QUARTERLY REPORT July-September 2007

QUARTERLY REPORT JULY-SEPTEMBER 2007

Done by the Management Contractor The 15-th of October 2007

______Patrick LORIN

TABLE OF CONTENTS

1. OPERATIONS ...... 4 1.1 COMMERCIAL ...... 5 1. QUARTERLY ACTIVITIES ...... 6 DIAGRAMS 1-6 ...... 10 COLLECTION OF AWS CJSC FOR JULY-SEPTEMBER 2007 TABLE -1, DIAGRAM-7 ...... 14 COLLECTION OF AWS CJSC FOR 2007 TABLE -2 ...... 15 NUMBER OF WATER METERS INSTALLED BY AWS CJSC ON DATE 01.10. 2007 - TABLE 3 ...... 16 1.2 W O R K S ...... 17 CHLORINATION PROGRAM ...... 18 WORKS ON THE NETWORK ...... 18 MWWP PROJECTS ...... 21 REHABILITATION OF ASSET BUILDINGS ...... 23 NEW TECHNOLOGY FOR CONCRETE APPLICATIONS: ...... 24 TRANSPORTATION ...... 25 1.3 TECHNICAL ...... 26 TECHNICAL INVESTIGATIONS ...... 27 ASSETS MANAGEMENT ...... 29 WATER QUALITY CONTROL ...... 29 POTABLE WATER INVESTIGATION IN QUARTER III, 2007 – TABLE 4 ...... 31 NATURE PROTECTION ...... 33 ENVIRONMENTAL UTILIZATION & PROTECTION FEES BY THE REGIONS AND SECTORS TABLE-5 . 33 CONTAMINANTS VOLUME THREW TO WATER BASIN & PERMITTED MAXIMUM OUTLET (PMO) TABLE-6 ...... 34 MAPPING ...... 36 THE LIST OF MAPPED SETTLEMENTS IN THE QUARTER III 2007 - TABLE 7 ...... 36 1.4 OPERATION & MAINTENANCE ...... 38 OPERATION & MAINTENANCE WORKS ...... 39 VIEW OF SOME OPERATION & MAINTENANCE WORKS IMPLEMENTED IN III Q 2007 ...... 40 OPERATION END MAINTENANCE OF WATER TRANSMISSION AND DISTRIBUTION SYSTEMS TABLE-8, DIAGRAM-8 ...... 41 MAINTENANCE OF WESTWATER COLLECTION SYSTEMS TABLE-9 ...... 42 DIAGRAMS-9,10 ...... 43 NETWORK ANALYSING TABLE - 10 ...... 44

QUARTERLY REPORT July-September 2007

DIAGRAMS – 11, 12 ...... 45 DIAGRAMS – 13, 14 ...... 46 WATER PRODUCTION & LOSSES TABLE-11 ...... 47 DIAGRAMS – 15, 16 ...... 51 WATER DELIVERED THROUGH PUMPING AND CORRESPONDING ELECTICITY CONSUMPTION ...... 52 TABLE- 12 ...... 52 DIAGRAMS – 17,18 ...... 53 PROGRESS OF THE WATER METERS EQUIPMENT INSTALLATION BY THE AWS CJSC IN ITS MAINTENANCE AREA TABLE - 13, DIAGRAM - 19 ...... 54 DISINFECTANT RECORDS IN III QUARTER 2007 TABLE- 14 ...... 55 ELECTRICITY CONSUMPTION & EXPENSES TABLE-15,16 ...... 57 ELECTRICITY CONSUMPTION & EXPENSES IN PERIOD OF 13 LAST MONTHS DIAGRAM - 20 ...... 57 2. FINANCE & ACCOUNT ...... 58 SUBSIDY TABLE-17 ...... 59 INFORMATION CONCERNING INCOMES AND EXPENSES OF AWS CJSC IN III QUARTER, 2007 TABLE-18 ...... 61 3. HUMAN RESOURCES ...... 62 1. PERSONNEL & CONTRACT DIVISION ...... 63 DIAGRAM 22 ...... 64 2. TRAINING & DEVELOPMENT DIVISION ...... 64 4. PUBLIC RELATION ...... 66 ON ACTIVITIES IMPLEMENTED BY THE PUBLIC RELATIONS DEPARTMENT ...... 67 5. WB PROCUREMENT ...... 70 PROCUREMENT MANAGEMENT AND PROGRESS REPORT JULY-SEPTEMBER 2007 ...... 71 COMPONENT A – GENERAL EXPENSES – IMPLEMENTING BY CMU ...... 71 DIAGRAM - 23 ...... 73 6. LEGAL & INSURANCE ...... 74 BRIEF DESCRIPTION OF ACTIVITIES AND RESULTS OF LEGAL AND INSURANCE DIVISION ...... 75 7. INDICATORS ...... 76 INDICATORS RECAPITULATION – TABLE 20, (INDICATORS 1-25) ...... 77

QUARTERLY REPORT July-September 2007

1. OPERATIONS

QUARTERLY REPORT July-September 2007

1.1 COMMERCIAL

QUARTERLY REPORT July-September 2007

1. QUARTERLY ACTIVITIES

MANAGEMENT CHART - DATA ANALYSIS

Sales Analysis

The weakest point of the Company is water meter installation process. As compared with the last 6 months this process took a new turn.

If within the last 6 months 4 712 water meters were installed, only in the 3rd quarter 6 963 water meters have been installed (including the replacement of old water meters with new ones totaling about 170, though the Company is still far from its objectives. As of 01.10.2007 water meter installation level as compared with the assumed tasks constituted only 29%.

On August-September in “Kapan” sector a pilot project on installation of water meters, collection of debts and fighting against illegal connections was implemented. The results are obvious (water installation level in “South” sector constitutes 63%): Only in “Kapan” sector about 1200 water meters were installed within two months.

Number of customers installed the water meters (by months) "Kapan " sector 9000 700 645 8724 600 8500

500 8079 8000 394 400 7685 7656 7581 7615 7489 7534

customers 300 7500 7432

200

7000 100 51 57 45 47 34 41 29

6500 0 01/07 02/07 03/07 04/07 05/07 06/07 07/07 08/07 09/07

Installed in the presented month Total customers with water meters

QUARTERLY REPORT July-September 2007

Similar works are planned to organize in other sectors of the Company (in the sectors with the worst indicators) such as Echmiatsin, Artashat, Alaverdi, Martuni etc.

For speeding up water meter installation process the Head Office of the Company printed out and sent reminders (about 30 000) to individual customers of private houses not installed water meters. At the same time announcements and remainders were broadcasted by TV channel H2 and in all the sectors having local TV channels.

Installation of water meters as of 01.10. 2007 45 000 70% 40 176 40 000 63% 60% 35 000 50% 30 000

25 000 40% 33% 20 000 29% 30% 15 000 21% 12 245 11 895 10 645 11 504 20% 10 000 15% 5 391 4 038 10% 5 000 3 394 2 286 1 786 0 0% North West North East Center West South AWSC

Target Actually installed %

As to the customers with water meters, the picture is quite different. Except some sectors, the average monthly consumption of individual customers with water meters is rather high (average in the AWSC is 7.8 cubic meter) and collection level is about 100%.

Average Invoiced Consumption per Residential Customer with Meter (September 2007) AWSC 10.0 Center West 9.2 South 8.8 9.0 Average for the AWSC 7.8cub.m 8.0

North West 7.0

7.5 cub.m

6.0

North East 6.0 5.0

4.0 7

QUARTERLY REPORT July-September 2007

The indicators are low mainly in all sectors and subsectors of the “North-East” RB.

Average Invoiced Consumption per Residential Customer with Meter (September 2007) 12 North East regional branch

9 Average for the AWSC 7.8cub.m 8 Gavar Tashir Spitak 7.1 7.0 7 6.8 Dilijan cub.m Ijevan Alaverdi Stepanavan 6.1 6.0 5.8 5.6 6

5 Noyemberyan Berd Average for the branch 5.5 6.0cub. m 5.4 Sevan 5.0 Vardenis 4 4.7 Chambarak 3 3.7 Martuni 3.1 2

In all sectors average consumption is lower than average of the AWSC.

In “Kapan” sector, parallel with above mentioned pilot project, random visits were paid to “Ijevan”, “Alaverdi”, “Sevan” “Stepanavan” and “Goris” sectors togethor with Commercial Department of the Head Office and relevant departments of the branch.

Revenue / Sales Ratio

In the 3rd quarter of 2007 collection level of the Company was rather high (AMD 649.3 mln, out of which AMD 222.6 mln in September). If we compare with the same period of the last year the growth constitutes AMD 35.5 mln , and in the 2nd quarter 2007 - about AMD 66.5 mln

Collection by quarters 2006-2007 700 000 649 296

582 767 600 000 613 788 528 687 563 515 500 000 523 149

400 000

000'AMD 300 000

200 000

100 000

0 I quarter II quarter III quarter 2006 2007

Notwithstanding such a growth we are far from our objectives. 8

QUARTERLY REPORT July-September 2007

Rather good results have been recorded in Kapan sector (within the framework of pilot project).

Collection by months §Kapan¦ sector 30 000

24 956 25 180 25 000

20 000

18 182 17 798 17 067 14 511 15 000 16 798 16 362 14 572 000'AMD 13 966 12 080 10 000

7 208 7 302 5 000 7 033 6 923 6 968 5 746 5 870

0 01/07 02/07 03/07 04/07 05/07 06/07 07/07 08/07 09/07

Total Residential customers

Number of payments Kapan sector 8,000 6,720 (71.5%) 7,000 6,645 6,000 6,559 6,335 6,189 6,378 6,235 (70.7%) 5,976 (69.8%) (67.4%) (65.8%) (67.9%) (66.3%) 5,000 (63.6%) 5,431 5,416 (57.8%) (57.6%) 4,000 4,534 (48.2%) 3,000 3,242 (34.5%) 2,000

1,000 Number of Customers receiving services : around 9 400

0 01/05 12/05 12/06 01/07 02/07 03/07 04/07 05/07 06/07 07/07 08/07 09/07

QUARTERLY REPORT July-September 2007

Illegal connections

Every day fighting against illegal connections is in progress. In the 3rd quarter of 2007 about 1000 big and small violations amounting AMD 19.0mln were recorded.

Fragments of illegal connections defined in the III quarter 2007

S E V A N

Quarterly recapitulated data are presented below:

DIAGRAMS 1-6

QUARTERLY REPORT July-September 2007

DIAGRAM 1

Billing & Revenue collection (Collection n, Billing n-1) 400 347 360 350 304 294 300 276 269 259 252 243 255 253 250 226 196 223 200 179 207 220 204 192 192 198 Millions AMDMillions 150 174 146 100 85 50

0 Jan.05 Dec.05 Dec.06 Jan.07 Feb.07 Mar.07 Apr.07 May.07 Jun.07 Jul.07 Aug.07 Sep.07 Oct.07 Nov.07 Dec.07 Billing Revenue Collection

DIAGRAM 2

Billing, collection and ratio % for customers with water meters

2,000 130%

1,800 1,731 1,711 120% 1,600 110% 1,400 1,345 1,242 101% 100% 100% 100% 1,176 1,353 99% 100% 1,200 96% 99% 1,211 100% 98% 1,011 1,180 89% 1,000 852 1,010 90% 850 800 MillionsAMD 702 82% 552 80% 701 600 422 560 70% 400 285 407 65% 141 60% 200 72 253 47 115 0 50% Jan.05 Dec.05 Dec.06 Jan.07 Feb.07 Mar.07 Apr.07 May.07 Jun.07 Jul.07 Aug.07 Sep.07 Oct.07 Nov.07 Dec.07

Billing Revenue Collection Ratio

QUARTERLY REPORT July-September 2007

DIAGRAM 3

COLLECTION 2004-2007 AWSC

220 203 200

178 180 PicPic due due to theto the payment payment of budgetof budget organizations organizations for 3

Ù formonths 3 months

³ 160

¹ ÙÉÝ. 140 126

120 NewNew tariff tariff from: from: 1st May1st 2005 Management Contract Management Contract started date: 100 220 started date: 180200 12 19th October 2004 140160CO… 19th October 2004 120… 1 10080Pi

80 ÙÉÝ.¹ N M May 20052…

2004 2005 2006 2007

DIAGRAM 4

N u m b e r o f P a y m e n t s

110,000 106,244 102,080 100,000 97,130 92,711 96,731 97,959 96,944 90,000 85,507 90,330

80,000 82,112 79,225

70,000 Number of Customers receiving services : around 170.000 Number of Payments 60,000

50,000 52,997

40,000

06 07 07 07 07 07 07 07 07

/ / / / / / / / /

01/05 12/05 12 03 04/07 05/07 08 09 01 02/07 06 07 10 11

QUARTERLY REPORT July-September 2007

DIAGRAM 5

Cummulative billing collection

4,624 5,000

4,500 3,626 4,000 3,268 3,500 3,000 2,373 2,135 2,308 2,500 1,834 1,755 Millions AMD Millions 1,593 1,599 2,000

1,500

1,000

500

0 2003 2004 2005 2006 As at 01/10/2007

Billing Revenue Collection

DIAGRAM 6

Juridical Persons Revenue Collection Follow-up

800,000 140%

708,800 700,000 130%

600,000 120%

500,000 110%

98.8% 400,000 95.4% 94.9% 100% 92.8% 98.2% 95.1% 93.9% 94.7% 96.4% 96.9% 94.4% 93.5% 300,000 92.8% 92.6% 90% 250,941 87.3%

200,000 80% 167,172 153,614 137,073

100,000 70%

0 60% AWSC North West North East Center West South

Juridical Persons Cumulative Billing Budget Ratio Other Economic Ratio Global Ratio

QUARTERLY REPORT July-September 2007

COLLECTION OF AWS CJSC FOR JULY-SEPTEMBER 2007 TABLE -1, DIAGRAM-7 1000 AMD # SECTORS TOTAL BILLING TOTAL COLLECTION % 1 2 3 4 5 1 Abovyan 69 171 52 727 76.2% 2 Charentsavan 32 777 24 804 75.7% 3 Hrazdan 58 072 34 861 60.0% 4 Ashtarak 41 604 28 286 68.0% 5 Artik 42 153 30 137 71.5% TOTAL NORTH-WEST REGION 243 777 170 817 70.1%

6 Sevan 10 723 9 867 92.0% 7 Dilijan 14 178 10 620 74.9% 8 Ijevan 24 730 21 017 85.0% 9 Gavar 60 113 34 532 57.4% 10 Alaverdi 25 753 20 231 78.6% 11 Stepanavan 33 460 28 590 85.4% TOTAL NORTH-EAST REGION 168 958 124 858 73.9%

12 Artashat 68 123 41 909 61.5% 13 Masis 54 252 35 273 65.0% 14 Vedi 58 509 38 123 65.2% 15 Echmiadzin 84 637 57 969 68.5% TOTAL CENTER-WEST REGION 265 521 173 274 65.3%

16 Sisyan 23 408 19 389 82.8% 17 Eghegnadzor 37 104 32 693 88.1% 18 Goris 29 365 23 752 80.9% 19 Kapan 106 890 104 513 97.8% TOTAL SOUTH REGION 196 767 180 347 91.7% TOTAL 875 022 649 296 74.2%

100.0% 92% 90.0% 80.0% 74% 74% 70% 70.0% 65% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0%

0.0%

Total

Center Center

Region

North East East North

North West West North South Region South

QUARTERLY REPORT July-September 2007

COLLECTION OF AWS CJSC FOR 2007 TABLE -2

thousand AMD

Variation Variation I II III between between SECTORS quarter quarter quarter IIq and Iq IIIq and IIq 2007 2007 2007 2007 2007

1 2 3 4 5 6 Abovyan 43 074 49 884 52 727 16% 6% Charentsavan 18 870 22 330 24 804 11% 31% Hrazdan 29 036 29 639 34 861 18% 20% Ashtarak 19 276 26 830 28 286 5% 47% Artik 24 601 28 968 30 137 4% 23% TOTAL NORTH-WEST REGION 134 857 157 651 170 817 8% 27% Sevan 6 947 7 795 9 867 27% 42% Dilijan 8 802 10 116 10 620 5% 21% Ijevan 19 092 19 890 21 017 6% 10% Gavar 32 138 34 682 34 532 0% 7% Alaverdi 16 029 18 826 20 231 7% 26% Stepanavan 24 217 25 511 28 590 12% 18% TOTAL NORTH-EAST REGION 107 226 116 820 124 858 7% 16% Artashat 25 561 34 317 41 909 22% 64% Masis 32 988 33 030 35 273 7% 7% Vedi 31 734 33 937 38 123 12% 20% Echmiadzin 56 538 55 662 57 969 4% 3% TOTAL CENTER-WEST REGION 146 822 156 947 173 274 10% 18% Sisyan 17 056 19 831 19 389 -2% 14% Eghegnadzor 22 437 26 183 32 693 25% 46% Goris 18 873 20 619 23 752 15% 26% Kapan 75 879 84 716 104 513 23% 38% TOTAL SOUTH REGION 134 244 151 350 180 347 19% 34%

TOTAL 523 149 582 767 649 296 11% 24%

QUARTERLY REPORT July-September 2007

NUMBER OF WATER METERS INSTALLED BY AWS CJSC on date 01.10. 2007 - TABLE 3

Units Including TOTAL Total count of # SECTORS installed in water meters Residential Juridical customers persons III quarter

1 2 3 4 5 6 1 Abovyan 20 143 19 668 475 391 2 Charentsavan 8 842 8 553 289 414 3 Hrazdan 11 103 10 615 488 800 4 Ashtarak 7 850 7 587 263 266 5 Artik 5 793 5 494 299 371 TOTAL NORTH-WEST REGION 53 731 51 917 1 814 2 242 6 Sevan 5 525 5 293 232 111 7 Dilijan 2 863 2 745 118 282 8 Ijevan 6 658 6 378 280 114 9 Gavar 6 816 6 469 347 308 10 Alaverdi 9 040 8 826 214 495 11 Stepanavan 9 794 9 434 360 162 TOTAL NORTH-EAST REGION 40 696 39 145 1 551 1 472

12 Artashat 11 019 10 708 311 399 13 Masis 6 489 6 124 365 55 14 Vedi 8 887 8 653 234 97 15 Echmiadzin 16 395 15 812 583 577

TOTAL CENTER-REGION 42 790 41 297 1 493 1 128

16 Sisyan 5 008 4 745 263 128 17 Eghegnadzor 6 451 6 006 445 308 18 Goris 5 379 5 182 197 194 19 Kapan 15 213 14 509 704 1 491

TOTAL SOUTH REGION 32 051 30 442 1 609 2 121

TOTAL 169 268 162 801 6 467 6 963

QUARTERLY REPORT July-September 2007

1.2 W O R K S

QUARTERLY REPORT July-September 2007

CHLORINATION PROGRAM AWSC self financing

* The civil works for the chlorination rooms in remaining locations are scheduled until arrival of the equipments.

The choice of the supplier for next set of chlorinators took place in September and we expect the delivery for 50 new sets including some reserve set kept in store.

* The civil works are still on going and almost completed in North West Region but delayed in North East due to a lack of local management regarding this program. The Head Office will continue to push and boost the region to fulfill the program before winter.

* It is expected to reach the end of 2007 with 78 new chlorination equipments installed in A.W.S.C perimeter. The remaining points should be completed in 2008.The remaining program will be established later.

WORKS ON THE NETWORK AWSC self financing

* During the third quarter of 2007 (on July-August-September) the total quantity of replaced pipes has been 30,5 km (mainly done with PE pipes).

* AGARAK:

The area of the individual houses has been fully completed with all new house connections. The building area is ready to be started soon.

According to recent information the collection has been increased in Agarak by 35 %.

AGARAK New network with PE pipes.

* KAPAN: Important repairs on the network have been done during this quarter. Combined with a commercial action the result is largely interesting with an increase of 10 millions drams on the collection in September. The remaining actions in view to repair other sectors of the town will be implemented as soon as possible.

QUARTERLY REPORT July-September 2007

* VEDI: A solution has been found to save at about 10 liters/s at the level of Urtsadzor village on the main pipe. This result will have an immediate effect on VEDI distribution by increasing the delivery time. This action has to be combined with a commercial program to continue to increase the billing and the collection.

Hudge mad-flow in JERMANIS valley (1.4km) Destruction of JERMANIS access road

* Martuni gravity project. The project has been completed with installation of zoning gate vaves permitting now the distribution in two pressures areas only, 70% connected to Tsak Kar captage and 30% connected to Hopoivar reservoir. The actual regulation gives 24h/d from Tsak Kar but not yet from Hopoivar due to a lack of regulation and additional works to be done in the private houses area. Installation of water meters is largely below the expected level that will give later a much better result based on the new technical conditions of the distribution.

* Argel semi-gravity project. The automat of Argel PS has been installed and need to be regulated to find the optimal regime. The most part of the numerous problem of zoning and regulation have been solved now and the project is working as expected.

*HRAZDAN-Makravan. A solution has been found to stop the 4 boreholes in Mk 4 for Abovyan and pump from Mk 2 catchment. The works will be completed for the middle of October and the expected result will be at least 550 liters / s for Abovyan. AWSC continues to clean and regularize some villages and customers on the line between Hrazdan and Abovyan.

* ABOVYAN. One reservoir 2000m3 has been repaired with new technology and should be re-used as soon as the increase of the flow will reach Abovyan (middle of October).

* ARTASHAT. Karstrashen village has been rehabilitated with PE pipes as several other locations in view to decrease the losses and increase the distribution.

QUARTERLY REPORT July-September 2007

* GORIS. Connected to Municipality demand to proceed to the repairs and rehabilitation of several streets connected to asphalt program, A.W.S.C has proceeded to a large repair program in the town including water and sewerage.

* YEGHEGNADZOR. Several streets have been rehabilitated due to a permanent high level of leaks and damages creating bad sanitary and exploitation conditions.

* Rehabilitation of the network: a total of 36 different locations were defined as first step:

Region Locations Completed On going Remaining SEVAN 11 10 0 1 ABOVYAN 14 12 0 2 ARTASHAT 7 7 0 0 SISYAN 4 3 1 0 36 32 1 3

This first phase of the program is now completed for this year.

The second phase, 43 locations, has been defined as follow:

Region Locations Completed On going Remaining SEVAN 15 14 0 1 ABOVYAN 10 9 1 0 ARTASHAT 6 6 0 0 SISYAN 12 9 0 3 43 38 1 4

This second phase of the program is also completed for this year.

The third phase, 41 locations, has been defined as follow:

Region Locations Completed On going Remaining SEVAN 10 7 1 2 ABOVYAN 7 3 1 3 ARTASHAT 11 4 5 2 SISYAN 13 5 5 3 41 19 12 10

The third phase is still ongoing and should be completed before winter.

QUARTERLY REPORT July-September 2007

TOTAL quantity of locations treated by AWSC until end of September: 89

TOTAL quantity of locations still ongoing: 14

TOTAL completed for 2007 103

*Due to difficulties connected to available means, changes in the design and coordination problems, 17 remaining locations scheduled will be completed for next year or cancelled if no implication with immediate emergencies. The winter conditions will stop soon the process as well as financial capacity.

* Priority has been given to the water projects except where a serious sanitary risk exists with sewerage network.

MWWP PROJECTS

* Sevan - Ltchashen project:

Since middle of July AWSC is providing water from the old existing borehole connected to the new system DN 500. The new boreholes are also connected now to the network, one connected on August 12th, the second one on August 27th. Both are giving a nominal capacity of 60 liters/s. Sevan city recently received until 80 liters/s through a 7h/d regime.

Retorting support for dropping of borehole pumps

New borehole pump KSB in LTCHASHEN Regulation chamber for borehole in LTCHASHEN

QUARTERLY REPORT July-September 2007

The next step expected for end of October will give 120 liters/s to Sevan and Ltshashen. The completion works are on going with a physical end expected for end of October. End scheduled for end of November.

*Sevan PS:

The works have been delayed by the fault of the constructor evocating permanently wrong argues.

AWSC decided recently to cancel some parts of the constructor job and already did it by internal means. End scheduled for end of October.

SEVAN – new pumping station under installation

*Sevan Network: The constructor is largely delayed by his own fault and the works still uncompleted. End scheduled for end of November.

* Dilijan - Golovino: The first part of the cleaning station is on the way to be completed ( middle of October ) and the second part requires much less job due to the fact that all external, superstructure and common equipment have already been installed. As soon as the first half is working, the second one will be shut down fully and rehabilitation can start with the experience of the first one and all fittings and supplies are available on site. Gas connection needs to be done and boilers tested in real conditions. End scheduled for end of January 2008.

* Dilijan - Frolov:

All works almost completed at the end of September and all filters working, remaining completion on some of the decanters. Should be completed fully for middle of October. Gas connection needs to be done and boilers tested in real conditions. End scheduled for end of November.

FROLOV – new outlet from decanters

QUARTERLY REPORT July-September 2007

* Charentsavan: The connection to Abovyan pipe has been done after saving at around 70 l/s on the line Hrazdan- Abovyan by solving different problems. The actual regulation gives 22 l/s for the gravity area of the project and represent at around 25% of the town with 24/24h. Later this quantity will be increased as soon as we have a second pump working for Abovyan in view to enlarge the gravity perimeter as much as possible. The temporary pump (105 m3/h) is not yet installed due to mechanical matter but should start for middle of October. End scheduled for end of December.

* Tsakhkadzor: Works ongoing but not fitting the scheduled program. End scheduled for end of November.

* Ashtarak: Works ongoing especially on Samosavan catchment despite of a very late starting and substantial changes in the design.

* Aparan: Works on going. End scheduled for end of July 2008.

* Gavar: Works ongoing. End scheduled for end of June 2008.

USAID project in ARTASHAT

* The project has finally been divided into three packages and is scheduled for 24 months until Spring 2009. The construction works should start after third week of October 2007 .A.W.S.C has not yet received for approval ( 30th September ) the final design. * The USAID is still on the way to statute for the next projects in KAPAN and HRAZDAN. We will have later information.

REHABILITATION OF ASSET BUILDINGS

*Echmiatsin Training Center:

All works already completed and handed over. AWSC is completing the job with additional works concerning the main central store and the external organization of the site.

Working testing bench for flow meters in ECHMIATSIN TC

*Kapan laboratory is still under rehabilitation, remaining floor works that should be solved soon.

*Sevan laboratory is still under rehabilitation and should be finished at the end of October.

*The injection program with special acrylic resin has been stopped during this period, only solving punctual problems. 23

QUARTERLY REPORT July-September 2007

NEW TECHNOLOGY for CONCRETE APPLICATIONS:

*Abovyan reservoir (2000m3), treated with the new technology has been tested successfully and is ready to be used as soon as we receive additional flow in Abovyan (middle of October).

*The two circular decanters of 1st half of Golovino cleaning station have been treated also with the new technology as well as the filters. Ready to be used as soon as we transfer the water from the 2nd half to the first one (middle of October).

* Aparan reservoir internal repairs will be done also through the new technology, all preparation works have been completed and we wait a little more to get enough cured surfaces.

Fragments of the new equipment and technology used in the Company framework in the 3th quarter

Approach-contact control before welding Heating of PE pipe (indicator of 210o C)

Pressure regulating valve to be installed Increaser-Decreaser for PE/steel connection

QUARTERLY REPORT July-September 2007

Technical block around PE pipes New store in Echmiatsin under reorganization

TRANSPORTATION

*Gas system: at the end of September a total of 95 machines have received gas systems. At the end of this year a comparative analyze will give the figures about the saved amount through gas system.

REMARK: (repeat)

In 2007 the MAIN central ACTION being developed is the notion of SCHEDULING and ORGANIZATION!

This will be the ONLY way to promote the Company from "emergency" to SERVICE COMPANY!

This action will be promoted also on 2008 and is a deep change in the approach of the sectors and the regions.

The TRAINING will also be a central factor.

QUARTERLY REPORT July-September 2007

1.3 TECHNICAL

QUARTERLY REPORT July-September 2007

THE FUNCTIONS OF THE TECHNICAL DEPARTMENT FOR I QUARTER 2007 INCLUDING:

 TECHNICAL INVESTIGATIONS

 MANAGEMENT OF THE COMPANY’S ASSETS

 WATER QUALITY CONTROL

 MAPPING OF TECHNICAL SYSTEMS

TECHNICAL INVESTIGATIONS

During this reporting period Technical investigations Division carried out the following works:

 Review of the RA state budget application of 2008 an submission to the RA State Committee of Water Economy.

 Development of design and cost estimation documents of Darbnik-Hayanist water main and internal network planned by the2nd stage of “Improvement of Hayanist village water supply system” project.

 Review of the schedule of the works carried out on account of the World Bank resources.

 Study of cost estimation documents of water supply systems of “North-West”, “Center- West” RB administration buildings and training center of Echmiatsin town.

 Study of cost estimation documents of water and wastewater, heating, ventilation, gaz and electricity supply systems of the administrative buildings of the “AWSC” CJSC regional branch sectors.

 Study of working designs of “Alaverdi, Sashir, Vedi, towns water supply systems improvement” under MWWP-C 2.3/06/3-02/03 contract.

 Study of initial designs of “Stepanavan, Talin, Goris, Artik towns water supply systems improvement” under MWWP-C 2.3/06/3-02/03 contract and submission of proposals.

 Technical investigation of Mukhturyan-Zujgaghbjur” water main and development of proposals (RA Sjunik marz)._

 Study of Meghri town sewerage system and development of proposals.

 Study of Arzni siphon breakdown section (RA Kotayk marz) and development of proposals.

 Study of animal watering system of “7 springs” (Ijevan area) .

QUARTERLY REPORT July-September 2007

 Study of local water sources of Artsvaberd, Choratan, Verin Karmir Aghbjur communities (RA Tasush marz) and development of proposals.

 Development of Terms of Reference for wastewater systems of Artik town North-West district.

 Study of possible options for providing water supply technical conditions to the “Bjni Mineral Water Factory” CJSC from Alapars sources of the RA Kotayk marz.

 Development of water and wastewater technical conditions for buildings and constructions being built in regions by the RA Ministry of Defense.

 Preparation of relevant materials for receiving certificates on registration of water usage permissions in the RA State Cadastre.

 Study of options for building a unit in the crossing section of Sevan-Lchasen water main (being constructed within the project on “Improvement of Sevan town water and wastewater systems) with the railway on the site jointly with the specialists of “Armenian railways CJSC and working out of proposals.

 Testing of pumping station work placed in the same premises with Argel village chlorination station (Kotayk marz) for handover and acceptance purposes.

 Study of water sources located 7 km upwards to the Mantash water main for supplying water to Artik town and its rural settlements without WTPs.

View of some settlements, where the technical investigations have been implemented in the 3-th quarter

“King lake” area near ARTIK Non completed structure of ZUYGASHBYUR -MUSHUTURYAN water main

QUARTERLY REPORT July-September 2007

ASSETS MANAGEMENT During the 3th quarter of 2007 the Assets Division implemented the following works:

1. The inventory works conducted in four regional branches of the “AWSC” CJSC and its Head Office have been completed. Upon its completion analytical digest has been prepared. (Order N70 of the General Manager, 2006).

2. Preparation of documents for handing to “Vardenis “ and “Vorotan” Water Users Unions additional property for safe keeping. (Order N45 of the RA State Committee of Water Economy dated 28.03.07).

3. The handover and acceptance of 8 irrigation systems and property to the State Enterprise “Staff of the RA State Committee of Water Economy at the RA Ministry of Territorial Administration” have been finished according to RA Government Resolution N156-² dated February 8, 2007 on “Making amendments to some RA resolutions”). (Order N45 of the RA State Committee of Water Economy dated 28.03.07).

4. Preparation of handover and acceptance acts of property transferred by the “AWSC” CJSC to “Sevan-Hrazdan Water Company” (handed over to the “AWSC” CJSC “North-East” RB for safe keeping) and works directed at transferring of property to “Sevan-Hrazdan Water Company” CJSC. (Order N59-² of the RA State Committee of Water Economy dated April 25, 2007)

5. Explanatory correspondence directed against early termination of contract signed by Abovyan Community and “AWSC” CJSC for ten years (RA Government Resolution N149 of March 13, 1999) stipulating the return of property to the community ahead of time. (Letter E-327 of Abovyan Mayor dated 28.03.07).

6. Works directed at creation of joint Committee on transferring “Goris-Kornidzor” water supply system belonging to “Vorotan-Arpa Water Company” CJSC to the “AWSC” CJSC (the section operated by our Company) and definition of technical indicators and balance value. (Letter N09-3552 of the RA State Committee of Water Economy dated 09.08.2006).

WATER QUALITY CONTROL

In compliance with approved schedule, the water control laboratories of the Company made microbiological examination of about 4.0 thousand samples within the III quarter of 2007 (Table #4). According to the microbiological indicators, the deviations constituted 5.5 %.

QUARTERLY REPORT July-September 2007

Water supply main facilities, some sections of water supply network, daily regulating reservoirs (DRRs), the structures of water treatment plants were washed and disinfected. In general 196 water reservoirs with 155.3 thousand cubic meter of capacity were disinfected, including North-West RB- 95 reservoirs with 69.9 cubic meter of capacity, North-East RB - 41 reservoirs with 31.4 thousand cubic meter, South RB-37 reservoirs with 24.3 thousand cubic meter. Some water reservoirs will be disinfected upon completion of currently implementing civil works.

During the reporting quarter, the water quality deviations have been recorded in Sevan. Water quality deterioration such as visible turbidity during the testing period of “Connection of Lchashen boreholes with acting Hatsarat-Sevan” project was caused by water supply hourly schedule and the breakdown occurred in the area of daily regulating reservoir. The center of contamination was revealed and eliminated, the water main was again washed and disinfected. At present the disinfection of water supplied to Sevan town is made with ALLDOS chlorination equipment and the potable water quality meets the required standards. The Company exercises special control over water quality of Sevan town.

Three laboratories out of planned four were set up in Abovyan, Echmiatsin and Kapan towns. The repaired premises were furnished and provided with new equipment. For controlling purpose first of all the equipment required for microbiological examination have been adjusted and switched on. The availability of necessary equipment in the regional laboratories allowed implementing the whole water control procedure in compliance with the RA acting legislation. According to the order of the General Manager, a Committee was set up in the Company for evaluating the knowledge of the laboratory staff. The staff of new laboratories was selected among the former laboratory assistants and new applicants. In Echmiatsin Training Center a training session for laboratory assistants was organized on the subject “Application of membrane filtration for potable water hygienic and microbiological examination”. This is an up-to-date and effective method allowing economy of used environment and reagents. The training session was conducted by the specialist from the Sanitary Service of RA Ministry of Health, bacteriologist S. Vardanyan. During the training session theoretical and practical issues were touched as well as testing analysis were made.

Evaluation of knowledge of the laboratory Using of the new laboratory assistants in KAPAN sector equipment

QUARTERLY REPORT July-September 2007

POTABLE WATER INVESTIGATION IN QUARTER III, 2007 – TABLE 4 NUMBER OF SAMPLES TAKEN AND FAILED RELEVANT TO WATER MICROBIOLOGY REGARDING CHLORINE RESIDUAL # Factually investigated SECTORS in entrance of IN DISTRIBUTION NETWORK Requirement IN DISTRIBUTION NETWORK NAME distribution network PLACE OF town village WATER town village doesn’t INTAKE total correspond doesn’t correspond doesn’t correspond discovered discovered to norms total total town village total to norms total to norms NORTH-WEST 1 Abovyan 428 428 7 7 0 0 183 42 0 103 3 8 4 2 Hrazdan 6 6 364 364 56 56 312 18 45 381 10 20 0 3 Charentsavan 0 0 0 0 0 0 183 48 0 0 17 0 0 4 Ashtarak 0 0 153 139 39 34 243 78 0 145 0 43 6 5 Artik 421 410 610 610 17 14 246 198 228 244 1 172 8 TOTAL 855 844 1134 1120 112 104 1 167 384 273 873 31 243 18 NORTH-EAST 1 Sevan 34 30 42 39 0 0 186 60 15 60 4 0 0 2 Gavar 213 210 314 312 17 17 405 66 100 247 22 89 0 3 Ijevan 24 24 157 152 19 17 147 26 0 0 0 0 0 4 Dilijan 0 0 0 0 0 0 90 - 4 6 2 0 0 5 Alaverdi 760 760 163 142 88 88 108 132 2 51 9 0 0 6 Stepanavan 194 142 146 124 5 5 156 72 24 107 6 22 0 TOTAL 1 225 1 166 822 769 129 127 1 092 336 145 471 43 111 0 CENTER-WEST 1 Artashat 307 307 106 106 262 262 936 300 71 70 0 537 25 2 Echmiadzin 122 122 246 246 110 110 528 222 0 39 0 34 0 3 Masis 138 138 308 308 62 62 45 84 0 0 0 0 0 4 Vedi 12 12 110 110 7 7 36 75 0 0 0 0 0 TOTAL 579 579 770 770 441 441 1 545 681 71 109 0 571 25

QUARTERLY REPORT July-September 2007

NUMBER OF SAMPLES TAKEN AND FAILED RELEVANT TO WATER MICROBIOLOGY REGARDING CHLORINE RESIDUAL # Factually investigated SECTORS in entrance of IN DISTRIBUTION NETWORK Requirement IN DISTRIBUTION NETWORK NAME distribution network PLACE OF town village WATER town village doesn’t INTAKE total correspond doesn’t correspond doesn’t correspond discovered discovered to norms total total town village total to norms total to norms SOUTH

1 Sisyan 182 182 119 119 21 21 45 12 0 40 4 6 0

2 Goris 308 308 308 306 8 8 270 36 0 179 2 18 0 3 Kapan 266 266 1 546 1 546 45 45 1 029 6 37 688 11 0 0 4 Eghegnadzor 185 185 268 226 88 88 105 18 37 84 0 24 0

TOTAL 941 941 2241 2197 162 162 1 449 72 74 991 17 48 0

TOTAL 3 600 3 530 4 967 4 856 844 834 5 253 1 473 563 2 444 91 973 43

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 July-September 2007

NATURE PROTECTION

Nature utilization fee of the Company for the III quarter of 2007 constituted about AMD 5.1 mln, nature protection fee - 7.0 mln (about AMD 0.45 mln million was formed by coefficient “3” (Table # 5).

The volumes of hazardous substances discharged into the water basin (tons per quarter) constituted BOD - 110.9 t., suspended substances - 97.4 t., ammonium – 2.7 t, nitrites – 0.43 t., nitrates - 4.52 t (see Table #6).

ENVIRONMENTAL UTILIZATION & PROTECTION FEES BY THE REGIONS AND SECTORS TABLE-5

REGISTERED REGISTERED ENVIRONMENTAL UTILIZATION FEES (thous AMD) ENVIRONMENTAL PROTECTION FEES (thous AMD SECTORS SURFACE (river) GRAVITY WITH RATIO WITH RATIO TOTAL TOTAL WATER WATER “1” “3” NORTH-WEST Abovyan 0 387.7 387.7 0 0 0 Hrazdan 11.5 436.0 447.5 629.3 10.5 639.8 Charentsavan 0 283.7 283.7 0 0 0 Ashtarak 0 258.6 258.6 332.5 0 332.5 Artik 0 120.2 120.2 356.7 228.1 584.8 TOTAL 11.5 1 486.2 1 497.7 1318.5 238.6 1557.1 NORTH-EAST Sevan 0 223.1 223.1 267.0 0 267.0 Gavar 0 540.8 540.8 522.2 0 522.2 Ijevan 15.8 91.9 107.7 462.6 0 462.6 Dilijan 37.5 2.0 39.5 139.6 0 139.6 Alaverdi 0 311.8 311.8 256.7 0 256.7 Spitak 0 313.4 313.4 745.6 0 745.6 TOTAL 53.3 1 483.0 1 536.3 2 393.7 0 2 393.7 CENTER-WEST Artashat 0 346.9 346.9 223.0 0 223.0 Echmiadzin 0 425.7 425.7 680.2 0 680.2 Masis 0 192.2 192.2 507.5 0 507.5 Vedi 0 205.9 205.9 435.8 0 435.8 TOTAL 0 1 170.7 1 170.7 1 846.5 0 1 846.5 SOUTH Sisyan 0 213.7 213.7 172.4 24.3 196.7 Goris 0 194.7 194.7 134.4 90.5 224.9 Kapan 79.5 240.5 320.0 524.9 46.9 571.8 Eghegnadzor 0 189.4 189.4 202.0 45.5 247.5 TOTAL 79.5 838.3 917.8 1 033.7 207.2 1 240.9 MAIN TOTAL 144.3 4 978.2 5 122.5 6 592.4 445.8 7 038.2

QUARTERLY REPORT July-September 2007

CONTAMINANTS VOLUME THREW TO WATER BASIN & PERMITTED MAXIMUM OUTLET (PMO) TABLE-6

TON / QUARTER WATER SECTORS / DISCHARGE BOD RELATED SUBSTANCES AMMONIUM NITRITE NITRATE SUBSECTORS thous. cub.m 5 NAME IN FACT PMO IN FACT PMO IN FACT PMO IN FACT PMO IN FACT PMO 1 2 3 4 5 6 7 8 9 10 11 12 Abovyan 458.36 ------Byureghavan 58.68 ------Charencavan 167.44 ------Hrazdan 274.22 9.6 12.77 4.7 25.75 0.40 1.02 0.040 0.375 0.210 2.350 Tsakhkadzor 154.00 0.7 0.47 0.3 0.94 0.03 0.09 0.002 0.075 0.010 0.700 Ashtarak 74.52 4.0 6.15 3.8 12.62 0.06 0.62 0.010 0.083 0.140 1.040 Aparan 26.30 1.1 2.58 0.9 5.28 0.01 0.15 0.002 0.060 0.030 0.563 Artik 99.64 4.9 1.45 5.4 3.05 0.20 0.25 0.020 0.500 0.150 0.360 Talin 30.56 1.0 1.49 0.9 2.23 0.01 0.09 0.001 0.005 0.050 0.775 Ashotsk 17.87 0.9 0.39 0.2 0.61 0.00 0.01 0.001 0.005 0.010 0.095 Sevan 58.35 2.0 5.85 2.3 11.79 0.03 1.09 0.002 0.175 0.120 1.625 Gavar 64.17 2.9 6.78 2.5 13.67 0.04 0.45 0.003 0.073 0.100 1.448 Martuni 58.31 2.1 3.23 1.0 6.51 0.09 0.26 0.005 0.093 0.090 1.210 Vardenis 74.68 1.5 3.37 1.2 6.80 0.03 0.27 0.004 0.078 0.077 1.008 Tchambarak 7.79 0.2 1.80 0.1 2.77 0.00 0.11 0.000 0.003 0.005 0.295 Ijevan 109.63 4.2 5.03 4.1 10.32 0.10 0.64 0.020 0.355 0.150 0.645 Berd 38.31 0.7 2.45 0.6 5.03 0.01 0.13 0.001 0.013 0.030 0.475 Dilijan 103.35 4.0 4.16 3.8 8.52 0.08 0.39 0.005 0.030 0.100 0.683 Alaverdi 91.76 4.5 5.41 4.1 11.10 0.08 0.58 0.007 0.068 0.120 2.058 Noyemberyan 15.71 0.3 0.94 0.3 2.98 0.01 0.12 0.001 0.013 0.040 0.005 Spitak 53.08 2.7 3.96 2.6 8.11 0.04 0.32 0.010 0.068 0.100 0.750 Stepanavan 79.60 2.7 4.16 2.6 8.39 0.09 0.58 0.009 0.735 0.180 0.788 Tashir 11.94 0.4 2.82 0.2 5.64 0.01 0.17 0.001 0.018 0.016 0.450 Artashat 190.05 6.7 6.75 6.1 13.84 0.10 0.67 0.004 0.040 0.140 1.400

QUARTERLY REPORT July-September 2007

TON / QUARTER WATER SECTORS / DISCHARGE BOD RELATED SUBSTANCES AMMONIUM NITRITE NITRATE SUBSECTORS thous. cub.m 5 NAME IN FACT PMO IN FACT PMO IN FACT PMO IN FACT PMO IN FACT PMO 1 2 3 4 5 6 7 8 9 10 11 12 Echmiadzin 340.38 15.0 15.07 15.0 30.90 0.26 1.25 0.120 0.448 0.980 3.775 Masis 185.76 7.7 8.71 5.8 17.85 0.20 1.22 0.060 0.478 0.290 2.228 Vedi 69.54 1.9 2.82 1.9 5.78 0.06 0.33 0.010 0.200 0.080 1.293 Ararat 126.63 2.9 5.69 2.5 11.67 0.05 0.66 0.010 0.150 0.070 1.125 Sisyan 130.73 4.8 4.36 5.1 8.80 0.07 0.29 0.009 0.085 0.200 1.305 Goris 142.63 5.4 3.75 5.9 7.69 0.15 0.68 0.008 0.043 0.220 1.155 Kapan 379.93 10.9 10.09 8.2 20.35 0.36 1.68 0.050 0.250 0.460 1.995 Meghri 40.00 0.4 1.21 0.5 2.48 0.01 0.12 0.001 0.013 0.040 0.470 Agarak 69.53 1.3 1.38 1.5 2.83 0.04 0.14 0.003 0.018 0.120 0.810 Eghegnadzor 52.37 1.1 1.98 1.1 4.05 0.03 0.22 0.006 0.040 0.070 0.358 Vayk 55.30 1.0 1.60 0.9 3.28 0.03 0.13 0.005 0.050 0.050 0.380 Jermuk 145.05 1.4 1.59 1.3 1.18 0.00 0.03 0.004 0.060 0.070 0.385 ÀÝ¹³Ù»ÝÁ 4058.17 110.9 140.26 97.4 282.81 2.68 14.76 0.434 4.7 4.518 34.002

REMARKS* . Exceeding of PMO (Permitted Maximum Outlet) is conditioned by the absent of WCS (Waste water Cleaning Stations) . BOD - Biological Oxygen Demand

1. The actual volumes of detrimental substances discharged into the waters will be clarified upon making examination of the wastewaters in the laboratories being set up in four regional branches. 2. Nature utilization and nature protection fees have been calculated according to the water use and discharge quantities (without industrial discharge) defined by the Water Use Permission.

QUARTERLY REPORT July-September 2007

MAPPING

Based on the works planned to implement in 2007, we prioritize to continue and complete mapping of the water and wastewater intercommunity networks including specific statistical data and creating thematic maps.

The tables below show the list of those settlements for which mapping works have been fulfilled during this reporting period.

THE LIST OF MAPPED SETTLEMENTS IN THE QUARTER III 2007 - TABLE 7

SETTLEMENTS NAME, INCLUDING N REGION NAME Villages Towns 1 2 3 4 1 Zorak 2 Darakert 3 Norabats 4 CENTER-WEST Geghanist 5 Arbat 6 Argavand 7 Arevabuyr 8 Dashtavan 1 Gyalto 2 Hatsashen 3 Nor Artik 4 Tsaghkasar 5 Hakko 6 Sorik 7 Karenis 8 Qaraberd 9 Zuygaghbyur NORT-WEST 10 Spandaryan 11 Saralanj 12 Salut 13 Nahapetavan 14 Meghrashen 15 Lahjik 16 Horom 17 Getap 18 Solak 19 Mastara

QUARTERLY REPORT July-September 2007

SETTLEMENTS NAME, INCLUDING N REGION NAME Villages Towns 1 2 3 4 1 Artabuynk Yeghegnadzor 2 Syunik 3 Halidzor SOUTH 4 Karchevan 5 Harjis 6 Khalaj 1 Agarak 2 Loriberd 3 NORTH-EAST Koghes 4 Yaghdan 5 Urut

The works were also done for other residences for receiving preliminary mapping data of inner networks.

Map of ARTIK town water supply and sewerage systems

QUARTERLY REPORT July-September 2007

1.4 OPERATION & MAINTENANCE

QUARTERLY REPORT July-September 2007

OPERATION & MAINTENANCE WORKS

1. Produced and supplied water quantities, potable water losses

Water quantity produced in the 3nd quarter of 2007constituted 45 213 thousand cubic meter (by gravity – 26 222 thousand cubic meter, by pumping – 18 991 thousand cubic meter).

During the 3nd quarter potable water losses constituted 84.5%, which is by 1.2% more than the planned indicator (83.3%).

In the 3nd quarter, as compared to the 2st one, a tendency of water losses reduction is noticed (about 0.9%), which is the result of more effective utilization of produced water quantities.

2. Elimination of breakdowns, capital repairing and renovation of facilities

In the water supply systems:

In the 3nd quarter of 2007 breakdown repairing works in the water supply systems were efficiently organized and fulfilled.

Due to implemented works it was possible to keep daily average water supply schedule almost up to 11.61 hours.

In this quarter about 1605 breakdowns were repaired out of which 47 partial, 115 linear repairing and about 15 reinforcements which had positive impact on reduction and elimination of breakdowns. This quarter was effective also in regard to fighting against illegal connections (disconnections from the trunk mains) where considerable growth has been recorded (236 disconnections).

In wastewater systems:

The works carried out in the wastewater network were directed at elimination of obstructions, repairing of manholes and cleaning of network.

Along with favorable weather conditions the sewer cleaning and operation works were organized more efficiently. During this reporting quarter 22.332 km of sewers were cleaned, 1495 obstructions were eliminated, 124 sewers and 46 manholes were repaired.

3. Potable water disinfection

In the 3nd quarter potable water disinfection works were fully implemented. In the reporting quarter 29801 kg liquid chlorine and 2904 kg of hypochlorite pills were used for disinfection purposes. The replacement of old, faulty disinfection equipment for delivering liquid chlorine with new and modern equipment planned for 2007 is in progress.

QUARTERLY REPORT July-September 2007

VIEW OF SOME OPERATION & MAINTENANCE WORKS IMPLEMENTED IN III q 2007

HRAZDAN pipe breaking MAKRAVAN - ABOVYAN pipe cleaning from illegal

New connection MAKRAVAN-4 - MAKRAVAN-2

New water meter in QARASHAMB New pipe connection ZORAKAN - GYMUSH 40

QUARTERLY REPORT

July-September 2007

OPERATION END MAINTENANCE OF WATER TRANSMISSION AND DISTRIBUTION SYSTEMS TABLE-8, DIAGRAM-8

NUMBER OF BREAK- NUMBER OF LIQUIDATED BREAK-DOWNS DOWNS NUMBER OF

DISCONNECTED

NETWORK PARTLY NETWORK LINEAR ARMATURE IN NETWORK

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

N TOTAL WATER WATER

NOT WATER SYSTEM

ILLEGALL SYSTEM

TRANSMISSION AND AND TRANSMISSION ARMATURE

PAID BREAK

TRANSMISSON TRANSMISSON

DISTRIBUTION DISTRIBUTION

) ) ) ) ) ) ) )

AMD AMD AMD AMD AMD AMD AMD Materi Total

pc pc pc km pc 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 al cost cost

AMD) 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 (thousand

(thous. (thous. (thous. (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 34 35 36

NORTH 1 EAST 0 0 0 0 0 0 3 110 135 7 36 30 11 0 0 74 738 6 818 103 67 339 1 242 642 1 402 4 851 6 307 359 715 2 047 6 452 2 157 6 634 NORTH 2 WEST 3 8 42 20 2 172 2 512 7 219 237 6 9 159 212 2 9 21 150 8 179 0 21 148 439 150 2 011 3 819 8 222 244 179 2 382 4 502 4 781 7 524 CENTER 3 WEST 44 107 289 24 166 306 0 0 0 85 48 10 22 0 0 17 311 4 332 2 17 427 1 002 309 5 046 7 568 4 10 294 330 5 483 8 864 5 756 9 529

4 SOUTH 0 0 0 67 2 272 2 980 5 90 105 27 7 37 84 0 0 46 149 16 211 0 46 459 1 073 149 560 1 679 16 440 531 211 1 459 3 283 3 821 6 459

5 TOTAL 47 115 331 111 4 610 5 798 15 419 477 125 100 236 329 2 9 158 1 348 34 1 540 103 151 1 373 3 755 1 250 9 019 17 917 34 979 1 428 1 435 11 371 23 100 16 515 30 146

CUMULATIVE 163 663 1 411 344 9 153 14 585 46 848 925 332 260 393 512 2 9 479 4 393 184 5 056 427 445 3 426 9 522 4 049 26 353 52 627 133 2 643 3 809 4 627 32 422 65 958 43 085 83 661

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

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

2000 1800 1600 1400 1200 1000 800 600 400 200 0 I Quart II Quart July August September III Quart SOUTH 395 420 94 103 86 283 CENTER WEST 410 436 138 136 124 398 NORTH WEST 185 181 69 86 54 209 NORTH EAST 733 812 241 239 235 715

QUARTERLY REPORT July-September 2007

MAINTENANCE OF WESTWATER COLLECTION SYSTEMS TABLE-9

INCLUDING INSPECTION OF MANHOLES WESTEWATER REMOVAL OF

MAINS CLEARED MAIN REPAIRED TOTAL

REPAIRED COLLECTION OBSTRUCTIONS

m SYSTEMS

>300m <300m

REGIONS

km km km pc pc km pc

Total Total Total Total Total Total

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

Total

expenses expenses expenses expenses expenses expenses

expenses expenses expenses

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

Material cost cost Material cost Material cost Material cost Material cost Material Totalother

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

NORTH-EAST 0.1 0 5 0 0.1 5 20 68 6 124 188 0 0 0 507 121 1 669 264 1 929

NORTH-WEST 6.92 0 346 0.28 6.64 23 1 696 1 961 16 1 225 1 286 0 0 0 400 145 1 365 3 066 4 958

CENTER- WEST 12.16 0 608 7.74 4.42 1 1 6 1 22 31 0 0 0 224 0 226 23 871

SOUTH 3.2 0 157 0.235 2.917 95 1 701 2 375 23 801 903 0 0 0 364 48 429 2 549 3 865

TOTAL 22.332 0 1 116 8.255 14.077 124 3 417 4 410 46 2 172 2 408 0 0 0 1 495 313 3 688 5 903 11 622

CUMULATIVE 50.675 9 2 469 17.43 33.24 272 6 744 9 033 126 4 478 5 094 0 0 0 4 094 1 307 11 502 12 538 28 098

QUARTERLY REPORT July-September 2007

DIAGRAMS-9,10

MAINS CLEARED

8 KM 6

0 I Quart II Quart July August September III Quart NORTH EAST 3.33 1.56 0 0.1 0 0.1 NORTH WEST 0.046 1.572 3.02 2.17 1.73 6.92 CENTER WEST 6.52 8.43 4.86 2.98 4.32 12.16 SOUTH 2.738 4.147 0.844 1.446 0.862 3.152

NUMBER OF REMOVAL OF OBSTRUCTIONS, MAINS AND MANHOLES REPIRED

600

500

400

300

200

100

0 I Quart II Quart July August September III Quart NORTH EAST 400 510 182 164 172 518 NORTH WEST 376 393 140 159 140 439 CENTER WEST 185 143 43 101 82 226 SOUTH 458 362 142 191 149 482

QUARTERLY REPORT July-September 2007

NETWORK ANALYSING TABLE - 10

WATER TRANSMISSION AND DYSTRIBUTION SYSTEMS WASTEWATER COLLECTION SYSTEM

Water Water Number of Water Wastewater Cleaned # REGIONS Transmission Distribution Total Brea k - downs Collectors Total Obstructions Losses System Network System System (km) piece/km km km Collection m3/day km km % (km) (km) piece/ km

1 2 3 4 5 6 7 8 9 10 11 12 1 NORTH-EAST 841 1 515 2 356 45 0.35 131 513 645 0.8 0.0 2 NORTH-WEST 567 689 1 256 110 0.14 132 555 687 0.6 1.0 3 CENTER-WEST 634 1 034 1 669 63 0.20 46 176 222 1.0 5.5 4 SOUTH 611 433 1 045 66 0.20 46 314 360 1.3 0.9 TOTAL 2 654 3 671 6 324 66 0.2 356 1 558 1 914 0.9 1.2

QUARTERLY REPORT July-September 2007

DIAGRAMS – 11, 12

NUMBER OF BREAK-DOWNS ON 1 KM WATER PIPE 0.45 0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 I Quart II Quart July August September III Quart NORTH-EAST 0.3 0.4 0.1 0.1 0.1 0.3 NORTH-WEST 0.14 0.13 0.05 0.1 0 0.1 CENTER-WEST 0.2 0.2 0.1 0.1 0.1 0.2 SOUTH 0.3 0.3 0.1 0.1 0.1 0.2

WATER LOSSES-M3/DAY*KM 140 120 100 80 60 40 20 0 I Quart II Quart July August September III Quart NORTH-EAST 45 47 47 43 44 45 NORTH-WEST 116 103 109 112 108 110 CENTER-WEST 72 61 63 62 63 63 SOUTH 63 62 62 63 73 66

QUARTERLY REPORT July-September 2007

DIAGRAMS – 13, 14

NUMBER OF OBSTRUCTION IN KM 1.4

1.2

0.8

0.6

0.4

0.2

0 I Quart II Quart July August September III Quart NORTH-EAST 0.6 0.8 0.3 0.3 0.3 0.8 NORTH-WEST 0.5 0.6 0.2 0.2 0.2 0.6 CENTER-WEST 0.8 0.6 0.2 0.5 0.4 1 SOUTH 1.3 1 0.4 0.5 0.4 1.3

LENHTH OF CLEANED WESTEWATER PIPELINE IN % 6 5 4 3 2 1 0 I Quart II Quart July August September III Quart NORTH-EAST 0.4 0.2 0 0.02 0 0.02 NORTH-WEST 0.01 0.2 0.4 0.3 0.3 1 CENTER-WEST 2.9 3.8 2 1.3 1.9 5.5 SOUTH 0.8 1.1 0.2 0.4 0.2 0.9

QUARTERLY REPORT July-September 2007

WATER PRODUCTION & LOSSES TABLE-11

WATER PRODUCTION WATER DELIVERED UN-ACCOUTED FOR WATER

/thousand m3/ /thousand m3/

Name of Source July August September III Quart

N SECTORS SUBSECTORS (pumping

% %

station)

3 3 3

July July

% %

m m m

August August hous

losses losses losses

water water water water water

III Quart III Quart III

T Thous. Thous. Thous.

September September

losses losses

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 p/s 730 771 593 2094 Bujakan s. 16 16 15 47 Abovyan 136 141 137 414 695 84 733 84 563 80 1992 83 Dzoragbyur p/s 45 43 45 134 Abovyan Akunq p/s 39 45 47 131 1 Total 831 875 700 2406 136 141 137 414 695 84 733 84 563 80 1992 83 Byuregavan Nurnus s. 93 93 90 277 28 29 28 85 65 70 64 69 62 69 192 69 Total 93 93 90 277 28 29 28 85 65 70 64 69 62 69 192 69 Total 924 968 790 2682 164 171 165 499 761 82 798 82 625 79 2183 81 Solak p/s 23 18 26 67 Alapars s. 99 160 95 353 Makravan-4 - 241 241 233 716 Charencavan Charencavan Abovyan main 82 87 82 252 479 85 482 85 453 85 1414 85 2 Gyumush s. 174 120 157 451 Fantan b-h 3 4 4 11 Zoravan p/s 22 25 21 68 Total 561 568 535 1665 82 87 82 252 479 85 482 85 453 85 1414 85 Makravan p/s 99 112 76 287 Tsaghkadzor Tegenis s. 12 9 5 26 29 33 24 85 89 75 95 75 60 72 244 74 Ulashik WCS 7 7 3 17 Total 118 128 84 330 29 33 24 85 89 75 95 75 60 72 244 74 Hrazdan Makravan-4 - 188 181 181 550 3 Abovyan main Hrazdan Solak p/s 7 7 7 21 110 110 108 328 1172 91 1214 92 1197 92 3583 92 Makravan 2-3 1087 1135 1117 3339 p/s Total 1282 1324 1305 3911 110 110 108 328 1172 91 1214 92 1197 92 3583 92 Total 1400 1451 1389 4240 139 142 131 413 1261 90 1309 90 1257 91 3827 90 Artik reservoir 340 340 342 1022 Artik Mantash 79 79 84 242 591 88 591 88 564 87 1746 88 330 330 306 966 reservoir Total 670 670 648 1987 79 79 84 242 591 88 591 88 564 87 1746 88 Zovasar s. 23 25 21 69 Jinj Akner s. Talin 32 29 28 89 20 38 24 45 22 43 65 42 Maralik p/s 0 0 0 0 Kentagbyur s., N 29 29 29 86 809 s. Total 52 53 50 155 32 29 28 89 20 38 24 45 22 43 65 42 Artik 4 Dagdzutner s. 34 34 33 101 Sari s. 3 3 3 8 Ghazanchi s. 20 18 18 57 Lusagbyur s. 6 6 6 19 Ashotsk 14 14 14 42 74 84 74 84 73 84 221 84 Zuygaghbyur s. 9 10 10 29 Gazanchi s. 5 5 5 16 Dzragacneri s. 0 0 0 0 Bavra b-h 10 11 12 34 Total 88 88 87 263 14 14 14 42 74 84 74 84 73 84 221 84 Total 809 811 785 2405 125 122 126 373 685 85 689 85 659 84 2032 84

QUARTERLY REPORT July-September 2007

WATER PRODUCTION WATER DELIVERED UN-ACCOUTED FOR WATER

/thousand m3/ /thousand m3/

Name of Source July August September III Quart

N SECTORS SUBSECTORS (pumping

% %

station)

3 3 3

July July

% %

m m m

August August hous

losses losses losses

water water water water water

III Quart III Quart III

T Thous. Thous. Thous.

September September

losses losses

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Karbi b-h 93 100 100 293 Artak p/s 117 124 120 361 Artashavan s. 105 105 105 315 Sagmusavan s. 84 84 84 252 Ashtarak Wosketas s. 8 8 8 24 100 96 95 292 976 91 993 91 969 91 2939 91 Bazmagbyur b-h 24 25 24 74 Kazaravan b-h 7 8 9 25 Ashtarak Bazmagbyur s. 5 638 635 614 1887 Kazaravan s Total 1076 1089 1065 3230 100 96 95 292 976 91 993 91 969 91 2939 91 Ortachit s. 34 34 34 102 Geghagzor s. Aparan 20 20 17 58 97 83 103 83 104 86 304 84 Eznak p/s 28 31 31 90 Jami p/s 55 59 56 170 Total 117 124 121 362 20 20 17 58 97 83 103 83 104 86 304 84 Total 1193 1213 1186 3592 120 117 112 349 1074 90 1096 90 1073 91 3243 90 MAIN 1269 4888 5012 4685 14585 630 639 617 1886 4259 87 4373 87 4068 87 87 TOTAL 9 NORTH-EAST REGION Dzknget s. 10 10 7 27 Sevan Sevan 26 28 23 78 164 86 132 82 34 59 329 81 1 Hatsarat p/s 180 150 50 380

Total 190 160 57 407 26 28 23 78 164 86 132 82 34 59 329 81 Golovino WCS 22 20 21 63 Florovi Balka 24 22 22 68 WCS Dilijan Dilijan Bldan WCS 27 24 25 76 33 39 37 108 57 64 42 52 45 54 144 57 2 Shamakhyan s. 13 12 12 38 Jiliut Tala s. 3 3 3 8

Total 90 81 82 252 33 39 37 108 57 64 42 52 45 54 144 57

Qarqarut s. 107 107 78 292 Spitak dzur s. 94 94 73 260 Getahovit s. 67 67 57 191 Anapat s. 40 40 39 119 Ijevan Khozmarag s. 27 27 26 80 40 41 39 120 325 89 324 89 262 87 911 88 Getapnya p/s 9 9 8 25 Dzr i dzor s. 11 11 10 32 Gmbet s. 5 5 5 16 Ijevan Azatamut s. 5 5 5 16 3 Total 365 365 301 1031 40 41 39 120 325 89 324 89 262 87 911 88 Berd WTP 88 90 90 268 Berd 17 18 17 53 76 82 77 81 78 82 230 81 Chatakh s. 5 5 5 15 Total 93 95 95 283 17 18 17 53 76 82 77 81 78 82 230 81 Kushchinski s. 15 15 15 45 Chambarak 4 3 3 10 26 87 27 91 27 89 80 89 Taqa s. 15 15 15 45 Total 30 30 30 90 4 3 3 10 26 87 27 91 27 89 80 89

Total 488 490 426 1404 61 62 59 182 427 88 428 87 367 86 1222 87

QUARTERLY REPORT July-September 2007

WATER PRODUCTION WATER DELIVERED UN-ACCOUTED FOR WATER

/thousand m3/ /thousand m3/

Name of Source July August September III Quart

N SECTORS SUBSECTORS (pumping

% %

station)

3 3 3

July July

% %

m m m

August August hous

losses losses losses

water water water water water

III Quart III Quart III

T Thous. Thous. Thous.

September September

losses losses

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Akunq s. 104 104 103 311 St. Vardan s. 22 22 22 66 Vartenis 39 37 36 112 161 81 164 82 164 82 489 81 Akner s. 43 43 43 129 Shat Jreq s. 31 32 32 95 Total 200 201 200 601 39 37 36 112 161 81 164 82 164 82 489 81 Tsakqari s. 180 180 180 540 Martuni 28 28 25 82 214 89 214 88 217 89 644 89 Gavar Hopoy var s. 62 62 62 186 4 Total 242 242 242 726 28 28 25 82 214 89 214 88 217 89 644 89 Kaler p/s Hatsarat p/s 1047 843 995 2885 Gavar Khacher p/s 102 87 89 278 1072 91 860 91 986 92 2917 91 Sarukhan p/s 85 70 59 215 Gandzak b-h 41 33 21 95 Total 1173 947 1075 3195 102 87 89 278 1072 91 860 91 986 92 2917 91 Total 1615 1390 1517 4522 168 152 151 472 1447 90 1237 89 1366 90 4050 90 Berdavan b-h 10 13 9 33 Ayrumi p/s 51 49 38 138 Gij sari s. 85 39 25 149 Noyemberyan Spitakashen s. 2 3 3 8 15 21 16 53 134 90 83 80 59 79 277 84 Varar agbyur s. 1 1 0 2 Noyemberyan b- Alaverdi 0 0 0 0 5 h Total 150 105 75 329 15 21 16 53 134 90 83 80 59 79 277 84 Lori berd s, 589 589 570 1749 Alaverdi 50 51 46 147 700 93 699 93 680 94 2079 93 Agarak s. 161 161 156 477 Total 750 750 726 2226 50 51 46 147 700 93 699 93 680 94 2079 93 Total 900 854 801 2555 65 72 62 200 835 93 782 92 739 92 2355 92 Chakhkali s. 23 20 22 65 Drashen b-h 24 24 23 71

Spitak Nalband b-h 24 22 22 68 31 28 27 85 53 64 51 65 52 66 157 65 Ghazanchi s, 4 4 4 12 Spitak b-h 9 8 8 25 Total 84 78 79 241 31 28 27 85 53 64 51 65 52 66 157 65 Gyulidar s, 13 13 13 40 Stepanavan Getavan p/s 111 120 120 351 6 Stepanavan 37 38 35 110 317 90 325 90 320 90 962 90 Novoseltsovo s, 229 229 222 680 Total 354 362 355 1071 37 38 35 110 317 90 325 90 320 90 962 90 Novoseltsov p/s 62 62 62 186 Tashir Sevaberd s. 48 48 48 143 39 39 35 113 108 74 108 74 112 76 329 75 Bazumi s. 38 38 38 113 Total 147 147 147 442 39 39 35 113 108 74 108 74 112 76 329 75 Total 585 588 581 1754 106 104 96 307 479 82 484 82 485 83 1447 83 MAIN TOTAL 3867 3563 3464 10894 460 458 429 1347 3408 88 3105 87 3034 88 9547 88

CENTER-WEST REGION

Araratyan 1,2 Masis c. 595 570 560 1724 65 75 70 210 530 89 495 87 489 87 1514 88 p/s Total 595 570 560 1724 65 75 70 210 530 89 495 87 489 87 1514 88 Araratyan 1,2 Masis 727 697 684 2108 1 Masis v. p/s 72 83 80 235 684 90 645 89 639 89 1967 89 Yerevan Djur 29 31 35 95 Total 756 728 719 2202 72 83 80 235 684 90 645 89 639 89 1967 89 Total 1351 1297 1278 3927 137 158 150 445 1214 90 1139 88 1128 88 3481 89

QUARTERLY REPORT July-September 2007

WATER PRODUCTION WATER DELIVERED UN-ACCOUTED FOR WATER

/thousand m3/ /thousand m3/

Name of Source July August September III Quart

N SECTORS SUBSECTORS (pumping

% %

station)

3 3 3

July July

% %

m m m

August August hous

losses losses losses

water water water water water

III Quart III Quart III

T Thous. Thous. Thous.

September September

losses losses

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Ghazaravani b-h 96 103 122 322 Bazmagbyur b- 56 59 57 171 h Bazmagbyur 3 s. 748 748 726 2222 227 227 238 693 717 76 695 75 673 74 2085 75 Ghazaravani s. Artameti p/s 13 12 7 32 Hushakerti p/s 10 0 0 10 Kozdasheni p/s 21 0 0 21 Total 944 922 912 2778 227 227 238 693 717 76 695 75 673 74 2085 75 Artashati b-h 260 264 251 775 Artashat Artashat 190 186 174 550 1062 85 1070 85 1049 86 3181 85 3 Garni s. 992 992 972 2956 Total 1252 1256 1223 3731 190 186 174 550 1062 85 1070 85 1049 86 3181 85 Garni s. 187 185 184 556 Vedi 124 136 128 388 136 52 209 61 216 63 561 59 Dzermanis s. 73 160 160 393 Vedi Total 260 345 344 949 124 136 128 388 136 52 209 61 216 63 561 59 4 Ararat Garni s. 152 150 150 452 42 48 54 144 110 72 103 68 96 64 308 68 Total 152 150 150 452 42 48 54 144 110 72 103 68 96 64 308 68 Total 412 495 494 1401 166 184 181 532 246 60 311 63 313 63 869 62 MAIN 1183 3959 3971 3906 721 755 744 2220 3239 82 3215 81 3162 81 9617 81 TOTAL 6 SOUTH REGION Sarnagbyur s. 93 74 100 268 12 12 12 36 82 87 62 83 88 88 232 86 Eghegnadzor Qarasun s. 120 95 129 344 7 7 7 21 113 94 88 92 122 94 323 94 Vostan s. 95 75 102 272 14 15 12 42 80 85 60 80 90 88 230 85 Total 308 245 331 884 33 35 31 99 275 89 210 86 300 91 785 89 Eghegnadzor 1 Vayk Bazmagbyur s. 126 138 114 378 22 24 23 69 104 82 114 83 91 80 309 82 Total 126 138 114 378 22 24 23 69 104 82 114 83 91 80 309 82 Jermuk Dzrasar s. 78 79 85 242 29 36 24 89 49 62 43 55 61 72 153 63 Total 78 79 85 242 29 36 24 89 49 62 43 55 61 72 153 63 Total 512 462 530 1504 85 94 78 257 427 83 368 80 452 85 1247 83 Shaqe s. 214 209 226 649 86 75 52 213 128 60 134 64 174 77 435 67 Sisyan Sisyan Mukhutyan s. 7 7 7 20 2 3 2 7 5 71 4 54 5 72 13 66 2 Zor - zor s. 3 3 3 9 2 1 1 3 1 32 2 73 3 83 5 63 Total 223 218 236 677 90 79 54 223 133 60 139 64 182 77 454 67 Akner s. 130 129 145 404 27 27 26 79 103 79 103 79 119 82 325 80 Goris Goris 3 Mukhutyan s. 342 341 382 1065 58 46 43 147 285 83 294 86 339 89 918 86 Total 472 470 527 1469 84 73 69 226 388 82 397 85 458 87 1243 85 Geghi s, 248 249 244 741 30 40 31 101 217 88 209 84 213 87 640 86 Surin kap s. 65 65 64 195 10 13 10 34 55 85 52 80 54 84 161 83 Kapan Geghi WCS 638 640 629 1908 83 108 84 275 555 87 533 83 545 87 1633 86 Chanakhchi 157 158 155 469 25 32 25 82 132 84 125 80 130 84 387 82 WCS Vachagan WCS 4 4 4 11 1 1 1 4 3 70 2 61 3 68 8 66 Kapan 4 Total 1112 1116 1097 3324 149 194 152 495 963 87 921 83 944 86 2829 85 Agarak b-h 86 93 87 266 49 48 47 144 37 43 45 48 40 46 122 46 Agarak WCS 68 125 132 325 48 47 52 147 20 30 78 62 80 61 178 55 Megri Setenc s. 16 29 30 74 13 13 9 34 3 18 16 56 21 70 40 54 Megri WCS 54 99 104 257 11 11 8 30 43 79 88 89 97 93 227 88 Total 224 346 353 923 121 119 115 355 103 46 227 66 238 67 568 61 Total 1336 1462 1450 4247 270 313 267 851 1066 80 1148 79 1182 82 3396 80 Total 2543 2612 2743 7897 529 560 469 1557 2013 79 2052 79 2274 83 6340 80

GRAND TOTAL 15258 15157 14798 45213 2339 2411 2259 7010 12918 85 12746 84 12538 85 38203 84.5

QUARTERLY REPORT July-September 2007

DIAGRAMS – 15, 16

W A T E R L O S S E S 90 88 86 84 82 % 80 78 76 Plan 74 72 Carry out 70 I Quart II Quart July August September III Quart

W A T E R P R O D UC T I O N

50000 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 II Quart III Quart I Quart I Quart plan II Quart July August September III Quart plan plan Gravity 24552 18532 25802 18352 8710 8792 8720 26222 18389 Delivered thrugh pumps 20367 16189 17338 16703 6548 6365 6078 18991 17271 Total 44919 34721 43140 35055 15258 15157 14798 45213 35660

QUARTERLY REPORT July-September 2007

WATER DELIVERED THROUGH PUMPING AND CORRESPONDING ELECTICITY CONSUMPTION TABLE- 12

WATER CUMULATIVE DELIVERED ELECTRICITY ELECTRICITY during 2007 THROUGH CONSUMPTION CONSUMPTION N SUBSECTORS PUMPING ELECTRICITY WATER 3 3 thousand m / KWH/m thous.KWH/ thousand KWH thousand m3 III quarter III quarter

1 2 3 4 5 6 7 1 Ashtarak 654 1.6 1 065 2 843 1 770

2 Aparan 260 0.7 189 610 852

3 Artashat 775 0.3 267 832 2 391

4 Echmiadzin 657 0.4 264 961 2 206

5 Gavar 1 847 0.7 1,220 3 181 5 005

6 Sevan 1 728 0.9 1 609 5 281 6 200

7 Tashir 186 0.0 0 0 548

8 Stepanavan 351 0.7 253 771 1063

9 Noyemberyan 171 1.3 221 774 549

10 Spitak 29 0.5 15 45 89

11 Abovyan 3 625 0.2 799 2 126 9 981

12 Charentsavan 852 1.6 1 405 3 888 2 422 Hrazdan and 13 3 626 0.7 2 661 8 059 11 423 Tsakhkadzor

14 Meghri 266 0.8 208 602 770

15 Ijevan 25 0.7 18 50 72

16 Masis 3 832 0.5 1 932 5 624 11 156

17 Ashotsk 107 0.5 52 147 300

TOTAL 18 991 0.64 12 177 35 794 56 798

QUARTERLY REPORT July-September 2007

DIAGRAMS – 17,18

Electrical consumption KWH/m3

0.8 0.6 0.4 0.2 0 I Quart II Quart July August September III Quart El. energy 0.63 0.62 0.63 0.65 0.63 0.64

WATER DELIVERED THROUGH PUMPING AND CORRESPONDING ELECTICITY CONSUMPTION 25000 20000 15000 10000 5000 0 I Quart II Quart July August September III Quart Water 20367 17337 6548 6365 6078 18991 El. energy 12813 10803 4123 4165 3889 12177

QUARTERLY REPORT July-September 2007

PROGRESS OF THE WATER METERS EQUIPMENT INSTALLATION BY THE AWS CJSC IN ITS MAINTENANCE AREA TABLE - 13, DIAGRAM - 19

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

installed

condition

Installed in in Installed

Installed in Installed

requirements requirements requirements requirements requirements requirements requirements

Not working in

reporting quart

meters installed meters 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 EAST 1 Gavar 16 39 120 28 2 326 1 784 13 768 4 685 79 89 68 258 16 377 6 883 151 278 80

2 Sevan 0 2 134 12 1 312 4 370 289 923 11 26 44 206 1 790 5 539 33 110 32

3 Dilijan 0 9 97 1 2 094 1 134 1 601 1 611 18 33 26 85 3 836 2 873 257 281 28

4 Ijevan 0 14 177 0 2 726 3 320 920 3 058 18 70 16 210 3 857 6 672 65 110 35

5 Spitak 1 48 148 34 1 772 2 905 4 106 6 529 8 89 42 271 6 077 9 876 103 157 87

6 Alaverdi 0 40 246 0 2 245 4 871 3 518 3 910 19 73 28 141 6 056 9 035 366 377 26 Total 17 152 922 75 12 475 18 384 24 202 20 716 153 380 224 1 171 37 993 40 878 975 1 313 288 NORTH WEST 1 Abovyan 10 7 308 34 4 603 17 320 2 618 2 393 11 49 59 426 7 609 20 229 256 431 52

2 Charentsavan 7 5 178 18 2 540 6 980 2 269 1 573 16 45 88 244 5 098 8 865 236 409 18

3 Hrazdan 4 9 339 0 8 033 8 587 3 193 2 028 37 76 127 412 11 733 11 112 433 793 12

4 Ashtarak 1 58 209 0 1 571 3 225 9 011 4 362 53 57 54 206 10 899 7 908 211 266 32

5 Artik 15 61 257 0 2 540 2 579 9 904 2 915 65 81 89 218 12 870 5 854 297 360 40 Total 37 140 1291 52 19 287 38 691 26 995 13 271 182 308 417 1 506 48 209 53 968 1 433 2 259 154 CENTER WEST 1 Artashat 1 78 123 0 3 190 2 790 17 058 7 918 73 58 91 253 20 536 11 097 284 217 132

2 Vedi 0 28 159 0 2 062 3 764 7 718 4 889 46 48 62 186 10 047 8 915 125 65 234

3 Echmiatsin 0 85 247 0 1 552 7 672 11 328 8 140 74 55 54 528 13 255 16 480 268 568 186

4 Masis 16 15 69 0 1 608 2 608 6 148 3 516 31 44 26 321 7 898 6 504 52 46 58 Total 17 206 598 0 8 412 16 834 42 252 24 463 224 205 233 1 288 51 736 42 996 729 896 610 SOUTH

1 Goris 2 12 154 0 738 2 274 1 300 2 908 16 54 41 143 2 251 5 391 90 188 16

2 Eghegnadzor 1 16 124 1 1 906 4 149 758 1 857 7 75 36 370 2 832 6 468 89 303 35

3 Sisian 2 12 97 0 500 3 324 389 1 421 1 61 5 202 994 5 020 70 121 12

4 Kapan 1 15 339 1 3 353 12 659 1 880 1 850 32 101 110 603 5 715 15 229 852 1 479 14 Total 6 55 714 2 6 497 22 406 4 327 8 036 56 291 192 1 318 11 792 32 108 1 101 2 091 77

MAIN TOTAL 77 553 3 525 129 46 671 96 315 97 776 66 486 615 1 184 1 066 5 283 149 730 169 950 4 238 6 559 1 129

NUMBER OF WATER METERS INSTALLED IN REPORTING QUARTER

2500

2000

1500

1000

500

-500 I Quart II Quart July August September III Quart North East 638 489 73 265 975 1313 North West 888 1069 441 385 1433 2259 Center West 668 428 -40 207 729 896 South 842 516 170 820 1101 2091

REMARK* 1. The report figures were presented by the sectors in base of collection and should be correct. 2. Because some customers have use more than one water line (connection point) in the flats, houses, budget and other organizations, the numbers of used water meters was calculated with the coefficient q=1,2 54

QUARTERLY REPORT July-September 2007

DISINFECTANT RECORDS IN III QUARTER 2007 TABLE- 14

BALANCE in the BALANCE RECEIVED UTILIZED SECTORS beginning of quarter in the end of quarter N AND SUBSECTORS LIQUID HYPOCHLO- LIQUID HYPOCHLO- LIQUID HYPOCHLO- LIQUID HYPOCHLO- CHLORINE RIT E PILLS CHLORINE RIT E PILLS CHLORINE RIT E PILLS CHLORINE RIT E PILLS (kg) (kg) (kg) (kg) (kg) (kg) (kg) (kg) 1 2 3 4 5 6 7 8 9 10 NORTH-EAST 1 Sevan 0 10 0 400 0 366 0 45 2 Gavar 375 36 2 070 45 2 318 36 127 45 3 Martuni 50 0 120 135 125 120 45 15 4 Vardenis 91 0 50 0 91 0 50 0 5 Dilijan 34 36 0 85 0 106 34 15 6 Ijevan 0 314 0 135 0 449 0 0 7 Chambarak 0 0 0 135 0 73 0 62 8 Berd 47 10 460 0 312 10 195 0 9 Alaverdi 750 0 800 135 1 300 135 250 0 10 Nojemberyan 194 0 0 45 30 10 164 35 11 Spitak 0 37 0 90 0 117 0 10 12 Stepanavan 68 29 120 0 112 29 76 0 13 Tashir 90 7 330 0 378 7 42 0 TOTAL 1 699 479 3 950 1 205 4 666 1 458 983 227 NORTH-WAST 1 Abovyan 332 0 2 450 0 2 512 0 270 0 2 Bjureghavan 15 0 170 0 125 0 0 0 3 Hrazdan 932 0 2 400 0 2 390 0 942 0 4 Tsaghkadzor 25 15 60 0 85 15 0 0 5 Charentsavan 17 18 690 0 510 8 147 10 6 Ashtarak 384 52 2 500 160 1 067 212 1 817 0 7 Aparan 90 16 180 155 220 156 50 15 8 Artik 603 62 2 130 0 1 853 27 880 35 9 Ashotsk 0 45 0 135 0 175 0 5 10 Talin 0 75 0 225 0 291 0 9 TOTAL 2 398 283 10 580 675 8 762 884 4 106 74 CENTER-WEST 1 Artashat 818 1 4 050 45 4 175 16 692 30 2 Echmiatsin 455 28 3 200 0 2 965 10 690 18 3 Masis 21 0 2 400 0 2 219 0 202 0 4 Vedi 26 35 230 45 224 80 32 0 TOTAL 1 320 64 9 880 90 9 583 106 1 617 48

QUARTERLY REPORT July-September 2007

1 Egheghnadzor 112 20 630 0 669 11 73 10 2 Vayk 89 39 180 0 264 14 5 25 3 Jermuk 25 155 50 0 68 25 7 130 4 Sisian 21 0 290 10 301 10 10 0 5 Goris 193 65 800 0 973 15 20 50 6 Kapan 1 766 196 3 200 0 4 210 103 757 93 7 Meghri 26 95 370 215 306 279 90 31 TOTAL 2 232 570 5 520 225 6 791 457 962 339 GRAND TOTAL 7 648 1 396 29 930 2 195 29 801 2 904 7 667 687

REMARK* The information is presented in base of operative data. In August 60kg liquid chlorine from Byureghavan subsector and 50kg liquid chlorine from Charentsavan sector have been returned to the “Nairit” factory because of malfunction in valve of the container.

QUARTERLY REPORT July-September 2007

ELECTRICITY CONSUMPTION & EXPENSES TABLE-15,16

During 9 months electricity consumption constituted 41 142 thousand kWh constituting AMD 770 `606 thousand exceeding the planned indicator by 5 %. In the 3nd quarter, 2007 actual consumption electricity exceeded the budget electricity consumption by 30 thousand kWh (0.2%) conditioned by operation of new pumping stations (Argel, Lchashen) the electricity consumption of which was not included in the budget.

ELECTRICITY CONSUMPTION & EXPENSES IN PERIOD OF 13 LAST MONTHS DIAGRAM - 20

120000 7000

6000 100000

5000 80000

4000

60000 KWH 1000

1000 AMD 1000 3000

40000 2000

20000 1000

cost 2006 0 0 Cost 2006 Cost 2007 January March May July September November KWH 2006 KWH 2007

MONTH

Please, see attached tables # 15,16

QUARTERLY REPORT July-September 2007

2. FINANCE & ACCOUNT

QUARTERLY REPORT July-September 2007

SUBSIDY TABLE-17

Subsidy FROM RA GOVERNMENT

RECEIVED AMOUNT MONTH 2007 COMMENTS (mln AMD)

96,8 electricity consumption payment 8.7 VAT 24,5 social security payment January 200,0 53.2 salary 5.1 water fore payment 10,3 income tax 1,4 other tax

February 100,0 100,0 electricity consumption payment

March 45,3 45,3 electricity consumption payment

136,5 electricity consumption payment 7,6 income tax April 200,0 5,0 water fore payment 49,6 social security payment 1,3 other tax

78,4 electricity consumption payment 80,0 May 1,6 social security payment

June 65,3 65,3 electricity consumption payment

77,0 electricity consumption payment 35,4 VAT July 52,0 social security payment 200,0 29,1 income tax 5,1 water fore payment 1,4 other tax

86,0 electricity consumption payment 16,9 VAT August 145,3 35,4 social security payment 7,0 income tax

QUARTERLY REPORT July-September 2007

RECEIVED AMOUNT MONTH 2007 COMMENTS (mln AMD)

September _ _

TOTAL AMOUNT 1 035,9

QUARTERLY REPORT July-September 2007

INFORMATION CONCERNING INCOMES AND EXPENSES OF AWS CJSC IN III QUARTER, 2007 TABLE-18 1000 AMD

Proceeds Current expenses

from main

Net salary N H/O activity and

Payment.

Total Total fund

water Subsidy

Current Current

Taxes

Social Other

Amounts Amounts

expenses expenses

of credit

Covering

payments

other activity

insurance

received from Electricity

meters sales income Total 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 NORTH–WEST REGION 1 Abovyan 171 549.8 171 549.8 30 740.0 72 196.8 126 907.5 126 907.5 229 844.3 TOTAL 171 549.8 171 549.8 30 740.0 72 196.8 126 907.5 126 907.5 229 844.3 NORTH–EAST REGION 2 Sevan 106 240.7 160.0 106 400.7 44 325.0 68 330.9 60 614.9 60 614.9 173 270.8 TOTAL 106 240.7 160.0 106 400.7 44 325.0 68 330.9 60 614.9 60 614.9 173 270.8 CENTER–WEST REGION 3 Artashat 175 380.2 175 380.2 22 435.0 58 468.9 54 684.4 54 684.4 135 588.3 TOTAL 175 380.2 175 380.2 22 435.0 58 468.9 54 684.4 54 684.4 135 588.3 SOUTH REGION

4 Sisyan 169 738.4 169 738.4 31 725.0 50 816.4 7 621.3 7 621.3 90 162.7 TOTAL 169 738.4 169 738.4 31 725.0 50 816.4 7 621.3 7 621.3 90 162.7 Total from Branches 622 909.1 160.0 623 069.1 129 225.0 249 813.0 249 828.1 249 828.1 628 866.1 HEAD OFFICE TOTAL 54 497.3 345 315.0 54 872.5 454 684.8 33 021.7 31 734.3 2 200.9 72 871.2 57 680.2 - 230 458.1 363 210.4 427 966.4

MAIN TOTAL 677 406.4 345 315.0 55 032.5 1 077 753.9 162 246.7 281 547.3 252 029.0 72 871.2 57 680.2 - 230 458.1 613 038.5 1 056 832.5

See, please, also attached Diagram-21

QUARTERLY REPORT July-September 2007

3. HUMAN RESOURCES

QUARTERLY REPORT July-September 2007

In the reporting quarter Human Resources Department carried out the following works:

1. Personnel & Contract Division

a) External relations

The works on making registrations in the registers and their maintenance have an ongoing character. Each month the employment contracts of the Company’s employees, agreements, resignations etc are registered in established manner.

The database created for the whole system including detailed information about each employee (passport data, social security card, number of children, holiday, etc) is updated each month.

As usual monthly and quarterly reports are submitted to the State Statistical Department on number of employees and salaries.

Current report was submitted to the Social Security Fund on salaries and social allocations of employed and resigned employees.

b) External activities

Starting September 1, new structure of the Company’s Head Office was put into operation. A new department was set up which shall be engaged in nature protection, quality and security issues.

The orders on employees business trips, holidays, employment and resignation, overtime work, training sessions have been prepared.

The employees were provided with letters to be submitted to the Social Security Fund, banks and other institutions. Answers were prepared for the letters addressed to us.

We continue cooperating with Trade Unions. Stationary was bought for needy families of the Company and distributed among the branches.

QUARTERLY REPORT July-September 2007

c) Main HR indicators

Diagram 22

NUMBER OF EMPLOYEES OF AWSC IN 2007

1820 1814 1810

1800 1794

1790 1780 1771 1765 1770

number number employees of 1760

1750

1740 IV quarter 2006 I quarter 2007 II quarter 2007 III quarter 2007

month

2. Training & Development Division

During this quarter the Department carried out works directed at checking of knowledge of ALLDOS chlorination equipment operation staff (chlorination operators, laboratory staff etc).

Training was organized for the relevant employees of the Company on electrical welding of polyethylene pipes by heater-connectors jointly with the appropriate center of “HayRusGazard” CJSC. The organization of training session on bacteriological examination of water quality is in progress.

Training sessions have been organized for the Company’s Supervision Department Heads and controllers.

QUARTERLY REPORT July-September 2007

The table of works carried out in the 3rd quarter by Education and Training Department

N/N Name of the Program Number of participants

Checking of knowledge of 1 98 chlorination operators

Electrical welding of polyethylene 2 6 pipes by heater-connectors

3 Training of microbiologists 12

4 Training of supervision specialists 14

Training in the new Training Center

Training of Training of

QUARTERLY REPORT July-September 2007

4. PUBLIC RELATION

QUARTERLY REPORT July-September 2007

ON ACTIVITIES IMPLEMENTED BY THE PUBLIC RELATIONS DEPARTMENT

(July-September 2007)

During the quarter a different programs has been broadcasted in Armenian Television Companies and the different articles published in the newspapers about the water supply and waste water main issues in the residential areas which are in the competence of the company, as well as on activities and measures directed to the water supply structures improvement.

Especially:

In the newspapers of “Hayastani Hanrapetutiun”, “Aravot”, “Azg”, “Haykakan Djamanak”, “168 jam” was published articles related to the technical conditions of the water supply and waste water structures, improvement projects, quality of potable water, existence of water meters, collection payments of the towns of Vedi, Artik, Dilijan, Echmiatzin, Goris, Sevan and rural communities of Lori, Arart, Aragatzotn, Kotayk, Syunik regions.

During the quarter a different programs was broadcasted in “H-1”, “H-2”, “Armenia”, “Shant” Armenian Television Companies regarded to the water supply and waste water situations of separate communities which are in the competence of the company.

The General Director of the company, SCWE, Public Services Regulatory Commission has been informed about the publications and television programs. In case of necessity, AWSC gave substantiation.

On July 10 with H. Abrahamyan, the Vice Prime-Minister, was discussed the problem of main water-line damage of “Jermanis-Urtzadzor-Dashtakar-Vedi”, as well as the course of implementation works directed to the rehabilitation of pipe-line. All central newspapers and TV programs have been presented this issue, as well as presented information of insufficient water supply and rehabilitation works of the water-line. In this connection, on July 15, after completion of rehabilitation works, implemented through the “Central-West” RB of the company, the mass communication media presented information with photos on these activities.

On July 19, in “H-2” Armenian TV, was broadcasted a program devoted to National holiday of France Independence Day, where was demonstrated a fragment of speech of P. Lorin, the General Director of AWSC.

The last ten-day period of August, in “H-2” Armenian TV and regional TV programs was broadcasted company’s application directed to the subscribers connected to the expiration of contractual date of water meters installation.

QUARTERLY REPORT July-September 2007

The content of application is following:

“AWSC reminds to all company’s subscribers who have not installed the water meters:

- The fixed period for installation of water meters stated by RA Governmental Decree and signed contract with you, was expired,

- The subscribers who have not installed water meters, the cost of water will be recalculated with the diameter of pipe - monthly to 14.0 thousand dram, in accordance with the RA Governmental Decree.

We suggest installing water meters in short-term period, economizing your sums. In this case, AWSC will avoid from future established juridical processes.”

The above-mentioned text distributed among subscribers who have not installed water meters. At the same time, the chief staff of the company and regional branches has been presented the issue by local TV programs.

On September 5, in the newspaper “168 Djam” was published an article with the title “New Culture in “ArmWaterSewerage” Company”, where presented information on construction of Training Center. In the newspaper have been also published interviews with the General Director and employees of the company.

Water meters laboratory Training of the laboratory specialists

On September 8, in the newspaper “Hayastani Hanrapetutiun” was published an article with the title “The town of Tashir restores respiration” about the reconstruction works of water supply network and improvement activities. An old water-line of the town keeps in reserve.

QUARTERLY REPORT July-September 2007

On September 11, in the newspaper “Aravot” was published an article with the title “The Potable Water for Irrigation Purpose” in answer the publication about the water supply situation of new constructed district of Dzoraghbiur community.

On September 28, on Armenian TV programs was broadcasted an information on alternations of Public Services Regulatory Commission’s Decree on “Minimal Requirements of the Quality of Drinking Water presented to the Water Supply Companies”. This information was published in the newspapers the next day. On TV programs has been broadcasted and in the newspapers published an interview with the General Director of the Company.

During the quarter has published the regular number of Informational Bulletin (“Trust”) and provided the departments of Head Office, Regional Branches, Sectors of AWSC and interesting persons.

On July 2 and September 28, the specialists of the company have been participated the sessions of the Regulatory Committee of program ”Dialog of National Policy”, where have been discussed “The standards provided to the minimal water supply”, “The main issues of rural communities”, “The conditions of water supply and waste water networks of multi-story buildings” and other questions. In this connection, the specialists of the company have been presented the position of the General Director.

On July 12, in Tzaghkadzor, through USAID, was organized a seminar with subject of “Mass Media and Water Sector”. AWSC’ specialists have been participated the action.

In Yerevan, “Congress” hotel, 24-27 of July, through USAID, was organized a seminar with subject of “Technical Operations and Technical Management of Water”. AWSC’ specialists have been participated the session.

During the quarter, AWSC, from different Regions of the Republic (Mayors of the towns of Artik and Agarak, and communities of Ohanavan and Ashotsk) receiving much gratitude, gratefulness for implementation of activities directed to the water supply and waste water conditions improvement.

During the quarter AWSC has received 507 letters, including assignments, letters (from SCWE - 116), as well as 41 announcements, from which 21 has from SCWE. There are studied, discussed in details by the departments of the company, answered 138 letters and 22 announcements. The rest are in process.

AWSC, in accordance with the established procedure, has presented the technical and economical reports (monthly, quarterly) to the checking organizations.

9 parcels of the documents, developed by AWSC departments related to the matters of exploitation, technical, commercial, accounting spheres, addressed to the Directors of the Company Head Office and RB Directors for execution.

QUARTERLY REPORT July-September 2007

5. WB PROCUREMENT

QUARTERLY REPORT July-September 2007

SAUR S. A. – AWS SCJC

MUNICIPAL WATER AND WASTEWATER PROJECT

PROCUREMENT MANAGEMENT AND PROGRESS REPORT July-September 2007

During reporting period have been carried out the following WB procurement:

COMPONENT A – GENERAL EXPENSES – IMPLEMENTING BY CMU

COMPONENT B – AWSC INVESTMENTS

Subcomponent B1 – Strengthening of AWSC B1.3 – AWSC Audit – Ongoing (Implementing by CMU).

Subcomponent B2 – Redundancy Plan – Completed in Q4, 2005.

Subcomponent B3 – Training and Re-qualification B3.2 – Office furniture – The contract has been completed. B3.3 – Rehabilitation of Training Center – The contract has been completed.

Subcomponent B4 – Chemical and Bacteriological Laboratories – Completed in Q1, 2007.

Subcomponent B5 – Water Meter Testing Laboratory – Completed in Q3, 2007.

Subcomponent B6 – Water Meter Testing Laboratory – Completed in Q1, 2007.

Subcomponent B7 – Assistance to Condominiums B7.1 – Pipes, Pipe Fittings and other Materials – The contract has been completed. B7.1 – Pipes, Pipe Fittings and other Materials – The contract for Lot 1 is ongoing. The contract for Lot 2 has been completed.

Subcomponent B8 – Operating Expenses B8.4 – Alum and Lime – The contract has been signed and completed. B8.4 – Dry Chlorine – Ongoing.

QUARTERLY REPORT July-September 2007

COMPONENT C – IMMEDIATE INVESTMENT PROGRAM

Subcomponent C1 – Immediate Investment Program

C1.1 – Goods – Completed in Q3, 2007. C1.1 – Transformer and Cables for Lchashen – The contract has been completed.

C1.2 - Works C1.2 – Sevan, Package 1, Drilling of Boreholes – Ongoing. C1.2 – Sevan, Internal Network – Ongoing. C1.2 – Dilijan, Frolov WTS – Ongoing. C1.2 – Dilijan, Golovino WTS – Ongoing. C1.2 – Lchashen-Sevan Pipeline – Ongoing.

C1.3 – Consultants Service and Training C1.3 – Audits of Management Contract – Ongoing (Implementing by CMU).

Subcomponent C2 –Investment in AWSC Branches

C2.1 – Goods C2.1 – Pumps and Electric Panels – The contract has been signed. C2.1 – Pipes and Pipe Fittings for Package 1 – 1 contract has been completed and 2 contracts are ongoing. C2.1 – Pipes and Pipe Fittings for Package 2,3 – The contracts for all 4 lots have been signed. C2.1 – Water Treatment Equipment – The Contract has been awarded.

C2.2 – Works C2.2 – Tsaghkadzor – Ongoing. C2.2 – Charentcavan – Ongoing. C2.2 – Ashtarak – Ongoing. C2.2 – Aparan – Ongoing. C2.2 – Gavar – Ongoing. C2.2 – Ararat – Bids have been opened and are in evaluation stage. C2.2 – Yeghegnadzor – Bids have been opened and evaluated. The Contract has been awarded. C2.2 – Masis – Bids have been opened and evaluation is completed. C2.2 – Vedi – Bids have been opened and are in evaluation stage.

C2.3 – Design C2.4 – Design, Package 2 and 3 – Ongoing.

QUARTERLY REPORT July-September 2007

DIAGRAM - 23

Contracting & Disbursement

Signed Contracts Paid Ammounts

25,000

20,000

15,000 000 USD 000 10,000

5,000

0 Dec. 06 Jan. 07 Feb. 07 Mar. 07 Apr. 07 May. 07 Jun. 07 Jul. 07 Aug. 07 Sep. 07 Oct. 07 Nov. 07 Dec.07 Month