6 7 8 9 10 11 12 13 23 Ashotsk 14.81 0.23 0.39 0.24 0.61 0.01 0.01 0.001 0.005 0.020 0.095 24 Sisian 135.12 7.97 4.36 7.87 8.80 0.09 0.29 0.014 0.085 0.220 1.305 25 Goris 125.05 5.28 3.75 5.95 7.69 0.23 0.68 0.007 0.043 0.180 1.155 26 Kapan 282.54 10.08 10.09 11.06 20.35 0.41 1.68 0.060 0.250 0.500 1.995 27 Meghri 0.70 1.21 0.71 2.48 0.02 0.12 0.001 0.013 0.030 0.470 78.43 28 Agarak 1.67 1.38 1.47 2.83 0.04 0.14 0.001 0.018 0.070 0.810 29 Yeghegnadzor 59.96 1.70 1.98 1.62 4.05 0.06 0.22 0.006 0.040 0.060 0.358 30 Vayk 50.48 1.41 1.60 0.90 3.28 0.03 0.13 0.007 0.050 0.050 0.380 31 Jermuk 90.44 0.63 1.59 0.69 1.18 0.02 0.03 0.006 0.060 0.050 0.385 32 Sevan 71.20 4.27 5.85 2.10 11.79 0.17 1.09 0.012 0.175 0.230 1.625 33 Tchambarak 6.74 0.13 1.80 0.12 2.77 0.00 0.11 0.000 0.003 0.012 0.295 34 Gavar 82.87 4.60 6.78 4.27 13.67 0.07 0.45 0.007 0.073 0.130 1.448 35 Martuni 46.38 2.12 3.23 1.78 6.51 0.05 0.26 0.008 0.093 0.098 1.210 36 Vardenis 56.64 1.19 3.37 1.04 6.80 0.04 0.27 0.006 0.078 0.077 1.008 Total 3 514.12 135.9 140.26 126.96 282.81 3.36 14.76 0.565 4.700 4.977 34.002

Note:

1. The calculations of the natural resource utilization fee and the ecological fee have been done in accordance with the water usage and wastewater removal (excluding the industrial wastewater) rates defined by the Water Usage Permit.

2. The calculations of actual volumes of harmful substances discharged into water bodies have been done in accordance with the actual wastewater concentrations given in the designed discharge norms attached to the Water Usage Permits.

QUARTERLY REPORT January-March 2010

3.4 QUALITY, SAFETY & ENVIRONMENT

QUARTERLY REPORT January-March 2010

REPORT ON THE ACTIVITIES IMPLEMENTED BY THE QUALITY, SAFETY AND ENVIRONMENT DEPARTMENT IN THE I QUARTER OF 2010

The activities carried out by Quality & Environment Division:

The regulation on the activities of the company‟s QSE department was reapproved by the order of the General Director by delegating the control of the orders to division of quality and environment department. For this purpose the division keeps a registry required by the order recording all the necessary information concerning the orders, the process of their implementation and regularly discusses the issues with their direct implementers and responsible.

During the first quarter 20 orders were signed by General Director the implementation process of which was submitted to the heads of the company in due manner.

The development, discussion and preparation of position passports for head office, regional branch, sector and subsector employees are still in process.

The employess of the department had a direct participation in the amendment process, discussions, and presenting proposals and comments of RA Government Decree 130-N dated January 22 of 2004 (regulations on water supply and wastewater, sample of service contracts, maintenance of inner networks of cusotmers including water-meter)

Informative documents were developed for the preparatory programs of the company‟s activities during the emeregncy situations in due manner and were submitted to RA State committee of Water Economy. In compliance with order N 4 of the Company„s General Director dated February 08, 2008 the control was excersied over the requirments of book-keeping regulations carried out by the company‟s structural subdivisions and the results were submitted to heads of the company.

The regulations on the movement and operation of the company‟s vehicles controlled by the communication system, operation of transport facilities, preservation and usage of the company‟s round seal, as well as QSE activities in the framework of the mid-term expenditure framework for 2010-2013, expense calculations, purchase of service with attached justifications were developed and submitted to heads of the company for discussion and approval. The terms of reference and drawings of antirolling supports were developed for ensuring the safety of containers in the car-body of the vehicles transporting gas chlorine.

QUARTERLY REPORT January-March 2010

Department participated in seminar titled “Rural tourism development program” organized by the department of tourism and regional economic development of RA Ministry of Economy and “Miasin” Armenian-Swiss foundation where the role and importance of “Armenian Water and Sewerage ” CJSC company was also mentioned in the development of the following program.

Proceeding from the main directives of QSE management system (internal audit, definition of staff responsibility and power, human resource management, procedure of product life cycle) the department continues its inspection visits to hydro -technical structures that are in the company‟s service perimeter.

This time the area of “Lchashen” boreholes, “Gomadzor” pumping station of “Sevan” sector of “South” regional branch, “Araratyan 1,2” pumping station of “Masis” sector of “Center-West” regional branch were selected as a target areas for control visits. The compliance with work protection and safety requirements followed by the operation staff and the quality of operation and technical maintenance instructions were checked.

Final report was made about the inspection visits and submitted to heads of the company.

A R A R A T Y A N I - II

P U M P I N G S T A T I O N

The discharge valve of one of the pipeline does not operate.

4 concrete panels of sanitary zone fence are broken.

QUARTERLY REPORT January-March 2010

L A B E L I N G

The activities carried out by Safety Division

Report sample on ““Armenian Water and Sewerage” CJSC Employee's Monthly Damages or Industrial Accidents of Technogene Nature or Other Circumstances” was developed and approved by the order of the Company‟s General Director. Guideline on “Requirements for safe construction” was developed for the contactors carrying out constructing activities in the company‟s framework under ADB loan program. The division is also planning to organize a seminar on the same topic in Training and Attestation Center.

Excerpts from the guidline on “Requirements for safe construction”

QUARTERLY REPORT January-March 2010

2010 programs on the activities of work safety and technical safety in the company‟s system was developed.

Examination of technical safety of the Company‟s Head Office elevator was also carried out. General Director Order was issued on the prohibition of the use of alcohol for all events in the perimeter of the company the implementation of which has been taken under the control.

National Technical Safety Center (NTSC) SNCO carried out the examination of technical safety of “KAMAZ” mark truck -crane. 50 instruction guidelines and registry books on work protection and safety at workplace have been purchased which are delivered to regional subdivisions upon necessity. The employees of the division participated in inspection visits of rehabilitation works in WTP of Berd town and water supply inner network of Ujan village being financed by ADB. A new position for the safety specialist has been established in the regional branches which will be an incentive for raising departments work efficiency.

Purchase request for chemical protection uniforms, gas analyzer respiratory apparatus, gas mask and protection cover was worked out for ensuring safely operation of the vehicles transporting liquid chlorine.

It protect your head from They protect your hands from They protect your ears from

- incidence - burns - deafening / when sound - waste - injuries level exceeds 85`/. - shocks - blows - cracks - viruses

QUARTERLY REPORT January-March 2010

3.5 COMPANY’S PROCUREMENT

QUARTERLY REPORT January-March 2010

COMPANY’S PROCUREMENT

Information about Procurement within AWSC Budget, Q I, Year 2010 Table – 14

PROCUREMENT AMMOUNT, AMD

1. Car services, petrol diesel and gas 45 831 236

2. Pipes, fittings, valves and other 0

3. Water chlorination 0

4. Office supply, IT and cellular phones 575 043

5. Safety devices 46 200 6. Equipment for works 8 612 000

7. Other works/ goods 2 632 644

8. Echmiatsin Training Center 5 500

9. Laboratories 607 390 10. Publications and TV broadcasting. 1 490 000

TOTAL ALLOCATED 58 800 013

TOTAL REQUESTED 428 455 116

QUARTERLY REPORT January-March 2010

3.6 TRANSPORTATION

QUARTERLY REPORT January-March 2010

TRANSPORTATION

 Gas filling system: During the first quarter the transport facilities equipped with gas bottles and operating with natural gas saved AMD 3 000 000 /three million/ due to difference of natural gas and petrol prices.

 Fleet servicing program: The Transport Division of the “AWSC” CJSC Head Office completed the distribution of tires necessary for the Company‟s transport facilities.

 Replenishment: The “AWSC” CJSC acquired 3 Kamaz vehicles of 53215 model, 7 UAZ of 390945 model and 12 New Holland B90B excavators. Such a replenishment of the Company‟s fleet allowed avoiding the rent of passenger vehicles and trucks.

Kamaz 53215 KM Kamaz 53229 KO-560

UAZ -390945 New Holland excavators

 Innovation: In the 1st quarter 76 vehicles of the Company were equipped with “Locator” system allowing the control of vehicles in the “direct communication” mode.

QUARTERLY REPORT January-March 2010

4. ADMINISTRATION

QUARTERLY REPORT January-March 2010

4.1 FINANCE & ACCOUNT

QUARTERLY REPORT January-March 2010

SUBSIDY TABLE-15

Subsidy FROM RA GOVERNMENT

RECEIVED AMOUNT MONTH 2010 COMMENTS (mln AMD)

0,48 salary

10,55 income tax 27,01 Social security payment

202,89 5,17 payment for water use JANUARY 7,77 natural resources protection fee

1,25 mandatory payments for Regulatory Committee

0,4 motor-care tax

105,13 salary

FEBRUARY _ 13,80 income tax 25,42 social security payment

MARCH _ 5,91 salary

TOTAL AMOUNT 202,89

QUARTERLY REPORT January-March 2010

INFORMATION CONCERNI NG INCOMES AND EXPENSES OF AWS CJSC IN I QUARTER, 2010 TABLE-16

thousand drams

Received Current expenses

from other

Proceeds activity Net salary Total from main Social N H/O (including Payment. Covering Other Total Electricity insurance Taxes expenses

activity Subsidy

Current Current expenses

sell of Total

income income of credit payments

water fund

meters) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 NORTH–WEST REGION BRANCH 1 Abovyan 237 522,2 2 649,4 240 171,6 17 726,6 96 314,9 111 761,6 111 761,6 225 803,1 TOTAL 237 522,2 2 649,4 240 171,6 17 726,6 96 314,9 111 761,6 111 761,6 225 803,1 CENTER–WEST REGION BRANCH 2 Artashat 307 214,7 6 878,5 314 093,2 17 714,7 90 361,5 64 068,4 64 068,4 172 144,6 TOTAL 307 214,7 6 878,5 314 093,2 17 714,7 90 361,5 64 068,4 64 068,4 172 144,6 SOUTH REGION BRANCH 3 Sisian 200 555,6 6 565,7 207 121,3 15 344,3 93 206,6 41 788,0 41 788,0 150 338,9 TOTAL 200 555,6 6 565,7 207 121,3 15 344,3 93 206,6 41 788,0 41 788,0 150 338,9 Total from 745 292,5 16 093,6 761 386,1 50 785,6 279 883,0 217 618,0 217 618,0 548 286,6 Branches

TOTAL 59 357,0 202 890,0 10 385,5 272 632,5 14 455,9 33 977,1 5 027,0 77 591,8 142 069,6 0 205 043,5 429 731,9 478 164,9 HEAD OFFICE

MAIN TOTAL 804 649,5 202 890,0 26 479,1 1 034 018,6 65 241,5 313 860,1 222 645,0 77 591,8 142 069,6 0 205 043,5 647 349,9 1 026 451,5

* See also below Diagram-17

QUARTERLY REPORT January-March 2010

CAHS FLOW– DIAGRAM 17

IN CASH INCOMES UTCOMES IN CASH + - = 31.03.2010 01.01.2010 2 579 335.0 2 174 690.8 214 229.5 618 873.7 ADB*** EBRD ADB*** EBRD 1 020 598.8 96 190.5 BANK 1 449 255.2 52 007.6 BANK 27 657.7 7 112.5 BANK CASH 1 056 438.7 1 462.8 CASH BANK CASH CASH 1 088.3 Social Fund Other Expenses Staff Salary 1 076 983.9 77 591.8 972.1 490.7 438.6 64.1 From Branches From Bank From other Debtors Salary to Branches (main activity ) 0 1 088.3 279 883.0 ADB*** 745 292.5 Taxes Payment ADB*** From Budget & other 142 069.6 162 495.5 org. Centr. Payment 591 151.9 59 357.0 Centr. Procurement 205 043.5 EBRD Subsidy EBRD 202 890.0 Current Expenses 44 182.9 64 269.4 0 From other

Debtors El. Consuption 9 297.2 222 645.0

From water Credit meters sales Acquittant 0 16 093.6

Staff Salary From Bank* 33 486.4 31 450.0 Bank 31 450.0 Credit ** 12 603.6 CASH * 0

* Internal Cash Flow isn’t including in the Table 16 ** Overdraft Bank account increased as of 31.03.2010 68 *** The cash drive of the ADB’s Loan Project wasn’t included in the Table 16

QUARTERLY REPORT January-March 2010

4.2 HUMAN RESOURCES

QUARTERLY REPORT January-March 2010

THE FOLLOWING ACTIVITIES WERE IMPLEMENTED BY THE HUMAN RESOURCES DEPARTMENT IN THE I QUARTER OF 2010:

1. Human Resource Policy and Account Division

a) Internal activities:

. Works are being carried out to make changes in the Company‟s payment system, new bonus system is going to be introduced which, we believe, will be a motivation to increase work quality and performance of the employees.

. The staff lists of the Company‟s Head Office and regional branches were approved and put into operation.

. Contracts are being prepared for the new employees which are recorded in the registers and entered into the data base. In case of making amendments to the contracts of the employees (salary, dates, position etc), agreements are prepared which are also recorded in the registers and entered into the database.

. The control over implementation of employment contracts/agreements is intensified as follows:

- Consistency with approved staff list (position, salary rates, number of employees);

- Availability of position passports;

- Content, date of conclusion.

. Control is exercised over the procedures of providing vocations, salary applications and labour turnover of the Company‟s regional branch employees.

. Business trips, holidays, employment and resignation orders, as well as orders on providing overtime and bonuses are prepared.

. The employees are provided with relevant references to submit to the social security fund, banks or other institutions, as well as answers are prepared for the letters addressed to us.

. The Division started the archiving of previous years documentation.

QUARTERLY REPORT January-March 2010

b) External activities:

. All the mandatory reports have been submitted to the state and non state stakeholders.

. Works are being carried out with the Social Security Fund to adjust the information of personal reports staring 2004.

. The cooperation with the Trade Unions has an ongoing character such as:

- Preparatory works for organizing summer holidays of the Company‟s employees children in 2010 (list of the children aging 7-14);

- The list of the Company‟s employees and their family members are regularly updated (according to the age and gender) and information is provided to the Trade Unions to organize relevant activities, as well as provide assistance in allocation of the funds;

- Protocols and acts are made about the implemented works.

. Cooperation with the RA State Labour Department:

- The Company‟s employees regularly attend the workshops organized by the RA State Labor Department.

. The cooperation with the banks has a continuous character:

- Each month the payment cards are checked and the list is prepared to re-issue the cards,

- Applications for new employees are submitted.

QUARTERLY REPORT January-March 2010 c) Main HR indicators

. Number of employees

Diagram 18

1840 1830 1820

1800

1780

1760

1740

1720 1731 Number Number of employees 1728 1700 1709

1680 Average 2009 2010 2010 2010 January February March

M o n t h s

. Labor turnover

Diagram 19

6% 30% 26%

38%

North West Center West South Head Office

QUARTERLY REPORT January-March 2010

2. Training and Development Division.

In the first quarter the Division carried out the following works:

. The Training and Development Division of the “AWSC” CJSC started the year of 2010 by checking and evaluating the results of previous training sessions. The analysis of the results revealed that the training sessions considerably enhance the knowledge of the specialists, as well as contribute increasing work responsibility of the employees.

Certification of the laboratory assistants Certification of the operation specialists

. Beginning the first quarter of 2010 surveys were conducted among the Company‟s employees for the development of a new education and training plan and efficient organization of training sessions. The surveys revealed the needs based on which the subjects and schedules of the trainings were defined (after each training session the participants fill up questionnaires answering different question which help defining the subjects of the further trainings). Much importance is attached to upgrading of professional knowledge and skills of the Company‟ operation specialists.

. The Training Center organized and conducted certification of water quality and commercial specialists of the “Center-West” regional branch. Such certification is planned to carry out for the other regional branches.

. The Training Center organized training for the Company‟s financial staff within the frameworks of the programs organized by the Asian Development Bank.

. Certification and appraisal of the Company‟s production and operation specialists‟ knowledge and skills have an ongoing character.

QUARTERLY REPORT January-March 2010

 The head of Design Devision was sent to the business trip to Japan to receive training under the “Waterworks engineering for Caucasus and East Asia region“ program organized by Japan International Cooperation Agency (JICA). Testing of the equipment revealing & recording water losses

. Below is presented the activities carried out by the “AWSC” CJSC Training and Development Division in 2010:

Training of Personnel Table-17

Number of N Program name Training subject participants

Wear &tear of the fixed assets, depreciation Training of the finance specialists of of fixed assets, international and Armenian 1 10 the “AWSC” CJSC accounting standards

Certification of the “Center-West” RB 2 General 10 water quality specialists

Certification of the “Center-West” RB 3 General 34 commercial specialists

Certification of the production and 4 General 39 operation specialists of the Company

QUARTERLY REPORT January-March 2010 .

4.3 LEGAL & INSURANCE

QUARTERLY REPORT January-March 2010 . Results of Legal and Insurance Activity of „Armenian Water and Sewerage“ CJSC

I Quarter of 2010

 2 611 lawsuits for a total claim of 248 582 700 AMD were submitted

to court.

 1 713 lawsuits for a total claim of 148 460 800 AMD were satisfied

by court.

 A total of 37 856 600 AMD debt was reimbursed as a result of various

actions of legal character, including pending cases.

In this reporting period the Legal Department submitted to the court 108 cases with total amount of AMD 10 509 625 and due to legal actions AMD 11 028 349 was collected, which is included in the compensated amount of 37 856 600.

The principal range of activities of the department includes protection of the Company‟s lawful rights in court, coordination of activities of the regional branches lawyers, insurance of corporate assets, as well as provision of legal consultations to the company„s management.

QUARTERLY REPORT January-March 2010 .

5. PROJECTS

QUARTERLY REPORT January-March 2010 .

5.1 W B

QUARTERLY REPORT January-March 2010 .

Realization of SCHEDULED PROJECTS under MWWP Fund

ARMENIAN WATER & SEWERAGE CJSC INVESTMENT PROGRAMS COORDINATION DEPARTMENT MUNICIPAL WATER SUPPLY AND WASTE WATER PROJECT II FUNDED BY THE WORLD BANK

During the reporting period the following procurements were on place in the frame of the Project, as follows:

Contract amount No Date of signing Contract name /USD/ 1 2 3 4 1 10-03-2010 Supply of PE pipes 660 000,23

2 18-03-2010 Supply PVC pipes 106 500,00

3 18-03-2010 Supply of Valves 224 807,60

4 18-03-2010 Supply of Fittings 95 012,52

5 17-03-2010 Supply of Furniture 32 461,63

During the reporting period the following National Biddings (NCB) on the civil works were announced:

No Contract name Contract number

1 2 3

Construction of administrative building of Spitak, Vedi, Jermuk 1. MWWPII-C2.11/1-01 and Gavar sub-sectors of AWSC regional branches

Construction of administrative building of Hrazdan, 2. Charentsavan, Sisian and Agarak sub-sectors of AWSC regional MWWPII-C2.11/1-01/2 branches Replacement of windows of AWSC Head Office, rehabilitation 3. of Ashtarak, Artashat sectors and Ashotsk sub-sector MWWPII-C2.10/1-02/1 administrative buildings Rehabilitation of administrative buildings of Sevan, Dilijan, 4. Alaverdi sectors and Noyemberyan, Berd, Vayq sub-sectors of MWWPII-C2.10/1-02 AWSC

QUARTERLY REPORT January-March 2010 . During the reporting period the following International Biddings (ICB) on procurement of goods were announced:

. “Procurement of Control Panels”, MWWP II-C2.8/2-09

Invitations to Quote were sent to supply the following goods:

. Supply of tools and equipments: asphalt cutters, sewer and drain cleaning machines, electrical jackhammers and drillers, small compactors, GPS device, vibration-resistant manometers . Supply of sewerage standard rings (200 pcs) . Supply of Computer Software and Equipment

Consulting services: there were sent Invitation to Quote on Inventories and cadastral Registrations to submit Technical and Financial Proposals

Environmental and Social Safeguards

On 22-26 March 2010, World Bank Mission visited Armenia in the frame of a.m. loan project and among them there was an Environmental Specialist from Tbilisi Resident Office. The long discussion with the Environmental and Social Impact Specialist of AWSC particularly pointed out the Initial Environmental Examination, Project Screening Statement of the Project “Hrazdan town water supply system improvement”, and the fact that the EMP of the mentioned project should be prepared by the design company in strict compliance with the requirement of WB. The designing company should first study the WB Environmental Operation Policy /OP 4.01/ as well as the other related materils before the elaboration of the EMP.