Patrick LORIN

______Patrick LORIN

QUARTERLY REPORT July-September 2010

TABLE OF CONTENTS

1. COMMERCIAL...... 5 QUARTERLY ACTIVITIES ...... 6 G E N E R A L ...... 6 C O M M E R C I A L I N D I C A T O R S ...... 8 DIAGRAMS 1-4 ...... 9 2. OPERATION & MAINTENANCE ...... 12 2.1 WATER PRODUCTION ...... 13 PRODUCTION DEPARTMENT ...... 14 1.PRODUCED WATER QUANTITY AND POTABLE WATER LOSSES ...... 14 WATER PRODUCTION DIAGRAMS – 5 ...... 14 WATER PRODUCTION & LOSSES TABLE-1 ...... 15 2. POTABLE WATER DISINFECTION ...... 19 QUARTERLY USE OF DISINFECTION MATERIALS TABLE – 2...... 20 3. ELECTRICITY CONSUMPTION & EXPENSES ...... 21 ELECTRICITY CONSUMPTION & EXPENSES DIAGRAM – 6 ...... 21 ELECTRICITY EXPENSES TABLE-3 ...... 22 ELECTRICITY CONSUMPTION TABLE-4 ...... 23 WATER DELIVERED THROUGH PUMPING AND CORRESPONDING ELECTICITY CONSUMPTION TABLE- 5 ...... 24 DIAGRAMS – 7, 8 ...... 25 4. WATER METERS EQUIPMENT INSTALLATION ...... 25 PROGRESS OF THE WATER METERS EQUIPMENT INSTALLATION BY THE AWS CJSC IN ITS MAINTENANCE AREA TABLE - 6, DIAGRAM – 9 ...... 26 2.2 WATER DISTRIBUTION ...... 27 DISTRIBUTION DEPARTMENT...... 28 5. REPAIRS OF DAMAGES, CAPITAL REPAIRS AND REHABILITATION OF SYSTEMS ...... 28 OPERATION AND MAINTENANCE OF WATER TRANSMISSION AND DISTRIBUTION SYSTEMS TABLE-7, DIAGRAM 10 ...... 29 NETWORK ANALYSIS TABLE – 8 ...... 30 DIAGRAMS – 11, 12 ...... 30 2.3 WASTEWATER & SEWERAGE ...... 31 WASTEWATER DEPARTMENT ...... 32 6. WASTEWATER COLLECTION SYSTEMS ...... 32

QUARTERLY REPORT July-September 2010

MAINTENANCE OF WASTEWATER COLLECTION SYSTEMS TABLE-9 ...... 34 DIAGRAMS – 13, 14 ...... 35 NETWORK ANALYSIS TABLE -10 ...... 36 DIAGRAMS – 15, 16 ...... 36 7. SPECIAL WORKS DEPARTMENT ...... 37 3. TECHNICAL ...... 38 3.1 TECHNICAL INVESTIGATIONS, DESIGN & MAPPING OF TECHNICAL SYSTEMS ...... 39 3.2 MANAGEMENT OF COMPANY’S ASSETS ...... 46 ASSET MANAGEMENT ...... 47 3.3 WATER QUALITY CONTROL ...... 49 WATER QUALITY CONTROL ...... 50 POTABLE WATER INVESTIGATION IN QUARTER III, 2010 – TABLE 11 ...... 50 REPORTS ON NATURAL RESOURCE UTILIZATION ...... 52 THE AMOUNTS OF NATURAL RESOURCE UTILIZATION AND ECOLOGICAL FEES PER SECTOR OF THE REGIONAL BRANCHES TABLE-12 ...... 52 3.4 QUALITY, SAFETY & ENVIRONMENT ...... 53 3.5 COMPANY’S PROCUREMENT ...... 59 PROCUREMENT WITHIN AWSC BUDGET, Q III, YEAR 2010 TABLE – 13 ...... 60 3.6 TRANSPORTATION ...... 61 4. ADMINISTRATION ...... 64 4.1 FINANCE & ACCOUNT ...... 65 SUBSIDY TABLE-14 ...... 66 INFORMATION CONCERNING INCOMES AND EXPENSES OF AWS CJSC IN III QUARTER, 2010 TABLE-15 ...... 68 CAHS FLOW– DIAGRAM 17 ...... 69 4.2 HUMAN RESOURCES ...... 70 1. HUMAN RESOURCE POLICY AND ACCOUNT ING DIVISION ...... 71 DIAGRAM 18 ...... 73 DIAGRAM 19 ...... 73 2. TRAINING AND DEVELOPMENT DIVISION...... 74 TRAINING OF PERSONNEL TABLE-16 ...... 76 4.3 LEGAL & INSURANCE ...... 77

QUARTERLY REPORT July-September 2010

5. PROJECTS ...... 79 5.1 W B ...... 80 TABLE-17 ...... 81 5.2 A D B ...... 82 Physical Implementation of Works Table-18 ...... 84 Environmental and Social Safeguards ...... 85 TABLE-19 ...... 86 5.3 E B R D ...... 87 Physical Implementation of Works Table-20 ...... 89 6. PUBLIC RELATIONS ...... 92 7. INDICATORS ...... 95 INDICATORS RECAPITULATION – TABLE 21, (INDICATORS 1-25) ...... 96

QUARTERLY REPORT July-September 2010

1. COMMERCIAL

QUARTERLY REPORT July-September 2010

QUARTERLY ACTIVITIES

G e n e r a l

III quarter of 2010 also does not differ by its high indicators. The Company improves all the indicators with firm steps. Provision of packages to the Customers with their 1 year water balance and other additional information is still under process of implementation.

Gavar (3635 customers) and Alaverdi (1895 customers) sectors and Byureghavan (667 customers) subsector were added to Charentsavan, Abovyan and Ashtarak sectors. The results are vivid also in this case. The main objective of the project is improvement of information delivery to the Customers. The problem is that the Customers pay a certain amount each month (fixed - 500 or 1000 AMD), in the result the debts are accumulated, and the Customers are informed about it only after the notification.

A f t e r n o t I f I c a t I o n The amount of Number of Paid Number of Number of repaid old N Sectors Date customers amount custromers notified debts making new (thousand repaying old customers (thousand payments dram) debts dram) 1 2 3 4 5 6 7 8 1 Charentsavan February 2010 3 635 232 821 2729 7 596

2 Abovyan March 2010 667 51 254 264 955 3 Ashtrak April 2010 1 895 T O T A L 6197 283 1 075 2 993 8 551

Anyways, this is one more step for improvement of Customers awareness. The Project will be continuous and will include all the sectors and subsectors

Fighting against water losses, regular supervision

As daily commercial activities random visits are implemented to all the sectors of the Company. Parallel with the legal entities visits are implemented also to the resident-customers. Especially in the districts where big losses are registered. Having a certain level with the legal entities with the resident-customers we still have a lot of things to do. There are separate problems in the private houses, which have water meters installed inside the house. The problem is more serious in June-September, because of irrigation season. Anyway, the visits are continuous and the results are vivid. In general during the III quarter of 2010 about 823 different violations have been registered of about AMD 15.0 mln.

Special attention is paid to the seasonal Customers.

QUARTERLY REPORT July-September 2010

2 0 1 0 July August September T o t a l

Number of discovered violations 23 9 8 40 including

illegal connections 23 8 7 38

non-calculated customers 0 1 1 2 The amount of recorded penalty 2 063 942 1 029 4 034 (thous. AMD)

Water consumers are also under attention. With holographic seals water meters of big water consumers are resealed, which was foreseen for the HO) random visits are implemented. It should be mentioned that here we also have serious results:

Jermuk Health Center 14000 12 237 12000 10000

8000 7 160 3 m 6000 6 556 4000 2 224 1 278 2 277 2000 858 1 013 742 2 295 1 675 1 730 2 111 1 223 0 230 230 465 730 Jan Feb Mar Apr May Jun Jul Aug Sep

2009 2010

Gladzor Health Center 4000 3 486 3500 3000 2500

3 2000 m 1500 1000 1 072 777 935 1 024 500 0 0 0 0 0 520 0 0 0 0 0 0 0 0 Jan Feb Mar Apr May Jun Jul Aug Sep

2009 2010

QUARTERLY REPORT July-September 2010

The visit was implemented in June 2010

Such results have been registered with some Customers. The analysis show that all the water meters of the Customers should be moved out of the territory of the Customers and should be under strict control.

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

During the III quarter of 2010 (including new customers and replaced water meters) the following number of water meters has been installed: 4431 pc, and during 9 months of 2010 - 15212 pc. Generally the result is positive. It should be mentioned that as of 01.10.2010 total 17235 resident customers receive water service without water meters (about 10% of total number of Customers).

Replacement of old low quality (not operating properly) water meters with new ones is a quite big problem. During the visits the detected damaged water meters have been replaced with new water meters by the requirement of the Company, though the problem is not solved with those customers, who have not antimagnetic water meters installed, under low flow they do not register water usage, etc. (especially in the multi-storey buildings).

C o l l e c t I o n

Collection dynamics for 2010 has the following picture:

2010 07.10 08.10 09.10 % III quarter Task Collection 113 277 115 096 111 785 340 159 Actual collection 105 015 108 059 106 614 319 688 Defference -8 262 -7 037 -5 171 -20 471 -6,0%

North West 2009 collection 97 110 101 060 101 072 299 242 Deff.2010-2009 7 905 6 999 5 542 20 446 6,8% Task Collection 133 294 135 641 134 341 403 275 Actual collection 132 073 130 746 124 285 387 104 Defference -1 221 -4 895 -10 056 -16 171 -4,0%

Center West 2009 collection 119 045 116 559 118 915 354 519 Deff.2010-2009 13 028 14 187 5 370 32 586 9,2% Task Collection 110 270 114 138 105 890 330 298 Actual collection 100 700 102 322 94 510 297 532 Defference -9 570 -11 816 -11 380 -32 766 -9,9% South 2009 collection 94 657 93 040 96 555 284 251 Deff.2010-2009 6 043 9 282 -2 045 13 281 4,7% Task Collection 356 841 364 876 352 016 1 073 733 Actual collection 337 788 341 128 325 409 1 004 325 Defference -19 053 -23 748 -26 607 -69 408 -6,5% AWSC 2009 collection 310 811 310 659 316 542 938 012 Deff.2010-2009 26 977 30 469 8 867 66 312 7,1%

QUARTERLY REPORT July-September 2010

Number of customers making payments

Number of paying Customers is also growing firmly. It is the result of the projects, implemented by the Company.

N u m b e r o f p a y m e n t s 140 000 135 939 133 283 132 762 132 339 133 645 134 748 134 813 129 611 130 000 126 436 126 756 123 308 122 085 121 763 119 828 129 125 125 353 120 000 121 620 105 239 111 616 111 820 111 922 110 000 100 877 107 805 110 409 108 095 108 843 109 368 100 000 105 884 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

N u m b e r o f r e g u l a r y p a y e r s 150 000 134 813 133 283 132 339 135 939 129 611 (78%) (80%) (79%) (76%) 126 756 (78%) 130 000 (75%) 111 922 132 762 133 645 134 748 (66%) (78%) (79%) (79%) 110 000 92 711 108 835 107 805 (55%) (64%) (63%) 90 000 85 507 70 000 (50%)

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

10 000

Also, see below

Diagrams 1-4

QUARTERLY REPORT July-September 2010

DIAGRAM 1

Billing & Revenue collection (Collection n, Billing n-1) 450

392 400 389 350 370 360 357 347 339 350 326 334 310 319 341 301 330 338 300 278 327 325 310 306 313

250 274 259 262 242 236 200

196 MillionsAMD 150 179

100 85 Billing Revenue Collection 50

0 01/05 12/05 12/06 12/07 12/08 12.09 01.10 02.10 03.10 04.10 05.10 06.10 07.10 08.10 09.10

DIAGRAM 2

Billing, collection and ratio % for customers with water meters Billing Revenue Collection Ratio

3 000 130% 2 808

2 501 120% 2 500 2 528 110% 110% 109% 2 196 2 373 2 104 111% 108% 110% 1 867 111% 105% 1 883 2 000 101% 101% 2 073 107% 2 052 100% 1 731 101% 1 850 100% 98% 99% 1 576 1 738 1 711 1 500 90% 1 280 1 442 1 242 1 211 1 001 1 168 80% MillionsAMD 1 000 729 906 70% 438 658 500 66% 437 60% 72 206 48 203 0 50% 01/05 12/05 12/06 12/07 12/08 12.09 01.10 02.10 03.10 04.10 05.10 06.10 07.10 08.10 09.10

QUARTERLY REPORT July-September 2010

DIAGRAM 3

Cummulative billing & collection Billing Revenue Collection

5 000 4 624

4 500 4033

4 000 3 626 3 432 3388 3 268 3 220 3 500 3 120 2 782 3 000 2 683 2 443 2 308 2 500 2 135 1 834 Millions AMD Millions 2 000 1 593 1 599

1 500

1 000

500

0 2003 2004 2005 2006 2007 2008 2009 as of 01.10.2010

DIAGRAM 4

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 325 320

300

280 260 New tariff from: 260 1st April 2009 240 243 220

mln.AMD 200 196

180 179 160

140 141 120 Management Contract New tariff from: 100 started date: 1st May 2005 19th October 2004 80

QUARTERLY REPORT July-September 2010

2. OPERATION & MAINTENANCE

QUARTERLY REPORT July-September 2010

2.1 WATER PRODUCTION

QUARTERLY REPORT July-September 2010

PRODUCTION DEPARTMENT 1.PRODUCED WATER QUANTITY AND POTABLE WATER LOSSES

In the III quarter 2010 the produced water constituted 43 835.6 thousand cubic meter (by gravity 28 489.5 thousand cubic meter and by pumping - 15 346.1 thousand cubic meter).

During the 3nd quarter drinking water losses constituted 83.6 %, which is 0.9 % less, comparing with the indicator of the II quarter of 2010 (84.5 %). This is a good result, as reduction of losses succeeded in the period of hot summer and irrigation problems.

In Artashat main facilities, operated by the Company, some capping structures have been repaired and constructed in the result of which the volume of gravity water, supplied to Ashtarak town, increased and it became possible to reduce considerably operation of pumping units of “Artak” PS.

Final solution was given to “Jrasar – Jermuk” main facilities and “Bazmaghbyur – Vayq” main damaged outlets operation issues, which resulted in non registration of damaged outlets volume by the corresponding main facilities water meters. This is one of the means of struggle against water losses.

“Bazmaghbyur – Vayq” water main damage

WATER PRODUCTION DIAGRAMS – 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 July August September III Quarter Gravity 9478,18 9660,7 9350,6 28489,48 Delivered through pumps 5166,7 5202,4 4977 15346,1 Total 14644,88 14863,1 14327,6 43835,58

QUARTERLY REPORT July-September 2010

WATER PRODUCTION & LOSSES TABLE-1

WATER PRODUCTION WATER DELIVERED UN-ACCOUTED FOR WATER

/thousand m3/ /thousand m3/

Name of Source

July August September III Quarter

N (pumping station) water water water water

SECTORS thous thous thous thous

Quarter July July losses losses losses losses

3 3 3 3

August August

SUBSECTORS m m m m September

September % % % %

III III Quarter III 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 666,3 601,2 548,6 1816,1

Bujakan s. 16,0 16,0 15,0 47,0 120,9 120,8 123,2 364,9 750,9 86,1 684,6 85,0 656,9 84,2 2092,4 85,2

Aramus p/s 141,3 142,3 168,5 452,1 Abovyan Akunq p/s 48,2 45,9 48,1 142,1 1

Abovyan Total 871,8 805,4 780,2 2457,3 120,9 120,8 123,2 364,9 750,9 86,1 684,6 85,0 656,9 84,2 2092,4 85,2

Nurnus s. 95,0 93,9 93,1 282,0 28,4 30,7 30,8 89,9 66,6 70,1 63,3 67,4 62,3 66,9 192,1 68,1

avan Byureg Total 95,0 93,9 93,1 282,0 28,4 30,7 30,8 89,9 66,6 70,1 63,3 67,4 62,3 66,9 192,1 68,1 Total 966,8 899,3 873,3 2739,3 149,3 151,5 154,0 454,8 817,5 84,6 747,8 83,2 719,3 82,4 2284,5 83,4

Solak p/s 18,1 19,3 17,9 55,3

Alapars s. 143,6 145,6 132,2 421,4 Makravan-4 - 219,8 228,9 230,7 679,4 Abovyan main 85,8 87,8 86,3 260,0 340,0 79,8 350,7 80,0 337,1 79,6 1027,8 79,8 2

Gyumush s. 37,4 38,0 36,1 111,6

Charencavan Charencavan Fantan b-h 6,9 6,7 6,5 20,1 Total 425,8 438,5 423,4 1287,8 85,8 87,8 86,3 260,0 340,0 79,8 350,7 80,0 337,1 79,6 1027,8 79,8 Makravan-2 p/s 46,2 73,6 63,7 183,5

Tegenis s. 26,8 25,0 20,7 72,5 28,8 37,2 32,3 98,3 50,5 63,7 65,4 63,7 55,3 63,2 171,2 63,5

Tsaghkadzor Ulashik WCS 6,3 4,0 3,2 13,5

Total 79,3 102,6 87,6 269,5 28,8 37,2 32,3 98,3 50,5 63,7 65,4 63,7 55,3 63,2 171,2 63,5 Makravan-4 -

3 80,4 80,4 77,8 238,6

Hrazdan Abovyan main Solak p/s 7,1 7,1 7,1 21,3 81,4 78,4 78,3 238,1 1030,7 92,7 1064,8 93,1 1016,5 92,8 3112,0 92,9

Hrazdan Makravan 2-3 1024,6 1055,8 1009,9 3090,3 p/s Total 1112,1 1143,3 1094,8 3350,2 81,4 78,4 78,3 238,1 1030,7 92,7 1064,8 93,1 1016,5 92,8 3112,0 92,9 Total 1191,4 1245,9 1182,4 3619,7 110,2 115,7 110,6 336,5 1081,2 90,8 1130,2 90,7 1071,8 90,6 3283,2 90,7 Golovino WCS 79,0 81,0 85,0 245,0

Florovi Balka

83,0 86,0 82,8 251,8 WCS Bldan WCS 30,0 39,0 41,2 110,2 39,2 45,1 40,3 124,6 155,8 79,9 163,9 78,4 171,7 81,0 491,4 79,8

Dilijan Dilijan Shamakhyan s. 2,0 2,0 2,0 6,0 Jiliut Tala s. 1,0 1,0 1,0 3,0 Total 195,0 209,0 212,0 616,0 39,2 45,1 40,3 124,6 155,8 79,9 163,9 78,4 171,7 81,0 491,4 79,8 Qarqarut s. 93,7 80,4 77,8 251,9 Spitak dzur s. 80,4 80,4 77,8 238,6 Getahovit s. 67,0 67,0 64,8 198,8

Anapat s. 28,0 34,8 33,7 96,5

Khozmarag s. 26,8 26,8 25,9 79,5 48,2 46,8 44,0 139,1 272,4 85,0 267,8 85,1 259,3 85,5 799,4 85,2 Ijevan

Getapnya p/s 5,9 6,4 5,1 17,4 Dzr i dzor s. 8,0 8,0 7,8 23,8

5 Ijevan Gmbet s. 5,4 5,4 5,2 16,0 Azatamut s. 5,4 5,4 5,2 16,0 Total 320,6 314,6 303,3 938,5 48,2 46,8 44,0 139,1 272,4 85,0 267,8 85,1 259,3 85,5 799,4 85,2

Berd WTP 70,0 66,0 75,0 211,0 19,2 20,2 19,5 59,0 54,8 74,1 49,8 71,1 59,5 75,3 164,1 73,6

Berd Chatakh s. 4,0 4,0 4,0 12,0 Total 74,0 70,0 79,0 223,0 19,2 20,2 19,5 59,0 54,8 74,1 49,8 71,1 59,5 75,3 164,1 73,6 Total 394,6 384,6 382,3 1161,5 67,4 67,0 63,6 198,0 327,2 82,9 317,6 82,6 318,7 83,4 963,5 83,0

QUARTERLY REPORT July-September 2010

WATER PRODUCTION WATER DELIVERED UN-ACCOUTED FOR WATER

/thousand m3/ /thousand m3/

Name of Source July August September III Quarter

N (pumping station) water water water water

SECTORS thous thous thous thous

Quarter July July losses losses losses losses

3 3 3 3

August August

SUBSECTORS m m m m September

September % % % %

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

Berdavan b-h 37,4 36,6 36,5 110,5

Ayrumi p/s 37,4 43,3 41,0 121,7 Noyemberyan p/s 0,0 0,0 3,0 3,0 24,0 20,7 17,6 62,3 60,8 71,7 63,2 75,3 67,9 79,4 191,9 75,5

Gij sari s. 9,0 3,0 4,0 16,0

Spitakashen s. 0,5 0,5 0,5 1,5 Noyemberyan Varar agbyur s. 0,5 0,5 0,5 1,5 6 Alaverdi Total 84,8 83,9 85,5 254,2 24,0 20,7 17,6 62,3 60,8 71,7 63,2 75,3 67,9 79,4 191,9 75,5 Lori berd s, 562,5 616,0 596,0 1774,5 51,1 52,7 49,0 152,9 685,5 93,1 737,3 93,3 715,0 93,6 2137,7 93,3

Alaverdi Agarak s. 174,1 174,0 168,0 516,1 Total 736,6 790,0 764,0 2290,6 51,1 52,7 49,0 152,9 685,5 93,1 737,3 93,3 715,0 93,6 2137,7 93,3 Total 821,4 873,9 849,5 2544,8 75,2 73,4 66,7 215,2 746,3 90,9 800,5 91,6 782,9 92,2 2329,6 91,5 Chakhkali s. 82,0 80,0 79,0 241,0

Drashen b-h 78,0 80,0 78,0 236,0 Nalband b-h 74,0 73,0 72,0 219,0 37,7 39,3 36,6 113,6 216,5 85,2 214,6 84,5 210,4 85,2 641,6 85,0 Spitak Ghazanchi s, 10,0 9,0 8,4 27,4 Spitak b-h 10,3 11,9 9,6 31,8

Total 254,3 253,9 247,0 755,2 37,7 39,3 36,6 113,6 216,5 85,2 214,6 84,5 210,4 85,2 641,6 85,0

Gyulidar s, 7,0 5,0 5,0 17,0 Getavan p/s 121,8 124,4 121,7 367,9 37,2 45,3 36,0 118,5 279,6 88,3 271,1 85,7 280,7 88,6 831,4 87,5

7 Stepanavan

Stepanavan Novoseltsovo s, 188,0 187,0 190,0 565,0

Total 316,8 316,4 316,7 949,9 37,2 45,3 36,0 118,5 279,6 88,3 271,1 85,7 280,7 88,6 831,4 87,5

Novoseltsov p/s 65,0 65,0 65,0 195,0

Sevaberd s. 73,5 97,0 49,5 220,0 29,6 40,9 39,4 109,9 139,9 82,5 152,1 78,8 104,8 72,7 396,8 78,3 Tashir Bazumi s. 31,0 31,0 29,7 91,7 Total 169,5 193,0 144,2 506,7 29,6 40,9 39,4 109,9 139,9 82,5 152,1 78,8 104,8 72,7 396,8 78,3

Total 740,6 763,3 707,9 2211,8 104,5 125,5 112,0 342,0 636,1 85,9 637,8 83,6 595,9 84,2 1869,8 84,5

GRAND TOTAL 4735,5 4814,4 4630,8 14180,8 631,6 666,0 633,4 1931,0 4103,9 86,7 4148,4 86,2 3997,4 86,3 12249,8 86,4

CENTER-WEST REGION

Araratyan 1,2 p/s 334,9 388,0 376,0 1098,9 62,0 63,0 65,3 190,3 272,9 81,5 325,0 83,8 310,7 82,6 908,6 82,7 Masis c. Masis

Total 334,9 388,0 376,0 1098,9 62,0 63,0 65,3 190,3 272,9 81,5 325,0 83,8 310,7 82,6 908,6 82,7

1 Masis Araratyan 1,2 p/s 409,3 473,0 458,8 1341,1 68,1 57,4 52,9 178,5 351,4 83,8 425,8 88,1 416,1 88,7 1193,2 87,0

Masis v. v. Masis Yerevan Djur 10,2 10,2 10,2 30,6 Total 419,5 483,2 469,0 1371,7 68,1 57,4 52,9 178,5 351,4 83,8 425,8 88,1 416,1 88,7 1193,2 87,0 Total 754,4 871,2 845,0 2470,6 130,2 120,4 118,2 368,8 624,3 82,7 750,8 86,2 726,8 86,0 2101,8 85,1

Ghazaravani b-h 37,0 38,2 39,3 114,6

Bazmagbyur 3

12,1 11,1 11,5 34,6 b-h. Bazmagbyur 3 s. 760,0 790,0 775,0 2325,0 244,7 231,4 205,9 682,0 578,0 70,3 628,5 73,1 636,6 75,6 1843,1 73,0

2 Ghazaravani s. Echmiadzin Echmiadzin Artameti p/s 9,1 8,9 5,9 23,9

Kozdasheni p/s 4,5 11,8 10,8 27,1

Total 822,7 859,9 842,5 2525,1 244,7 231,4 205,9 682,0 578,0 70,3 628,5 73,1 636,6 75,6 1843,1 73,0

Artashati b-h 111,0 112,2 121,7 344,9

Garni s. 918,0 920,0 892,0 2730,0 213,3 211,3 204,5 629,1 815,7 79,3 820,9 79,5 809,2 79,8 2445,8 79,5

3 Artashat Artashat Gay-Haykashen 0,0 0,0 0,0 0,0 s. Total 1029,0 1032,2 1013,7 3074,9 213,3 211,3 204,5 629,1 815,7 79,3 820,9 79,5 809,2 79,8 2445,8 79,5

QUARTERLY REPORT July-September 2010

WATER PRODUCTION WATER DELIVERED UN-ACCOUTED FOR WATER

/thousand m3/ /thousand m3/

Name of Source July August September III Quarter

N (pumping station) water water water water

SECTORS thous thous thous thous

Quarter July July losses losses losses losses

3 3 3 3

August August

SUBSECTORS m m m m September

September % % % %

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

Garni s. 220,0 203,0 192,0 615,0 155,1 163,2 153,0 471,4 151,9 49,5 129,8 44,3 129,0 45,7 410,6 46,6

Vedi Dzermanis s. 87,0 90,0 90,0 267,0

Total 307,0 293,0 282,0 882,0 155,1 163,2 153,0 471,4 151,9 49,5 129,8 44,3 129,0 45,7 410,6 46,6

4 Vedi

Garni s. 135,0 142,0 137,0 414,0 45,0 45,6 41,6 132,2 90,0 66,7 96,4 67,9 95,4 69,6 281,8 68,1 Ararat Total 135,0 142,0 137,0 414,0 45,0 45,6 41,6 132,2 90,0 66,7 96,4 67,9 95,4 69,6 281,8 68,1 Total 442,0 435,0 419,0 1296,0 200,1 208,8 194,7 603,6 241,9 54,7 226,2 52,0 224,3 53,5 692,4 53,4

Artik reservoir 262,7 375,0 276,5 914,1 Mantash 80,7 78,1 69,0 227,8 476,6 85,5 591,5 88,3 492,6 87,7 1560,7 87,3 Artik 294,6 294,6 285,1 874,3 reservoir Total 557,3 669,6 561,6 1788,4 80,7 78,1 69,0 227,8 476,6 85,5 591,5 88,3 492,6 87,7 1560,7 87,3 Zovasar s. 55,0 30,0 29,0 114,0 Jinj Akner s. 40,1 37,5 34,1 111,6 45,9 53,4 54,5 59,3 57,9 63,0 158,4 58,7 Talin Kentagbyur s., N 31,0 62,0 63,0 156,0 809 s.

Total 86,0 92,0 92,0 270,0 40,1 37,5 34,1 111,6 45,9 53,4 54,5 59,3 57,9 63,0 158,4 58,7

Dagdzutner s. 31,4 32,0 28,7 92,1

5 Artik Sari s. 8,5 8,5 8,2 25,2

Ghazanchi s. 16,9 15,9 16,5 49,3

Lusagbyur s. 7,5 7,5 7,2 22,2 15,9 13,8 12,6 42,4 61,2 79,4 64,5 82,4 61,0 82,8 186,7 81,5

Zuygaghbyur s. 3,0 3,4 1,6 8,0 Ashotsk Gazanchi s. 5,1 5,4 5,1 15,6 Dzragacneri s. 0,0 0,0 0,0 0,0 Bavra b-h 4,8 5,6 6,3 16,7 Total 77,2 78,3 73,6 229,1 15,9 13,8 12,6 42,4 61,2 79,4 64,5 82,4 61,0 82,8 186,7 81,5 Total 720,4 839,9 727,2 2287,5 136,7 129,4 115,7 381,8 583,7 81,0 710,5 84,6 611,5 84,1 1905,8 83,3 Karbi b-h 96,4 103,4 105,1 304,9 Artak p/s 72,0 82,8 50,6 205,4 Artashavan s. 81,6 93,2 127,9 302,7

Sagmusavan s. 82,0 70,0 68,0 220,0 Wosketas s. 11,0 11,0 10,5 32,5 138,2 127,8 109,9 375,9 675,7 83,0 659,6 83,8 621,7 85,0 1957,0 83,9

Ashtarak Bazmagbyur b-h 5,1 4,7 5,1 14,9

Kazaravan b-h 23,8 24,3 24,4 72,5 Bazmagbyur-3 s. 6 442,0 398,0 340,0 1180,0

Ashtarak Kazaravan s Total 813,9 787,4 731,6 2332,9 138,2 127,8 109,9 375,9 675,7 83,0 659,6 83,8 621,7 85,0 1957,0 83,9 Ortachit s.

24,0 22,0 23,0 69,0 Geghagzor s. 15,8 17,3 16,9 50,1 144,3 90,1 123,1 87,7 102,6 85,8 370,0 88,1

Eznak p/s 136,1 118,4 96,5 351,0 Aparan Jami p/s 0,0 0,0 0,0 0,0 Total 160,1 140,4 119,5 420,0 15,8 17,3 16,9 50,1 144,3 90,1 123,1 87,7 102,6 85,8 370,0 88,1 Total 974,0 927,8 851,1 2752,9 154,0 145,1 126,9 426,0 820,0 84,2 782,7 84,4 724,3 85,1 2327,0 84,5 GRAND TOTAL 4742,6 4966,0 4698,5 14407,1 1079,0 1046,5 965,9 3091,3 3663,6 77,2 3919,5 78,9 3732,7 79,4 11315,8 78,5

SOUTH REGION

- Sarnagbyur s. 34,2 35,3 36,3 105,8 14,4 16,3 14,5 45,2 19,8 57,9 19,0 53,9 21,8 60,1 60,6 57,3

Qarasun s. 62,1 64,3 65,3 191,7 9,4 10,6 9,7 29,7 52,7 84,9 53,7 83,5 55,6 85,1 162,0 84,5 dzor

Eghegna Vostan s. 71,7 74,4 74,4 220,5 10,7 11,9 11,7 34,3 61,0 85,1 62,5 84,0 62,7 84,2 186,2 84,4

1 Total 168,0 174,0 176,0 518,0 34,5 38,8 35,9 109,2 133,5 79,5 135,2 77,7 140,1 79,6 408,8 78,9

Eghegnadzor Bazmagbyur s. 186,0 192,0 195,0 573,0 25,8 26,4 24,9 77,1 160,2 86,1 165,6 86,2 170,1 87,3 495,9 86,6 Vayk Total 186,0 192,0 195,0 573,0 25,8 26,4 24,9 77,1 160,2 86,1 165,6 86,2 170,1 87,3 495,9 86,6

QUARTERLY REPORT July-September 2010

WATER PRODUCTION WATER DELIVERED UN-ACCOUTED FOR WATER

/thousand m3/ /thousand m3/

Name of Source July August September III Quarter

N (pumping station) water water water water

SECTORS thous thous thous thous

Quarter July July losses losses losses losses

3 3 3 3

August August

SUBSECTORS m m m m September

September % % % %

III III Quarter III

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

- Dzrasar s. 80,0 130,0 109,2 319,2 33,1 43,6 33,3 110,0 46,9 58,6 86,4 66,5 75,9 69,5 209,2 65,5

Jer muk Total 80,0 130,0 109,2 319,2 33,1 43,6 33,3 110,0 46,9 58,6 86,4 66,5 75,9 69,5 209,2 65,5

Total 434,0 496,0 480,2 1410,2 93,4 108,8 94,0 296,3 340,6 78,5 387,2 78,1 386,2 80,4 1114,0 79,0

Shaqe s. 268,4 264,6 214,7 747,7 116,5 106,4 77,8 300,6 152,0 56,6 158,2 59,8 136,9 63,8 447,1 59,8 Mukhutyan s. 42,2 42,7 43,3 128,2 7,1 5,0 4,2 16,3 35,1 83,2 37,7 88,3 39,1 90,3 111,9 87,3

2 Sisyan Sisyan Zor - zor s. 10,7 10,8 10,5 32,0 0,5 0,5 0,6 1,6 10,2 95,3 10,3 95,4 9,9 94,3 30,4 95,0

Total 321,3 318,1 268,5 907,9 124,1 111,9 82,6 318,5 197,3 61,4 206,2 64,8 185,9 69,2 589,4 64,9

Akner s. 223,6 220,0 217,0 660,6 28,0 29,2 27,3 84,5 195,6 87,5 190,8 86,7 189,7 87,4 576,1 87,2 Goris 3 Goris Mukhutyan s. 461,4 454,0 448,0 1363,4 60,9 59,5 53,5 173,9 400,5 86,8 394,5 86,9 394,6 88,1 1189,5 87,2 Total 685,0 674,0 665,0 2024,0 88,9 88,7 80,8 258,4 596,1 87,0 585,3 86,8 584,3 87,9 1765,6 87,2 Geghi s, 46,2 45,3 46,6 138,1 8,6 8,0 7,70 24,3 37,6 81,4 37,3 82,3 38,9 83,5 113,8 82,4

Surin kap s. 25,2 24,7 25,1 75,0 10,6 9,8 9,40 29,8 14,6 57,9 14,9 60,3 15,7 62,5 45,2 60,3 Geghi WCS 1042,4 1023,3 1052,8 3118,5 89,8 83,5 80,00 253,3 952,6 91,4 939,8 91,8 972,8 92,4 2865,2 91,9

Kapan Chanakhchi 181,3 178,1 183,6 543,0 28,4 25,9 23,30 77,6 152,9 84,3 152,2 85,5 160,3 87,3 465,4 85,7 WCS Vachagan WCS 3,9 3,8 3,9 11,6 2,5 2,4 3,89 8,8 1,4 36 1,4 36,8 0,0 0,3 2,8 24,2

4 Total 1299,0 1275,2 1312,0 3886,2 139,9 129,6 124,29 393,8 1159,1 89,2 1145,6 89,8 1187,7 90,5 3492,4 89,9 Kapan

Agarak b-h 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0

Agarak WCS 169,4 162,5 157,0 488,9 94,5 86,6 80,6 261,7 74,9 44,2 75,9 46,7 76,4 48,6 227,2 46,5

Megri Setenc s. 25,0 25,0 25,0 75,0 3,6 3,6 3,6 10,8 21,4 85,6 21,4 85,6 21,4 85,6 64,2 85,6 Megri WCS 170,0 184,5 194,0 548,5 15,0 14,5 13,1 42,7 155,0 91,2 170,0 92,1 180,9 93,2 505,9 92,2 Total 364,4 372,0 376,0 1112,4 113,1 104,7 97,3 315,2 251,3 69,0 267,3 71,9 278,7 74,1 797,2 71,7 Total 1663,4 1647,2 1688,0 4998,6 253,0 234,3 221,6 709,0 1410,4 84,8 1412,9 85,8 1466,4 86,9 4289,6 85,8 Dzknget s. 13,2 0,0 0,1 13,3

Hatsarat p/s 130,0 78,0 96,6 304,6 Maqravan-2- 65,3 39,7 47,9 153,0 331,5 83,5 305,6 88,5 332,3 87,4 969,3 86,4

Sevan 38,5 37,2 38,0 113,7

Gagarin

Lchashen b-h 215,1 230,1 245,5 690,7 5 Sevan Total 396,8 345,3 380,2 1122,3 65,3 39,7 47,9 153,0 331,5 83,5 305,6 88,5 332,3 87,4 969,3 86,4

Kushchinski s. 18,0 18,0 18,0 54,0

ak 4,0 3,7 3,7 11,4 20,0 83,3 20,3 84,5 20,3 84,7 60,6 84,1

Taqa s. 6,0 6,0 6,0 18,0 Chambar Total 24,0 24,0 24,0 72,0 4,0 3,7 3,7 11,4 20,0 83,3 20,3 84,5 20,3 84,7 60,6 84,1 Total 420,8 369,3 404,2 1194,3 69,3 43,5 51,6 164,4 351,5 83,5 325,8 88,2 352,6 87,2 1029,9 86,2

Akunq s. 171,0 170,5 170,5 512,0

St. Vardan s. 77,0 76,8 77,0 230,8 32,6 32,5 32,4 97,4 565,4 94,6 564,1 94,6 564,1 94,6 1693,6 94,6

Akner s. 175,0 174,5 174,5 524,0 Vartenis Shat Jreq s. 175,0 174,7 174,5 524,2

Total 598,0 596,5 596,5 1791,0 32,6 32,5 32,4 97,4 565,4 94,6 564,1 94,6 564,1 94,6 1693,6 94,6

Tsakqari s. 180,0 180,0 180,0 540,0 22,3 22,6 18,9 63,7 187,8 89,4 187,4 89,2 191,1 91,0 566,3 89,9

6 Martuni Hopoy var s. 30,0 30,0 30,0 90,0 Gavar Total 210,0 210,0 210,0 630,0 22,3 22,6 18,9 63,7 187,8 89,4 187,4 89,2 191,1 91,0 566,3 89,9 Kaler p/s

Hatsarat p/s 713,7 651,1 598,3 1963,1 Khacher p/s 88,7 85,2 79,9 253,9 745,6 89,4 686,4 89,0 605,9 88,3 2037,9 88,9

Gavar Sarukhan p/s 81,8 86,3 58,4 226,5 Gandzak b-h 38,8 34,2 29,2 102,2 Total 834,3 771,6 685,9 2291,7 88,7 85,2 79,9 253,9 745,6 89,4 686,4 89,0 605,9 88,3 2037,9 88,9 Total 1642,3 1578,1 1492,4 4712,7 143,5 140,3 131,2 415,0 1498,7 91,3 1437,8 91,1 1361,2 91,2 4297,7 91,2 MAIN TOTAL 5166,8 5082,7 4998,3 15247,7 772,3 727,5 661,8 2161,5 4394,5 85,1 4355,2 85,7 4336,5 86,8 13086,2 85,8

GRAND TOTAL 14644,9 14863,1 14327,6 43835,6 2482,9 2440,0 2261,0 7183,8 12162,0 83,0 12423,2 83,6 12066,6 84,2 36651,8 83,6

QUARTERLY REPORT July-September 2010

2. POTABLE WATER DISINFECTION

During the III quarter of 2010 12 362 kg liquid chlorine and 11 078.5 kg hypochlorite pills were used for disinfection purposes. It should be mentioned that during September the Company has not received liquid chlorine from “Nairit” CJSC, in the result of which water disinfection activities were implemented in the condition of emergency situation, which could not have no influence on other activities.

The process of replacing of old chlorination equipment with the news in the Chlorination Stations of the Company, foreseen for 2010, is ongoing. Particularly the process of startup of “Chambarak” and “Hopoi vayr” CSs is in the final phase (equipped with ALLDOS chlorination equipment). Before the end of the reporting year it is foreseen to finish and hand over for operation another 5 newly constructed and equipped CSs. In the result of Gavar town water supply networks operation type modification “Khacher” CS operation has been interrupted.

Checking visits to the chlorination stations are proceeding. The purpose of such visits is to study the operation and technical condition of chlorination stations, as well as to do planned technical maintenance of previously installed chlorination equipment, in the result of which the number of chlorination equipment damages has decreased.

Liquid chlorine drams and bottles repair and thickness metering activities are ongoing

QUARTERLY REPORT July-September 2010

QUARTERLY USE OF DISINFECTION MATERIALS TABLE – 2

BALANCE in the BALANCE as of the RECEIVED UTILIZED SECTORS AND beginning of I1I quarter end of III 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 NORTH-WEST 1 Abovyan 34 15 887 210 921 225 0 0 2 Bjureghavan 13 0 50 40 63 15 0 25 3 Hrazdan 60 115 657 210 717 245 0 80 4 Tsaghkadzor 0 44 0 90 0 127 0 7 5 Charentsavan 45 20 100 40 126 40 19 20 6 Ijevan 179 0 0 360 156 360 23 0 7 Berd 0 22 50 100 50 109 0 13 8 Dilijan 7 90 290 280 297 360 0 10 9 Nojemberyan 0 0 0 220 0 140 0 80 10 Alaverdi 0 18 565 120 565 138 0 0 11 Stepanavan 5 0 100 40 105 40 0 0 12 Spitak 40 30 0 120 40 150 0 0 13 Tashir 0 0 100 130 100 130 0 0 TOTAL 383 354 2 799 1 960 3 140 2 079 42 235 CENTER-WEST 1 Artashat 0 80 1838 800 1838 880 0 0 2 Echmiatsin 0 0 1456 2035 1456 2025 0 10 3 Masis 0 40 565 1010 565 1030 0 20 4 Vedi 0 20 100 285 100 295 0 10 5 Ashtarak 0 25 210 320 195 335 15 10 6 Aparan 0 45 50 385 50 390 0 40 7 Artik 90 24 1035 0 1125 24 0 0 8 Talin 0 30 50 295 50 302 0 23 9 Ashotsk 0 73 0 145 0 203 0 15 TOTAL 90 337 5 304 5 275 5 379 5 484 15 128 SOUTH 1 Egheghnadzor 0 29 100 105 100 118 0 16 2 Vayk 0 6 50 175 50 179 0 2 3 Jermuk 0 40 50 40 50 40 0 40 4 Sisian 0 32 50 145 50 152 0 25 5 Goris 0 25 502 280 502 285 0 20 6 Kapan 0 277 2191 1840 2191 1828 0 289 7 Meghri 0 96 200 250 200 239 0 107 8 Sevan 0 40 300 80 240 120 60 0 9 Gavar 280 160,5 60 160 340 230,5 0 90 10 Martuni 0 36 60 90 0 123 0 3 11 Vardenis 0 66 120 120 120 138 0 48 12 Chambarak 0 61 0 80 0 63 0 78 TOTAL 280 868,5 3 683 3 365 3 843 3 515,5 60 718 GRAND TOTAL 753 1 559,5 11 786 10 600 12 362 11 078,5 117 1 081

Remark* The information is presented based on operative data. 60 kg of liquid chlorine was transferred from “Tsak Kar” chlorination station of the Martuni subsector to Lchashen chlorination station of “Sevan” sector in September. 20

QUARTERLY REPORT July-September 2010

3. ELECTRICITY CONSUMPTION & EXPENSES

During 9 months of 2010 actual electricity consumption constituted 30 787 thousand kwt/hour amounting AMD 757 894 thousand. This indicator is by 2 147 thousand (7.2%) kwt/hour ( AMD 58 938 thousand) less than the planned indicator. In comparison with the same period of the last year 3 889 thousand kwt/hour less electricity (11.2%) was consumed. It 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. The following activities were organized and implemented:

. “Gomadzor” PS of Sevan town is operated with its full capacity, which resulted in interruption of a rented transformer substation operation, as well as other three pumping units. Through operation of “Gomadzor” PS water supply of Sevan town was considerably improved.

. in the result of some organizational activities it was possible to considerably reduce Ashtarak sector “Artak” PS 400 kvt el. engine operation hours.

. “Gavar” sector “Khacher” PS 200 kvt el. engine was removed from operation. .

ELECTRICITY CONSUMPTION & EXPENSES DIAGRAM – 6

160000 12000

COST 2010 BUDGET 2010 KWH BUDGET 2010 KWH 2010

120000

8000 1000 AMD 1000

80000 1000 KWH 1000

4000

40000

0 0

July

May

June

April

March

August

October

January

February

Septembe December November

QUARTERLY REPORT July-September 2010

ELECTRICITY EXPENSES TABLE-3

January February March April May June July August September Total 2010 Variation between total N S E C T O R S BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL 2010 actual and 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 budget AMD AMD AMD AMD AMD AMD AMD AMD AMD AMD AMD AMD AMD AMD AMD AMD AMD AMD AMD AMD % 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 27 28 29

North-West R/B 51 138 47 799 45 745 42 488 45 806 43 705 43 810 40 326 42 063 40 841 41 118 39 846 42 464 44 077 43 594 45 350 43 146 43 788 398 886 388 220 -2,67 1 Abovyan 9 170 9 052 8 258 8 171 8 554 8 887 7 937 8 695 7 937 8 899 7 937 8 567 8 258 8 864 8 307 9 125 7 937 8 993 74 295 79 253 6,67 2 Bjureghavan 292 267 236 307 264 255 250 143 223 276 223 243 250 267 250 287 250 292 2 240 2 337 4,35 3 Hrazdan 20 872 20 612 20 007 18 084 20 007 19 386 19 266 19 164 18 772 19 243 18 772 18 464 18 525 20 072 18 525 19 664 19 266 19 229 174 012 173 917 -0,05 4 Tsaghkadzor 5 928 3 584 3 952 2 757 3 705 2 409 3 582 936 2 594 918 1 976 1 140 2 470 2 174 2 964 3 248 2 964 2 651 30 134 19 816 -34,24 5 Charaentsavan 6 923 6 358 6 264 5 761 6 518 5 878 6 416 5 573 6 264 5 567 5 909 5 452 6 391 5 820 6 898 5 844 6 162 5 627 57 745 51 880 -10,16 6 Ijevan 264 195 225 185 240 191 210 169 225 165 210 155 216 160 216 186 204 169 2 010 1 575 -21,62 7 Berd 165 166 150 176 120 149 105 107 105 58 105 28 90 25 90 34 90 52 1 020 794 -22,12 8 Nojemberyan 3 501 3 717 3 214 3 893 3 214 3 370 3 214 2 602 3 157 2 867 3 214 3 226 3 272 3 909 3 272 4 120 3 214 4 018 29 274 31 722 8,36 9 Dilijan 795 765 690 699 705 750 690 753 705 699 675 675 705 690 705 684 675 675 6 345 6 390 0,71 10 Stepanavan 2 360 2 188 2 120 1 909 1 960 1 968 1 760 1 813 1 760 1 867 1 760 1 712 1 920 1 837 2 000 1 874 2 000 1 822 17 640 16 991 -3,68 11 Spitak 240 166 210 152 210 145 195 150 210 143 195 125 210 203 195 227 210 196 1 875 1 506 -19,71 12 Tashir 493 618 329 252 219 199 110 173 82 108 82 40 82 41 82 47 82 55 1 562 1 534 -1,80 13 Alaverdi 135 111 90 144 90 117 75 48 30 34 60 17 75 15 90 10 90 10 735 505 -31,25

Center -West R/B 29 276 27 147 25 882 23 610 26 789 24 583 25 730 22 245 25 440 21 000 25 215 21 654 26 425 22 367 26 761 24 490 25 826 21 484 237 345 208 579 -12,12 14 Artashat 1 710 1 651 1 500 1 350 1 440 1 385 1 380 1 406 1 320 1 328 1 260 1 232 1 410 1 426 1 500 1 411 1 380 1 265 12 900 12 456 -3,44 15 Vedi 56 100 45 78 54 76 45 57 45 53 45 24 45 31 45 75 54 48 434 543 24,99 16 Masis 12 519 9 964 10 865 8 798 11 810 9 617 11 338 8 346 11 338 8 168 11 338 7 970 11 928 8 872 11 928 9 137 11 338 8 821 104 400 79 693 -23,67 17 Ararat 30 100 30 78 30 76 30 57 30 53 30 24 30 31 30 75 30 48 270 543 100,96 18 Echmiatsin 4 408 5 108 4 176 4 207 4 002 4 162 3 944 3 993 4 002 4 066 3 770 3 687 3 770 2 850 3 770 4 122 3 770 3 757 35 612 35 952 0,95 19 Ashtarak 7 693 7 745 7 021 7 053 7 021 7 075 6 779 6 441 6 483 5 588 6 617 7 023 6 886 7 367 7 021 7 918 6 886 5 837 62 408 62 046 -0,58 20 Aparan 1 840 1 672 1 585 1 358 1 713 1 512 1 585 1 383 1 713 1 313 1 585 1 215 1 636 1 378 1 687 1 374 1 738 1 311 15 080 12 515 -17,01 21 Talin 90 152 60 92 60 108 45 80 60 56 45 34 60 40 60 23 45 22 525 606 15,47 22 Artik 90 131 60 118 60 101 45 75 60 45 45 38 60 37 60 38 45 37 525 618 17,77 23 Ashotsk 840 524 540 478 600 470 540 407 390 330 480 409 600 335 660 318 540 337 5 190 3 607 -30,50

South R/B 20 486 18 832 18 954 16 555 19 433 16 979 18 445 15 941 18 666 16 606 18 490 16 186 19 287 16 403 19 197 16 764 18 466 15 312 171 422 149 578 -12,74 24 Kapan 450 484 270 459 270 361 195 278 195 186 180 82 180 82 180 87 180 100 2 100 2 119 0,88 25 Meghri 2 160 351 2 130 338 2 130 291 2 040 252 2 130 195 2 100 142 2 130 126 2 040 108 2 040 139 18 900 1 942 -89,72 26 Goris 90 119 60 140 75 119 75 74 75 65 75 24 75 27 75 31 75 30 675 629 -6,75 27 Sisian 210 357 159 325 144 281 132 209 144 140 132 88 144 69 144 77 132 71 1 341 1 617 20,60 28 Egheghnadzor 63 51 51 60 42 26 36 19 42 6 36 6 42 12 42 12 36 9 390 201 -48,57 29 Jermuk 63 78 51 78 42 78 36 72 42 38 36 18 42 20 42 14 36 27 390 421 8,05 30 Vayq 114 145 99 79 84 76 72 65 84 22 72 42 84 13 84 10 72 11 765 462 -39,57 31 Gavar 12 406 12 428 11 634 10 923 12 135 11 634 11 718 10 683 11 843 11 197 11 718 11 031 12 135 11 832 12 135 11 969 11 718 10 334 107 440 102 031 -5,03 32 Sevan 4 480 4 686 4 200 4 007 4 256 4 002 3 976 4 210 3 976 4 705 3 976 4 728 4 200 4 203 4 200 4 434 3 976 4 569 37 240 39 544 6,19 33 Martuni 255 69 180 99 142 63 90 46 60 33 90 8 135 9 135 8 81 9 1 168 344 -70,57 34 Vardenis 195 65 120 47 113 49 75 34 75 19 75 16 120 11 120 14 120 13 1 013 267 -73,63

Administrative Building 1 973 1 724 1 710 1 750 921 1 500 736 1 219 736 1 171 736 1 218 789 1 050 789 990 789 894 9 179 11 516 25,46 35 Administrative Building 1 973 1 724 1 710 1 750 921 1 500 736 1 219 736 1 171 736 1 218 789 1 050 789 990 789 894 9 179 11 516 25,46 T O T A L 102 873 95 502 92 291 84 403 92 949 86 767 88 721 79 732 86 906 79 618 85 559 78 903 88 965 83 896 90 341 87 594 88 227 81 478 816 831 757 894 -7,22

QUARTERLY REPORT July-September 2010

ELECTRICITY CONSUMPTION TABLE-4

Total 2009 January February March April May June July August September Total 2010 Variation Variation between of between total N S E C T O R S ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL year 2009 2010 actual 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 and 2010 and budget KWH KWH KWH KWH KWH KWH KWH KWH KWH KWH KWH KWH KWH KWH KWH KWH KWH KWH KWH KWH KWH % % 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-West R/B 15 505 2 052 1 926 1 836 1 698 1 837 1 731 1 756 1 610 1 686 1 640 1 648 1 602 1 702 1 764 1 748 1 846 1 731 1 765 15995,00 15582,19 0,50 -2,58 1 Abovyan 3 047 372 367 335 332 347 354 322 349 322 360 322 347 335 358 337 371 322 363 3 014 3 201 5,04 6,20 2 Bjureghavan 88 11 10 9 12 10 12 9 6 8 9 8 10 9 10 9 11 9 11 81 91 3,29 12,64 3 Hrazdan 6 840 845 837 810 733 810 774 780 767 760 777 760 750 750 807 750 814 780 788 7 045 7 046 3,02 0,02 4 Tsaghkadzor 1 106 240 145 160 112 150 96 145 37 105 37 80 46 100 87 120 134 120 107 1 220 802 -27,48 -34,29 5 Charaentsavan 2 085 273 256 247 229 257 231 253 218 247 219 233 215 252 236 272 238 243 228 2 277 2 071 -0,68 -9,04 6 Ijevan 52 9 7 8 6 8 6 7 6 8 6 7 5 7 5 7 6 7 6 67 53 1,64 -20,64 7 Berd 21 6 6 5 6 4 5 4 4 4 2 4 1 3 1 3 1 3 2 34 26 25,56 -22,12 8 Nojemberyan 954 122 127 112 130 112 113 112 93 110 102 112 112 114 134 114 142 112 139 1 020 1 092 14,45 7,10 9 Dilijan 210 27 26 23 23 24 25 23 25 24 23 23 23 24 23 24 23 23 23 212 213 1,62 0,71 10 Stepanavan 849 118 110 106 96 98 98 88 91 88 94 88 86 96 93 100 95 100 91 882 855 0,60 -3,11 11 Spitak 60 8 6 7 5 7 5 7 5 7 5 7 4 7 7 7 8 7 7 63 50 -16,20 -19,71 12 Tashir 172 18 27 12 10 8 8 4 7 3 4 3 2 3 2 3 2 3 2 57 65 -62,37 13,29 13 Alaverdi 21 5 4 3 5 3 4 3 2 1 1 2 1 3 0 3 0 3 0 25 17 -18,94 -31,25

Center -West R/B 10 188 1 134 1 061 1 002 924 1 041 954 1 000 859 990 812 982 833 1 029 862 1 041 953 1 004 832 9219,47 8091,93 -20,58 -12,23 14 Artashat 668 57 56 50 46 48 47 46 48 44 45 42 42 47 48 50 48 46 43 430 422 -36,79 -1,86 15 Vedi 21 2 3 2 3 2 3 2 2 2 2 2 1 2 1 2 3 2 2 14 19 -11,90 29,99 16 Masis 4 662 530 429 460 378 500 414 480 358 480 346 480 342 505 386 505 397 480 382 4 420 3 433 -26,36 -22,33 17 Ararat 21 1 3 1 3 1 3 1 2 1 2 1 1 1 1 1 3 1 1 9 18 -15,55 100,33 18 Echmiatsin 1 444 152 187 144 150 138 146 136 139 138 142 130 126 130 80 130 141 130 128 1 228 1 240 -14,12 0,95 19 Ashtarak 2 468 286 291 261 268 261 262 252 240 241 213 246 260 256 280 261 300 256 215 2 320 2 330 -5,59 0,44 20 Aparan 693 72 64 62 53 67 57 62 52 67 49 62 46 64 52 66 50 68 47 590 469 -32,32 -20,53 21 Talin 32 3 5 2 3 2 4 2 3 2 2 2 1 2 1 2 1 2 1 18 20 -36,20 15,47 22 Artik 25 3 4 2 4 2 3 2 3 2 2 2 1 2 1 2 1 2 1 18 21 -17,76 17,77 23 Ashotsk 155 28 17 18 16 20 16 18 14 13 11 16 14 20 11 22 11 18 11 173 120 -22,25 -30,50

South R/B 8 616 872 831 810 729 834 752 796 702 805 737 798 724 840 744 827 761 796 687 7380,31 6668,48 -22,60 -9,65 24 Kapan 96 15 17 9 16 9 12 7 10 7 7 6 3 6 3 6 3 6 4 70 74 -23,29 5,26 25 Meghri 646 72 12 71 11 71 10 68 8 71 7 70 5 71 4 68 4 68 5 630 65 -89,98 -89,72 26 Goris 25 3 4 2 5 3 4 3 2 3 2 3 1 3 1 3 1 3 1 23 21 -17,62 -6,75 27 Sisian 66 7 13 5 12 5 10 4 8 5 5 4 3 5 3 5 3 4 3 45 60 -9,29 33,91 28 Egheghnadzor 9 2 2 2 2 1 1 1 1 1 0 1 0 1 0 1 0 1 0 13 7 -27,37 -48,57 29 Jermuk 15 2 3 2 3 1 3 1 2 1 1 1 1 1 1 1 0 1 1 14 14 -7,10 -2,46 30 Vayq 40 4 5 3 3 3 3 2 2 3 1 2 1 3 0 3 0 2 0 26 15 -61,51 -39,57 31 Gavar 6 321 595 596 558 523 582 556 562 507 568 537 562 535 582 574 582 582 562 504 5 153 4 915 -22,25 -4,63 32 Sevan 1 372 160 176 150 150 152 150 142 159 142 176 142 175 150 157 150 166 142 170 1 330 1 478 7,75 11,13 33 Martuni 16 7 2 5 3 4 2 3 2 2 1 3 0 6 0 6 0 5 0 40 11 -25,92 -71,43 34 Vardenis 10 5 2 3 2 3 2 3 1 3 1 3 1 3 0 3 0 2 0 27 9 -8,97 -67,03

Administrative 366 75 67 65 68 35 58 28 47 28 45 28 47 30 40 30 38 30 34 349,00 444,20 21,27 27,28 Building Administrative 35 366 75 67 65 68 35 58 28 47 28 45 28 47 30 40 30 38 30 34 349 444 21,27 27,28 Building Total 34676 4133 3884 3713 3419 3747 3496 3579 3218 3508 3234 3455 3207 3591 3411 3646 3598 3562 3319 32 934 30 787 -11,2 -6,5

QUARTERLY REPORT July-September 2010

WATER DELIVERED THROUGH PUMPING AND CORRESPONDING ELECTICITY CONSUMPTION TABLE- 5

WATER CUMULATIVE DELIVERED ELECTRICITY ELECTRICITY during 2010 THROUGH CONSUMPTION CONSUMPTION N SUBSECTORS PUMPING 3 3 ELECTRICITY WATER thousand m / KWH/m thous.KWH/ thousand KWH thousand m3 III quarter III quarter 1 2 3 4 5 6 7 1 Ashtarak 510,3 1,5 757,1 2 224 1 606

2 Aparan 351,0 0,4 148,9 449 1 083

3 Artashat 344,9 0,4 129,8 378 988

4 Echmiadzin 287,6 0,6 162,4 594 1 034

5 Gavar 2 596,2 0,6 1550,3 4 523 7 924

6 Sevan 690,7 0,5 352,1 1 013 1 884

7 Tashir 195,0 0,0 0,0 20 732

8 Stepanavan 367,9 0,7 261,9 787 1 130

9 Noyemberyan 232,2 1,8 411,7 1 072 554

10 Spitak 31,8 0,5 16,2 33 65

11 Abovyan 3 327,7 0,3 990,5 2 946 9 788

12 Charentsavan 510,5 1,1 545,2 1 514 1 420 Hrazdan & 13 3 387,4 0,8 2570,7 7 324 9 798 Tsakhkadzor

14 Ijevan 17,4 0,8 14,6 41 50

15 Masis 2440,0 0,5 1136,1 3 346 7 316

16 Ashotsk 54,5 0,6 32,2 110 196

TOTAL 15 345 0,5917 9 080 26 373 45 568

QUARTERLY REPORT July-September 2010

DIAGRAMS – 7, 8

WATER DELIVERED THROUGH PUMPING AND CORRESPONDING ELICTRICITY CONSUMPTION

18000 16000 14000 12000 10000 8000 6000 4000 2000 0 I Quarter II Quarter July August September III Quarter Water 15739 14484 5166 5202 4977 15345 El. energy 8993 8300 3030 3148 2902 9080

ELECTRICAL CONSUMPTION KWH/m

0,65 0,6 0,55 0,5 0,45 0,4 0,35 0,3 0,25 0,2 I Quarter II Quarter July August September III Quarter El. energy 0,57 0,57 0,58 0,6 0,57 0,6

4. WATER METERS EQUIPMENT INSTALLATION

During the III quarter of 2010 in the head quarters of the Company by own means 6 mechanical and 2 el. magnetic water meters have been installed. 23 mechanical and 5 el. magnetic water meters have been repaired.

The process of Head quarters and communities‟ entrance water meter installation or repairing and reoperation is ongoing. Activities on repairing of damaged water meters in the laboratorial conditions are in the process of implementation.

Inspection visits to the main facilities water meter units are continuing with the purpose of their operation and technical condition investigation, as well as for implementation of technical maintenance. It resulted in considerable decrease of number of damaged water meters.

QUARTERLY REPORT July-September 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 2 959 20 347 2 332 3 301 7 64 62 647 5 669 24 410 66 237 70 2 Charencavan 4 9 178 18 1 852 8 560 1 058 2 898 11 62 86 347 3 189 11 894 63 236 29 3 Hrazdan 2 9 339 0 4 355 12 402 2 027 3 259 13 94 73 624 6 809 16 388 54 238 32 4 Dilijan 2 9 97 1 1 468 2 008 1 250 2 024 16 44 26 139 2 859 4 225 2 70 33 5 Ijevan 0 12 177 0 1 534 4 034 482 3 536 5 62 12 305 2 210 7 949 36 96 27 6 Stepanavan 1 48 148 34 1 121 3 770 2 548 7 847 8 96 29 399 3 855 12 194 40 184 85 7 Alaverdi 0 40 246 0 1 504 6 489 2 186 5 346 10 88 22 219 3 968 12 182 244 406 35 Total 10 144 1 493 87 14 793 57610 11 883 28 211 70 510 310 2 680 28 559 89 242 505 1 467 311 CENTER WEST

1 Artashat 0 78 123 0 1 958 4 176 12 290 12 376 37 119 100 326 14 508 17 075 84 418 154 2 Vedi 0 28 159 0 1 188 5 099 5 620 7 161 36 71 61 310 7 064 12 669 91 327 207 3 Echmiadzin 0 85 247 0 685 8 824 8 641 11 154 55 82 54 753 9 682 20 898 106 279 236 4 Masis 14 17 69 0 763 3 862 3 070 7 165 22 65 30 505 3 968 11 614 68 265 103 5 Ashtarak 2 58 209 0 937 4 151 7 963 6 395 42 86 55 357 9 208 11 047 65 395 41 6 Artik 13 63 257 0 2 033 3 447 8 440 4 849 52 103 68 337 10 863 8 799 83 267 62 Total 29 329 1 064 0 7 564 29 559 46 024 49 100 244 526 368 2 588 55 293 82 102 497 1 951 803 SOUTH 1 Goris 1 13 154 0 518 3 037 1 006 3 674 17 66 19 200 1 715 6 990 50 78 34 2 Eghegnadzor 0 17 124 1 1 000 5 621 664 2 157 2 84 22 495 1 812 8 375 3 77 49 3 Sisian 1 13 97 0 203 3 718 322 1 743 0 70 4 243 627 5 787 40 51 22 4 Kapan 1 16 339 1 1 604 15 660 1 493 2 424 16 120 103 882 3 556 19 103 38 150 31 5 Gavar 8 47 120 28 2 014 2 649 10 026 8 159 62 119 102 377 12 332 11 379 292 513 126 6 Sevan 1 12 134 12 1 392 6 197 432 2 249 17 57 47 407 2 023 8 934 78 144 47 Total 12 118 968 42 6 731 36 882 13 943 20 406 114 516 297 2 604 22 065 60 568 501 1 013 309 MAIN TOTAL 51 591 3 525 129 29 088 124 051 71 850 97 717 428 1 552 975 7 872 105 917 231 912 1 503 4 431 1 423

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 I Quarter. II Quarter July August September III Quarter NORTH-WEST 1510 1281 433 529 505 1467 CENTER-WEST 3222 2180 736 718 497 1951 SOUTH 1658 960 240 272 501 1013

QUARTERLY REPORT July-September 2010

2.2 WATER DISTRIBUTION

QUARTERLY REPORT July-September 2010

DISTRIBUTION DEPARTMENT

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

Operation and damage repair activities during the third quarter were planned to be organized more productively and operatively. Linked with the difficulties of water supply during the summer period (excessive usage, water stealing, irrigation, etc.) it was necessary to insure supply of the customers with high quality and regular water. For solution of the mentioned problems the primary problem was equal distribution of water in the distribution network and fast implementation of damages repair activities, which was the way out for ensuring regular water supply. In the Distribution network 1 977 damage repair activities were implemented, 205 partial and lineal repairs and 47 reinforcement repair activities.

ARTASHAT sector VEDI sector

It should be mentioned that negative influence on water supply had illegal water connection and usage, which also was interrupted due to the organized activities and 61 illegal connections from the water main have been disconnected. Comparing with the last quarter, average schedule of water supply has been improved from 13.46 hours up to 13.62 hours, and comparing for the same period of the last year (12.49 hours) water supply schedule has improved for 1.13 hours. The Exploitation Directorate has put an objective in front of themselves also for possibly improvement of water supply issues of communities, receiving minimum hours of water, and some increase was registered also in this field 4.69 %.

The same style of work and order will maintain also for the next months of work.

QUARTERLY REPORT July-September 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

us. AMD)

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

tho

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 51 66 543 30 661 4044 0 0 0 0 0 15 75 51 648 21 720 0 51 254 1032 648 2314 9366 21 103 1396 720 2671 11794 3398 16456 CENTER WEST 29 198 440 50 808 1260 30 980 1334 5 2 42 73 103 505 2 610 0 103 287 1356 505 694 3856 2 37 48 610 1018 5260 3004 8368

SOUTH 21 94 396 24 1285 4435 17 146 708 0 0 4 57 64 576 7 647 0 64 207 1420 576 2481 8859 7 95 218 647 2782 10496 4307 16092

TOTAL 101 358 1378 104 2754 9739 47 1126 2042 5 2 61 206 218 1729 30 1977 0 218 748 3808 1729 5488 22080 30 234 1662 1977 6471 27550 10709 40916

CUMU- LATIVE 236 971 3514 260 7847 17898 131 4352 6784 29 8 222 640 622 5135 83 5840 0 622 2307 10361 5135 18773 68490 83 727 5817 5840 21808 84668 34979 113513

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

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

2500

2000

1500

1000

500

0 I Quarter. II Quarter July August September III Quarter SOUTH 580 763 242 244 233 719 CENTER-WEST 732 841 294 280 227 801 NORTH-WEST 612 726 228 236 245 709

QUARTERLY REPORT July-September 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 1 025 1 462 2 487 48 0,29 2 CENTER-WEST 844 977 1 821 76 0,33 3 SOUTH 785 1 232 2 016 65 0,32 TOTAL 2 654 3 671 6 324 62 0,31

DIAGRAMS – 11, 12

NUMBER OF BREAK - DOWNS ON I KM WATER PIPE 1,2

0,8

0,6

0,4

0,2

0 I Quarter. II Quarter July August September III Quarter SOUTH 0,29 0,38 0,12 0,1 0,1 0,33 CENTER-WEST 0,26 0,32 0,11 0,1 0,08 0,29 NORTH-WEST 0,28 0,33 0,1 0,1 0,11 0,32

WATER LOSSES M3/DAY*KM 250

200

150

100

0 I Quarter. II Quarter July August September III Quarter SOUTH 91 77 71 77 79 76 CENTER-WEST 57 46 43 51 50 48 NORTH-WEST 70 68 64 66 66 65

QUARTERLY REPORT July-September 2010

2.3 WASTEWATER & SEWERAGE

QUARTERLY REPORT July-September 2010

WASTEWATER DEPARTMENT 6. WASTEWATER COLLECTION SYSTEMS

During the reporting quarter, due to cooperation of HO Exploitation Department Sewerage Division and RB of the Company, during the mentioned period repair of sewerage mains of Sevan, Talin and Vayq towns was implemented with the purpose to improve the condition of sewerage networks.

. In the section of ceramic damaged and sedimented sewer main in Sevan town, Shinararneri and Nalbandyan streets, area of dormitories big damages and clogging happen very often, which caused anti-sanitary condition in the area. Together with Water removing division, South RB and Sevan Sector the mentioned sewerage line has been totally repaired. It has been replaced with a new 6 m. PVC DN250 and 6 m. DN315 sewerage pipes, as well as 1 manhole was constructed.

. Because of the broken section of a sewerage pipeline of Talin town, Gayi street and privatized nearby area, a big damage of the sewerage main and irregular operation was registered in the area, which caused anti-sanitary condition.

. By mutual force of the “Centre-West” RB and its sub-sector, activities on repairing of damages were implemented, in the result of which 220 m. of PVC DN200mm sewerage pipelines have been replaces, as well as 5 r/c manholes were installed.

SEVAN dormitories area damage After SEVAN dormitories area damage repair

. Because of Vayq town Alaverdyan street ceramic sewerage pipe broken section, the sewers flow over ground, causing anti-sanitary condition in the area and health threat for

QUARTERLY REPORT July-September 2010

the residents of the territory. The Water removing division, South RB and Vayq subsector together have improved the situation, implementing big repairing activities and installing 30 m. PVC DN250 sewerage pipe and constructing 2 r/c manholes.

TALIN Gayi street sewerage damage Acfter repaigint TALIN Gayi street sewerage damage

During the reporting period by means of current expenses of operation in the sewerage network 22.472 km of sewer pipe and 79 manholes have been cleaned, 73 sewer pipes ( 432.4 m) and 52 manholes were repaired, as well as 1469 clogs have been removed without additional financing.:

By the investment the Company obtained PVC pipes with different DN as well as r/c sewerage manholes, which have been distributed through the RBs for fast repairing of the onsite sewerage network damages.

QUARTERLY REPORT July-September 2010

MAINTENANCE OF WASTEWATER COLLECTION SYSTEMS TABLE-9

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

mm m

n n

n of Head of Head n

Branch

Name of Name of

- Regional Regional

km km km Unit l/m Unit Unit cost fuel

n of H n

Unit

costs (thous. (thous. costs

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 Total

Total consum Total

reserve materials reserve

Total other costs other Total

Total fuel cost and cost fuel Total

Other Other (thous. 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 17 136 415,6 247,1 191,8 13 578,9 66,1 0 0 0 0 596 1,5 2712 996 3025,2 191,8 3217 4213 West

Center 11,44 611,5 2,16 9,28 11 154 107,5 87,2 416,3 29 149,9 92,5 156,4 1 0 1 395 0 1370,4 257,4 2162,6 237,1 2735,3 2992,7 -West

South 11,032 978,2 0,02 11,017 45 142,4 373,3 354,4 259,4 10 144,4 76,6 0 78 0 101,8 478 0 512,71 348,3 1361,81 259,4 1608,01 1956,31

TOTAL 22,472 1589,7 2,18 20,297 73 432,4 896,4 688,7 867,5 52 873,2 235,2 156,4 79 0 102,8 1469 1,5 4595,11 1601,7 6549,61 688,3 7560,31 9162,01

Cumu- 65,348 4361,7 10 55,523 218 1087,3 2907 2053,7 1739,1 105 2495 599,8 196,4 461 23,3 522,9 5159 75,8 14569 5331,7 21445,1 1935,5 23367,41 28699,3 lative

QUARTERLY REPORT July-September 2010

DIAGRAMS – 13, 14

M A I N S C L E A R E D 14 12 10 8 6 4 2 0 I Quarter. II Quarter July August September III Quarter NORTH-WEST 0 0 0 0 0 0 CENTER-WEST 10,32 12,55 2,5 4,04 4,9 11,44 SOUTH 10,08 9,93 2,358 2,272 6,402 11,032

NUMBER OF REMOVAL OF OBSTRUCTIONS, MAINS AND MANHOLES REPAIRED

1000 900 800 700 600 500 400 300 200 100 0 I Quarter. II Quarter July August September III Quarter NORTH-WEST 654 756 222 214 190 626 CENTER-WEST 541 465 128 154 154 436 SOUTH 948 906 213 197 201 611

QUARTERLY REPORT July-September 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 174,8 742,3 917,1 0,68 0,00 2 CENTER-WEST 86,1 282,2 368,3 1,18 3,11 3 SOUTH 94,9 533,7 628,6 0,97 1,79 TOTAL 355,8 1558,2 1914,0 0,87 1,19

DIAGRAMS – 15, 16

NUMBER OF OBSTRUCTIONS IN 1 KM

3,5

2,5

1,5

0,5

0 I Quarter. II Quarter July August September III Quarter SOUTH 1,51 1,44 0,34 0,31 0,32 0,97 CENTER-WEST 1,47 1,25 0,35 0,42 0,42 1,18 NORTH-WEST 0,71 0,82 0,24 0,23 0,21 0,68

LENGTH OF CLEANED WESTEWATER PIPELINE IN %

0 I Quarter. II Quarter July August September III Quarter SOUTH 1,58 1,58 0,41 0,36 1,02 1,79 CENTER-WEST 2,8 3,41 0,68 1,1 1,33 3,11 NORTH-WEST 0 0 0 0 0 0 36

QUARTERLY REPORT July-September 2010

7. SPECIAL WORKS DEPARTMENT

In the III quarter of 2010 Special Works Division of the Operations Department carried out works directed at DRRs repairing, water measuring, reveal of water losses and their elimination.

Within the Committee set up by the Company‟s General Director, the Division continued works in Alaverdi and Dilijan towns studying water losses and the ways of their elimination.

Water measuring works have been carried out in Vedi, Alaverdi, Ashtarak, Sevan, Noyemberyan and Masis towns. Water losses were reduced and water supply and duration were improved in the above mentioned towns. Due to the regulation works in Vayk town water losses were also essentially reduced and water supply improved.

In Odzun section of Lori-Berd-Alaverdi water main of Alaverdi town 28l/sec water leakage was discovered and the sector responsible for that area was entrusted to immediately remove the leakage. Measuring and regulation works were made in newly operated Norabats DRR and owing to these works water supply to Masis region villages have been improved.

In the reporting quarter works have been carried out in the distribution network of Vedi town and in the nearest future it will be possible to take 28 intercommunity pumping stations out of operation.

NOYEMBERYAN boreholes SHINUHAYR village internal network

QUARTERLY REPORT July-September 2010

3. TECHNICAL

QUARTERLY REPORT July-September 2010

3.1 TECHNICAL INVESTIGATIONS, DESIGN & MAPPING OF TECHNICAL SYSTEMS

QUARTERLY REPORT July-September 2010

THE OPERATIONS OF THE TECHNICAL DEPARTMENT DURING THE III QUARTER OF 2010 WERE IMPLEMENTED IN THE FOLLOWING DIRECTIONS:

. Technical investigation, design . Capital activities audit . Technical systems mapping . Water quality supervision . Assets management . Procurement . Quality, safety, nature protection . Transportation

During the reporting period the following activities were implemented:

TECHNICAL INVESTIGATIONS AND DESIGN

1. For solution of the problems while implementation of «AWSC CJSC Sectors buildings rehabilitation activities» draft I and II volume construction- mounting activities, investigations have been implemented, on the basis of which designing modifications were done.

Visits of Sectors buildings rehabilitation activities in «Noyemberyan» subsector

2. Activities on «AWSC CJSC Spitak, Vedi, Jermuk and Gavar Regional branches sectors administrative buildings construction» and «AWSC CJSC Hrazdan Charentsavan, Sisyan and Agarak branches sectors administrative buildings construction» projects, in the frame of MWWP IIC2.11/1-01 and MWWP IIC2.11/1-01/2 contracts have been implemented.

. systematization of required documents for receiving of permission for construction,

. buildings layout activities,

. discussions with the designing companies' representatives, in the result of which it was decided to implement designing change, considering the problems, which occurred during implementation of construction.

QUARTERLY REPORT July-September 2010

3. For automatization of operating PSs implemented by the loan project of the WB “AWWP II phase”, foreseen by the procurement plan, for the bidding documents of design implementation, procurement of the required equipment and activities, foreseen by the design, technical proposal have been developed.

4. For RA Kotayk Marz Voghjaberd, Geghadir and Hatsavan communities water supply improvement «Yot Aghbyur» system has been investigated and a proposal was submitted.

5. W&W technical conditions have been developed, basing on about 12 legal entities' applications.

“Yot Aghbyur” investigation, Abovyan Sector

6. For extension of permission for water supply systems, operated by the Company, required documentation packages have been developed and presented to the corresponding bodies.

7. Capital expenses from state Mid-term Expediture program budget for 2011 have been developed, including capital investments application draft.

8. Development of justifications for inclusion of new territories water supply capital rehabilitation activities into the Asian development bank loan project (Kapan, Ijevan, Stepanavan, Tashir, Alaverdi, Akhtala, RA Ararat Marz Mkhchyan, Aygepat, Eghegnavan, Noyakert villages, Sevan water main).

9. Investigation of RA Tavush marz Berdavan community water supply possibility out of AWSC territory from “Berdavan” deep wells and a proposal has been submitted.

10. «Structures database» creation activities are ongoing.

QUARTERLY REPORT July-September 2010

CAPITAL ACTIVITIES INTERNAL AUDIT

1. On the basis of preliminary applications, submitted from the RBs, capital activities implementation applications have been developed and submitted for approval.

Below are presented:

. Ongoing capital repairing activities by the approved applications

“South” RB

 Gavar town “Kabel”DRR Barekamutyan bridge pipeline

 Gavar town Hatsarat district from “Kaler” deep wells up to Hatsarat 1 street water pipe  Vayq town Jermuk roadway water pipe  Vayq town Azatutyun street pipeline

Vayq, Jermuk roadway damaged main, Vayq subsector

“Centre-West” RB

 RA Araratyan Marz Aygeshat village water pipe  RA Araratyan Marz Marmarashen village water pipe

“North-West” RB

 “Alaverdi-Archis” main  Dilijan town Andranik street and alleys, Kamo street I alley pipes  Dilijan town Kalinin street final section from “Frolov” station  Stepanavan town military camp pipeline  RA Lori Marz Odzun village “Sad” district pipeline.

. List of accomplished capital activities by technical conditions:

 Dilijan town Andranik street internal network pipeline d=110mm, L=340m, d=63mm L=320m, d=50mm L=985m  Dilijan town Orjonikidze street 2 alley pipeline d=63mm, L=500m

QUARTERLY REPORT July-September 2010

 RA Armavir Marz Mrgastan village water and wastewater internal network d=110mm L=460m, d=90mm L=275m, d=63mm L=1065m  Vayq Erkrabanner district pipeline d=50mm L=250m, d=32mm L=30m d=25mm L=120m  Marmarashen-Jrahovit pipeline d=160mm L=1750  Ijevan town Spandaryan street pipeline d=200mm L=450m, d=110mm L=40m  Ijevan town Mehrabyan street pipeline d=110mm L=400m, d=63mm L=175m, d=50mm L=150m, d=160mm L=210m:

2. Visits have been implemented for checking the quality of ongoing capital activities, by the approved applications.

Ijevan town Mehrabyan street pipeline repair Dilijan town andranik street pipeline repair Ijevan sector Dilijan sector

3. Investigation of “Sevan-Hrazdan” sewerage main collector technical condition has been implemented, on the basis of which the volumes of the required rehabilitation activities have been developed, with approximate estimation.

4. Comparison of actual and mentioned in the technical specifications equipment and tools (foreseen by the procurement plan) parameters has been implemented by the created committee, organized for hand-over-acceptance purpose.

QUARTERLY REPORT July-September 2010

M A P P I N G

Mapping Division of AWSC CJSC, according to the activities plans for 2010-2011, has implemented activities by the regional Branches in Echmiadzin, Vedi, Goris, Talin, Artashat masis towns and Dashtaqar, Nor Ughi, Taperakan, Urtsadzor, Vanashen, Arbat, Darakert, Dashtavan, Getapnya, Norabats, Nor Kyurin, Khachpar, Ghukasavan, Dzorak, Voskevaz, MArmarashen, Qaghcrashen, Getazat, Abovyan, Arevshat, Norashen, Kanachut communities on water supply distribution networks design and construction activities modification correction and numerical process, through AutoCad program.

A part of Goris distribution network numerical map in AutoCad format

QUARTERLY REPORT July-September 2010

. In compliance with Mapping program 2008-2010 the activities of geo-information system (GIS) are ongoing by MapInfo Professional program. The employees of the RB are organizing W&W technical parameters of the areas through GIS program.

. Jermuk town MapInfo format water supply network map has been developed, printed and submitted to the« South RB.

. Corresponding mapping activities have been implemented for the structural divisions of the Company.

. The Division studied “Armenia GIS system” installed in the Company by “GIS geo- information system” LLC and informed about the revealed effects to the latter. The program implementation course has been discussed with the specialists of that company.

. One of the priority issues of 2008-2010 is to continue the implemenation of GIS system in the settlements serviced by the Company.

QUARTERLY REPORT July-September 2010

3.2 MANAGEMENT OF COMPANY‟S ASSETS

QUARTERLY REPORT July-September 2010

ASSET MANAGEMENT

In the III quarter of 2010 the Company‟s Assets Management Division carried out mainly the following activities:

. In compliance with the Company‟s General Director Order N34 of May 17, 2010 and Contract signed by the “AWSC” CJSC and “Van” LLC on November 30, 2009 under the loan program “Municipal Water and Wastewater Program” N 4514 – AM for supplying water meter chambers (MWWP II-C2.5/2-05) and standard rings for manholes (MWWP II- C2.15/2-15), a committee was set up for making handover and acceptance of the property between the “AWSC” CJSC and “Van” LLC, relevant acts have been prepared and submitted to the Financial Department.

. In compliance with the Company‟s General Director Order N56 of July and Contract signed by the “AWSC” CJSC and “Agat 777” LLC on June 18, 2010 under the loan program “Municipal Water and Wastewater Program”N 4514 – AM for purchasing laboratory equipment (MWWP II-B4.1/2-), a committee was set up for handover and acceptance of the property between the “AWSC” CJSC and “Agat 777” LLC, relevant acts have been prepared and submitted to the Financial Department.

. Measurement taking in the fenced areas of Lchashen boreholes (Sevan sector of the “South” regional branch).

Lchashen borehole N1

. The procurement process implemented in compliance with the Company‟s General Director Order N69 of September 9, 2010 under the loan program “Municipal Water and Wastewater Program” N 4514 – AM N69 and contracts MWWP II-B7.1/2-22, MWWP II- C2.16/2-16, MWWP II-C207/2-07, as well as contracts N L2363-ICB-2-06/1, N L2363- ICB-2-06/2, N L2363-ICB-2.11/1 signed within the framework of the Asian Development Bank “Municipal Water and Wastewater Program” loan project N È2363, is in progress.

QUARTERLY REPORT July-September 2010

. In compliance with the Company‟s General Director Order N67 of September 01, 2010 before making financial statements it is necessary to make the inventory of fixed assets, non-current tangible assets in progress, materials, rapidly wearing articles, receivable and payable debts of the Head office and 3 regional branches. For this purpose a committee was set up to carry out the mentioned works. The summarized results, acts and protocols should be submitted on Dercember1, 2010.

. Together with IT Department employees, inventory of the hardware (computers, printers, scanners) has been made.

. Contract number MWWP II-B1.8/3-02 was signed with the “AWSC” CJSC and “Mets Masreni” CJSC for making inventory of the Company‟s W&W systems, as well as contracts have been prepared for their registration in the cadastre. “Mets Masreni” CJSC presented the report of the first phase including the works methodology, work plan and schedule. About 200 water and wastewater maps have been agreed with the “AWSC” CJSC and communities and submitted to the State Cadastre of Immovable property.

. Measurement taking in Martuni sector wastewater treatment plant (south RB of the “AWSC” CJSC)

Martuni wastewater treatment plant

. In accordance with the Orders of the “AWSC” CJSC General Director, property movements have been made from the Head Office to the regional branches.

. Relevant documented registration of the property movement among the Head Office employees has been made.

QUARTERLY REPORT July-September 2010

3.3 WATER QUALITY CONTROL

QUARTERLY REPORT July-September 2010

WATER QUALITY CONTROL

Within the III quarter of 2010 water control laboratories of the Company made bacteriological analyses of about 4.2 thousand samples and 291 general and physico-chemical analyses (Table # 11). According to the bacteriological indicators the deviations constituted 4.07 %: Modified version of “Water quality control” program has been reviewed and presented to the PIU.

The process of washing and disinfection of head structures, water supply system sections, DRRs, WTP constructions is in the face of accomplishment.

POTABLE WATER INVESTIGATION IN QUARTER III, 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 518 382 4 4 252 204 8 186 8 184 1 46 3 2 Hrazdan 454 337 44 25 0 0 10 265 4 240 8 2 0 3 Charentsavan 176 72 8 8 169 103 9 117 3 50 0 75 0 4 Ijevan 775 743 57 48 11 11 32 462 36 29 2 2 0 5 Dilijan 719 719 0 0 0 0 18 452 33 22 0 3 0 6 Alaverdi 808 759 0 0 0 0 16 249 20 31 0 9 0 7 Stepanavan 692 456 280 231 0 0 8 197 9 190 20 17 1 TOTAL 4 142 3 468 393 316 432 318 101 1 928 113 746 31 154 4

QUARTERLY REPORT July-September 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 96 96 117 117 266 266 6 340 57 74 0 197 0 2 Echmiadzin 50 50 343 343 329 329 16 342 76 358 12 330 1 3 Masis 76 76 333 333 94 88 2 159 6 43 3 41 0 4 Vedi 28 28 62 62 36 36 1 230 2 45 0 11 0 5 Ashtarak 205 199 97 95 95 94 20 303 70 55 7 52 2 6 Artik 353 352 349 324 169 117 26 388 32 80 1 42 4 TOTAL 808 801 1 301 1 274 989 930 71 1 762 243 655 23 673 7 SOUTH 1 Sisyan 377 377 167 167 95 95 3 140 3 21 0 0 0 2 Goris 296 292 418 400 9 7 11 316 8 236 5 21 2 3 Kapan 641 627 2265 2028 0 0 81 821 34 736 57 0 0 4 Eghegnadzor 33 33 43 43 0 0 7 368 15 76 0 0 0 5 Sevan 37 37 279 184 10 7 3 126 29 102 10 12 0 6 Gavar 280 260 507 353 37 34 14 279 77 153 8 55 1 TOTAL 1 664 1 626 3 679 3 175 151 143 119 2 050 166 1 324 80 88 3 TOTAL 6 614 5 895 5 373 4 765 1 572 1 391 291 5 740 522 2 725 134 915 14

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 2010

REPORTS ON NATURAL RESOURCE UTILIZATION

Nature utilization fee of the Company for the III quarter of 2010 constituted about AMD 5.2 million (AMD 52.6 - with coefficient “3”), nature protection fee - AMD 8.6 million (about AMD 2.0 million - with coefficient “3”), Table #12.

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 35.9 665.2 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 81.7 494.1 Dilijan 35.5 2.0 0.0 37.5 139.6 74.5 214.1 Alaverdi 0 246.4 0.0 246.4 256.7 72.9 329.6 Stepanavan 29.5 252.7 0.0 282.2 745.6 14.6 760.2 Total 92.6 1 708.4 0.0 1 801.0 2 183.6 279.6 2 463.2 “Center-West” Regional Branch Artashat 0 346.9 0.0 346.9 223.0 248.4 471.4 Echmiatsin 0 425.7 23.0 448.7 680.2 528.8 1 209.0 Masis 0 192.2 0.0 192.2 507.5 64.0 571.5 Vedi 0 182.2 0.0 182.2 435.8 108.8 544.6 Ashtarak 0 302.0 0.0 302.0 332.5 15.5 348.0 Artik 0 199.0 29.6 228.6 356.7 188.1 544.8 Total 0 1 648.0 52.6 1 700.6 2 535.7 1 153.6 3 689.3 “South” Regional Branch Sisian 0 207.7 0.0 207.7 172.4 228.5 400.9 Goris 0 194.7 0.0 194.7 134.4 149.6 284.0 Kapan 135.0 129.5 0.0 264.5 524.9 184.4 709.3 Yeghegnadzor 0 189.4 0.0 189.4 202.0 36.4 238.4 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 1 873.1 598.9 2 472.0

Grand Total 227.6 4 887.9 52.6 5 168.1 6592.4 2 032.1 8 624.5

QUARTERLY REPORT July-September 2010

3.4 QUALITY, SAFETY & ENVIRONMENT

QUARTERLY REPORT July-September 2010

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

The activities carried out by Quality & Environment Division:

The Department continues maintaining the register of controlling the implementation of the Company‟s General Director orders recording all the information about the course of implementaion of these orders discussing them regularly with immediate performing and responsible persons. During the third quarter, the Company‟s General Director issued 24 orders the implementaion progress of which was informed to the Company‟s management in established manner.

For the purpose of extending water systems use permissions, a relevant application package was prepared in compliance with the requirements of the RA legislation and submitted to the RA Public Services Regulation Commission.

In compliance with the assignments of the RA SCWE, the Department studied and prepared necessary work packages about non operating “Kamenka-Vanadzor” pipeline of Artik region.

The Department participated in the works of the committee making handover and acceptance of the equipment and materials purchased within the framework of the ADB Procurement Plan for the W&W programs.

Control was exersized over the adherence of the Company‟s subdivisions to the requirements of acting workflow procedure. The Company‟s management was informed in writing about the results of such controls. The existing problems have been discussed with the managers of interested subdivisions and taking into account their comments and proposals the Department has undertaken to redevelop some provisions of the above mentioned procedure.

Based on the order of the Company‟s General Director the following updated procedures were approved and put into operation:

. “Procedure on making capital constructions by the AWSC CJSC regional branches” . “Internal disciplinary procеdure of the AWSC CJSC ”

To develop, revise and submit to the management the following drafts for discussion:

. Development of the Company’s employees job descriptions,

. Instructions for taking safety measures during earthquake for installing in the Company’s administrative buildings and hydrotechnical structures,

. Manual of the traffic safety rules for preventing road risks of employees driving the Company’s transport facilities.

QUARTERLY REPORT July-September 2010

Flyer on instructions for taking safety Manual of “Traffic safety rules ” measures during earthquake

Based on the requirements of ISO 9001-2002 (Requirements for quality standards) the Department started the works for developing Quality Manual for the Company. The purpose of this Manual is to specify the sphere of application of the Quality Management System, as well as the developed and documented procedures.

Extract from the draft of “Quality standard Manual”

During the reporting quarter labelying of the structures, equipment and machinery of “Norabats” pumping station and DRR has been made in accordance with ISO 7001, ISO.TS 145 standards, as well as flyers have been preapred and fixed in apparopriate places warning about the hazards of electrical shock (GOST-R-12.4.026-2001), work protection and safety measures. Visits have been paid to “Berd” WTP for making labeling activities in the plant.

QUARTERLY REPORT July-September 2010

Warning signsboards in “Norabats” pumping station

Outdoor sign Labeling of the pumps„ control panel

In accordance with regulation of the QSE, the Department contiues paying regular visits to the technical faculities of the Company, such as “Masis” pumping and chlorination stations, “Golovino”, “Frolovo” and “Berd” WTPs, “Charentsavan” and “Artik” sectors etc.

The employees of the Department checked work protection and safety measures taken in the above mentioned facilities, as well as the quality of meeting operation anad maintenance requirements of the regulation. The results of the visits have been reported to the Company‟s management.

The draft law of the Republic of Armenia on Environmental Expertise has been studied and relevant comments and recommendation have been made and submitted.

QUARTERLY REPORT July-September 2010

Work protection and safety measures

Based on information received from the branches a report has been prepared and submitted to the Company‟s General Director about the accidents and /or/ occupational, technical accident, as well as the reasons causing such accidental situations. During the reporting period no occupational accident of technical charachter has been registered.

In compliance with the requirements of the RA legislation and established format, new certificates for 61 chlorination stations (as dangerous objects) operated by the Company have been developed.

Individual safety equipment (helments, gloves, gas masks, overalls for welders, dielectric shoes, road safety ribbons) and fire extinguishers have been purchased and distributed among the branches.

An application was submitted for purchasing winter uniforms, caps and shoes based on which a tender was invited to select the winner.

Safety protection menas distributed among the regional branches

For the purpose of not making technical safety expertise of the Company„s dangerious objects by “Technical Safety National Center” SNCO, a relevant package of documents has been prepared and submitteed to the RA SCWE for receiving explanations from the RA Ministry of Justice.

QUARTERLY REPORT July-September 2010

The Department studied the RA draft Resolution on “Chlorine production, use, protection and transportation“ and relevant annexes and submitted the Company‟s comments and recommendations thereon.

Training sessions were orginised in “Technical Safety National Center” SNCO for truck drivers and relevant certificates were provided.

The Company‟s Head Office elevator was technically checked and appropriate registration was made in the technical passport of the elevator.

The Department developed “Work Protection, Safety Technique and First Aid Instructions Manual” which was approved.

Pages from the “First Aid instructions”

QUARTERLY REPORT July-September 2010

3.5 COMPANY‟S PROCUREMENT

QUARTERLY REPORT July-September 2010

COMPANY‟S PROCUREMENT

Procurement within AWSC Budget, Q III, Year 2010 Table – 13

PROCUREMENT AMMOUNT, AMD

1. Car services, petrol diesel and gas 71 272 436

2. Pipes, fittings, valves and other 0

3. Water chlorination 12 600 000

4. Office supply, IT and cellular phones 849 996

5. Safety devices 4 731 689 6. Equipment for works 877 000

7. Other works/ goods 4 879 782

8. Echmiatsin Training Center 17 450

9. Laboratories 751 875 10. Publications and TV broadcasting. 6 480 000

TOTAL ALLOCATED 102 460 228

TOTAL REQUESTED 428 455 116

QUARTERLY REPORT July-September 2010

3.6 TRANSPORTATION

QUARTERLY REPORT July-September 2010

TRANSPORTATION

Due to the transportation means, supplied with gas system, during the III quarter because of difference between natural gas and fuel price difference, about 3 000 000 AMD was saved.

 Technical maintenance: transportation department periodically organizes and implements repair of those transportation means in Yerevan, which face problems while being repaired on site.

The car is washed by KARCHER system The gas container during washing

Kamaz track while repairing Vaz car while repairing

 Gas tanks certifications: On the 20th of November 2008 RA Government N1407 Decree entered into force, which approved transportation means gas containers periodic certification technical regulation. According to the regulation the gas containers of the transportation means once per two years are subject to certification. Activities on testing and certification of gas containers of transportation means, supplied with one gas container are accomplished. Activities on testing and certification of gas containers of transportation means, which are supplied with more than one container, are foreseen to be implemented during the fourth quarter of 2010.

QUARTERLY REPORT July-September 2010

 §TELTONIKA FM 4100¦ antitheft and traffic system

“Teltonika FM 4100” system is an antitheft and transportation means traffic system, which uses GPS / GLONASS location detection system and cellular phone system resources (GSM GPRS).

This system with strict accuracy detects and presents on the map the geographical place of the object under control, as well as the speed and direction.

“Armenian Water and Sewerage” CLSC implements “Teltonika FM 4100” system installation on the transportation means of the Company.

“Armenian Water and Sewerage” CJSC cars geographical place on “Teltonika FM 4100” system map.

Starting from 2009 up to now 208 systems were installed, 8 systems on CASE 580 SR excavators in 2009 and 200 systems on other transportation means in 2010.

By means of the mentioned system the departments of AWSC CJSC HO and the Regional Branches each week send information with the list of transportation means used by themselves during weekends with the mileage. Following that the Regional Branches are sending clarification information on the purpose and importance of usage of the transportation means.

In the result of installation of “Teltonika FM 4100” system in the Regional Branches, without a corresponding permission usage of transportation means (during weekends) has decreased and reached minimum, while in the HO it is totally stopped.

Comparing the average car mileage and correspondingly used fuel in 2009 and 2010, after installation of “Teltonika FM 4100” system, we will receive the following picture

2009 2010 S A V I N G Unit fuel Unit fuel Unit fuel AWSC CJSC Mileage Mileage Mileage gasoline /l/ Unit price in gasoline /l/ Unit price in gasoline /l/ Unit price /km/ diesel /l/ AMD /km/ diesel /l/ AMD /km/ diesel /l/ in AMD gas / m3 gas / m3 gas / m3

1 2 3 4 5 6 7 8 9 10 Head Office 621 600 124 320 35 431 200 588 468 117 600 33 516 000 33 132 6720 1 915 200 Regional 3 996 000 799 200 227 772 000 3 782 160 756 000 215 460 000 213 840 43 200 12 312 000 Branches

Total 4 617 600 923 520 263 203 200 4 370 628 873 600 248 976 000 246 972 49 920 14 227 200

Despite of increase of equipment for 88 items in 2010 (12 excavators, 5 trucks, 28 pickups and 43 cars) about 40%, the Company has saved 5% of fuel expenses.

QUARTERLY REPORT July-September 2010

4. ADMINISTRATION

QUARTERLY REPORT July-September 2010

4.1 FINANCE & ACCOUNT

QUARTERLY REPORT July-September 2010

SUBSIDY TABLE-14

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

103,70 salary 8,60 income tax 29,91 Social security payment APRIL 202,91 5,16 payment for water use 7,64 natural resources protection fee 0,58 motor-care tax 1,25 mandatory payments for Regulatory Committee

MAY - 46,07 salary

JUNE - -

QUARTERLY REPORT July-September 2010

RECEIVED AMOUNT MONTH 2010 COMMENTS (mln AMD)

102,53 salary 9,43 income tax 25,80 Social security payment 5,16 payment for water use JULY 202,90 8,11 natural resources protection fee 0,68 motor-care tax 1,25 mandatory payments for Regulatory Committee

34,94 salary AUGUST - 10,00 income tax 5,00 Social security payment

SEPTEMBER - -

TOTAL AMOUNT 608,70

QUARTERLY REPORT

July-September 2010

INFORMATION CONCERNING INCOMES AND EXPENSES OF AWS CJSC IN III QUARTER, 2010 TABLE-15 thousand drams

Current expenses

y Proceeds Total

Net salary from main Social Total N H/O Payment. Covering Other expenses meters) Electricity insurance Taxes

activity of water

Subsid

Current Current

expenses Total Total

income income of credit payments

other activity activity other (including sell sell (including

Received from from Received fund

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 NORTH–WEST REGION BRANCH 1 Abovyan 306 915,8 2 823,0 309 738,8 15 231,0 106 552,6 129 273,2 6 338,1 135 611,3 257 394,9 TOTAL 306 915,8 2 823,0 309 738,8 15 231,0 106 552,6 129 273,2 6 338,1 135 611,3 257 394,9 CENTER–WEST REGION BRANCH 2 Artashat 376 980,2 6 331,0 383 311,2 15 500,0 98 974,1 69 405,2 5 924,7 75 329,9 189 804,0 TOTAL 376 980,2 6 331,0 383 311,2 15 500,0 98 974,1 69 405,2 5 924,7 75 329,9 189 804,0 SOUTH REGION BRANCH 3 Sisian 265 584,2 5 141,2 270 725,4 15 000,0 87 045,6 49 352,5 10 303,7 59 656,2 161 701,8 TOTAL 265 584,2 5 141,2 270 725,4 15 000,0 87 045,6 49 352,5 10 303,7 59 656,2 161 701,8 Total from 949 480,2 14 295,2 963 775,4 45 731,0 292 572,3 248 030,9 22 566,5 270 597,4 608 900,7 Branches

TOTAL 61 453,2 202 900,0 177 929,2 442 282,4 13 704,4 51 093,2 3 354,1 79 757,8 176 807,1 77 835,0 373 335,1 711 089,1 775 886,7 HEAD OFFICE

MAIN TOTAL 1 010 933,4 202 900,0 192 224,4 1 406 057,8 59 435,4 343 665,5 251 385,0 79 757,8 176 807,1 77 835,0 395 901,6 981 686,5 1 384 787,4

* See also below Diagram-17

QUARTERLY REPORT July – September 2010

CAHS FLOW– DIAGRAM 17

IN CASH INCOMES OUTCOMES IN CASH + - = 30.09.2010 01.07.2010 3 062 195.1 3 427 421.0 987 004.4 621 778.5 ADB*** EBRD ADB*** EBRD 1 768 577.2 108 213.4 BANK 1 468 165.9 22 128.4 BANK 63 267.3 41 989.4 BANK CASH 1 549 971.9 658.5 BANK CASH CASH CASH Other Expenses Staff Salary 651.0 Social Fund 1 571 249.8 408.5 250.0 26.8 79 757.8 19.3 From Branches From Bank From other Debtors Salary to Branches (main activity ) 0 651.0 ADB*** 949 480.2 292 572.3 ADB***

From Budget & other Taxes Payment 858 739.3 org. Centr. Payment 176 807.1 558 328.0 61 453.2 Centr. Procurement EBRD Subsidy 395 901.6 EBRD 202 900.0 86 248.9 Current Expenses 163.9 From other 59 026.9 Debtors 177 278.2 El. Consuption 251 385.0 From water meters sales 14 295.2 Credit Acquittant 77 835.0

From Bank Staff Salary 165 843.0 50 843.2

Bank Credit ** 165 843.0 0 CASH * 0

* Internal Cash Flow isn‟t including in the Table 15 ** Overdraft Bank account is paid off as of 30.09.2010 69 *** The cash drive of the ADB‟s Loan Project wasn‟t included in the Table 15

QUARTERLY REPORT July-September 2010

4.2 HUMAN RESOURCES

QUARTERLY REPORT July-September 2010

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

1. Human Resource Policy and Account ing Division

. Formulation and maintenance of HR documentation (orders, letters, references, etc).

. Supervision over implementation of human resources policy of the regional branches of the Company in the following aspects: - Employment contracts/agreements with employees - Provision of annual vacation to the employees - Checking salary applications - Collect, summarize and analyze data on gender, age, work experience in AWSC and education level of the Company's staff - Analyze staff turnover . Analyze AWSC staff according to different criteria.

. The Internal documents and legal acts have been adopted to the amendments of the RA Labor Code: - New samples of legal acts have been developed. - The collective agreement and internal disciplinary rules of the Company have been corresponded to the existing legislation.

. Cooperation with the Department of Public Relation and Quality & Environment Division of the Company: - Calling Center was added into the structure of the Department of Public Relations.

- The Regulation of Calling Center and job descriptions for the employees have been developed and approved. - The policy of the employees selection, recruitment and involvement has been developed.

QUARTERLY REPORT July-September 2010

. The cooperation with the Trade Unions has an ongoing character such as: - The list of the Company's employees and their family members is 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. - The protocols and acts are created concerning implemented works.

. Cooperation with the Labor Inspection of RA:

On “Amendments in the Labor Code of RA” a training was organized and conducted by the employees of Labor Inspection in the Training and Development Center of AWSC.

. Reports were prepared and submitted to the Ministry of Social Security of RA.

. Cooperation with banks has an ongoing 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 July-September 2010

MAIN HUMAN RESOURCES INDICATORS

. Number of employees

Diagram 18

1800

1778 1780

1760 1765

1740 1749 1739 1738 1736 1720 1731

Number Number of Employees 1728

1700 1709

1680 2010 2010 2010 2010 2010 2010 2010 2010 2010 J anuary February March April May J une J uly August September

P e r i o d

. Labor turnover

Diagram 19

6% 34% 28%

32%

North West Center West South Head Office

QUARTERLY REPORT July-September 2010

2. Training and Development Division.

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

In the third quarter the Training Center began cooperation with several organizations such as: “Yerevan Djur” CJSC, “Shirak Water Sewerage” CJSC, “Lori Water Sewerage” CJSC, and “Nor Akunq” CJSC. In the framework of cooperation with these companies Training Center obtained agreement to exchange the experience of each other and organize joint trainings.

The Management staff (division and department heads) from the Head Office of “Armenian Water and Sewerage” CJSC passed trainings on “Report formation” in order to create accurate and clear reports.

Department Heads Training Division Heads Training

In the framework of collaboration in the Training Center the “Armenian Water and Sewerage” CJSC, “Yerevan Djur” CJSC and similar other organizations shared their experiences and discussed job organization processes in water quality checking laboratories.

Training of the Water Quality Control

QUARTERLY REPORT July-September 2010

Heads of water treatment plant passed 2 day training seminar on “Water treatment plant management training”. During the seminar they discussed the structure of water treatment plant, safety issues, operation & maintenance, the quality of water, etc.

Water treatment plant management training

The Human Resource division personnel of “Armenian Water and Sewerage” CJSC passed 2 day trainings and was acquainted with the labor legislation changes and HR Management details with this respect.

Personnel Training and Development

To improve the productivity in the water supply system, the exploitation and work department heads, exploitation and works specialists, exploitation and works service heads, exploitation work team leaders from two regional branches (Center West and North West) passed 4-5 day training seminar on “Events for improving the operation effectiveness in water supply system”.

Training of the “Events for improving the operation effectiveness in water supply system”. 75

QUARTERLY REPORT July-September 2010

Below are presented the activities carried out by the “AWSC” CJSC Training and Development Center in the III quarter of 2010.

Training of personnel Table-16

Number of Number of N Program name Training subject participants absences

Management Staff training (Department 1 4 8 heads) from the Head Office of Report Formation “Armenian Water and Sewerage” CJSC

Management Staff training (Division 2 Report Formation 15 5 heads) from the Head Office of “Armenian Water and Sewerage” CJSC

Discussions and exchange Discussions and exchange of experiences of experiences in job 3 between “Armenian Water and organization processes in 12 - Sewerage” CJSC, “Yerevan Djur” CJSC water quality checking and similar other organizations laboratories.

4 Water treatment plant Management Water treatment plant 3 - training from South regional branch Management training

5 Water treatment plant Management Water treatment plant 2 2 training from North West regional branch Management training

The Human Resource division personnel Labor legislation, HR 6 10 1 training of “Armenian Water and activity Sewerage” CJSC

Operation works personnel training from Events for improving the 7 14 2 “South” regional branch operation effectiveness in water supply system

Operation works personnel training from Events for improving the 8 23 2 “North West” regional branch operation effectiveness in water supply system

QUARTERLY REPORT July-September 2010 .

4.3 LEGAL & INSURANCE

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

III Quarter of 2010

. 2 521 cases with total amount of AMD 317 196 500 were submitted to the court.

. 1 578 cases with total amount of AMD 184 640 800 were satisfied by the court.

. AMD 46 624 943 was repaid as a result of different actions of legal charachter, including previous pending cases.

During the reporting period AMD 4 561 943 was confiscated due the legal actions initiated by the Department which was included in the collected amount constituting AMD 46 624 943.

The main directions of the Department activities were the protection of Company‟s legitimate interests in different court instances, coordination of the works of regional branch lawyers, organization of Company‟s property insurance activities, as well as provision of legal consultancy to the management.

7 8

QUARTERLY REPORT July-September 2010 .

5. PROJECTS

QUARTERLY REPORT July-September 2010 .

5.1 W B

QUARTERLY REPORT July-September 2010 .

Realization of SCHEDULED PROJECTS under MWWP Fund

MUNICIPAL WATER SUPPLY AND WASTE WATER PROJECT II FUNDED BY THE WORLD BANK

CIVIL WORKS: The following contracts were signed during the reporting period:

Contract amount No Signing date Name of Contract /USD/ 1 2 3 4 Rehabilitation of Sarukhan, Gandzak, Artak pumping 1 20-07-10 60 815.16 station buildings of AWSC Rehabilitation of administrative buildings of “Sevan” , 2 20-07-10 “Dilijan”, “Alaverdi”, sectors and “Noyemberyan”, 376 789.83 “Berd”, “Vayq” sub-sectors of AWSC

Construction of administrative buildings of Spitak, Vedi, 3 21-07-10 496 982.41 Jermuk and Gavar sectors of AWSC regional branches Construction of administrative buildings of Hrazdan, 23-07-10 4 Charentsavan, Sisian and Agarak sectors of AWSC 468 995.25

regional branches Replacement of windows of AWSC head office, 5 27-07-10 rehabilitation of “Ashtarak”, “Artashat” sectors and 222 677.57 “Ashotsk” sub-sector of AWSC

Technical supervision for reconstruction of sanitary zones 6 27-07-10 and rehabilitation of pumping stations, construction and 56 671.45 rehabilitation of administrative buildings of AWSC

Inventories and Cadastral Registration of Assets for Water 7 30-07-10 Supply and Wastewater Collection/Disposal Systems 505 727.25 within the Service Area of AWSC 8 10-09-10 Procurement of sewerage manhole covers and hatches 140 847.01

9 22-09-10 Supply of Pumps 795 769.25

10 24-09-10 Supply of pipes, valves and reinforcement 459 265.62

11 29-09-10 Supply of Control Panels 288 078.4

PROCUREMENT: The following International Bidding ICB) was announced for the procurement of goods:

1. Procurement of pressure loggers, ICB No. MWWP II-C2.3 /2-18

See also attached

TABLE-19

QUARTERLY REPORT July-September 2010

5.3 E B R D

QUARTERLY REPORT July-September 2010

“LAKE SEVAN ENVIRONMENTAL PROJECT” FUNDED BY EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT”

Lot 1 “Rehabilitation of Gavar, Martouni, Vardenis, Sevan and Jermuk towns sewer networks”.

During the reporting period the construction activities were spread in almost all the construction sites. Contractor provided adequate housing with all the necessary amenities and facilities for his staff and labor in all towns of the project.

MARTUNI -compaction of backfilled material

The main works implemented by the Contractor comprise the rehabilitation of sewer pipes in the five towns with following lengths and sizes as well as construction of three sewage pumping stations (PS):

Sevan DN 200-DN400: L=6,092m; PS3 and PS5: Q=165m3/h, head=38m Gavar DN 600: L=3,998m; DN200-DN400: L=3,762m Martuni DN 200-400: L=3,972m Vardenis DN 200-400: L=3,212m Jarmuk DN 200-DN400: L=2,803m; PS: Q=100m3/h, head=37m

GAVAR- line5-pipe bedding JERMUK-line 4-pipe bedding

Physical Implementation of Works during the reporting period is summarized in the below mentioned table

QUARTERLY REPORT July-September 2010

Physical Implementation of Works Table-20

S E V A N Branch/ L Physical Progress DN

End of Reporting Period %

5 0

10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 10

1/200PE 270 2/150PE 161 3/300PE 198 4/200PE 626 4/ 300PE 557 5/200st 647 6/300PE 2692 7/200st 865 PS /3 PS /5

G A V A R Branch/ L Physical Progress DN

End of Reporting Period %

10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95

100 1/600PE 3769 2/300PE 580 3/600PE 76 4/300PE 434 5/300PE 713 51/200PE 226 51/300PE 167 52/200PE 397 61/200PE 472 61/270steel 75 62/200PE 522 62/270steel 129 63"/270steel 438 3"/270steel 400 12/300PE 300 PS

M A R T U N I Branch/ L Physical Progress DN

End of Reporting Period %

10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 1/200PE 982 1/300PE 524

QUARTERLY REPORT July-September 2010

2/300PE 497 3/400PE 919 4/400PE 308 5/200PE 698 51/200PE 103 52/200PE 130 53/200PE 107 54/200PE 110 6/200PE 145 7/300PE 279

V A R D E N I S Branch/ L Physical Progress DN

End of Reporting Period %

10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 1/300PE 7,5 2/300PE 230 2/400PE 997 3/400PE 424 31/400PE 970 4/400PE 1029 5/150PE 153 2/1"/270steel 250 PS

J E R M U K Branch/ L Physical Progress DN

End of Reporting Period %

10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 1/200PE 740 1/300PE 260 11/300PE 97 2/400PE 566 Inlet&Outlet chamber of invert Siphon under Kechut Reservoir 3/200PE 321 3/300PE 53 4/300steel 114 4/250steel 480 4/300PE 154 4/400PE 17,5 PS

delivered pipes trench excavated, pipe laid and trench backfilled test of water-tightness realized new asphalt layer

QUARTERLY REPORT July-September 2010

Environmental and Social Safeguards

During the reporting period it was prepared Annual Environmental and Social Report which is submitted to EBRD.

GAVAR-restoration of site and preparation for asphalt works

Lot 2 “Construction of waste water treatment plants for Gavar, Martouni and Vardenis towns”:

During the reporting period Ludwig Pfeiffer Hoch-und Tiefbau GmbH & Co. KG worked for the preparation of the final design and presented the final design on CD format to Engineer on 24.08.2010. Contractor is submitted also a revised Detailed Program of Works on 24.08.2010.

GAVAR-asphalt works JERMUK-KECHUT reservoir-steel pipes

QUARTERLY REPORT July-September 2010

6. PUBLIC RELATIONS

QUARTERLY REPORT July-September 2010

Quarterly Activities

MANAGEMENT MEETINGS:

In August 2010, the Trade Union of AWSC organized the annual summer camp for the children of company employees. Around 60 children, ages 7-12, spent two weeks in the beautiful nature of Gugark, Lori region. The camp program was full of interactive activities, sports games and musical performances. Each year Mr. Lorin visits the camp children. This year the General Director, together with the head of PR department and the head of Trade Union, visited the children at the camp. Children welcomed the guests from the AWSC Head Office with musical performance and sports activities. As an honor to the guests, children prepared a special performance about the purity and importance of water. The day was broadcasted on Armenian Second TV Channel.

Welcome of AWSC General Director Children during sports activities

On September 24th, 2010 AWSC General Director met with regional directors and the managing staff of the company at AWSC Center-West regional branch office. During the meeting the participants discussed current issues/projects within the company and the second part of the meeting was dedicated to the review of staff lists of regional branches and head office.

Directors Meeting

QUARTERLY REPORT July-September 2010

PUBLIC RELATIONS ACTIVITIES:

Upon completion of the previous drawing of lots, the PR department prepared and published a flyer for the upcoming seventh drawing of lots. As usually, the numerous copies of the flyer were distributed among company sectors/subsectors for posting in public places and spreading the word about the drawing of lots. Parallel to the flyer, the PR department staff created a video advertising, which was widely broadcasted on the TV. This time the advertising valued the importance of saving water and discontinuing the use of potable water for household purposes (washing carpets, freshening fruits, etc).

Drawing of lots flyer

UPCOMING INITIATIVES

By the end of 2010 AWSC will establish a call center for providing up to date customer service. The call center will be included in the PR department structure. Therefore, during the third quarter of 2010, PR department staff jointly worked with HR and QSE departments as well as IT division to sufficiently organize all the preparatory activities of the center. The team updated structural regulation of the PR department, discussed and created several documented regulation for call center operators and coordinator. The vacancy announcement was also prepared which will be posted during October 2010 and selection of possible candidates will follow afterwards. A special computer program will be created by professional company for using within the call center. The fourth quarter will be dedicated to recruitment, final selection of candidates and training of staff.

QUARTERLY REPORT July-September 2010

7. INDICATORS

QUARTERLY REPORT July-September 2010

As requested by the contract, the Contract Manager shall monitor 25 indicators (3 aren‟t used) on individual branch and Company level. These indicators will give a possibility to check on the improvement of the AWSC.

INDICATORS RECAPITULATION – TABLE 21, (INDICATORS 1-25)

III BASE Average Average Average Average Average № INDICATORS UNIT Quarter YEARS 2005 2006 2007 2008 2009 2010 1 2 3 4 5 6 7 8 9 10

hours/ 1 Weighted average number of daily 6,04 7,39 9,62 10,98 12,10 13,0 13,6 hours of drinking water service day

% of individual subscribers billed 2 on the basis of metered % 40,2 53,6 57,3 62,5 64,6 73,9 76,5 consumption

3 Weighted average water % 93,8 93,8 93,9 96,2 96,6 98,6 95,9 bacteriological safety compliance

4 Company working ratio % 194,9 176,4 138,8 133,8 133,7 106,6 97,7

% of cities with minimal daily % 68,1 74,1 80,1 83,9 85,6 80,7 88,1 5 hours of services

% of block apartment buildings 6 with individual or common block % 38,6 56,3 61,6 67,5 70,6 76,8 79,3 meter

% of block apartment buildings 7 under contractual agreement with % the company

Revenue collected on domestic Drams/ 8 subscribers per registered month 166 181 242 250 286 395,9 477 inhabitant Collection ratio (excluding budget 9 % 47,9 36,2 62,6 72,3 75,9 83,5 88,0 organizations) % of subscriber with more than 4 10 % 79,5 75,1 76,7 77,8 79,5 78,1 40,7 months debt

Average domestic metered Liters/ 11 consumption per metered cap/day 81 71 75 78 87 87 106 registered inhabitant

Drams/ 12 Average price of m3 metered and 100,41 126,80 140,00 140,00 140,00 159,50 179,78 billed to domestic subscribers m3

Growth of the total collected 114 13 revenue (excluding budget % 16,2 46,9 54,8 72,6 119,5 165,1 organization) from base year 568

QUARTERLY REPORT July-September 2010

III BASE Average Average Average Average Average № INDICATORS UNIT Quarter YEARS 2005 2006 2007 2008 2009 2010 1 2 3 4 5 6 7 8 9 10

Ratio of water volume billed on 14 the basis of metering to the total % 25,0 26,0 47,3 56,2 59,1 64,5 81,6 metered and normative billed volume

Average daily production per Liters/ 15 equivalent registered inhabitant at cap/day 668 759 754 790 827 792 743 water catchments levels

Average daily supply to Liters/ 16 distribution reservoir per cap/day equivalent registered inhabitant

Ratio of metered final 17 consumption (m3) to water % 6,8 6,4 7,8 8,1 8,5 9,4 13,4 production at water catchments levels

Working ratio for branches with % 89,7 121,0 97,5 94,5 85,2 65,9 45,2 18 gravity systems

Working ratio for branches with 19 pumping stations or treatment % 223,3 196,8 155,2 148,9 147,2 115,5 103,8 plants

Electricity cost as % of revenue 20 collected in systems with pumping % 72,6 63,1 42,6 39,7 39,2 30,8 24,9 or treatment plants

Amount of chlorine effectively g/cap/ 21 used per equivalent inhabitant per year year

Total staff per 1000 individual u 9,45 8,34 7,15 6,87 6,85 6,9 6,7 22 subscribers

Staff and assignment contractors 23 total costs as % of collected % 70,2 68,9 61,9 61,4 62,2 51,1 45,1 revenue

24 Electricity consumption kwh/m3 0,43 0,38 0,31 0,30 0,29 0,25 0,23

25 % of water disinfected % 60,9 67,8 80,0 90,3 91,2 82,6 72,8

Remark* All information concerning performance indicators is presented by attached CD.

QUARTERLY REPORT July-September 2010

INDICATOR 1

WEIGHTED AVERAGE NUMBER OF DAILY HOURS OF DRINKING WATER SERVICE æñ³Ù³ï³Ï³ñ³ñÙ³Ý ÙÇçÇÝ ïևáÕáõÃÛáõÝÁ ûñí³ ÁÝÃ³óùáõÙ

24,00

AWSC/ ÐæÎÀ

20,00

áÕáõÃÛáõÝÁ ¨ 16,00 North-West Region/ 13,62 13,22 13,46 ÐÛáõëÇë-²ñ¨Ùáõïù 13,01 î³ñ³Í³ßñç³Ý 12,10 12,00

10,98 Center-West Region/ 9,62 Î»ÝïñáÝ-²ñ¨Ùáõïù

8,00 î³ñ³Í³ßñç³Ý Number of hours of water supplies water of hours of Number 7,39 æñ³Ù³ï³Ï³ñ³ñÙ³Ý Å³Ù»ñÇ ï Å³Ù»ñÇ æñ³Ù³ï³Ï³ñ³ñÙ³Ý 6,04 4,00 South Region/ Ð³ñ³í î³ñ³Í³ßñç³Ý

0,00 Average Average Average Average Average Average March 10 June 10 September 2004 2005 2006 2007 2008 2009 Ø³ñï 10 ÐáõÝÇë 10 10 ê»åï»Ùµ»ñ Months 10 ³ÙÇëÝ»ñ

INDICATOR 2

% OF INDIVIDUAL SUBSCRIBERS BILLED ON THE BASIS OF METRED CONSUMPTION æñ³ã³÷»ñ áõÝ»óáÕ µ³Å³Ýáñ¹Ý»ñÇ %-Á

90,0% AWSC/ ÐæÎ 76,5% 80,0% 73,9% 75,4% 76,0%

70,0% North West Region ÐÛáõëÇë ³ñ¨ÙïÛ³Ý 64,6% ï³ñ³Í³ßñç³Ý 60,0% 62,5% 53,6%

% 57,3% 50,0% Center West Region Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý 40,0% ï³ñ³Í³ßñç³Ý 39,9% South Region 30,0% Ð³ñ³í³ÛÇÝ ï³ñ³Í³ßñç³Ý

20,0% Base year / December December December December December March 10 June 10 September Months ÐÇÙÝ³Ï³Ý 05 06 07 08 09 Ø³ñï 10 ÐáõÝÇë 10 10 ²ÙÇëÝ»ñ ï³ñÇÝ ¸»Ïï»Ùµ»ñ ¸»Ïï»Ùµ»ñ ¸»Ïï»Ùµ»ñ ¸»Ïï»Ùµ»ñ ¸»Ïï»Ùµ»ñ ê»åï»Ùµ»ñ 05 06 07 08 09 10

QUARTERLY REPORT July-September 2010

INDICATOR 3

% of implemented analyses in compliance with bacteriological safety æñÇ áñ³ÏÇ Ñ³Ù³å³ï³ëË³ÝáõÃÛáõÝÁ ÑÇ·Ç»ÝÇÏ ëï³Ý¹³ñïÝ»ñÇÝ

100,00% 98,58% 99,00% AWSC/ÐæÎ 98,39% 98,27% 98,00%

97,00% 96,24% 96,56% 96,00% 95,93% North West Region/ 95,00% ÐÛáõëÇë ³ñ¨ÙïÛ³Ý Ù³ëÝ³×ÛáõÕ 94,00% 93,81% 93,84% 93,86%

93,00% % Center West Region/ 92,00% Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý Ù³ëÝ³×ÛáõÕ 91,00%

90,00%

89,00% South Region/ Ð³ñ³í³ÛÇÝ 88,00% Ù³ëÝ³×ÛáõÕ

87,00% Base year / Average 05 Average 06 Average 07 Average 08 Average 09 I Quarter 10 II Quarter 10 III Quarter ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 10Ã.I 10Ã.II 10 ï³ñÇÝ »é³ÙëÛ³Ï »é³ÙëÛ³Ï 10Ã.III Months »é³ÙëÛ³Ï

INDICATOR 4

COMPANY WORKING RATIO ÀÝÏ»ñáõÃÛ³Ý ³ßË³ï³ÝùÇ ³ñ¹ÛáõÝ³í»ïáõÃÛáõÝÁ 240,0%

AWSC/ ÐæÎ 220,0%

200,0% 194,9% 180,0% North West Region 176,4% ÐÛáõëÇë ³ñ¨ÙïÛ³Ý 160,0% ï³ñ³Í³ßñç³Ý

140,0% 138,8%

% 133,8% 133,7% Center West Region 120,0% 106,6% 108,4% Î»ÝïñáÝ 98,1% ³ñ¨ÙïÛ³Ý ï³ñ³Í³ßñç³Ý 100,0% 97,7% 80,0% South Region Ð³ñ³í³ÛÇÝ 60,0% ï³ñ³Í³ßñç³Ý

40,0% Base year / Average 05 Average 06 Average 07 Average 08 Average 09 I Quarter 10 II Quarter 10 III Quarter Months ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 10Ã.I 10Ã.II 10 ²ÙÇëÝ»ñ ï³ñÇÝ »é³ÙëÛ³Ï »é³ÙëÛ³Ï 10Ã.III »é³ÙëÛ³Ï

QUARTERLY REPORT July-September 2010

INDICATOR 5

% OF CITIES WITH MINIMAL DAILY HOURS OF SERVICE FROM THE BEGINNING OF 2010 Üí³½³·áõÛÝ çñ³Ù³ï³Ï³ñ³ñÙ³Ý Å³Ù»ñáí ëå³ë³ñÏíáÕ µÝ³Ï³í³Ûñ»ñÇ % 2010 Ã-Ç ³ÙÇëÝ»ñÇÝ

105% AWSC/ ÐæÎ 100%

95%

South Region 90% Ð³ñ³í³ÛÇÝ ï³ñ³Í³ßñç³Ý 85,55% 88,08% 85% 87,04% 87,04% 83,93% 80% North West 80,10% 80,65% Region ÐÛáõëÇë 75% ³ñ¨ÙïÛ³Ý ï³ñ³Í³ßñç³Ý 74,07% 70% Center East Region 65% Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý ï³ñ³Í³ßñç³Ý 60% Average 05 Average 06 Average 07 Average 08 Average 09 March 10 June 10 September 10 ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 Ø³ñï 10 ÐáõÝÇë 10 ê»åï»Ùµ»ñ 10

Months ²ÙÇëÝ»ñ

INDICATOR 6

% OF BLOCK APARTMENT BUILDINGS WITH INDIVIDUAL OR COMMON BLOC METERS ²ÝÑ³ï³Ï³Ý Ï³Ù ÁÝ¹Ñ³Ýáõñ çñ³ã³փ áõÝ»óáÕ µ³½Ù³µÝ³Ï³ñ³Ý ß»Ýù»ñÇ µ³Å³Ýáñ¹Ý»ñÇ ïáÏáëÁ

95%

AWSC/ ÐæÎ 85%

75% 78,8% 79,3% 76,8% 78,3% North West Region 65% ÐÛáõëÇë ³ñ¨ÙïÛ³Ý 70,6% 67,5% ï³ñ³Í³ßñç³Ý

% 61,6% 55% 56,3% Center West Region 45% Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý ï³ñ³Í³ßñç³Ý

35% 37,6%

South Region 25% Ð³ñ³í³ÛÇÝ ï³ñ³Í³ßñç³Ý

15% Base year / December December December December December March 10 June 10 September ÐÇÙÝ³Ï³Ý 05 06 07 08 09 Ø³ñï 10 ÐáõÝÇë 10 10 Months ï³ñÇÝ ¸»Ïï»Ùµ»ñ ¸»Ïï»Ùµ»ñ ¸»Ïï»Ùµ»ñ ¸»Ïï»Ùµ»ñ ¸»Ïï»Ùµ»ñ ê»åï»Ùµ»ñ 05 06 07 08 09 10

100

QUARTERLY REPORT July-September 2010

INDICATOR 8

REVENUE COLLECTED ON DOMESTIC SUBSCRIBERS PER REGISTERED INHABITANT ´Ý³ÏÇã µ³Å³Ýáñ¹Ý»ñÇó ³Ùë³Ï³Ý Ñ³í³ù³·ñáõÙÁ Áëï ·ñ³Ýóí³Í µÝ³ÏãÇ

600

550 AWSC/ ÐæÎ

477 500 446 450 North West Region ÐÛáõëÇë ³ñ¨ÙïÛ³Ý 400 ï³ñ³Í³ßñç³Ý 396 402

350 ¸ñ³Ù/³ÝÓ/³ÙÇë Drams/cap/month 300 Center West Region Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý 286 ï³ñ³Í³ßñç³Ý 250 242 250 200 South Region 181 Ð³ñ³í³ÛÇÝ 150 166 ï³ñ³Í³ßñç³Ý

100 Base year / Average 05 Average 06 Average 07 Average 08 Average 09 I Quarter 10 II Quarter 10 III Quarter Months ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 10Ã.I 10Ã.II 10 ²ÙÇëÝ»ñ ï³ñÇÝ »é³ÙëÛ³Ï »é³ÙëÛ³Ï 10Ã.III »é³ÙëÛ³Ï

INDICATOR 9

COLLECTION RATIO (EXCLUDING BUDGET ORGANISATIONS) Ð³í³ù³·ñÙ³Ý ³ñ¹ÛáõÝ³í»ïáõÃÛ³Ý ïáÏáëÁ (µ³ó³éáõÃÛ³Ùµ µÛáõç»ï³ÛÇÝ Ï³½Ù³Ï»ñåáõÃÛáõÝÝ»ñÇ)

110%

AWSC/ ÐæÎ 100%

90% 88% 88% 88% 80% North West Region 83% ÐÛáõëÇë ³ñ¨ÙïÛ³Ý 76% ï³ñ³Í³ßñç³Ý 70% 72%

60% 63% Center West Region

·³ÝÓí³Í »Ï³ÙïÇ % »Ï³ÙïÇ ·³ÝÓí³Í Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý

50% ï³ñ³Í³ßñç³Ý % OF COLLECTION REVENU COLLECTIONOF % 47,9% 40% South Region 36,2% 30% Ð³ñ³í³ÛÇÝ ï³ñ³Í³ßñç³Ý

20% Base year / Average 05 Average 06 Average 07 Average 08 Average 09 I Quarter 10 II Quarter III Quarter Months ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 10Ã.I 10 10 ²ÙÇëÝ»ñ ï³ñÇÝ »é³ÙëÛ³Ï 10Ã.II 10Ã.III »é³ÙëÛ³Ï »é³ÙëÛ³Ï

101

QUARTERLY REPORT July-September 2010

INDICATOR 10

% OF SUBSCRIBERS WITH 4 MONTHS DEBT OR MORE THAN 4 MONTHS ²í»ÉÇ ù³Ý 4 ³Ùëí³ å³ñïù áõÝ»óáÕ µ³Å³Ýáñ¹Ý»ñÇ ïáÏáëÁ 100%

AWSC/ ÐæÎ 90%

80% 79,5% 79,5% 78,1% North West Region 76,7% 77,8% 75,1% ÐÛáõëÇë ³ñ¨ÙïÛ³Ý

70% ï³ñ³Í³ßñç³Ý % 67,4%

60% Center West Region Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý ï³ñ³Í³ßñç³Ý 53,0% 50%

40% South Region Ð³ñ³í³ÛÇÝ 40,7% ï³ñ³Í³ßñç³Ý

30% Base year / Average 05 Average 06 Average 07 Average 08 Average 09 I Quarter 10 II Quarter 10 III Quarter Month ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 10Ã.I 10Ã.II 10 ²ÙÇëÝ»ñ ï³ñÇÝ »é³ÙëÛ³Ï »é³ÙëÛ³Ï 10Ã.III »é³ÙëÛ³Ï

INDICATOR 11

AVERAGE DOMESTIC METERED CONSUMPTION PER METERED REGISTRED INHABITANT ØÇçÇÝ ëå³éáõÙÁ ßÝãÇ Ñ³ßíáí` çñ³ã³փ áõÝ»óáÕ µÝ³ÏÇã-µ³Å³Ýáñ¹Ý»ñÇ Ñ³Ù³ñ 145

AWSC/ ÐæÎ 135

125

North West Region 115 ÐÛáõëÇë ³ñ¨ÙïÛ³Ý ï³ñ³Í³ßñç³Ý

105 106

Center West Region ÈÇïñ/³ÝÓ/ûñ Liters/cap/day 95 Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý ï³ñ³Í³ßñç³Ý 93 85 87 87 81 78 81 South Region 75 71 Ð³ñ³í³ÛÇÝ 75 ï³ñ³Í³ßñç³Ý

65 Base year / Average 05 Average 06 Average 07 Average 08 Average 09 I Quarter 10 II Quarter 10 III Quarter Months ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 10Ã.I 10Ã.II 10 ²ÙÇëÝ»ñ ï³ñÇÝ »é³ÙëÛ³Ï »é³ÙëÛ³Ï 10Ã.III »é³ÙëÛ³Ï

102

QUARTERLY REPORT July-September 2010

INDICATOR 12

PRICE OF M3 METERED AND BILLED TO DOMESTIC SUBSCRIBERS ê³Ï³·ÇÝÁ çñ³ã³փ áõÝ»óáÕ µÝ³ÏÇã-µ³Å³Ýáñ¹Ý»ñÇ Ñ³Ù³ñ

200 179,78 180

160 154,47 140,00 140 115,65 120 3 100,41

100 90,36 Drams/m ¸ñ³Ù/Ëáñ.Ù. 80

40 24,35 25,31 20 10,05

0 Period Water/æáõñ Sewerage/ Total/ ÀÝ¹³Ù»ÝÁ Ժամանակահատված ÎáÛáõÕÇ

INDICATOR 13

GROWTH OF TOTAL COLLECTED REVENUE FROM BASE YEAR (EXCLUDING BUDGET ORGANISATIONS) ÀÝ¹Ñ³Ýáõñ Ñ³í³ù³·ñÙ³Ý ³×Á (µ³ó³éáõÃÛ³Ùµ µÛáõç»ï³ÛÇÝ Ï³½Ù-ñÇ) µ³½³ÛÇÝ ï³ñí³ Ñ³Ù»Ù³ï

180% AWSC/ ÐæÎ 160%

140% 165,1% 120% 145,2% North West Region 119,5% 100% ÐÛáõëÇë ³ñ¨ÙïÛ³Ý 118,6% ï³ñ³Í³ßñç³Ý 80% Center West Region %O FCOLLECTION REVENU 60% 46,9% 72,6% Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý

Ð ³í³ù³·ñáõÙóëï³óí³Í »Ï³ÙïÇ % 40% 54,8% ï³ñ³Í³ßñç³Ý 20% South Region 0% 16,2% Ð³ñ³í³ÛÇÝ ï³ñ³Í³ßñç³Ý

AWSC/ ÐæÎ

ØÇçÇÝÁ 05 ØÇçÇÝÁ

Average 05 Average

ØÇçÇÝÁ 06 ØÇçÇÝÁ

Average Average 06

ØÇçÇÝÁ 07 ØÇçÇÝÁ

Average Average 07

Base year year Base

ØÇçÇÝÁ 08 ØÇçÇÝÁ

Average Average 08

ØÇçÇÝÁ 09 ØÇçÇÝÁ

Average Average 09

ÐÇÙÝ³Ï³Ý ï³ñÇÝ

I Quarter Quarter I10

II Quarter IIQuarter 10

10Ã.I 10Ã.I »é³ÙëÛ³Ï

III Quarter IIIQuarter 10

10Ã.II »é³ÙëÛ³Ï 10Ã.III »é³ÙëÛ³Ï

103

QUARTERLY REPORT July-September 2010

INDICATOR 14

Ratio of water volume billed on the basis of metering to the total metered and normative billed volume æñ³ã³փ áõÝ»óáÕ µ³Å³Ýáñ¹Ý»ñÇÝ ïñíáÕ çñ³ù³Ý³ÏÇ ïáÏáëÁ µ³Å³Ýáñ¹Ý»ñÇÝ ïñí³Í ÁÝ¹Ñ³Ýáõñ çñ³ù³Ý³ÏÇ ÝÏ³ïÙ³Ùµ

100%

AWSC/ ÐæÎ 90%

80% 82% 78% North West Region 70% ÐÛáõëÇë ³ñ¨ÙïÛ³Ý 70% ï³ñ³Í³ßñç³Ý 65% % 60% 59% 56% Center West Region 50% Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý ï³ñ³Í³ßñç³Ý 47% 40%

South Region 30% Ð³ñ³í³ÛÇÝ ï³ñ³Í³ßñç³Ý 25% 26% 20% Base year / Average 05 Average 06 Average 07 Average 08 Average 09 I Quarter 10 II Quarter 10 III Quarter ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 10Ã.I 10Ã.II 10 ï³ñÇÝ »é³ÙëÛ³Ï »é³ÙëÛ³Ï 10Ã.III »é³ÙëÛ³Ï

INDICATOR 15

AVERAGE DAILY PRODUCTION PER EQUIVALENT REGISTRED INHABITANT úñ³Ï³Ý ³ñï³¹ñí³Í ÙÇçÇÝ çñ³ù³Ý³ÏÁ Ù»Ï ßÝãÇ Ñ³ßíáí 1 300

AWSC/ ÐæÎ 1 200

1 100

North West Region 1 000 ÐÛáõëÇë ³ñ¨ÙïÛ³Ý ï³ñ³Í³ßñç³Ý

900

ÉÇïñ/³ÝÓ/ûñ liters /cap/dayliters

Center West Region 800 Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý 827 814 743 ï³ñ³Í³ßñç³Ý 790 792 728 759 754 700

668 South Region 600 Ð³ñ³í³ÛÇÝ ï³ñ³Í³ßñç³Ý

500 Months Base year / Average 05 Average 06 Average 07 Average 08 Average 09 I Quarter 10 II Quarter 10 III Quarter 10 ²ÙÇë ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 10Ã.I 10Ã.II 10Ã.III ï³ñÇÝ »é³ÙëÛ³Ï »é³ÙëÛ³Ï »é³ÙëÛ³Ï

104

QUARTERLY REPORT July-September 2010

INDICATOR 17

RATIO OF METERED FINAL CONSUMPTION M3 TO WATER PRODUCED æñ³ã³÷ áõÝ»óáÕ µ³Å³Ýáñ¹Ý»ñÇ ÏáÕÙÇó ëå³éí³Í çñÇ Í³í³ÉÇ ïáÏáëÁ ` ³ñï³¹ñí³Í çñÇ ÁÝ¹Ñ³Ýáõñ Í³í³ÉÇ Ñ³Ù»Ù³ï 18%

AWSC/ÐæÎ 16%

14% North West Region/ 13,4% ÐÛáõëÇë ³ñ¨ÙïÛ³Ý Ù³ëÝ³×ÛáõÕ 12%

12,0% %

10% Center West Region/ Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý 9,4% 9,0% Ù³ëÝ³×ÛáõÕ 8% 6,8% 8,5% 7,8% 8,1%

6% South Region/ 6,4% Ð³ñ³í³ÛÇÝ Ù³ëÝ³×ÛáõÕ

4% Base year / Average 05 Average 06 Average 07 Average 08 Average 09 I Quarter 10 II Quarter 10 III Quarter 10 ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 10Ã.I 10Ã.II 10Ã.III ï³ñÇÝ »é³ÙëÛ³Ï »é³ÙëÛ³Ï »é³ÙëÛ³Ï

INDICATOR 18

WORKING RATIO FOR THE BRANCHES WITH GRAVITY SYSTEMS ÆÝùÝ³Ñáë Ñ³Ù³Ï³ñ· áõÝ»óáÕ Ù³ëÝ³×ÛáõÕ»ñÇ ³ßË³ï³ÝùÇ ³ñ¹ÛáõÝ³í»ïáõÃÛ³Ý ïáÏáëÁ

160,0%

AWSC/ ÐæÎ 140,0%

121,0% 120,0% North West Region ÐÛáõëÇë ³ñ¨ÙïÛ³Ý ï³ñ³Í³ßñç³Ý 100,0% 97,5% 94,5%

% 89,7% 80,0% 85,2% 72,7% Center West Region 65,9% Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý 64,7% ï³ñ³Í³ßñç³Ý 60,0% 45,2%

South Region 40,0% Ð³ñ³í³ÛÇÝ ï³ñ³Í³ßñç³Ý

20,0% Base year / Average 05 Average 06 Average 07 Average 08 Average 09 I Quarter 10 II Quarter III Quarter Months ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 10Ã.I 10 10 ²ÙÇëÝ»ñ ï³ñÇÝ »é³ÙëÛ³Ï 10Ã.II 10Ã.III »é³ÙëÛ³Ï »é³ÙëÛ³Ï

105

QUARTERLY REPORT July-September 2010

INDICATOR 19

COMPANY WORKING RATIO FOR BRANCHES WITH PUMPING STATIONS OR WATER TREATMENT PLANTS äáÙå³Ï³Û³ÝÝ»ñáí Ï³Ù Ù³ùñÙ³Ý Ï³Û³ÝÝ»ñáí ³ßË³ïáÕ Ù³ëÝ³×ÛáõÕ»ñÇ ³ßË³ï³ÝùÇ ³ñ¹ÛáõÝ³í»ïáõÃÛ³Ý ïáÏáëÁ 250,0% 223,3% 230,0% AWSC/ ÐæÎ

210,0% 196,8% 190,0% North West Region ÐÛáõëÇë ³ñ¨ÙïÛ³Ý 170,0%

ï³ñ³Í³ßñç³Ý % 150,0% 155,2% 148,9% 147,2% 130,0% Center West Region 115,5% Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý 103,8% ï³ñ³Í³ßñç³Ý 110,0% 111,1% 99,8% 90,0% South Region Ð³ñ³í³ÛÇÝ 70,0% ï³ñ³Í³ßñç³Ý

50,0% Base year / Average 05 Average 06 Average 07 Average 08 Average 09 I Quarter 10 II Quarter 10 III Quarter ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 10Ã.I 10Ã.II 10 ï³ñÇÝ »é³ÙëÛ³Ï »é³ÙëÛ³Ï 10Ã.III »é³ÙëÛ³Ï

INDICATOR 20

ELECTRICITY COST AS % OF REVENUE COLLECTED IN SYSTEMS WITH PUMPING OR TREATMENT PLANTS äáÙå³Ï³Û³ÝÝ»ñÇ ¨ Ù³ùñÙ³Ý Ï³Û³ÝÝ»ñÇ Í³Ëë³Í ¿É»Ïïñ³¿Ý»ñ·Ç³ÛÇ ³ñÅ»ùÇ ïáÏáëÁ ÀÝÏ»ñáõÃÛ³Ý

ÁÝ¹Ñ³Ýáõñ Ñ³í³ù³·ñÙ³Ý ÝÏ³ïÙ³Ùµ ³ñÙ³Ý Ñ³Ù³ñ³ñÙ³Ý × 120%

AWSC/ÐæÎ

100%

80% North West Region/ÐÛáõëÇë ³ñ¨ÙïÛ³Ý Ù³ëÝ³×ÛáõÕ 72,6% 60% 63,1% 42,6% Center West 39,7% 39,2% Region/Î»ÝïñáÝ 40% ³ñ¨Ùáõïù Ù³ëÝ³×ÛáõÕ 30,8% 32,2%

24,4% 24,9% % OF COLLECTION USED FOR ELECTRICITY EXPENSIES ELECTRICITY FOR USED COLLECTIONOF %

20% South Region/Ð³ñ³í³ÛÇÝ Ù³ëÝ³×ÛáõÕ

Ð³í³ù³·ñÙ³Ý % û·ï³·áñÍí³Í¿É»Ïïñ³¿Ý»ñ·Ç³ÛÇÐ³í³ù³·ñÙ³ÝÍ³Ëë»ñÇ% í 0% Base year / Average 05 Average 07 Average 07 Average 08 Average 09 I Quarter 10 II Quarter 10 III Quarter 10 Month ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 10Ã.I 10Ã.II 10Ã.III ²ÙÇë ï³ñÇÝ »é³ÙëÛ³Ï »é³ÙëÛ³Ï »é³ÙëÛ³Ï

106

QUARTERLY REPORT July-September 2010

INDICATOR 22

TOTAL STAFF FOR 1000 INDIVIDUAL SUBSCRIBERS 1 000 µ³Å³Ýáñ¹ÇÝ µ³ÅÇÝ ÁÝÏÝáÕ ³ßË³ïáÕÝ»ñÇ թիվÁ

12,00

AWSC/ÐæÎ 11,00

10,00 9,45 North West 9,00 Region/ÐÛáõëÇë 8,34 ³ñ¨ÙïÛ³Ý Ù³ëÝ³×ÛáõÕ

8,00 7,15 Center West 7,00 Region/Î»ÝïñáÝ ³ñ¨Ùáõïù Ù³ëÝ³×ÛáõÕ 6,87 6,85 6,87 6,65 6,68 6,75 Staff per 1000 Staff1000 per Individual Subscribers 6,00

South 5,00 Region/Ð³ñ³í³ÛÇÝ ²ßË³ï³Ï³½Ù ³Ù»Ý 1000 ³ÝÑ³ï µ³Å³Ýáñ¹Ç Ñ³Ù³ñ Ù³ëÝ³×ÛáõÕ

4,00 Base year / Average 05 Average 06 Average 07 Average 08 Average 09 I Quarter II Quarter III Quarter ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 10 10 10 ï³ñÇÝ 10Ã.I 10Ã.II 10Ã.III »é³ÙëÛ³Ï »é³ÙëÛ³Ï »é³ÙëÛ³Ï

INDICATOR 23

STAFF AND ASSIGNMENT CONTRACTOR TOTAL COST AS % OF COLLECTED REVENUE ²ÝÓÝ³Ï³½ÙÇ å³Ñå³ÝÙ³Ý ÁÝ¹Ñ³Ýáõñ Í³ËëÇ ïáÏáëÁ Ñ³í³ù³·ñÙ³Ý ÝÏ³ïÙ³Ùµ

75,0% 70,2% 68,9% AWSC/ÐæÎ 70,0%

65,0% 61,9% 61,4% 62,2%

60,0% North West Region/ÐÛáõëÇë ³ñ¨ÙïÛ³Ý Ù³ëÝ³×ÛáõÕ

55,0% 52,2% 51,1%

% of collection of revenue% 50,0%

Ð³í³ù³·ñí³Í»Ï³ÙïÇ% 46,8% Center West 45,1% Region/Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý 45,0% Ù³ëÝ³×ÛáõÕ

40,0% South Region/Ð³ñ³í 35,0% Ù³ëÝ³×ÛáõÕ

30,0% Base year / Average 05 Average 06 Average 07 Average 08 Average 09 I Quarter 10 II Quarter 10 III Quarter 10 ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 10Ã.I 10Ã.II 10Ã.III ï³ñÇÝ »é³ÙëÛ³Ï »é³ÙëÛ³Ï »é³ÙëÛ³Ï

107

QUARTERLY REPORT July-September 2010

INDICATOR 24

ELECTRICITY CONSUMPTION IN Kwh/m3 ¾É»Ïïñ³¿Ý»ñ·Ç³ÛÇ ï»ë³Ï³ñ³ñ ëå³éáõÙÁ ÏíïÅ/Ù3

0,70

AWSC/ÐæÎ 0,60

0,50 0,43 North West Region/ ÐÛáõëÇë ³ñ¨ÙïÛ³Ý 0,38

0,40 Ù³ëÝ³×ÛáõÕ /ÏíïÅ/Ë.Ù3 0,31 0,30 0,29 0,30 0,25 0,23 Center West Region/ KWH/m3 KWH/m3 0,23 0,23 Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý Ù³ëÝ³×ÛáõÕ 0,20

0,10 South Region/ Ð³ñ³í³ÛÇÝ Ù³ëÝ³×ÛáõÕ

0,00 Base year / Average 05 Average 06 Average 07 Average 08 Average 09 I Quarter 09 II Quarter 09 III Quarter ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 09Ã.I 09Ã.II 09 ï³ñÇÝ »é³ÙëÛ³Ï »é³ÙëÛ³Ï 09Ã.III »é³ÙëÛ³Ï

INDICATOR 25

PERCENTAGE OF WATER DISINFECTED ²Ëï³Ñ³ÝíáÕ çñÇ %

100,0%

AWSC/ ÐæÎ

90,0% 90,30% 91,21% 86,43% 80,0% North West Region 82,61% ÐÛáõëÇë ³ñ¨ÙïÛ³Ý 80,02% 80,07% ï³ñ³Í³ßñç³Ý

70,0%

% 72,83% Center West Region 67,83% Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý 60,0% ï³ñ³Í³ßñç³Ý 60,87%

50,0% South Region Ð³ñ³í³ÛÇÝ ï³ñ³Í³ßñç³Ý

40,0% Base year / Average 05 Average 06 Average 07 Average 08 Average 09 I Quarter 10 II Quarter 10 III Quarter ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 10Ã.I 10Ã.II 10 ï³ñÇÝ »é³ÙëÛ³Ï »é³ÙëÛ³Ï 10Ã.III »é³ÙëÛ³Ï

108