Patrick LORIN

______Patrick LORIN

QUARTERLY REPORT October-December 2009

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 A C T I V I T I E S ...... 6 C O L L E C T I O N ...... 9 DIAGRAM 1 ...... 11 DIAGRAM 2 ...... 11 2. OPERATION & MAINTENANCE ...... 12 2.1 WATER PRODUCTION ...... 13 PRODUCTION DEPARTMENT ...... 14 1.PRODUCED WATER QUANTITY AND POTABLE WATER LOSSES ...... 14 WATER PRODUCTION & LOSSES DIAGRAMS – 3,4 ...... 14 WATER PRODUCTION & LOSSES TABLE-1 ...... 15 2. POTABLE WATER DISINFECTION ...... 19 QUARTERLY USE OF DISINFECTION MATERIALS TABLE – 2 ...... 19 3. ELECTRICITY CONSUMPTION & EXPENSES ...... 21 ELECTRICITY CONSUMPTION & EXPENSES DIAGRAM – 5 ...... 21 ELECTRICITY EXPENSES TABLE-3 ...... 22 ELECTRICITY CONSUMPTION TABLE-4 ...... 23 WATER DELIVERED THROUGH PUMPING AND CORRESPONDING ELECTICITY CONSUMPTION TABLE- 5 ...... 24 DIAGRAMS – 6,7 ...... 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 – 8 ...... 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 9 ...... 29 NETWORK ANALYSIS TABLE – 8 ...... 30 DIAGRAMS – 10,11 ...... 30 2.3 WASTEWATER & SEWERAGE ...... 31 WASTEWATER DEPARTMENT ...... 32

QUARTERLY REPORT October-December 2009

6. WASTEWATER COLLECTION SYSTEMS ...... 32 MAINTENANCE OF WASTEWATER COLLECTION SYSTEMS TABLE-9 ...... 33 DIAGRAMS – 12,13 ...... 34 NETWORK ANALYSIS TABLE -10 ...... 35 DIAGRAMS – 14,15 ...... 35 7. SPECIAL WORKS DEPARTMENT ...... 36 3. TECHNICAL ...... 37 3.1 TECHNICAL INVESTIGATIONS, DESIGN & MAPPING OF TECHNICAL SYSTEMS ...... 38 TECHNICAL INVESTIGATIONS AND DESIGN...... 39 3.2 MANAGEMENT OF COMPANY’S ASSETS ...... 41 ASSET MANAGEMENT ...... 42 3.3 WATER QUALITY CONTROL...... 44 WATER QUALITY CONTROL...... 45 POTABLE WATER INVESTIGATION IN QUARTER IV, 2009 – TABLE 11 ...... 45 REPORTS ON NATURAL RESOURCE UTILIZATION ...... 47 THE AMOUNTS OF NATURAL RESOURCE UTILIZATION AND ECOLOGICAL FEES PER SECTOR OF THE REGIONAL BRANCHES TABLE-12 ...... 47 THE VOLUMES OF HARMFUL SUBSTANCES DISCHARGED INTO THE WATER BASIN AND THE MAXIMUM PERMISSIBLE DISCHARGE, (MPD) TABLE-13 ...... 48 3.4 QUALITY, SAFETY & ENVIRONMENT ...... 50 REPORT ON THE ACTIVITIES IMPLEMENTED BY THE QUALITY, SAFETY AND ENVIRONMENT DEPARTMENT IN THE 4-th QUARTER OF 2009 ...... 51 3.5 COMPANY’S PROCUREMENT ...... 54 INFORMATION ABOUT PROCUREMENT WITHIN AWSC BUDGET, Q IV, YEAR 2009 TABLE – 14 ...... 55 3.6 TRANSPORTATION ...... 56 TRANSPORTATION ...... 57 4. ADMINISTRATION ...... 58 4.1 FINANCE & ACCOUNT ...... 59 SUBSIDY TABLE-15 ...... 60 INFORMATION CONCERNING INCOMES AND EXPENSES OF AWS CJSC IN IV QUARTER, 2009 TABLE-16 ...... 62

QUARTERLY REPORT October-December 2009

CAHS FLOW– DIAGRAM 16 ...... 63 4.2 HUMAN RESOURCES ...... 64 1. HUMAN RESOURCE POLICY AND REGISTRY DIVISION ...... 65 DIAGRAM 17 ...... 66 DIAGRAM 18 ...... 66 2. TRAINING AND ATTESTATION DIVISION...... 67 4.3 LEGAL & INSURANCE ...... 71 5. PROJECTS...... 73 5.1 W B ...... 74 TABLE-18 ...... 75 5.2 A D B ...... 76 STATUS OF PREPARATION OF PRELIMINARY AND DETAILED DESIGN TABLE-19 ...... 77 Environmental and Social Safeguards ...... 78 Physical implementation of works ...... 80 Physical Implementation of Works Table-20 ...... 80 Improvement of Fnancial Management System ...... 83 Management Information System (MIS) ...... 84 Asset Management ...... 84 Human Resources Management ...... 84 Water Quality ...... 84 TABLE-21 ...... 84 5.3 E B R D ...... 85 PHYSICAL IMPLEMENTATION OF WORKS TABLE-22 ...... 86 6. PUBLIC RELATIONS ...... 89 7. INDICATORS ...... 93 INDICATORS RECAPITULATION – TABLE 23, (INDICATORS 1-25) ...... 94

QUARTERLY REPORT October-December 2009

1. COMMERCIAL

QUARTERLY REPORT October-December 2009

QUARTERLY ACTIVITIES

G e n e r a l

In the forth quarter 2009 we had serious achievements. All the indicators were inproved. We have to mention that some activities are in progress to improve commercial indicators such as:

. Re-signing (signing) of the contracts, adjuatment of debts and signing of debt payment schedules;

. Awarding of fair customers through drawing of lots;

. Publication of the non-paying customers‟ names in the “Hayastani Hanrapetutjun” newspaper;

. Promulgation of reminders by TV and mass media;

. Customers‟ database inventory;

. Random visits.

C o m m e r c I a l a c t I v I t I e s

Re-signing of contracts, debt adjustment and signing of debt payment schedules are being successfully implemented. The program started on February, 2009 took a new pace in the forth quarter, especially in the “Center-West” RB.

IV quarter 2009

Number of signed Billing from the old debts A W S C (resigned) contracts (thousand AMD)

North-West 3 216 21 954 Center-West 4 085 64 392 South 3 530 31 963 A W S C 10 831 108 309

Time schedules were made for repaying about AMD 592.0 mln debt.

QUARTERLY REPORT October-December 2009

One of the primary goals of the program is the installation of water meters, as well as the replacement of expired, broken water meters with high quality ones (purchased by the Company).

W B W a t e r M e t e r s S e l l i n g A W S C

14 000

12 000 11 593 10 427 10 000 8 763 8 450 8 296 8 115 7 506 8 000 7 203 5 988 9 111 7 744 7 367 6 000 5 450

000'AMD 3 329 3 966 4 000 3 036 3 133 4 093 3 754 3 309 3 317 2 000 1 197 2 957 1 159 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2008 2009

During 2009 water meters amounting AMD 91.8 mln were sold (about 15 500 water meters) versus AMD 47.4 mln (about 8000 water meters) of the previous year. It should be stated that special attention is paid on removal of the water meters from the territory of private houses. This is another important issue for the Company.

On October 2009 the forth drawing of lots was organized which has already become a tradition in the Company. This time the winners were six and each of them received AMD 300 000. Here we have to speak also about the results.

First of all the Company is presented to the public by announcements and advertising broadcasted by popular TV channel H2. Together with announcements and advertising about the drawing of lots, the customers are regularly convinced to install water meters and make due payments etc. As a result, the participants of drawing of lots have been almost doubled.

QUARTERLY REPORT October-December 2009

N u m b e r o f p a r t i c i p a t i n g c u s t o m e r s 66 737

70 000

60 000 48 947 46 853

50 000 38 645

40 000

30 000 C u s t o C m e r s

20 000

10 000

0 1st withdraw 2nd withdraw 3rd withdraw 4th withdraw

One of the winners of the drawing of lots is the customer from Berdik village of the RA Ararat marz. The result of analyses is as follows:

M e t e r i n g r a t i o C o l l e c t i o n r a t i o 86% 85% 90% 80% 80% 84% 70% 82% 60% 49% 50% 80% 78% 40% 78% 30% 20% 76% 10% 74% 0% Before the withdraw After the withdraw Before the withdraw After the withdraw

The publication of unfair customers‟ names in the “Hayastani Hanrapetutrun” newspaper is continuing. Here also we have good results. Within the framework of the program about 800 customers absolutely not making payments before have installed water meters and make regular payments. During implementation of the program the customers paid about AMD 8.0mln to cover the previous debts. It should be mentioned that the Company spent only AMD 450.0 thousand for program implementation.

QUARTERLY REPORT October-December 2009

C o l l e c t I o n

As all the other indicators, collection indicator also has the tendency to be improved.

C o l l e c t i o n o f A W S C 400 357 350 tariff increase 28% 333 317 317 303 311 311 300 279 274

250 262 207 245 245 246 206 235 239 230 200 215 225 173 209

AMD 150 163 169 mln 100

0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2008 2009

The total collection level is being increased but such increase is conditioned only by the collection increase from the resident customers.

C o l l e c t i o n o f R e s i d e n t - C u s t o m e r s o f A W S C

250 232 230 223 216 216 215 206 200 190 171 161 tariff increase 28% 147 150 132 152 153 154 158 152 144 146 148

AMD 133 100 117

mln 110 108

0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2008 2009

As to the legal entity customers, the collection level has almost not been changed even taking into account the tariff increase. Such situation is conditioned by the reduction of consumption volumes of some large customer ( some large customers stopped the consumption).

QUARTERLY REPORT October-December 2009

C o l l e c t i o n o f L e g a l E n t i t i e s o f A W S C 140 127 tariff increase 28% 120 108 102 102 94 100 97 95 95 110 84 93 92 80 91 89 88 89 82 81 82 61 AMD 60 52 46

mln 59 40 41 20

0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2008 2009

The number of customrs making regular payments has an obvious increase tendency which is also an important indicator for the Company. It is worth mentioning that along with the increase of the number of paying customers, the payment culture is also improved. The payments are made through the banks and HayPost branches and and the billing is paid in full (not a fixed amount) etc.

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

70 000 2008Ã. 2009Ã. Number of Customers receiving services : around 170 000 60 000

Summerizing the results of the forth quarter 2009, all the indicators have been improved. The Company continues implementing different activities, programs contributing to the improvement of commercial indicators, clarification of relations with the customers, increase of provided services quality and certainly, increase of cash flow.

QUARTERLY REPORT October-December 2009

DIAGRAM 1

C u m m u l a t i v e b i l l i n g c o l l e c t i o n

5 000 4 624

4 500 4033 4 000 3 626 3 432 3 268 3 220 3388 3 500 2 683 3 000 2 443 2 308 2 500 2 135 1 834

Millions AMD Millions 1 593 1 599 2 000

1 500

1 000

500

0 2003 2004 2005 2006 2007 2008 2009

Billing Revenue Collection

DIAGRAM 2

B I L L I N G P A Y M E N T S I N A W S C

2004 2005 2006 2007 2008 2009

360

340 357 New tariff from: 320 1st April 2009 300

280 Pic due to the payment of 260 260 budget organizations for 3 months 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 October-December 2009

2. OPERATION & MAINTENANCE

QUARTERLY REPORT October-December 2009

2.1 WATER PRODUCTION

QUARTERLY REPORT October-December 2009

PRODUCTION DEPARTMENT

1.PRODUCED WATER QUANTITY AND POTABLE WATER LOSSES

In the 4th quarter 2009 the produced water constituted 47 094.7 thousand cubic meter (by gravity 30 340.3 thousand cubic meter and by pumping 16 754.4 thousand cubic meter).

During the reporting 4th quarter drinking water losses constituted 87% which exceeded the planned indicator (83.2 %) by 3.8%.

As a result of close cooperation between the production departments and “Jrar” production units operating in the Company‟s regional branches, planned and operation works of the main facilities and equipment had continuous and efficient character. It is important to state that the vast majority of the works implemented in above mentioned facilities are the planned works as it is supposed by the Company‟s management but not breakdown repairing works.

WATER PRODUCTION & LOSSES DIAGRAMS – 3,4

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 I Quart II Quart III Quart IV Quart I Quart II Quart III Quart October November December IV Quart plan plan plan plan Gravity 25382 20974 28288 21476 29223 21770 9905 9431 11005 30340 21006 Delivered thrugh pumps 18158 17912 16459 17912 17628 17913 5657 5504 5593 16755 17913 Total 43540 38886 44747 39388 46851 39683 15562 14935 16598 47095 38919

W A T E R L O S S E S 90 88 86 84 82 % 80 78 76 74 72 70 I Quart II Quart III Quart October November December IV Quart Carry out Plan

QUARTERLY REPORT October-December 2009

WATER PRODUCTION & LOSSES TABLE-1

WATER PRODUCTION WATER DELIVERED

UN-ACCOUTED FOR WATER

/thousand m3/ /thousand m3/

Name of Source N October November December IV Quarter (pumping station) water water water water thous thous thous thous

SECTORS 3 losses 3 losses 3 losses 3 losses

October October IV quartIV

IV quartIV m m m m

SUBSECTORS

December December November November % % % % 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 560 619 669 1848

Bujakan s. 16 15 16 47 117 110 106 333 675 85 721 87 788 88 2184 87

Aramus p/s 167 156 164 486 Abovyan Akunq p/s 50 41 46 137 1 Abovyan Total 792 831 894 2517 117 110 106 333 675 85 721 87 788 88 2184 87 Byuregavan Nurnus s. 93 82 99 274 25 22 24 71 68 73 60 73 75 76 203 74 Total 93 82 99 274 25 22 24 71 68 73 60 73 75 76 203 74 Total 885 913 994 2792 143 132 130 404 743 84 781 86 864 87 2387 86

Solak p/s 19 15 16 50

Alapars s. 131 126 122 379 Makravan-4 - 214 207 214 636 Abovyan main 72 71 68 211 335 82 321 82 328 83 984 82 2

Charencavan Gyumush s. 37 36 37 110 Charencavan Fantan b-h 7 7 6 20 Total 408 392 396 1195 72 71 68 211 335 82 321 82 328 83 984 82

Makravan-2 p/s 67 48 71 187

Tegenis s. 4 4 4 12 22 15 19 56 50 69 40 73 58 76 148 73

Tsaghkadzor Ulashik WCS 1 2 1 4

Total 73 54 76 203 22 15 19 56 50 69 40 73 58 76 148 73 Makravan-4 - 3 80 78 80 239 Hrazdan Abovyan main Solak p/s 7 7 7 21 83 75 75 233 1100 93 970 93 1060 93 3130 93

Hrazdan Makravan 2-3 p/s 1095 961 1047 3103 Total 1183 1046 1135 3363 83 75 75 233 1100 93 970 93 1060 93 3130 93 Total 1255 1100 1211 3566 105 90 93 288 1150 92 1010 92 1118 92 3278 92 Golovino WCS 143 118 96 357

Florovi Balka

140 141 135 416 WCS 37 32 37 105 318 90 298 90 263 88 879 89

4 Bldan WCS 63 63 61 186

Dilijan Dilijan Shamakhyan s. 6 6 6 18 Jiliut Tala s. 2 2 2 6 Total 354 330 300 984 37 32 37 105 318 90 298 90 263 88 879 89 Qarqarut s. 107 104 80 291 Spitak dzur s. 80 78 67 225 Getahovit s. 80 78 67 225 Anapat s. 40 39 34 113 Ijevan Khozmarag s. 27 26 21 74 45 40 38 124 316 87 307 88 255 87 878 88

Getapnya p/s 5 5 5 15

Dzr i dzor s. 11 8 8 27

5 Ijevan Gmbet s. 5 5 5 16 Azatamut s. 5 5 5 16 Total 361 347 293 1002 45 40 38 124 316 87 307 88 255 87 878 88 Berd WTP 90 75 54 219 Berd 16 16 14 46 79 83 63 80 44 76 186 80 Chatakh s. 5 4 4 13 Total 95 79 58 232 16 16 14 46 79 83 63 80 44 76 186 80

Total 456 426 351 1234 61 56 52 170 395 87 370 87 299 85 1064 86

QUARTERLY REPORT October-December 2009

WATER PRODUCTION WATER DELIVERED

UN-ACCOUTED FOR WATER

/thousand m3/ /thousand m3/

Name of Source N October November December IV Quarter (pumping station) water water water water thous thous thous thous

SECTORS 3 losses 3 losses 3 losses 3 losses

October October IV quartIV

IV quartIV m m m m

SUBSECTORS

December December November November % % % % 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Berdavan b-h 24 23 26 73 Ayrumi p/s 36 36 28 100 Noyemberyan p/s 0 0 0 0 Noyemberyan 16 15 16 47 57 78 50 77 44 73 150 76

Gij sari s. 12 5 5 22

Spitakashen s. 1 1 1 2

6 Varar agbyur s. 1 1 1 2 Alaverdi Total 73 65 61 198 16 15 16 47 57 78 50 77 44 73 150 76 Lori berd s, 589 570 570 1730 Alaverdi 50 45 40 135 727 94 706 94 712 95 2145 94 Agarak s. 188 181 181 550 Total 777 752 752 2280 50 45 40 135 727 94 706 94 712 95 2145 94 Total 849 816 812 2478 66 60 56 183 783 92 756 93 756 93 2295 93 Chakhkali s. 68 70 70 208 Drashen b-h 163 122 79 364 Spitak Nalband b-h 151 78 96 325 30 30 27 87 361 92 258 89 232 90 852 91 Ghazanchi s, 3 14 8 25 Spitak b-h 6 5 6 17

Total 391 289 259 939 30 30 27 87 361 92 258 89 232 90 852 91

Gyulidar s, 8 8 8 23 Stepanavan Getavan p/s 122 114 124 360 32 32 31 95 315 91 284 90 302 91 902 90 7

Stepanavan Novoseltsovo s, 217 195 202 614 Total 347 317 333 997 32 32 31 95 315 91 284 90 302 91 902 90 Novoseltsov p/s 94 91 98 283 Tashir Sevaberd s. 44 41 42 127 25 35 38 98 145 85 127 78 134 78 405 81 Bazumi s. 32 30 31 93 Total 170 162 171 503 25 35 38 98 145 85 127 78 134 78 405 81 Total 908 767 763 2439 87 98 96 280 822 90 669 87 668 87 2159 89 MAIN TOTAL 5116 4744 4827 14687 570 539 532 1641 4546 89 4205 89 4295 89 13046 89

CENTER-WEST REGION

Masis c. Araratyan 1,2 p/s 481 427 398 1306 60 60 55 175 421 88 368 86 342 86 1132 87

Total 481 427 398 1306 60 60 55 175 421 88 368 86 342 86 1132 87

Araratyan 1,2 p/s 588 522 488 1598

1 Masis Masis v. 69 55 49 174 555 89 477 90 449 90 1481 89 Yerevan Djur 36 10 10 57 Total 624 533 498 1655 69 55 49 174 555 89 477 90 449 90 1481 89 Total 1105 960 896 2962 129 115 105 349 976 88 845 88 791 88 2613 88

Ghazaravani b-h 35 40 35 110

Bazmagbyur 3 s. 910 886 922 2718 Echmiadzin Ghazaravani s. 203 187 197 587 760 79 777 81 814 81 2350 80 2

Artameti p/s 7 7 7 22 Echmiadzin Kozdasheni p/s 10 31 47 88 Total 963 964 1011 2937 203 187 197 587 760 79 777 81 814 81 2350 80 Artashati b-h 124 108 110 342 Artashat Garni s. 1030 996 1010 3036 174 171 165 510 988 85 941 85 964 85 2893 85 3

Artashat Gay-Haykashen s. 8 8 8 25 Total 1163 1112 1128 3403 174 171 165 510 988 85 941 85 964 85 2893 85 Garni s. 186 174 180 540 Vedi 111 112 121 345 177 61 154 58 151 55 481 58

Dzermanis s. 102 92 92 286

Total 288 266 272 826 111 112 121 345 177 61 154 58 151 55 481 58

4 Vedi Ararat Garni s. 164 160 164 488 43 43 40 126 121 74 117 73 124 76 362 74 Total 164 160 164 488 43 43 40 126 121 74 117 73 124 76 362 74 Total 452 426 436 1314 154 155 161 471 298 66 271 64 275 63 843 64

QUARTERLY REPORT October-December 2009

WATER PRODUCTION WATER DELIVERED

UN-ACCOUTED FOR WATER

/thousand m3/ /thousand m3/

Name of Source N October November December IV Quarter (pumping station) water water water water thous thous thous thous

SECTORS 3 losses 3 losses 3 losses 3 losses

October October IV quartIV

IV quartIV m m m m

SUBSECTORS

December December November November % % % % 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Artik reservoir 375 340 375 1090 Artik 71 73 78 221 599 89 575 89 592 88 1766 89 Mantash reservoir 295 308 295 897 Total 670 648 670 1987 71 73 78 221 599 89 575 89 592 88 1766 89 Zovasar s. 24 21 20 65 Talin Jinj Akner s. 40 33 32 105 10 21 14 30 15 32 40 28 Kentagbyur s., N 27 27 27 80 809 s.

Total 51 47 47 145 40 33 32 105 10 21 14 30 15 32 40 28

Dagdzutner s. 45 42 43 130

5 Artik Sari s. 4 4 4 11 Ghazanchi s. 15 20 22 56 Lusagbyur s. 7 8 10 25 Ashotsk 16 15 14 45 77 83 79 84 87 86 244 84 Zuygaghbyur s. 7 7 10 23 Gazanchi s. 10 9 9 28 Dzragacneri s. 0 0 0 0 Bavra b-h 5 6 4 16 Total 93 95 102 289 16 15 14 45 77 83 79 84 87 86 244 84 Total 813 790 818 2422 127 121 124 372 686 84 669 85 695 85 2050 85 Karbi b-h 145 122 108 375 Artak p/s 99 139 113 351 Artashavan s. 143 182 158 483 Sagmusavan s. 165 145 149 459 Ashtarak Wosketas s. 13 12 14 38 117 107 96 320 1118 91 1139 91 1115 92 3371 91 Bazmagbyur b-h 80 93 93 266

Kazaravan b-h 23 25 23 70 Bazmagbyur-3 s. 6 566 530 553 1649

Ashtarak Kazaravan s Total 1235 1246 1211 3691 117 107 96 320 1118 91 1139 91 1115 92 3371 91 Ortachit s. 34 30 33 97 Geghagzor s. Aparan 17 16 15 48 165 91 145 90 154 91 464 91 Eznak p/s 148 131 137 415 Jami p/s 0 0 0 0 Total 182 161 170 512 17 16 15 48 165 91 145 90 154 91 464 91 Total 1416 1407 1380 4204 134 123 111 368 1283 91 1284 91 1269 92 3836 91

MAIN TOTAL 5912 5659 5669 17241 921 873 862 2656 4991 84 4786 85 4807 85 14585 85

SOUTH REGION Sarnagbyur s. 45 45 121 211 17 10 9 36 28 63 35 77 111 92 174 83

Eghegnadzor Qarasun s. 58 58 133 248 11 7 10 28 46 80 51 89 123 92 220 89

Vostan s. 49 49 171 270 14 8 13 35 35 71 41 83 158 92 234 87 Total 152 152 425 729 42 25 33 100 110 72 127 83 392 92 629 86 1 Vayk Bazmagbyur s. 108 104 321 533 31 24 27 82 77 72 80 77 294 92 451 85

Eghegnadzor Total 108 104 321 533 31 24 27 82 77 72 80 77 294 92 451 85 Jermuk Dzrasar s. 76 72 81 229 16 15 13 43 60 79 57 80 69 84 186 81 Total 76 72 81 229 16 15 13 43 60 79 57 80 69 84 186 81 Total 336 328 827 1491 89 64 72 225 247 74 264 80 755 91 1266 85

Shaqe s. 282 294 471 1047 55 50 46 150 227 80 244 83 426 90 897 86 Sisyan Mukhutyan s. 12 12 37 61 2 2 2 6 10 81 10 83 35 95 55 90

2 Sisyan Zor - zor s. 8 8 9 25 1 1 1 3 7 87 7 88 8 89 22 88

Total 302 314 517 1133 58 52 48 159 244 81 262 83 468 91 974 86

QUARTERLY REPORT October-December 2009

WATER PRODUCTION WATER DELIVERED

UN-ACCOUTED FOR WATER

/thousand m3/ /thousand m3/

Name of Source N October November December IV Quarter (pumping station) water water water water thous thous thous thous

SECTORS 3 losses 3 losses 3 losses 3 losses

October October IV quartIV

IV quartIV m m m m

SUBSECTORS

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

Akner s. 112 113 260 485 30 24 25 78 82 73 90 79 235 91 406 84 Goris

3 Goris Mukhutyan s. 297 302 597 1195 49 37 38 124 247 83 265 88 559 94 1071 90 Total 408 415 857 1680 79 61 63 203 329 81 354 85 794 93 1477 88 Geghi s, 282 263 0 546 22 23 0 46 260 92 240 91 0 36 500 92 Surin kap s. 71 66 188 324 8 8 17 32 63 89 58 88 171 91 292 90 Kapan Geghi WCS 698 651 904 2253 55 61 68 184 644 92 590 91 836 92 2069 92 Chanakhchi WCS 164 153 191 508 21 22 20 64 143 87 131 86 171 89 444 87

Vachagan WCS 3 3 4 10 7 2 3 13 -4 -132 1 32 0 7 -3 -28 Total 1218 1136 1287 3640 113 117 108 338 1105 91 1019 90 1178 92 3302 91

4 Kapan Agarak b-h 74 68 2 144 61 58 2 122 12 17 9 14 0 19 22 15 Agarak WCS 67 67 173 307 54 52 30 136 13 19 15 22 143 83 171 56 Megri Setenc s. 22 22 11 54 27 26 10 63 -5 -25 -4 -19 1 8 -9 -16 Megri WCS 47 52 262 361 14 13 44 71 33 70 39 74 218 83 289 80 Total 210 208 448 866 157 149 86 392 53 25 59 28 362 81 473 55 Total 1428 1344 1734 4506 270 266 194 730 1158 81 1078 80 1540 89 3776 84

Dzknget s. 0 0 0 0 Hatsarat p/s 130 130 130 390 Sevan Maqravan-2- 34 43 31 107 337 91 332 89 334 92 1003 90 37 36 38 111

Gagarin

Lchashen b-h 186 191 171 549

5 Sevan Total 354 357 340 1050 34 43 31 107 319 90 314 88 309 91 942 90 Kushchinski s. 18 18 18 54 Chambarak 3 3 3 8 15 85 15 85 22 89 53 86 Taqa s. 0 0 7 7 Total 18 18 25 61 3 3 3 8 15 85 15 85 22 89 53 86

Total 372 375 365 1111 37 45 33 116 335 90 329 88 331 91 995 90

Akunq s. 199 189 189 577 St. Vardan s. 80 85 85 250 Vartenis 65 56 62 182 626 91 625 92 598 91 1849 91 Akner s. 206 205 193 604 Shat Jreq s. 206 202 193 601 Total 690 681 660 2031 65 56 62 182 626 91 625 92 598 91 1849 91

Tsakqari s. 180 180 180 540 Martuni 17 15 3 35 194 92 195 93 207 98 595 94 Hopoy var s. 31 30 30 91

6 Gavar Total 211 210 210 631 17 15 3 35 194 92 195 93 207 98 595 94 Kaler p/s Hatsarat p/s 672 739 792 2203 Gavar Khacher p/s 77 89 25 190 710 90 776 90 908 97 2394 93 Sarukhan p/s 71 90 104 264 Gandzak b-h 44 36 37 117 Total 787 865 932 2584 77 89 25 190 710 90 776 90 908 97 2394 93 Total 1688 1756 1802 5246 158 160 90 408 1530 91 1596 91 1713 95 4839 92

MAIN TOTAL 4533 4532 6102 15167 691 649 500 1841 3842 85 3883 86 5602 92 13326 88

GRAND TOTAL 15562 14935 16598 47095 2183 2061 1894 6138 13379 86 12874 86 14704 89 40957 87,0

QUARTERLY REPORT October-December 2009

2. POTABLE WATER DISINFECTION

In this reporting quarter 11 352 kg liquid chlorine and 6 384 kg hypochlorite pills were used for disinfection purposes.

The process of replacing old equipment of chlorination stations with new modern equipment planned for this year is in progress; in particular 5 chlorination stations of “Ijevan” sector were put into operation. This will considerably reduce the drinking water disinfection with hypochlorite pills, as well as improve the efficiency of chlorination stations operation and water disinfection process. Inspection visits are continuously paid to the chlorination stations for studying their operation and technical conditions, as well as maintenance of earlier installed chlorination equipment.

In this quarter we had some difficulties with our liquid chlorine supplier - “Nairit” CJSC which had negative impact on drinking water disinfection works.

Old chlorination station New chlorination station

QUARTERLY USE OF DISINFECTION MATERIALS TABLE – 2

QUARTERLY REPORT October-December 2009

BALANCE in the BALANCE as of the RECEIVED UTILIZED SECTORS AND beginning of IV quarter end of IV quarter N SUBSECTORS LIQUID Hypochlorite LIQUID Hypochlorite LIQUID Hypochlorite LIQUID Hypochlorite CHLORINE PILLS CHLORINE PILLS CHLORINE PILLS CHLORINE PILLS (kg) (kg) (kg) (kg) (kg) (kg) (kg) (kg) 1 2 3 4 5 6 7 8 9 10 7 Berd 23 0 50 0 62 0 11 0 8 Dilijan 40 20 200 250 170 270 70 0 9 Nojemberyan 84 7 0 0 70 7 14 0 10 Alaverdi 29 50 410 100 439 150 0 0 11 Stepanavan 35 15 50 70 77 80 8 5 12 Spitak 28 2 0 100 28 102 0 0 13 Tashir 0 8 50 150 50 158 0 0 TOTAL 731 653 2 709 1 515 2 525 1 761 891 407 CENTER-WEST 1 Artashat 534 38 2 355 318 2 013 356 876 0 2 Echmiatsin 590 101 1 635 1 127 1 478 1 028 747 200 3 Masis 412 40 880 590 902 520 390 110 4 Vedi 23 14 50 100 62 96 11 18 5 Ashtarak 290 25 200 300 490 185 0 140 6 Aparan 10 5 0 74 10 69 0 10 7 Artik 89 0 450 205 414 155 125 50 8 Talin 38 58 0 105 38 106 0 57 9 Ashotsk 0 15 0 150 0 92 0 73 TOTAL 1 986 296 5 570 2 969 5 407 2 607 2 149 658 SOUTH 1 Egheghnadzor 0 0 150 115 150 94 0 21 2 Vayk 39 23 100 65 89 88 50 0 3 Jermuk 25 38 50 0 75 18 0 20 4 Sisian 50 10 100 120 100 115 50 15 5 Goris 13 28 250 270 163 298 100 0 6 Kapan 862 42 1 844 825 1 849 729 857 138 7 Meghri 24 18 200 360 194 217 30 161 8 Sevan 84 0 50 155 134 93 0 62 9 Gavar 74 36 344 195 314 117 104 114 10 Martuni 109 2 0 155 109 86 0 71 11 Vardenis 193 9 50 130 243 106 0 33 12 Chambarak 0 36 0 65 0 55 0 47 TOTAL 1 473 242 3 138 2 455 3 420 2 016 1 191 682 GRAND TOTAL 4 189 1 191 11 417 6 939 11 352 6 384 4 230 1747

Remark* The information is presented based on operative data.

24kg of liquid chlorine was transferred from “Tsakhkadzor” subsector to “Hrazdan” sector in October.

QUARTERLY REPORT October-December 2009

3. ELECTRICITY CONSUMPTION & EXPENSES

In 2009 actual electricity consumption constituted 45 778 thousand kwt/hour amounting AMD 058 801 thousand. This indicator is by 2 301 thousand kwt/hour - AMD 67 321 thousand (6%) less than it was planned by budget. In comparison with the same period of the last year 9 378 thousand kwt/hour less electricity (17%) was consumed which is conditioned by increase of the pumping stations operation efficiency and optimization of the pump working hours. The failures of the pumps and engines have been reduced due to the qualified maintenance of the whole electricity system.

In 2009 it is planned to carry out qualified and centralized maintenance of centrifugal pumps and engines.

Old electrical equipment New electrical equipment

ELECTRICITY CONSUMPTION & EXPENSES DIAGRAM – 5

160000 12000 COST 2009 BUDGET 2009 KWH BUDGET 2009 KWH 2009

120000 8000

80000

1000 KWH 1000 1000 AMD 1000 4000 40000

0 0

July

May

June

April

March

August

January

October

February

December

November September

QUARTERLY REPORT October-December 2009

ELECTRICITY EXPENSES TABLE-3

January February March April May June July August September Octobet November December Total 2009 Variation between total 2009 actual and N Sector BUDG ACT-L BUDG ACT-L BUDG ACT-L BUDG ACT-L BUDG ACT-L BUDG ACT-L BUDG ACT-L BUDG ACT-L BUDG ACT-L BUDG ACT-L BUDG ACT-L BUDG ACT-L BUDGET ACTUAL budget 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 % AMD AMD AMD AMD AMD AMD 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 21 22 23 24 25 26 27 28 29 North West Region 42 153 42 138 32 765 32 805 37 051 35 791 44 406 41 100 42 274 38 972 46 135 37 799 48 278 41 613 49 589 43 598 45 212 41 769 44 307 42 832 45 110 41 863 49 454 45 475 526 734 485 919 -7,75

1 Abovyan 6 768 6 325 5 998 5 937 7 448 7 088 8 581 8 165 8 876 8 692 8 581 8 240 8 876 8 334 8 876 8 672 8 581 8 316 8 876 8 945 8 581 8 381 8 876 8 763 98 918 95 858 -3,09 2 Bjureghavan 244 244 209 209 231 218 295 235 295 231 295 252 295 287 295 268 295 263 295 317 295 213 295 297 3 343 3 034 -9,25 3 Hrazdan 17 299 17 732 12 987 12 993 14 784 14 375 18 757 16 997 18 757 18 060 20 351 17 657 21 332 19 436 22 214 20 251 19 893 17 888 18 880 19 447 18 880 18 896 21 136 20 462 225 270 214 193 -4,92 4 Tsaghkadzor 5 136 5 132 2 983 3 076 3 744 3 317 4 337 3 553 2 205 1 127 4 900 901 5 635 1 787 5 635 2 445 4 729 3 629 4 410 2 510 4 729 1 977 6 125 2 802 54 567 32 254 -40,89 5 Charaentsavan 5 326 5 326 4 573 4 573 4 579 4 666 6 049 5 535 6 181 5 709 6 049 5 518 6 181 5 826 6 181 5 805 6 049 5 681 6 181 5 847 6 049 5 733 6 181 5 857 69 577 66 077 -5,03 6 Ijevan 205 205 175 176 195 170 184 178 184 151 184 136 184 155 184 143 184 138 184 156 184 173 184 194 2 227 1 974 -11,32 7 Berd 155 155 101 102 138 86 7 82 7 42 7 24 7 15 7 25 7 34 7 34 7 77 7 150 460 825 79,43 8 Nojemberyan 2 973 2 973 2 873 2 873 3 200 3 038 3 368 3 299 2 940 2 081 2 940 2 326 2 940 3 067 3 368 3 127 2 646 3 039 2 646 2 699 3 557 3 450 3 822 3 514 37 273 35 484 -4,80 9 Dilijan 605 605 515 515 610 603 743 711 743 684 743 693 743 675 743 732 743 726 743 747 743 759 743 765 8 415 8 215 -2,39 10 Stepanavan 1 599 1 599 1 384 1 384 1 532 1 630 1 793 1 828 1 793 1 862 1 793 1 790 1 793 1 744 1 793 1 854 1 793 1 771 1 793 1 855 1 793 1 793 1 793 1 987 20 656 21 096 2,13 11 Spitak 208 208 158 159 195 168 266 204 266 184 266 167 266 215 266 197 266 190 266 143 266 172 266 163 2 959 2 168 -26,73 12 Tashir 1 499 1 499 704 704 265 323 0 224 0 107 0 73 0 58 0 64 0 81 0 115 0 187 0 383 2 467 3 817 54,72 13 Alaverdi 137 137 105 105 130 109 26 90 26 43 26 23 26 15 26 16 26 16 26 18 26 52 26 139 603 763 26,43

Center West Region 28 639 28 639 22 988 23 035 24 688 23 627 30 021 29 036 30 441 29 051 30 420 26 080 31 245 29 018 31 520 28 622 30 282 26 667 30 174 28 157 30 021 26 940 30 300 26 312 350 227 325 186 -7,15

14 Artashat 2 958 2 958 1 681 1 681 1 861 1 857 2 302 2 367 2 302 2 017 2 302 2 243 2 302 2 231 2 302 1 676 2 302 1 428 2 302 1 539 2 302 1 448 2 302 1 450 27 216 22 896 -15,87 15 Vedi 100 96 75 73 25 71 30 69 30 59 30 53 30 44 30 49 30 78 30 55 30 73 30 77 470 797 69,55 16 Masis 11 605 11 604 8 914 8 964 9 869 8 818 12 543 12 000 12 543 12 528 12 474 10 152 12 543 11 971 12 543 11 960 12 474 11 967 12 543 12 585 12 474 11 529 12 543 10 191 143 070 134 270 -6,15 17 Ararat 93 96 75 73 25 70 30 69 30 59 30 53 30 44 30 49 30 78 30 55 30 73 30 77 463 797 72,30 18 Echmiatsin 4 351 4 352 3 785 3 785 4 191 3 778 4 921 4 588 4 921 4 288 4 921 4 085 4 921 4 312 4 921 4 491 4 921 3 869 4 921 4 013 4 921 4 485 4 921 5 134 56 614 51 180 -9,60 19 Ashtarak 6 471 6 472 5 683 5 683 6 292 6 231 7 096 6 706 7 425 6 994 7 563 6 686 8 250 7 635 8 525 8 091 7 425 7 420 7 095 7 841 7 095 7 283 7 095 6 983 86 014 84 024 -2,31 20 Aparan 2 088 2 088 2 010 2 010 1 680 2 109 2 400 2 462 2 490 2 464 2 400 2 370 2 490 2 237 2 490 1 770 2 400 1 334 2 490 1 598 2 400 1 452 2 490 1 557 26 316 23 451 -10.89 21 Talin 189 189 137 137 50 130 28 130 28 94 28 61 28 41 28 40 28 38 28 81 28 81 28 150 629 1 171 86,07 22 Artik 207 207 151 151 167 73 51 82 51 57 51 31 30 17 30 25 51 23 114 58 120 61 240 120 1 263 904 -28,40 23 Ashotsk 577 577 477 477 528 491 621 563 621 491 621 345 621 486 621 470 621 430 621 334 621 457 621 575 7 172 5 695 -20,59 South region 21 868 21 869 17 141 17 141 16 334 17 781 19 030 20 117 19 030 19 290 19 030 19 257 20 529 20 298 20 528 22 181 20 383 19 581 20 528 18 853 20 548 19 810 20 831 19 400 235 526 235 538 0,01

24 Kapan 576 577 419 416 200 395 0 402 0 208 0 162 0 110 0 107 0 146 0 189 0 329 0 532 1 195 3 572 198,92 25 Meghri 2 694 2 694 1 598 1 598 1 750 1 808 2 121 1 748 2 121 2 015 2 121 2 056 2 121 2 091 2 121 2 105 2 121 2 051 2 121 1 852 2 121 1 773 2 121 389 25 128 22 181 -11,73 26 Goris 136 136 108 109 50 125 48 108 48 54 48 41 48 36 48 38 48 42 48 43 48 90 48 131 721 953 32,17 27 Sisian 245 245 187 187 135 176 123 169 123 78 123 61 123 65 123 399 123 321 123 125 123 203 123 346 1 674 2 374 41,81 28 Egheghnadzor 79 79 50 46 25 58 43 22 43 3 43 9 43 5 43 7 43 9 43 6 43 39 43 40 538 324 -39,67 29 Jermuk 78 79 65 65 25 61 45 58 45 43 45 32 45 17 44 20 44 38 44 61 44 77 44 75 569 625 9,84 30 Vayq 184 184 175 179 75 174 49 124 49 98 49 89 49 85 49 83 49 79 49 68 49 117 49 120 874 1 399 60,11 31 Gavar 14 237 14 237 11 405 11 405 10 626 11 189 12 138 13 194 12 138 12 568 12 138 12 950 12 138 13 939 12 138 15 387 12 138 13 010 12 187 12 360 12 187 12 938 12 309 13 478 145 632 156 654 7,57 32 Sevan 3 508 3 508 3 023 3 023 3 338 3 647 4 350 4 181 4 350 4 174 4 350 3 820 5 800 3 906 5 800 3 986 5 655 3 840 5 800 4 095 5 800 4 151 5 800 4 172 57 465 46 461 -19,15 33 Martuni 71 70 57 57 55 96 54 67 54 24 54 14 54 13 54 14 54 16 54 22 73 52 163 54 800 499 -37,61 34 Vardenis 60 60 55 55 55 52 60 44 60 24 60 24 60 31 60 36 60 29 60 32 60 42 132 64 782 495 -36,73 Head Office 1 466 1 466 1 167 1 167 923 1 190 1 229 931 983 655 983 738 1 123 901 1 123 782 983 769 983 836 1 229 1 168 2 021 1 554 14 210 12 158 -14,44

35 Administ.Building 1 466 1 466 1 167 1 167 923 1 190 1 229 931 983 655 983 738 1 123 901 1 123 782 983 769 983 836 1 229 1 168 2 021 1 554 14 210 12 158 -14,44 Total 94 125 94 112 74 061 74 148 78 995 78 389 94 686 91 185 92 727 87 969 96 568 83 874 101 175 91 830 102 760 95 183 96 860 88 787 95 992 90 679 96 908 89 781 102 608 92 742 1126 122 1058 801 -5,98 22

QUARTERLY REPORT October-December 2009

ELECTRICITY CONSUMPTION TABLE-4

January February March April May June July August September Octobet November December Total 2009 Variation Variation Total between of between total N S e c t o r s BUDG ACT-L BUDG ACT-L BUDG ACT-L BUDG ACT-L BUDG ACT-L BUDG ACT-L BUDG ACT-L BUDG ACT-L BUDG ACT-L BUDG ACT-L BUDG ACT-L BUDG ACT-L BUDG ACT-L 2009 year 2008 2009 actual 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 AMD and 2009 and budget KWH KWH KWH KWH KWH KWH KWH KWH KWH KWH KWH KWH KWH KWH KWH KWH KWH KWH AMD AMD AMD AMD AMD 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 26 27 28 29 30 31 North West Region 23859 2 159 2 159 1 648 1 648 1 784 1 804 1 775 1 652 1 691 1 578 1 849 1 531 1 936 1 689 1 986 1 759 1 813 1 685 1 776 1 728 1 803 1 672 1 978 1 826 22 197 20 733 - 13 -6,59 1 Abovyan 3617,7 348 325 310 306 343 361 348 333 360 355 348 336 360 340 360 352 348 338 360 362 348 338 360 353 4 193 4 099 13 -2,25 2 Bjureghavan 138,2 10 10 9 9 10 10 10 9 10 9 10 10 10 11 10 11 10 10 10 12 10 9 10 11 118 119 - 14 1,45 3 Hrazdan 10866 901 924 666 667 730 735 765 690 765 733 830 718 870 797 906 823 811 728 770 786 770 762 862 825 9 646 9 188 - 15 -4,75 4 Tsaghkadzor 2703,3 267 267 153 156 169 167 177 144 90 45 200 36 230 72 230 99 193 147 180 106 193 79 250 119 2 332 1 437 - 47 -38,40 5 Charaentsavan 3542,7 268 268 215 215 238 235 230 223 235 230 230 223 235 235 235 231 230 225 235 231 230 225 235 233 2 816 2 775 - 22 -1,45 6 Ijevan 77,0 8 8 7 7 8 7 6 6 6 5 6 5 6 5 6 5 6 5 6 5 6 6 6 6 78 70 - 9 -10,54 7 Berd 29,1 6 6 4 4 4 3 0 3 0 1 0 1 0 1 0 1 0 1 0 1 0 3 0 5 17 30 2 76,77 8 Nojemberyan 928,8 121 121 118 118 131 125 115 110 100 71 100 83 100 108 115 110 90 107 90 96 121 120 130 121 1 330 1 292 39 -2,83 9 Dilijan 288,8 24 24 21 21 23 24 25 24 25 23 25 23 25 23 25 24 25 24 25 25 25 25 25 26 297 285 - 1 -3,96 10 Stepanavan 1218,8 107 107 92 92 101 108 89 92 89 94 89 87 89 88 89 94 89 89 89 93 89 90 89 99 1 103 1 132 - 7 2,60 11 Spitak 84,2 8 8 6 6 7 7 9 7 9 6 9 6 9 7 9 7 9 6 9 5 9 6 9 5 101 76 - 10 -25,29 12 Tashir 338,6 85 85 43 43 15 18 0 9 0 5 0 3 0 2 0 3 0 3 0 5 0 8 0 16 144 201 - 41 39,76

13 Alaverdi 26,6 5 5 4 4 5 4 1 3 1 1 1 1 1 1 1 1 1 1 1 1 1 2 1 5 22 28 4 26,43 Center West Region 17523 1 393 1 393 1 104 1 104 1 217 1 142 1 165 1 129 1 180 1 130 1 179 1 003 1 210 1 120 1 220 1 119 1 174 1 049 1 171 1 102 1 165 1 050 1 175 1 025 14 353 13 366 - 24 -6,88

14 Artashat 1205,6 119 119 69 69 76 76 78 80 78 68 78 76 78 75 78 57 78 48 78 52 78 49 78 49 961 818 - 32 -14,91 15 Vedi 37,6 4 4 3 3 1 3 1 2 1 2 1 2 1 3 1 2 1 5 1 2 1 2 1 3 17 28 - 25 65,65 16 Masis 8791,4 651 651 495 494 548 488 543 519 543 542 540 440 543 508 543 510 540 509 543 535 540 488 543 434 6 572 6 120 - 30 -6,88 17 Ararat 37,6 4 4 3 3 1 3 1 2 1 2 1 2 1 0 1 1 1 0 1 2 1 2 1 3 17 28 - 25 68,62 18 Echmiatsin 2280,5 198 198 171 171 189 169 182 166 182 152 182 141 182 151 182 159 182 135 182 140 182 158 182 186 2 193 1 928 - 15 -12,07 19 Ashtarak 3721,4 294 294 253 253 286 291 258 252 270 261 275 249 300 286 310 302 270 282 258 295 258 274 258 263 3 290 3 301 - 11 0,34 20 Aparan 1126,8 84 84 80 80 82 84 80 82 83 82 80 79 83 79 83 70 80 53 83 61 80 55 83 59 981 868 - 23 -11,51 21 Talin 46,2 8 8 6 5 6 5 1 4 1 3 1 2 1 1 1 1 1 1 1 3 1 3 1 5 28 42 - 9 52,69 22 Artik 47,9 8 8 6 6 7 3 2 3 2 2 2 1 1 1 1 1 2 1 4 2 4 2 8 4 46 33 - 31 -27,50 23 Ashotsk 227,9 23 23 19 19 21 20 21 19 21 16 21 11 21 16 21 16 21 14 21 11 21 15 21 19 250 200 - 12 -19,83 South region 13256 1 255 1 254 993 991 935 1 015 832 893 831 848 831 853 882 903 882 995 877 869 880 832 881 866 893 860 10 979 11 174 - 16 1,78 24 Kapan 130,5 23 23 17 17 8 16 0 14 0 7 0 6 0 4 0 4 0 5 0 7 0 11 0 18 48 132 2 175,91 25 Meghri 953,1 109 108 64 64 70 72 71 58 71 67 71 69 71 70 71 70 71 68 71 62 71 59 71 13 879 780 - 18 -11,28 26 Goris 40,3 5 5 4 4 2 5 2 4 2 2 2 1 2 1 2 1 2 1 2 1 2 3 2 4 26 34 - 15 31,94 27 Sisian 145,2 11 11 8 8 6 8 5 6 5 3 5 2 5 2 5 14 5 11 5 5 5 7 5 13 66 91 - 38 37,11 28 Egheghnadzor 11,8 3 3 2 2 1 2 1 1 1 0 1 0 1 0 1 0 1 0 1 0 1 1 1 1 19 12 2 -36,52 29 Jermuk 20,2 3 2 3 3 1 2 2 2 2 1 2 1 2 1 2 1 2 1 2 2 2 3 2 3 19 22 10 17,09 30 Vayq 50,4 7 7 7 7 3 7 2 4 2 3 2 3 2 3 2 3 2 3 2 2 2 4 2 4 32 50 0 57,09 31 Gavar 10082,4 926 926 744 743 685 723 595 642 595 606 595 624 595 672 595 750 595 631 595 597 595 618 601 643 7 736 8 175 - 19 5,68 32 Sevan 1785,1 161 161 137 137 152 168 150 159 150 156 150 144 200 148 200 151 195 146 200 155 200 157 200 157 2 095 1 840 3 -12,17 33 Martuni 9,3 3 3 3 3 3 4 2 2 2 1 2 1 2 1 2 1 2 1 2 1 3 2 6 2 31 20 116 -35,37 34 Vardenis 28,2 2 2 2 2 2 2 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 4 2 27 18 - 37 -35,78 Head Office 514 71 71 55 55 45 56 44 37 35 25 35 28 40 35 40 30 35 29 35 33 44 45 72 60 551 504 - 2 -8,49 35 Administ.Building 514,1 71 71 55 55 45 56 44 37 35 25 35 28 40 35 40 30 35 29 35 33 44 45 72 60 551 504 - 2 -8,49 Total 55155,8 4 877 4 877 3 800 3 798 3 981 4 016 3 817 3 711 3 738 3 581 3 895 3 415 4 068 3 746 4 128 3 903 3 900 3 632 3 863 3 695 3 894 3 634 4 119 3 771 48 079 45 778 - 17 -4,79

QUARTERLY REPORT October-December 2009

WATER DELIVERED THROUGH PUMPING AND CORRESPONDING ELECTICITY CONSUMPTION TABLE- 5

WATER CUMULATIVE DELIVERED ELECTRICITY ELECTRICITY during 2009 THROUGH CONSUMPTION CONSUMPTION N SUBSECTORS PUMPING ELECTRICITY WATER 3 3 thousand m / KWH/m thous.KWH/ thousand KWH thousand m3 IV quarter IV quarter

1 2 3 4 5 6 7 1 Ashtarak 726 1,1 794 3 150 2 480

2 Aparan 415 0,4 163 821 2086

3 Artashat 342 0,4 132 746 2 110

4 Echmiadzin 555 0,5 256 1068 2 004

5 Gavar 2 974 0,6 1 727 7 701 11 871

6 Sevan 549 0,6 323 1 274 2 141

7 Tashir 283 0,0 0 150 982

8 Stepanavan 360 0,7 265 1057 1472

9 Noyemberyan 172 1,9 331 1265 724

10 Spitak 17 0,5 9 51 101

11 Abovyan 3 345 0,3 966 3 799 13 626

12 Charentsavan 461 1,1 485 2 045 1 933 Hrazdan and 13 3 401 0,7 2 481 9 862 13 751 Tsakhkadzor

14 Meghri 144 0,8 112 657 841

15 Ijevan 15 0,9 13 54 63

16 Masis 2 905 0,5 1 417 5 882 12 435

17 Ashotsk 89 0,5 40 178 376

TOTAL 16 753 0,57 9 515 39 757 68 999

QUARTERLY REPORT October-December 2009

DIAGRAMS – 6,7

WATER DELIVERED THROUGH PUMPING AND CORRESPONDING ELECTICITY CONSUMPTION

20000 18000 16000 14000 12000 10000 8000 6000 4000 2000 I Quart II Quart III Quart October November December IV Quart Water 18158 16459 17628 5657 5503 5593 16753 El. energy 10781 9396 10065 3236 3115 3164 9515

ELECTRICAL CONSUMPTION KWH/m3

0,8 0,6 0,4 0,2 0 I Quart II Quart III Quart October November December IV Quart El. energy 0,59 0,57 0,57 0,57 0,57 0,57 0,57

4. WATER METERS EQUIPMENT INSTALLATION

During the 4th quarter in the main structures of the Company 13 mechanical and 3 electrical Magnetic water meters have been repaired.

On Sarnaghbyur water main, which is operated by Eghegnadzor sector of the Company, one new water meter unit with the required equipment has been constructed and was handed over for operation, which gave the possibility to meter total water volume produced by the Sector.

At the connection lines of Charentsavan Sector Alapars community 4 mechanical water meters have been installed, which gave the possibility to meter and control the water volume, consumed by the Community from «Makravan 4 – Abovyan» water main, which is considered as a mean for straggling against water losses.

Control of Nurnus water sources volumes of Abovyan sector is ongoing, one water meter unit is constructed, activities on construction of the second water meter unit are under implementation.

Installation or renovation of water meter units in other main structures of the Company is under investigation process.

QUARTERLY REPORT October-December 2009

PROGRESS OF THE WATER METERS EQUIPMENT INSTALLATION BY THE AWS CJSC IN ITS MAINTENANCE AREA TABLE - 6, DIAGRAM – 8

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

buildings building

SECTORS N

NAME

condition

Installed in in Installed

Installed in Installed

requirements requirements requirements requirements requirements requirements requirements

Not working in

reporting quart

meters installed meters installed meters installed meters installed meters installed meters installed meters installed reporting month number number number number number number number number number number number number number number number number number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 NORTH WEST 1 Abovyan 1 17 308 34 16 602 19 762 2 323 3 098 12 57 61 564 19 307 23 532 327 574 64 2 Charencavan 4 9 178 18 1 966 8 223 1 196 2 686 13 59 86 323 3 443 11 318 70 234 27 3 Hrazdan 2 9 339 0 4 864 11 781 2 143 3 076 16 90 71 542 7 435 15 498 466 839 28 4 Dilijan 2 9 97 1 1 532 1 848 1 325 1 984 16 45 29 120 3 001 4 007 275 383 33 5 Ijevan 0 12 177 0 1 652 3 840 512 3 399 6 60 12 279 2 359 7 590 146 315 41 6 Stepanavan 1 48 148 34 1 237 3 589 2 696 7 548 8 93 36 371 4 126 11 683 116 288 79 7 Alaverdi 0 40 246 0 1 654 6 243 2 358 4 781 11 84 19 208 4 288 11 356 316 505 32 Total 10 144 1493 87 29 507 55 286 12 553 26 572 82 488 314 2 407 43 959 84 984 1 716 3 138 304 CENTER WEST

1 Artashat 0 78 123 0 2 290 3 837 13 741 10 998 60 86 106 305 16 320 15 304 736 1 267 137 2 Vedi 0 28 159 0 1 474 4 667 11 981 6 271 43 56 78 265 13 735 11 287 242 408 235 3 Echmiadzin 0 85 247 0 811 8 669 17 272 10 541 65 68 59 700 18 454 20 063 275 606 217 4 Masis 14 17 69 0 1 020 3 499 3 842 6 135 20 62 30 486 4 995 10 199 609 1 150 92 5 Ashtarak 2 58 209 0 1 018 4 023 8 048 5 605 47 77 54 320 9 378 10 083 275 444 33 6 Artik 15 61 257 0 2 186 3 209 8 894 4 149 60 90 84 302 11 496 7 811 265 477 57 Total 31 327 1064 0 8 799 27 904 63 778 43 699 295 439 411 2 378 74 378 74 747 2 402 4 352 771 SOUTH 1 Goris 1 13 154 0 517 2 977 944 3 174 20 59 19 186 1 655 6 409 39 128 32 2 Eghegnadzor 0 17 124 1 1 189 5 275 684 2 124 2 84 29 467 2 028 7 968 182 246 43 3 Sisian 1 13 97 0 230 3 720 311 1 615 0 68 5 225 644 5 641 118 119 22 4 Kapan 1 16 339 1 1 925 15 187 1 481 2 236 18 115 85 802 3 849 18 357 282 450 19 5 Gavar 13 42 120 28 2 120 2 506 10 673 7 106 83 98 107 328 13 116 10 108 659 1 733 138 6 Sevan 0 7 134 12 1 490 5 944 452 2 066 19 55 49 390 2 144 8 474 115 276 41 Total 16 108 968 42 7 471 35 609 14 545 18 321 142 479 294 2 398 23 436 56 957 1 395 2 952 295 MAIN TOTAL 57 579 3 525 129 45 777 118 799 90 876 88 592 519 1 406 1 019 7 183 141 773 216 688 5 513 10 442 1 370

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.

N U M B E R OF W A T E R M E T E R S I N S T A L L E D IN R E P O R T I N G Q U A R T E R

5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 I Quart II Quart III Quart October November December IV Quart North West 1322 1907 888 572 850 1716 3138 Center West 816 2714 2814 937 1013 2402 4352 South 402 442 2550 789 768 1395 2952

QUARTERLY REPORT October-December 2009

2.2 WATER DISTRIBUTION

QUARTERLY REPORT October-December 2009

DISTRIBUTION DEPARTMENT

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

Operation and repairing activities in the 4th quarter was organized more efficiently. Despite water supply difficulties it was necessary to supply the customers with uninterrupted and better quality water. For solving the above mentioned issues it was necessary to make even distribution of water to the distribution systems, as well as carry out urgent repairing works which resulted in uninterrupted water supply. In the distribution networks the following works have been carried out: 2 203 repairing, 187 partial and linear repairing and 82 reinforcement repairing works.

It is also worth mentioning that illegal connections and illegal water use had their negative impact on water supply which was prevented by eliminating 58 illegalities in trunk water mains. Moreover, as compared with previous quarter, average water supply schedule reached 13.01 hours.

The same working style will be kept during the forthcoming months. Upon full and technical refurbishment of the sectors, the operations management and distribution network division plan to pass step by step to the planned operation, maintenance and preventive activities making simultaneously breakdown repairing works.

QUARTERLY REPORT October-December 2009

OPERATION AND MAINTENANCE OF WATER TRANSMISSION AND DISTRIBUTION SYSTEMS TABLE-7, DIAGRAM 9

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

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AMD AMD AMD AMD Materi Total

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aterial aterial aterial aterial aterial aterial aterial

Total Total Total Total Total

Total Total Total Total

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NAME OF REGIONAL BRANCH REGIONAL OF NAME

M M M M M M M

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thous. AMD)

thous. AMD thous. AMD

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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 22 412 616 16 1 093 1 816 38 604 1 414 55 29 5 45 49 602 5 656 0 49 130 989 602 1810 8258 5 0 10 656 1 940 9 256 4 049 13 175 CENTER WEST 37 36 467 35 203 1 023 8 32 398 0 0 49 268 37 662 15 714 0 38 206 576 671 3731 10572 15 256 1138 724 4 193 12 286 4 464 14 442

SOUTH 20 257 451 57 979 1 623 36 1 082 1 400 6 2 4 1 89 711 27 827 4 85 169 1 278 711 800 3773 27 472 590 823 1 440 5 640 3 759 9 118

TOTAL 79 705 1 534 108 2 275 4 462 82 1 718 3 212 61 31 58 314 175 1 975 47 2 197 4 172 505 2 842 1 984 6 341 22 603 47 728 1 737 2 203 7 574 27 183 12 272 36 735

CUMU- LATIVE 368 3 149 5 528 362 6 873 12 115 208 7 433 9 975 105 91 472 1 470 866 6 097 206 7 169 106 842 2 758 13 201 6 020 26 082 72 034 211 3 321 7 815 7 073 32 161 93 050 49 616 122 228

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

NUMBER OF REPAIRED BREAK-DOWNS, ARMATURE AND WATER TRANSMISSION & DISTRIBUTION SYSTEMS 3000

2500

2000

1500

1000

500

0 I Quart II Quart III Quart October November December IV Quart SOUTH 406 401 646 324 329 283 936 CENTER WEST 446 452 731 268 259 277 804 NORTH WEST 253 328 653 250 240 242 732

QUARTERLY REPORT October-December 2009

NETWORK ANALYSIS TABLE – 8

WATER TRANSMISSION AND DYSTRIBUTION 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 798 1 243 2 041 69 0,32 2 CENTER-WEST 1025 1 462 2 487 64 0,29 3 SOUTH 831 966 1 796 81 0,46

TOTAL 2 654 3 671 6 324 70 0.35

DIAGRAMS – 10,11

NUMBER OF BREAK-DOWNS ON 1 KM WATER PIPE 0,6

0,5

0,4

0,3

0,2

0,1

0 I Quart II Quart III Quart October November December IV Quart NORTH-WEST 0,17 0,2 0,46 0,11 0,11 0,1 0,32 CENTER-WEST 0,23 0,22 0,38 0,1 0,1 0,09 0,29 SOUTH 0,35 0,32 0,51 0,17 0,16 0,13 0,46

WATER LOSSES-M3/DAY*KM 140

120

100

0 I Quart II Quart III Quart October November December IV Quart NORTH-EAST 122 108 71 72 69 68 69 NORTH-WEST 70 62 67 65 64 62 64 CENTER-WEST 62 64 63 69 72 101 81

QUARTERLY REPORT October-December 2009

2.3 WASTEWATER & SEWERAGE

QUARTERLY REPORT October-December 2009

WASTEWATER DEPARTMENT 6. WASTEWATER COLLECTION SYSTEMS

During this reporting quarter 19.8 km of sewers and 319 manholes were cleaned, 108 sewers and 29 manholes were repaired, as well as 1 852 obstructions were eliminated without additional investment. Due to cooperation of Head Office Operations Department and Company‟s regional branches, the breakdowns in Vardenis and Dilijan towns‟ sewers were repaired without additional investments.

. In internal sewage network of Vardenis town, in the broken section of the sewer in the territory of the church located in Charents street, the accidents were very frequent causing insanitary conditions in this territory. By mutual efforts of wastewater division of the given subsector and “South” regional branch the above mentioned broken sewer was fully repaired by making huge civil engineering works. As a result 30 linear meter of sewer pipes with d= 400 mm, as well as ferroconcrete manhole cover were replaced.

Accident in Vardenis sewer After repairing the accident in Vardenis sewer

. The broken section of internal sewage network of Dilijan town Getapnja street caused insanitary conditions making a bog around. Due to the joint efforts of the sector and “North- West” regional branch repairing works have been carried out as a result of which 40 linear meter of pipes with d=400mm, 9 linear meter with d=400mm, 8 linear meter with d=500mm were replaces and two new manholes were built.

After repairing of broken sewer in Dilijan 32

QUARTERLY REPORT October-December 2009

MAINTENANCE OF WASTEWATER COLLECTION SYSTEMS TABLE-9

INCLUDING INSPECTION OF WESTEWATER REMOVAL OF MAINS CLEARED MAIN REPAIRED MANHOLES REPAIRED TOTAL

COLLECTION OBSTRUCTIONS

>300m <300mm SYSTEMS

REGIONS penses penses

km km km pc pc km pc

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

Total

expenses expenses expenses

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

Material cost cost Material cost Material cost Material cost Material cost Material

Totalother

Total expenses expenses Total expenses Total ex Total expenses Total expenses Total

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 NORTH-WEST 0,6 0 30 0 0,6 17 760 980 5 440 480 0 0 0 685 18 2 973 1 217 4 463

CENTER-WEST 6,9 0 241 2,2 4,7 24 80 125 5 23 36 0 0 0 465 0 1 220 104 1 760

SOUTH 12,291 0 845 1,881 10,41 67 591 1 080 19 238 336 319 5 238 702 0 764 834 3 263

TOTAL 19,791 0 1 116 4,081 15,710 108 1 431 2 185 29 701 852 319 5 238 1 852 18 4 956 2 155 9 486

CUMULATIVE 75,800 0 3 946 15,100 60,700 400 4 327 7 228 247 2 941 3 813 1 647 63 948 6 876 382 16 831 7 728 31 834

QUARTERLY REPORT October-December 2009

DIAGRAMS – 12,13

MAINS CLEARED

18 16 14 12

10 KM 8 6 4 2 0 I Quart II Quart III Quart October November December IV Quart NORTH WEST 1,7 2,02 2,1 0,6 0 0 0,6 CENTER WEST 6,2 7,3 3,8 2,4 1,3 3,2 6,9 SOUTH 7,184 6,745 15,349 4,608 3,155 4,528 12,291

NUMBER OF REMOVAL OF OBSTRUCTIONS, MAINS AND MANHOLES REPAIRED 900 800 700 600 500 400 300 200 100 0 I Quart II Quart III Quart October November December IV Quart NORTH WEST 415 432 763 246 233 228 707 CENTER WEST 299 314 586 171 154 169 494 SOUTH 578 401 841 218 346 224 788

QUARTERLY REPORT October-December 2009

NETWORK ANALYSIS TABLE -10

WASTEWATER COLLECTION SYSTEM Wastewater Number of Cleaned # REGIONS Collectors Total System Obstructions Collection Network km km km piece/ km % 1 2 8 9 10 11 12 1 NORTH-WEST 175 742 917 0,8 0,2 2 CENTER-WEST 86 282 368 1,6 1,0 3 SOUTH 95 534 629 2,5 2,4 TOTAL 356 1 558 1 914 1.54 1.11

DIAGRAMS – 14,15

NUMBER OF OBSTRUCTION IN KM 3,5 3 2,5 2 1,5 1 0,5 0 I Quart II Quart July August September III Quart NORTH-WEST 0,6 0,7 0,2 0,3 0,3 0,8 CENTER-WEST 0,9 1,4 0,5 0,5 0,6 1,6 SOUTH 3,2 1,7 0,7 0,8 1 2,5

LENGTH OF CLEANED WESTEWATER PIPELINE IN % 3,5 3 2,5 2 1,5 1 0,5 0 I Quart II Quart July August September III Quart NORTH-WEST 0,3 0,3 0,07 0,07 0,1 0,2 CENTER-WEST 1,9 3,3 0,5 0,5 0 1 SOUTH 2,1 1,9 1 0,7 0,7 2,4

QUARTERLY REPORT October-December 2009

7. SPECIAL WORKS DEPARTMENT

In the 4th quarter of 2009 the Special Works Division carried out works directed at adjustment of water supply schedules, detection of losses and their elimination.

By application of polymeric materials, injection works have been implemented in Golovino WTP as a result of which water losses from interim walls of filters N 1.2.3.4 , as well as from the pipes and wall section units and water accumulations have been eliminated.

In radial sedimentation tanks N 1.2.3.4 of Golovino WTP the dam from polyethylene film contributing to water level rising and sedimentation processes was repaired and adjusted.

Radial sedimentation tank of Golovino WTP

Injection works have been carries out also in WTP 2 of Kapan town having ~3l/sec water losses from the floor and walls because of which the regulating unit was always full of water, thus hindering normal work of valves. Upon completion of the works the water losses were eliminated:

Due to insufficient ventilation and high humidity in the basement of “Frolovo” WTP of Dilijan town, the newly installed metallic pipes and valves were corroded. It is therefore decided to make openings in the basement walls and install metal plastic windows. By ensuring enough ventilation the humidity was reduced and normal conditions were provided for operation and maintenance of the equipment.

Front wall of Golovino WTP

QUARTERLY REPORT October-December 2009

3. TECHNICAL

QUARTERLY REPORT October-December 2009

3.1 TECHNICAL INVESTIGATIONS, DESIGN & MAPPING OF TECHNICAL SYSTEMS

QUARTERLY REPORT October-December 2009

DURING THE FOURTH QUARTER OF 2009 THE TECHNICAL DEPARTMENT CARRIED OUT THE FOLLOWING WORKS:

 Technical investigations, design and Mapping of technical systems  Water quality control  Assets management  Quality, Safety, Environmen  Procurement  Transportation

TECHNICAL INVESTIGATIONS AND DESIGN

1. During this reporting period the Design Division of the Technical Department carried out the following works:

 General plans were developed to build new administrative buildings for the “AWSC” CJSC sectors financed by the World Bank. For this purpose layout works have been implemented, as well as the volumes of additional necessary works have been defined taking into account the characteristics of the lands alloted in each town. The above mentioned works have been implemented in:

. Sevan, Vedi, Jermuk and Gavar towns and submitted in package I

. Hrazdan, Charentsavan, Sisian and Agarak towns and submitted in package II

 Measurement of the buildings and adjacent areas were taken for reparing the “AWSC” CJSC sector buildings financed by the World Bank, as well as the plans of the buildings were developed, work volumes to be fulfilled in the above mentioned sectors were defined. Based on this data bidding packages have been prepared for:

. “Dilijan” subsector administrative building

. “Vayk” subsector administrative building

. “Berd” subsector administrative building

Present view of “Berd” subsector administrative building

QUARTERLY REPORT October-December 2009

 Measurments of Sarukhan, Gandzak and Artak pumping station buildings were taken for bidding package on repairing pumping stations of the “AWSC” CJSC servicing area planned to be financed by the World Bank, as well as work volumes for their repairing have been defined.

Present view of “Gandzak” pumping station

2. The following projects under the Asian Development Bank contract NWSSP-07/4-01 have been studied and discussed with the consulting companies:

. “Water and wastewater system improvement in Mehgri region settlements, Agarak, Artik towns and Karchevan village”;

. “Water and wastewater system improvement in Eghegnadzor region settlements, Eghegnadzor town and Getap, Gomk, Malishka, Nor Aznvabed and Tsatin village”;

. “Water and wastewater system improvement of Ashotsk region villages”.

3. Water and wastewater technical conditions have been worked out for the below mentioned legal entities:

. High-rise building being built in Eghegnadzor town; . Hotel and health complex being built in Jermik town; . “Unibank” CJSC being built in Gavar town; . “European Regional Educational Academy” being buit in Gavar town; . “Fodder processing factory” being built in Ujts village; . Recreation area in Lchashen village; . Building for the court of general jurisdiction in Sevan town.

4. Applications on making capital rehabilitation works in the W&W systems received from the branches have been studied to provide relevant conclusion.

QUARTERLY REPORT October-December 2009

3.2 MANAGEMENT OF COMPANY’S ASSETS

QUARTERLY REPORT October-December 2009

ASSET MANAGEMENT

In the 4th quarter of 2009 the Assets Management Division implemented the following works:

1. Writing off lists of the fixed assets belonging to the “AWSC” CJSC Head office and regional branches were submitted to the State Committee of Water Economy. In accordance with assignment N 09-4295 of 09.11.2009 additional justifications and explanations have been prepared on machinery/mechanisms, high voltage cables, water meters, and chlorine dosimeters, copying machines and other inventory.

2. Based on Order of the SCWE Chairman at the RA Ministry of Territorial Administration N 159 - ² dd 02. 10. 09, handover and acceptance of three vehicles GAZ-3102, GAZ-3110-101 and GAZ 311000 have been made and invested in the “AWSC” CJSC Charter capital.

GAZ 3102 188 LL 10

3. In accordance with order of the “AWSC” CJSC General Director N 64 dd 19. 11. 2009, the Division made inventory of material assets available in the warehouses of the “AWSC” CJSC regional branches and given in advance. Stock taking commissions was set up, as well as relevant acts have been made and submitted to the Head Office.

4. Ownership certificates of the areas required for construction of administrative buildings in Gavar and Verdi sectors were obtained.

5. Three ownership certificates of “Gjumush-1” pumping station was obtained, inventory of the pumping station was made and the property not included in the balance sheet was entered into.

6. Based on Order of the SCWE at the RA Ministry of Territorial Administration N N59-² of 25.04.2007, the property under the “AWSC” CJSC safe keeping was handed over to “Sevan-Hrazdan- Jrar” CJSC about which handover and acceptance acts were prepared.

QUARTERLY REPORT October-December 2009

7. In accordance with letter of the SCWE at the RA Ministry of Territorial Administration N 07-6018 of 23. 12. 2008, a commission was set up for handing over the water supply system of Kaghsi community of Kotayk marz to the “AWSC” CJSC for uncompensated (free) use and relevant handover and acceptance activities were pursued.

8. On October 21, 22, 23 of 2009 the Assets Management Division employees participated in the training on “Development of main principles of assets management concept”.

The employees of the Division were familiarized with the issues relating to the assets management, long-term investment strategy, assets management foreign experience, as well as different assets management programs.

Training session for the employees of Assets Management Division

9. Internal movement of inventory among the Head Office employees have been registered and documented.

QUARTERLY REPORT October-December 2009

3.3 WATER QUALITY CONTROL

QUARTERLY REPORT October-December 2009

WATER QUALITY CONTROL

Within the 4th quarter of 2009 water control laboratories of the Company made bacteriological analyses of about 4.3 thousand samples and

313 general and physico-chemical analyses (Table # 11). According to the bacteriological indicators the deviations constituted 1.5%.

POTABLE WATER INVESTIGATION IN QUARTER IV, 2009 – 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 536 505 9 9 270 270 6 189 6 202 3 45 3 2 Hrazdan 661 514 64 44 0 0 8 216 3 271 0 6 0 3 Charentsavan 214 41 10 10 140 131 9 123 6 59 0 88 0 4 Ijevan 884 707 17 15 36 32 23 582 164 31 0 2 0 5 Dilijan 513 474 0 0 0 0 13 591 32 47 0 0 0 6 Alaverdi 409 387 270 268 124 124 17 234 32 60 0 16 0 7 Stepanavan 802 687 104 80 0 0 7 232 2 51 0 0 0 TOTAL 4 019 3 315 474 426 570 557 83 2 167 245 721 3 157 3

QUARTERLY REPORT October-December 2009

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 108 108 153 153 226 226 7 297 48 129 0 201 0 2 Echmiadzin 48 46 296 282 291 280 16 314 37 300 0 314 4 3 Masis 53 41 343 310 91 72 1 152 0 2 0 0 1 4 Vedi 147 143 203 198 113 110 2 182 0 10 0 0 0 5 Ashtarak 552 503 174 159 144 115 18 327 5 165 3 134 3 6 Artik 1 568 1 568 540 530 410 397 28 413 28 50 0 36 0 TOTAL 2 476 2 409 1 709 1 632 1 275 1 200 72 1 685 118 656 3 685 7 SOUTH 1 Sisyan 387 387 175 175 89 89 3 130 6 31 0 0 0 2 Goris 290 280 401 391 6 4 11 305 6 194 0 16 0 3 Kapan 817 718 2329 2060 0 0 119 833 45 868 35 0 0 4 Eghegnadzor 49 49 47 39 9 9 7 340 21 118 0 0 0 5 Sevan 163 150 48 48 6 0 4 102 47 57 2 9 0 6 Gavar 206 189 173 126 6 4 14 304 131 99 2 47 0 TOTAL 1 912 1 773 3 173 2 839 116 106 158 2 014 256 1 367 39 72 0 TOTAL 8 407 7 497 5 356 4 897 1 961 1 863 313 5 866 619 2 744 45 914 10

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 October-December 2009

REPORTS ON NATURAL RESOURCE UTILIZATION

Nature utilization fee of the Company for the 4-th quarter of 2009 constituted about AMD 5.2 million, (AMD 52.6 thousand by coefficient “3”), nature protection fee - AMD 7.8 million (about AMD 1.2 million by coefficient “3”) Table #12. The volumes of hazardous substances discharged into the water basin (ton/quarter) constituted: biological demand of oxygen: 139.4 tons, suspended substances-131.1 tons, ammonium – 3.4 tons, nitrites- 0.6 ton, nitrates- 5.2 ton (Table #13).

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 Surface Underground Underground Water By index By Index TOTAL TOTAL Water Water by Index §3¦ §1¦ §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 23.2 652.5 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 35.9 448.3 Dilijan 35.5 2.0 0.0 37.5 139.6 25.9 165.5 Alaverdi 0 246.4 0.0 246.4 256.7 28.7 285.4 Stepanavan 29.5 252.7 0.0 282.2 745.6 0.0 745.6 Total 92.6 1 708.4 0.0 1 801.0 2 183.6 113.7 2 297.3 “Center-West” Regional Branch Artashat 0 346.9 0.0 346.9 223.0 128.6 351.6 Echmiatsin 0 425.7 23.0 448.7 680.2 303.2 983.4 Masis 0 192.2 0.0 192.2 507.5 31.5 539.0 Vedi 0 182.2 0.0 182.2 435.8 92.2 528.0 Ashtarak 0 302.0 0.0 302.0 332.5 0 332.5 Artik 0 199.0 29.6 228.6 356.7 166 522.7 Total 0 1 648.0 52.6 1 700.6 2 535.7 721.5 3 257.2 “South” Regional Branch Sisian 0 207.7 0.0 207.7 172.4 188.8 361.2 Goris 0 194.7 0.0 194.7 134.4 93.8 228.2 Kapan 135.0 129.5 0.0 264.5 524.9 36.4 561.3 Yeghegnadzor 0 189.4 0.0 189.4 202.0 10.5 212.5 Sevan 0 263.4 0.0 263.4 317.2 0 317.2 Gavar 0 546.8 0.0 546.8 522.2 18.2 540.4 Total 135.0 1531.5 0.0 1 666.5 1 873.1 347.7 2 220.8

Grand Total 227.6 4 887.9 52.6 5 168.1 6 592.4 1 182.9 7 775.3

QUARTERLY REPORT October-December 2009

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

Tons/Quarter Name of Sector Wastewater

and Sub-sector removal BOD5 Suspended Substances Ammonium Nitrites Nitrates N Thous. M3 Actual MPD Actual MPD Actual MPD Actual MPD Actual MPD 1 2 3 4 5 6 7 8 9 10 11 12 13 1 Abovyan 437.99 0 0 0 0 0 0 0 0 0 0 2 Byureghavan 54.76 0 0 0 0 0 0 0 0 0 0 3 Charentsavan 153.83 0 0 0 0 0 0 0 0 0 0 4 Hrazdan 230.11 12.23 12.77 6.03 25.75 0.50 1.02 0.030 0.375 0.700 2.350 5 Tsaghkadzor 68.51 0.89 0.47 0.44 0.94 0.04 0.09 0.003 0.075 0.050 0.700 6 Ijevan 113.15 5.77 5.03 5.37 10.32 0.13 0.64 0.064 0.355 0.110 0.645 7 Berd 36.03 0.80 2.45 0.84 5.03 0.01 0.13 0.007 0.013 0.030 0.475 8 Dilijan 111.73 4.62 4.16 5.09 8.52 0.08 0.39 0.005 0.030 0.100 0.683 9 Alaverdi 81.1 5.00 5.41 5.32 11.10 0.11 0.58 0.006 0.068 0.200 2.058 10 Noyemberyan 21.55 0.40 0.94 0.36 2.98 0.01 0.12 0.001 0.013 0.005 0.005 11 Spitak 50.62 2.50 3.96 3.34 8.11 0.05 0.32 0.010 0.068 0.100 0.750 12 Stepanavan 71.23 3.59 4.16 3.34 8.39 0.10 0.58 0.010 0.735 0.100 0.788 13 Tashir 15.86 0.53 2.82 0.30 5.64 0.01 0.17 0.001 0.018 0.020 0.450 14 Artashat 182.97 9.08 6.75 8.28 13.84 0.15 0.67 0.007 0.040 0.252 1.400 15 Echmiatsin 272.95 20.56 15.07 22.39 30.90 0.18 1.25 0.080 0.448 0.660 3.775 16 Masis 147.46 9.28 8.71 8.77 17.85 0.22 1.22 0.062 0.478 0.290 2.228 17 Vedi 62.63 4.50 2.82 4.28 5.78 0.10 0.33 0.022 0.200 0.190 1.293 18 Ararat 110.13 5.08 5.69 4.83 11.67 0.11 0.66 0.025 0.150 0.210 1.125 19 Ashtarak 78.19 5.55 6.15 5.24 12.62 0.09 0.62 0.011 0.083 0.140 1.040 20 Aparan 19.68 0.91 2.58 0.73 5.28 0.01 0.15 0.092 0.060 0.026 0.563 21 Artik 85.09 4.09 1.45 4.49 3.05 0.17 0.25 0.020 0.500 0.125 0.360 22 Talin 35.82 0.59 1.49 0.51 2.23 0.02 0.09 0.007 0.005 0.050 0.775

QUARTERLY REPORT October-December 2009

Tons/Quarter Name of Sector Wastewater

and Sub-sector removal BOD5 Suspended Substances Ammonium Nitrites Nitrates N Thous. M3 Actual MPD Actual MPD Actual MPD Actual MPD Actual MPD 1 2 3 4 5 6 7 8 9 10 11 12 13 23 Ashotsk 14.48 0.23 0.39 0.24 0.61 0.01 0.01 0.001 0.005 0.015 0.095 24 Sisian 135.08 7.78 4.36 7.68 8.80 0.09 0.29 0.014 0.085 0.210 1.305 25 Goris 133.75 5.45 3.75 6.14 7.69 0.23 0.68 0.007 0.043 0.190 1.155 26 Kapan 283.84 10.09 10.09 11.10 20.35 0.41 1.68 0.060 0.250 0.500 1.995 27 Meghri 33.87 0.74 1.21 0.76 2.48 0.02 0.12 0.001 0.013 0.030 0.470 28 Agarak 50.00 2.04 1.38 1.79 2.83 0.05 0.14 0.002 0.018 0.080 0.810 29 Yeghegnadzor 51.32 1.67 1.98 1.60 4.05 0.06 0.22 0.006 0.040 0.060 0.358 30 Vayk 63.65 1.66 1.60 1.06 3.28 0.04 0.13 0.008 0.050 0.060 0.380 31 Jermuk 94.68 0.72 1.59 0.79 1.18 0.02 0.03 0.007 0.060 0.050 0.385 32 Sevan 68.32 4.16 5.85 2.05 11.79 0.16 1.09 0.010 0.175 0.230 1.625 33 Tchambarak 6.03 0.01 1.80 0.01 2.77 0.01 0.11 0.000 0.003 0.010 0.295 34 Gavar 71.53 3.61 6.78 3.35 13.67 0.05 0.45 0.005 0.073 0.100 1.448 35 Martuni 36.90 1.61 3.23 1.36 6.51 0.04 0.26 0.006 0.093 0.080 1.210 36 Vardenis 114.17 3.70 3.37 3.24 6.80 0.11 0.27 0.018 0.078 0.240 1.008 Total 3 599.01 139.4 140.26 131.12 282.81 3.39 14.76 0.608 4.700 5.213 34.002

Note:

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

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

QUARTERLY REPORT October-December 2009

3.4 QUALITY, SAFETY & ENVIRONMENT

QUARTERLY REPORT October-December 2009

REPORT ON THE ACTIVITIES IMPLEMENTED BY THE QUALITY, SAFETY AND ENVIRONMENT DEPARTMENT IN THE 4-th QUARTER OF 2009

The activities carried out by Quality & Environment Division:

Taking into account the remarks and proposals received from the Company‟s strauctural subdivisions during the reporting period, the following documents were developed and approved by the General Director:

. The regulations on receiving proposals directed at improvement of the Company‟s activities, their discussion and operation, as well as on the activities of the commission set up for that purpose.

. Official instructions for the assistants to the directors, guards, cleaning personnel employed by the Company.

The draft regulation on business trips of employees was worked out and submitted for the discussion of directors.

In compliance with order number 61 of the Company‟s General Director dated October 21, 2009, a commission was set up for reviewing the position passports of all the employees of the Company before January-February of 2010. The preparation of position passports for about 60 employees of Technical, Operations, Commercial, Investment Programs Coordination and PR departments have been already completed. The developed documents have been submitted to the discussion and approval of relevant directors.

By the proposal of the audit company making financial and economic audit in the “AWSC CJSC” the regulation on “Organizing the works in the “AWSC” CJSC Head Office storehouse was reviewed, amended and submitted to heads of Company‟s subdivisions for discussion.

Activities have been carried for making light control panels indicating water fullness in filters and washing water reservoirs of “Golovino“, „Frolovo“ and „Bldan“ WTPs, as well as information and warning posters, labels have been prepared and fixed for the equipment and territory of 7 chlorination stations.

QUARTERLY REPORT October-December 2009

Labeling of Dilijan WTPs light indicators

During the meeting convoked by the Company‟s General Director the employees of the QSE Department discussed the issues relating to the development of the Department activities. QSE manual has heen revised and submitted to the approval of the management specifying control over the implementation of the Company‟s General Director orders, assignments, instructions and decisions by the QE Division.

The Department subdivisions excercised control over the reports and information to be submitted the RA state authorized bodies in the manner specified by the RA legislation.

The defects discovered in the regional branches (“Sevan”, “ Gavar”, “Artashat”, “Masis”, “Vedi”, “Abovyan”, “Sisian ” ) by the employees of the Supervision and Analyses Department of the RA State Committee of Water Economy at the RA Ministry of Territorial Administration as a result of studies and analyses, were discussed by the managers and specialists of the Committies‟s and Company‟s relevant subdivisions. By the approval of the Company‟s General Director relevant assignments were issued for elimination of the violations discovered in the Company„s internal regulations and manuals.

Proposals on adjustment and updating of the information contained in the Company‟s web site for certain departments were reviewed and submitted for discussion.

The Division employees took active participation and assist the employees of the Company‟s Head Office and 3 mayors for oraganizing and preparing documents necessary for their business trip to „SAUR“.

QUARTERLY REPORT October-December 2009

The activities carried out by Safety Division:

The Department made the estimation of the demand for necessary individual protection means required for territorial subdivisions„ employees such as special uniforms and boots, as well as defined the amounts for their purchase. This estimation was included in the calculations of expenses of the Department to plan the Company„s budget 2010.

For examination of technical safety of the Company‟s Head Office elevator, a contract was concluded with “National Center of Technical Sequrity ”.

During the random visits the employees of the Division revealed that the defects in the assembly of electricity cables of “ Golovino”, “Frolovo” and “Bldan” WTPs were repaired in accordance with the assignments of the Company‟s General Director.

The defects repaired during the 4th quarter

QUARTERLY REPORT October-December 2009

3.5 COMPANY’S PROCUREMENT

QUARTERLY REPORT October-December 2009

COMPANY’S PROCUREMENT

Information about Procurement within AWSC Budget, Q IV, Year 2009 Table – 14

PROCUREMENT AMMOUNT, AMD

1. Car services, petrol diesel and gas 52 973 102 2. Pipes, fittings, valves and other 22 284 000

3. Water chlorination 5 845 852

4. Office supply, IT and cellular phones 3 665 093 5. Safety devices 0 6. Equipment for works 4 731 080 7. Other works/ goods 4 663 572 8. Echmiatsin Training Center 62 680 9. Laboratories 7 299 000 10. Publications and TV broadcasting. 8 913 500

TOTAL ALLOCATED 110 437 879

TOTAL REQUESTED 428 455 116

QUARTERLY REPORT October-December 2009

3.6 TRANSPORTATION

QUARTERLY REPORT October-December 2009

TRANSPORTATION

 Gas filling system. In the 4th quarter the transport facilities equipped with gas bottles and operating with natural gas saved AMD 3 000 000 /three million/ due to difference of natural gas and petrol prices.

 Fleet servicing program. The Transport Division of the “AWSC” CJSC Head Office started the recording and purchasing of the tires necessary for the Company‟s transport facilities. The procurement and distribution of the tires will be made on January-February.

. The Head Office Transport Division examined the operation of CASE-580SR excavators and revealed that the rear tires are defective. Together with the supplier appropriate works have been organized and all the rear tires of CASE-580SR excavators operated in the Company were replaced with new ones.

. Contract was signed with the representative of CNH ITALIA S.p.A. factory in Armenia “Iv Trans” company to make technical maintenance and repairing of CASE-580SR excavators.

 Replenishment: The “AWSC” CJSC transport fleet was replenished with 43 vehicles of Vaz 2121 model and 21 vehicles of Uaz 390945 model which will allow not leasing passenger and pick-up vehicles.

New Uaz 390945 vehicles New Vaz 21214 vehicles

 Budget 2010. The Transport Division made the calculation of annual fuel, maintenance, repairing, as well as antifreeze and lubricant expenses required for the “AWSC” CJSC transport facilities in 2010.  Innovation: The Company‟s CASE type excavators have been equipped with the Lokator system which gives possibility to follow the excavator works in the regime of “on line”. It‟s foreseen to use this Locator system on the all cars and mechanisms, which will allow to raise the efficiency and the discipline of operating staff in the future purchase of the company. 57

QUARTERLY REPORT October-December 2009

4. ADMINISTRATION

QUARTERLY REPORT October-December 2009

4.1 FINANCE & ACCOUNT

QUARTERLY REPORT October-December 2009

SUBSIDY TABLE-15

Subsidy FROM RA GOVERNMENT

RECEIVED AMOUNT MONTH 2009 COMMENTS (mln AMD)

80,46 salary

17,00 VAT

28,11 Social security payment

JANUARY 215,84 5,24 payment for water use

1,61 mandatory payments for Regulatory Committee

0,4 motor-care tax

75,75 salary FEBRUARY _ 7,27 income tax

MARCH _ _

82,67 salary

6,43 income tax APRIL 100,000 5,17 natural resources using fee

5,74 natural resources protection fee

88,93 salary

0,4 motor-care tax

MAY 115,84 24,91 social security payment

1,6 mandatory payments for Regulatory Committee

0,2 salary JUNE -

QUARTERLY REPORT October-December 2009

RECEIVED AMOUNT MONTH 2009 COMMENTS (mln AMD)

113,09 salary

1,69 net worth tax

0,4 motor-care tax

7,8 natural resources protection fee

15,02 income tax JULY 215,84

1,6 mandatory payments for Regulatory Committee

5,17 natural resources using fee

32,46 social security payment

AUGUST - 38,61 salary

SEPTEMBER - -

23,0 income tax

1,6 mandatory payments for Regulatory Committee

28,71 social security payment

OCTOBER 215,84 5,2 natural resources using fee

8,9 natural resources protection fee

0,4 motor-care tax

100,77 salary

NOVEMBER 47,24 salary

DECEMBER 0,02 salary

TOTAL AMOUNT 863,36

QUARTERLY REPORT October-December 2009

INFORMATION CONCERNING INCOMES AND EXPENSES OF AWS CJSC IN IV QUARTER, 2009 TABLE-16

thousand drams

Received Current expenses

from other

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

activity Subsidy

Current Current expenses

sell of Total

income income of credit payments

water fund

meters) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 NORTH–WEST REGION BRANCH 1 Abovyan 293 719,0 5 271,3 298 990,3 23 243,1 106 340,8 149 764,5 149 764,5 279 348,4 TOTAL 293 719,0 5 271,3 298 990,3 23 243,1 106 340,8 149 764,5 149 764,5 279 348,4 CENTER–WEST REGION BRANCH 2 Artashat 373 045,6 12 074,4 385 120,0 19 532,8 90 956,8 94 763,7 94 763,7 205 253,3 TOTAL 373 045,6 12 074,4 385 120 ,0 19 532,8 90 956,8 94 763,7 94 763,7 205 253,3 SOUTH REGION BRANCH 3 Sisian 266 393,4 13 915,0 280 308,4 22 474,3 104 192,3 71 244,4 71 244,4 197 911,0 TOTAL 266 393,4 13 915,0 280 308,4 22 474,3 104 192,3 71 244,4 71 244,4 197 911,0 Total from 933 158,0 31 260,7 964 418,7 65 250,2 301 489,9 315 772,6 315 772,6 682 512,7 Branches

TOTAL 91 025,9 215 840,0 225 771,6 532 637,5 25 179,4 57 583,2 2 775,1 81 355,8 174 738,2 85 394,5 398 684,8 742 948,4 825 711,0 HEAD OFFICE

MAIN TOTAL 1 024 183,9 215 840,0 257 032,3 1 497 056,2 90 429,6 359 073,1 318 547,7 81 355,8 174 738,2 85 394,5 398 684,8 1 058 721,0 1 508 223,7

* See also below Diagram-16

QUARTERLY REPORT October-December 2009

CAHS FLOW– DIAGRAM 16

INCOMES BALANCE BALANCE - OUTCOMES = + 31.12.2009 30.09.2009 3 261 300.4 3 670 734.2 623 663.3 ADB*** EBRD**** 214 229.5 ADB*** EBRD**** 2 046 449.7 49 944.1 1 604 000.5 94 127.0 BANK BANK BANK CASH 7112.5 1 572 469.9 1 870.5 18 090.2 BANK CASH 1 680.7 Social Fund Other Expenses Staff Salary CASH 1 561 492.2 81 355.8 1 615.5 255.0 438.6 CASH From Branches From Bank From other Debtors Salary to Branches (main activity) 0 1 680.7 301 489.9 933 158.0 628.4 Taxes Payment ADB*** From Budget & other 174 738.2 org. Centr. Payment 162 495.5 91 025.9 Centr. Procurement 398 684.8 ADB*** Subsidy 215 840.0 EBRD**** 604 944.7 Current Expenses 88 814.1 44 182.9 From other Debtors El. Consuption 224 090.9 318 547.7 From water Credit Acquittant meters sales 85 394.5 31 260.7

Staff Salary From Banks* 57 328.2 66 116.7 Bank 66 116.7 Credit ** 0 CASH *

* Internal Cash Flow isn’t including in the Table 16

** * InternalOverdraft Cash Bank Flow account isn’t includinginflows as in of the 31.12 table.2009 16 reduced

*** ** Overdraft The cash Bankdrive accountof the ADB’s inflows Loan as of Project 30.09.2009 wasn’t reduced included in the Table 16 . 63 **** *** The cashEBRD’s drive loan of Projectthe ADB’s started Loan in Project November wasn’t 2009 included . in the Table 16 .

QUARTERLY REPORT October-December 2009

4.2 HUMAN RESOURCES

QUARTERLY REPORT October-December 2009

THE FOLLOWING ACTIVITIES WERE IMPLEMENTED BY THE HUMAN RESOURCES DEPARTMENT IN THE 4-th QUARTER OF 2009:

1. Human Resource Policy and Registry Division a) External activities:

Reports of 2009 fourth quarter relating to the employees were submitted to the State Statistical Department.

Each month together with the “ArdShinInvestBank” CJSC we checked and prepared the list for re-issuing salary payment cards, as well as submitted applications for the newly recruited employees.

The cooperation with “Unibank” CJSC was expanded. The applications have been filled up and submitted to the bank for receiving plastic cards, as well as for receiving loans by plastic cards.

Current reports were submitted to the Social Security Fund.

Answers have been prepared to the letters addressed to the Department.

b) Internal activities:

Contracts were prepared for the newly recruited employees, recorded in the registers and entered into the database.

In case of making amendments to the contracts of the employees, agreements were prepared which were also recorded in the registers and entered into the database.

New procedure was developed for more efficient and speedy registration of employment contracts and agreements.

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

The employees were provided with relevant references.

Analyses have been made relating to the number of regional branch employees, their positions and salaries. Based on the data of this analyses the structure of the branches‟ staff positions for 2010 was worked out.

The compliance of staff lists and maximum and minimum official salary rates of 2010 submitted by the regional branches and staff lists and salary rates defined by the company‟s staff list structure were verified.

Control is being exercised over the process of providing holidays to the Company‟s regional branches‟ employees, as well as over their turnover.

The Department continues cooperating with the Trade Unions.

Minutes have been prepared.

QUARTERLY REPORT October-December 2009 c) Main HR indicators

. Number of employees

Diagram 17

1860

1846 1846 1838 1840 1837 1834 1832 1826 1825 1826 1821 1820

1813

1810 Number Number of Employees 1800

1780 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 January February March April May June July August September October November December

M o n t h s

. Labor turnover

Diagram 18

0,20% 3,10% 4,20%

2,90%

North West Center West South Head Office

QUARTERLY REPORT October-December 2009

2. Training and Attestation Division.

In the last fourth quarter of 2009 the “AWSC” CJSC Training Center continued its activities directed at training of the Company‟s employees, as well as cooperation with similar organizations and relevant chairs of the higher educational establishments with the same purpose.

Training of the financial specialists and stock-keepers

Together with the “Jinj” LLC a training session was organized and conducted for the Company‟s Assets Division employees on the subject “Assets management in the companies providing water and wastewater services”, as well as for the employees of the Accounting Department and stock-keepers on the subject “Documentation for the material stock turnover of the “AWSC” CJSC storehouses”.

Training of the assets management employees

Starting 2009 the TC ensures and supervises the participation of relevant employees of the Company in the training sessions for the managerial staff and specialists of the State Committee of Water Economy at the RA Ministry of Territorial Administration organized in the “Crisis Management State Academy” nonprofit organization at the RA Ministry of Emergency States.

QUARTERLY REPORT October-December 2009

The Training Center organized and conducted training sessions for the employees of the exploitation and production divisions on the subject “Structure of the water supply systems and production conditions for efficient operation and discussions around the subjects of previous training sessions”. Two days were planned for each regional branch to conduct the training on the above mentioned subject.

Operation of water supply system

The cooperation with the “AWSC” CJSC Training Center and Yerevan State Agrarian University is in progress. In particular twenty two 4th year students and fifteen 5th year students of the “Complex use and protection of water resources” faculty of the university spent 2 days academic practice in the Training Center.

Academic practice of the Agrarian University 4th year students

QUARTERLY REPORT October-December 2009

Academic practice of the Agrarian University 4th year students

QUARTERLY REPORT October-December 2009 .

The table below presents training programs of the Company‟s employees directed at upgrading and development of the employees‟ knowledge and professional skills.

Table of the staff training programs -17

Number of Number of N Name of the program Subject of the session participants absentees Academic practice of the 4th 1 year students of the Agrarian Water supply and wastewater discharge 22 - University

Training of the assets Assets management in the companies 2 6 - management employees providing water and wastewater services

Academic practice of the 5th 3 year students of the Agrarian Water supply and wastewater discharge 15 - University

Training for the SCWE 4 managerial staff and Crisis management 1 1 specialists

Training of finance, Documentation for the material stock 5 accounting specialists and turnover in the “AWSC” CJSC 11 3 stock-keepers storehouses

Structure of the water supply systems Training of exploitation and and production conditions for efficient 6 30 30 production specialists operation and discussions around the subjects of previous training sessions

QUARTERLY REPORT October-December 2009 .

4.3 LEGAL & INSURANCE

QUARTERLY REPORT October-December 2009 . Results of Legal and Insurance Activity of „Armenian Water and Sewerage“ CJSC

IV Quarter of 2009

 2 756 lawsuits for a total claim of 293 193 600 AMD were submitted

to court.

 1 856 lawsuits for a total claim of 176 156 700 AMD were satisfied by

court.

 A total of 73 559 700 AMD debt was reimbursed in the result of

various actions of legal character, including the previous cases in

process of enforcement.

In this reporting period the Legal Department submitted to the court 396 cases with total amount of AMD 41 357 143 and due to legal actions AMD 6 854 035 was collected.

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

QUARTERLY REPORT October-December 2009 .

5. PROJECTS

QUARTERLY REPORT October-December 2009 .

5.1 W B

QUARTERLY REPORT October-December 2009 .

Realization of SCHEDULED PROJECTS under MWWP Fund

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

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

PROCUREMENT Table A

Implemented Contract number Contract description Contract value works

1 2 3 4 Procurement of water meter MWWP II-C2.5/2-05 819,000.00 USD 5 000 pcs chambers -10 000 pcs Procurement of Pickup Vehicles - MWWP II-B1.3/2-03 445,200.00 USD 21 pcs 28 pcs Procurement of Cesspool Emptier - MWWP II-B1.2/2-02 4 pcs and Crane Manipulator trucks 620,870.00 USD - -3 pcs MWWP II-B1.4/2-04 Procurement of vehicles -43 pcs 200,315,500.00 AMD 43 pcs

CONSULTING SERVICES Table B

Contract number Contract description Contract value EUR

1 2 3

Preparation of Feasibility Studies and Detailed

Engineering Design for Water Supply and MWWP II-C2.12/3-01 Wastewater Collection/Discharge for Hrazdan 244 500 Town

See also attached

TABLE-18

QUARTERLY REPORT October-December 2009 .

5.2 A D B

QUARTERLY REPORT October-December 2009 . “Water Supply and Sanitation Sector Project“ funded by the Asian Development Bank

Component A: Municipal Infrastructure Rehabilitation and Improvement

FEASIBILITY STUDIES AND DEVELOPMENT OF PRELIMINARY AND WORKING DESIGNS

Feasibility and preliminary studies, as well as the detailed designs under 18 subprojects, five towns and Surenavan, Armash and Yeraskh villages were implemented in the reporting period. Detailed information on the subprojects is given in the below mentioned table.

ARTASHAT - trench excavation

Status of Preparation of Preliminary and Detailed Design Table-19

Subprojects Completed % Activity Stages Remarks 1 2 3 4 Subproject 7 – (Aparan) 100 detailed design Commencement – 20.02.09 packageVII.1 100 detailed design Submitted - 15.04.09 Commencement – 20.02.09 Package VII.2 100 detailed design Submitted - 15.07.09 Subproject 9 – Commencement – 02.03.09 100 detailed design (Noyemberyan) Submitted - 30.08.09 Subproject 10 – 100 detailed design Submitted - 26.10.09 (Charentsavan) Subproject 11 – 100 detailed design Submitted - 15.08.09 (Etchmiadzin 2) Package 11.1 100 detailed design Submitted - 02.06.09 Commencement – 02.06.09 Package 11.2 100 detailed design Submitted - 15.08.09

Subproject 12 – 100 detailed design Commencement – 01.07.09 (Armavir villages) Submitted - 08.12.09 Commencement – 14.04.09 100 Preliminary technical Subproject 13 – Submitted - 22.06.09 study, (Meghri) Commencement – 03.08.09 100 detailed design Submitted -27.10.09

QUARTERLY REPORT October-December 2009 . Subprojects Completed % Activity Stages Remarks 1 2 3 4 Commencement – 01.05.09 100 Preliminary technical Submitted - 23.07.09 Subproject 14 – (Goris) study, Commencement – 10.08.09 100 detailed design Submitted -02.11.09 Commencement – 15.05.09 100 Preliminary technical Submitted - 31.07.09 Subproject 15 – (Sisian) study, Commencement – 31.08.09 100 detailed design Submitted -10.11.09 Commencement – 10.06.09 100 Preliminary technical Submitted - 20.08.09 Subproject 16 – (Artik) study, Commencement – 25.09.09 100 detailed design Submitted -18.12.09 Commencement – 20.06.09 100 Preliminary technical Subproject 17 – Submitted - 30.09.09 study, (Ashotsk) Commencement –05.10.09 detailed design 90 Commencement – 20.05.09 100 Preliminary technical Subproject 18 – Submitted - 10.09.09 study, (Yeghegnadzor) Commencement – 18.08.09 100 detailed design Submitted -13.11.09

Environmental and Social Safeguards

On October 20, 2009 a working meeting on Environmental issues has been organized for the Contractors and the technical supervisors. The discussion was held in the office of “Jinj” LLC with participation of Consultant Company Director and the Environmental specialist. The main objective of the meeting was the discussion of deviations from and incompliance with the requirements during the construction and rehabilitation activities.

ARTASHAT – pavement works

QUARTERLY REPORT October-December 2009 . During the site visits fileded by the Environmental specialist some deviations from the provisions of EMPs in all the subprojects were recorded.

To prove the facts there were shown some pictures and once again the importance of the mitigation measures on the environment prescribed in the EMPs were explained in details.

BERD - WTP roof

A range of site visits were fielded by the Environmental specialist in the reporting period to check the compliance with the EMPs provisions, as follows

. Goris town - 23.10.09 . Masis and Artashat regions villages - 04.10.09 . Etchmiadzin town and the region – 24.11.09 . Surenavan, Armash and Yeraskh villages of Ararat marz - 17.12.09

During the reporting quarter there were summarized and prepared the Initial Environmental Examinations (IEE) submitted by the Consultant, and there were elaborated the EMPs for the new subprojects, namely Noyemberyan, Goris, Charentsavan, Meghri, Sisian and Yeghegnadzor.

ECHMIADZIN - trench excavation

QUARTERLY REPORT October-December 2009 . Physical implementation of works Physical Implementation of Works during the reporting period is summarized in the below mentioned table.

Physical Implementation of Works Table-20 Actual implemented works Involved Chambers Subprojects N Water lines Sewers/ villages For private Fabricated and /m/ chambers houses /pcs/ monolith r/c /pcs/ 1 2 3 4 5 6 7 1 Lanjazat 10 826,0 - 320 3 2 V. Dvin 7 826,0 - 350 1 3 Dvin 9 068,0 - 412 - 4 Margavet 7 173,0 - 272 2 Total: Package I 34 893,0 0,0 1 354 6 Package I 1 Qaghtsrashen 2 793,0 - 50 - Artashat 2 Norashen 5 075,0 - 180 - 3 Getazat 5 739,0 - 190 - 4 Arevshat 735,0 - - - 5 Abovyan - - - - 6 Kanachut 4 325,0 - 50 - Total: Package I.1 18 667,0 0,0 470 0 1 Vedi town 10 385,0 400/8 539 - Total: Package II.1 10 385,0 400/8 539 0 1 Taperakan 3 654,0 - 614 - 2 Ginevet 2 295,0 - 62 - Package II 3 Nor Ughi 2 132,0 - 48 - Vedi 4 Vanashen 240,0 - - - 5 Urtsadzor 3 467,0 - 154 - 6 Dashtaqar 1 607,0 - 13 - Total: Package II.2 13 395,0 0,0 891 0 1 Getapnya 6 884,0 - 250 - 2 Darakert 4 295,0 - 120 2 3 Dashatavan 5 368,0 - 140 - 4 Norabats 4 644,0 - 215 - Package III Total: Package III.1 21 191,0 0,0 725 2 Masis 1 Masis town 8 816,0 - 432 - 2 Nor Kyuri 3 243,0 - 135 1 3 Marmarashen 7 656,0 - 272 1 Total: Package III.2 19 715,0 0,0 839 2 80

QUARTERLY REPORT October-December 2009 . Actual implemented works Involved Chambers Subprojects N Water lines Sewers/ villages For private Fabricated and /m/ chambers houses /pcs/ monolith r/c /pcs/ 1 2 3 4 5 6 7 1 Ghukasavan 4 077,0 - 165 1 2 Khachpar 4 202,0 - 185 0 3 Arbat 6 533,0 - 240 0 4 Zorak 7 402,0 - 207 1 Total: package III.3 22 214,0 0,0 797 2 Ayntap, water 1 7 181,0 - 292 - main Total: Package III.4 7 181,0 0,0 292 0 Section of water main 1 1 800,0 - - - MP90+60 - MP 99+60 Total: package III.5 1 800,0 0,0 0 0 Water main 2 690,0 - - 2 2x300 1 Water main 1 428,0 - - 1 2x250 Total: package III.6 4 118,0 0,0 0 3 1 Tsamkaberd 2 244,0 - - 1 2 Tsovazard 19 331,0 - 200 - 3 Lchashen 1 925,0 - - - Package IV Total: Package IV.1 23 500,0 0,0 200 1 Sevan 1 Hayravanq 1 755,0 - - - 2 Berdkunq 2 658,0 - - - 3 Lchap 5 133,0 - - - Total: package IV.2 9 546,0 0,0 0 0 1 Etchmiadzin 396,0 250/8 - - 2 Voskevaz 12 139,0 - 480 - Package V Total: Package V.1 12 535,0 250/8 480 0 Etchmiadzin-1 1 Voskehat (Arg) 3 250,0 - 81 - 2 Oshakan 3 170,0 - 30 - Total: Package V.2 6 420,0 0,0 111 0 1 Abovyan town 5 559,0 - 50 - 2 Qaghsi 900,0 - 0 - Package VI Abovyan 3 Qarashamb 1 200,0 - 0 - 0 Total: Package VI 7 659,0 0,0 50

QUARTERLY REPORT October-December 2009 . Actual implemented works Involved Chambers Subprojects N Water lines Sewers/ villages For private Fabricated and /m/ chambers houses /pcs/ monolith r/c /pcs/ 1 2 3 4 5 6 7 Package VIII 1 Berd town 300,0 - 0 - Berd Total: Package VIII 300,0 0,0 0 0 Goris town 17 303,0 310/6 600 - Goris Total: Package 14.1 17 303,0 310/6 600 0 Artik town 4 823,0 - - - Artik Total: Package 16.1 4 823,0 0,0 0 0 Etchmiadzin 21 273,0 - 1 024 4 Etchmiadzin town Total: Package 5.1 21 273,0 0,0 1 024 4 Talin town 6 609,0 - 207 4 Talin Total: Package11.1 6 609,0 0,0 207 4 1 Water main 16 150,0 - 0 0 Surenavan, 2 Surenavan 4 673,0 - 0 4 Armash, 3 Armash 2 423,0 - 0 2 Yeraskh 4 Yeraskh 4 375,0 - 0 3 Total: Package 2.1 27 621,0 0,0 0 9 G R A N D T O T A L 291 148,0 960/22 8 579 33

TENDERS: The below mentioned table summarizes the construction contracts signed in the reporting period:

Contract No. Works Description Date of Signing

1 2 3 Improvement of Aparan region 10 villages water L2363-ICB-1-12 25 December 2009 supply systems

Improvement of Water Supply and Wastewater L2363-NCB-1-18 Systems of Agarak town and karchevan village in 29 December 2009 Meghri region

Improvement of Water Supply and Wastewater L2363-NCB-1-20 29 December 2009 Systems of Sisian Town

QUARTERLY REPORT October-December 2009 .

Component B: Management Improvement and Development

Public hearings were conducted in communities where construction is in course of implementation.

QARASHAMB – construction of DRR

. Sevan region IV subproject, III stage works in Lchap, Berdkunq and Hayravanq rural communities,

. Aparan region VII.1 subproject, III stage works in Amre Taza, Hnaberd, Geghadir, Geghadzor and berqarat rural communities,

. Abovyan region VI subproject III stage works in Abovyan town, Qaghsi and Qarashamb rural communities,

. Masis region III subproject, III stage works in Arbat and Zorak rural communities

. Artashat region I subproject, I stage works in Artashat town

Improvement of Fnancial Management System

During the reporting month the Consultant performed the works as per the working schedule, namely there were organized the training courses for the senior accountant staff in Training Center of AWSC in Etchmiadzin town. Moreover, there were developped the provisions of AWSC Commercial strategy procedure.

BERD -WTP-preparation works

QUARTERLY REPORT October-December 2009 . Management Information System (MIS) During the reporting period the Consultant has finalized the elaboration of the conceptual model for the branches and the head office, while applying in the system the calculation of the performance indicators and automatic reporting procedure for the management. Besides, the acting information system would be supported by the creation of interfaces.

The Consultant has completed the improvement of the receipt mechanism of systemized information flow. Particularly, there were improved the mechanisms of the information flow between the Technical, Investment and Commercial department, as well as between the Commercial and Legal departments. The development of the analytic reporting forms were also on place. Asset Management

During the reporting period the Consultant finalized the elaboration of the provisions of AWSC asset management system and pointed out the activities aimed to its implementation. There were developped the procedures on data models for AWSC water supply and wastewater systems and the basis for the technical assignment.

Human Resources Management

During the reporting period the Consultant assessed the training needs for the technical supervisors by means of the questionnaire survey and started the preparation of the training plans and models.

Water Quality The Consultant has finilized the activities on the development of water quality monitoring plan for water sources and water supply systems.

Abovyan town- trench excavation Artashat region – pipe laying

ADB Procuremet

The following procurement has been done until December 30, 2009. Also, see attached

TABLE-21

QUARTERLY REPORT October- December 2009

5.3 E B R D

QUARTERLY REPORT October- December 2009

“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 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. All construction sites are equipped with office and store for the contractors own use.

JERMUK – Pipe laying

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

Physical Implementation of Works Table-22

Implemented works Excavated trenches m Pipe laying m 1 2 3 Sevan Sewer N 4 496 496 Sewer N 6 641 641 Sewer N 5 200 150 Total Sevan 1337 1287

Gavar Sewer N 1 783 708 Sewer N 2 Gavar section -2 213 213 Total Gavar 996 921

Martuni Sewer N1 452.30 452.30 Sewer N 5 390.20 390.20 Sewer N 7 210.30 210.30 Total Martuni 1052.8 1052.8

QUARTERLY REPORT October- December 2009

Implemented works Excavated trenches m Pipe laying m 1 2 3

Vardenis Sewer N 4 371 371 Total Vardenis 371 371

Jermuk Sewer N 1 486 486 Sewer N 2 544 544 Sewer N 1-1 97 97 Total Jermuk 1127 1127

Total Project 4758.8

Environmental and Social Safeguards

On October 13, 2009 the Environmental specialist of AWSC organized the working meeting-discussion, during which the EMPs were detailed discussed. In future, in the monthly progress report of Fichtner Consultant would be a chapter devoted to the mitigation measures on the environment, as well as the safety measures proved by the photos.

JERMUK – bed laying under the pipeline

During the visits it was revealed that the Contractor installed on all store some places with special conditions for storage of fuel, oil polishing material etc. The technical equipment operating on the construction sites are mostly of the new production and are passes through the rotation special technical observation.

Pipeline testing in Contractor’s store

QUARTERLY REPORT October-December 2009

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

On 16 October 2009 the Consultant and the Company prepared the Tender Evaluation Report with recommendations to award the Contract LSEP-WWTP-2009 to the lowest evaluated Bidder Ludwig Pfeiffer Hoch- und Tiefbau GmbH, Germany company. On 3 November, 2009 the EBRD gave its no-objection to award the contract to the subjected Bidder. On 5 November 2009 Municipal Development Projects Management Board of State Committee on Water System of RA Ministry of Territorial Administration approved the results of the Internationa Competitive Bid “Construction of Waste Water Treatment Plants in Gavar, Vardeni and Martuni towns” in the frame of Lake Sevan Environmental project and recognized Ludwig Pfeiffer Hoch- und Tiefbau GmbH as the winner with Contract value of 3, 923, 920.00 EUR without the VAT. Currently, a draft decision on approval of the results of the tender was provided to the RA Government.

JERMUK – bed laying under the pipeline GAVAR – tranch bottom compactation

QUARTERLY REPORT October-December 2009

6. PUBLIC RELATIONS

QUARTERLY REPORT October-December 2009

Public Relations Department Quarterly Activities October-December, 2009

EXTERNAL AND INTERNAL RELATIONS

On October 10th, 2009 the General Director of AWSC, Mr. Patrick Lorin had a special interview at the “Right of speech” TV program broadcasted on Armenian Second TV Channel. The interview was dedicated to the first anniversary of the “Drawing of lots”, a new initiative that AWSC started in October 2008. Mr. Lorin talked about the importance of this initiative and presented

Interview at the Armenian Second the commercial and social TV Channel accomplishments.

During the past year the drawing of lots contributed to double increase of the number of regularly paying customers. In addition to this increase, the attitude of being a trustworthy and responsible customer is evident.

PR CAMPAIGN

On October 11th 2009 the PR department organized the fourth drawing of lots for the regularly paying customers. As in the previous drawings, AWSC General Director, the General Director of VTB- Armenia bank and PR representatives of both organizations took part in the live broadcasting on the Armenian Second TV Chanel. Since it was the first anniversary of this new initiative, AWSC also invited the young Armenian cross country skier,

who recently became a world champion, Live broadcasting of the fourth drawing of lots to participate in the draw.

QUARTERLY REPORT October-December 2009

With the help of a special computer program, on coincidental basis, the participants chose the winners of the fourth drawing of lots. Four winners received 300 000 AMD from VTB- Armenia bank, the general partner of AWSC. As a special prize for the first anniversary, SAUR, the management contractor of AWSC awarded two more customers with 300,000 AMD/each. Thus, there were 2 winners from each regional branches of AWSC. The awards giving ceremony took place on November 24, 2009 at the headquarters of VTB Armenia Bank.

Awards giving ceremony at VTB-Armenia Winners of the fourth drawing of lots bank headquarters with AWSC General director

From November 16 to 18, 2009 SAUR, the Management Contractor of AWSC invited the mayors of Artashat, Dilijan and Goris towns and the executive director of Communities‟ Association of Armenia to take part in the annual meeting of Mayors‟ Association of France in Paris. As a representative of AWSC, the head of Public Relation Department also took part in the annual meeting. During the three days the Armenian delegation took part in the Expo, organized by the French Association, where they had a chance to meet with mayors of French towns and representatives of various community organizations and exchange experiences and shared knowledge.

Armenian delegation at the Visit to SAUR headquarters and meeting “Salon des Maires” Expo Center with SAUR international director

QUARTERLY REPORT October-December 2009

In the scope of this trip to France, the Armenian delegation visited French Senate and met with the President of Franco-Armenian Friendship group. Also, they visited SAUR headquarters and met with SAUR top management. The trip was concluded by a visit to bio waste water treatment plant in Honfleur town, where the Armenian mayors were introduced to a special bio treatment of waste water.

Visit to French Senate Meeting with the President of Franco-Armenian Friendship group

In parallel to making a positive change in Armenia, SAUR is also contributing to the professional development of Armenian mayors. This visit to France was one more link to the developed world and a great opportunity to network with colleagues, explore new ways of partnership and strengthen the collaboration of Armenian and French communities.

QUARTERLY REPORT October-December 2009

7. INDICATORS

QUARTERLY REPORT October-December 2009

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 23, (INDICATORS 1-25)

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

hours/ 1 Weighted average number of daily 6,04 7,39 9,62 10,98 12,10 13,01 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 consumption

3 Weighted average water % 93,8 93,8 93,9 96,2 96,6 99,1 bacteriological safety compliance

4 Company working ratio % 194,9 176,4 138,8 133,8 133,7 91,7

% of cities with minimal daily % 68,1 74,1 80,1 83,9 85,6 81,4 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 meter

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

Revenue collected on domestic Drams/ 8 subscribers per registered month 166 181 242 250 286 461 inhabitant Collection ratio (excluding budget 9 % 47,9 36,2 62,6 72,3 75,9 93,3 organizations) % of subscriber with more than 4 10 % 79,5 75,1 76,7 77,8 79,5 72,5 months debt

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

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

Growth of the total collected 13 revenue (excluding budget % 114 568 16,2 46,9 54,8 72,6 151,3 organization) from base year

QUARTERLY REPORT October-December 2009

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

Ratio of water volume billed on 14 the basis of metering to the total % 25,0 26,0 47,3 56,2 59,1 65,4 metered and normative billed volume

Average daily production per Liters/ 15 equivalent registered inhabitant at cap/day 668 759 754 790 827 810 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 production at water catchments levels

Working ratio for branches with % 89,7 121,0 97,5 94,5 85,2 47,3 18 gravity systems

Working ratio for branches with 19 pumping stations or treatment % 223,3 196,8 155,2 148,9 147,2 95,1 plants

Electricity cost as % of revenue 20 collected in systems with pumping % 72,6 63,1 42,6 39,7 39,2 26,8 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 6,93 22 subscribers

Staff and assignment contractors 23 total costs as % of collected % 70,2 68,9 61,9 61,4 62,2 43,8 revenue

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

25 % of water disinfected % 60,9 67,8 80,0 90,3 91,2 85,1

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

QUARTERLY REPORT October-December 2009

INDICATOR 1

WEIGHTED AVERAGE NUMBER OF DAILY HOURS OF DRINKING WATER SERVICE ÐáõÝÇë ³ÙëÇÝ çñ³Ù³ï³Ï³ñ³ñÙ³Ý ÙÇçÇÝ ïևáÕáõÃÛáõÝÁ ûñí³ ÁÝÃ³óùáõÙ

24,00

AWSC/ ÐæÎÀ

20,00

áÕáõÃÛáõÝÁ ¨ 16,00 North-West Region/ 13,01 ÐÛáõëÇë-²ñ¨Ùáõïù 12,10 12,49 î³ñ³Í³ßñç³Ý 10,98 11,40 12,03 12,00 9,62 Center-West Region/ 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 2004 Average 2005 Average 2006 Average 2007 Average 2008 March 09 June 09 September 09 December 09 Ø³ñï 09 ÐáõÝÇë 09 ê»åï»Ùµ»ñ 09¸»Ïï»Ùµ»ñ 09

Months ³ÙÇëÝ»ñ

INDICATOR 2

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

80,0%

73,9% AWSC/ ÐæÎ 68,8% 70,0% 64,6% 62,5% 67,2% 65,4% 60,0% North West Region 57,3% ÐÛáõëÇë ³ñ¨ÙïÛ³Ý 53,6% ï³ñ³Í³ßñç³Ý

50,0% %

Center West Region Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý 40,0% 39,9% ï³ñ³Í³ßñç³Ý

30,0% South Region Ð³ñ³í³ÛÇÝ ï³ñ³Í³ßñç³Ý

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

QUARTERLY REPORT October-December 2009

INDICATOR 3

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

100,00% 98,84% 99,06% 99,00% AWSC/ÐæÎ

98,00% 97,99% 98,56% 97,00% 96,56% 96,00% 96,24% 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% South Region/ 89,00% Ð³ñ³í³ÛÇÝ 88,00% Ù³ëÝ³×ÛáõÕ

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

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 133,8% 136,5% 140,0% 133,7%

138,8% Center West % 120,0% Region 103,1% Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý 100,0% ï³ñ³Í³ßñç³Ý 108,3% 91,7% 80,0% South Region Ð³ñ³í³ÛÇÝ ï³ñ³Í³ßñç³Ý 60,0%

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

QUARTERLY REPORT October-December 2009

INDICATOR 5

% OF CITIES WITH MINIMAL DAILY HOURS OF SERVICE FROM THE BEGINNING OF 2009 Üí³½³·áõÛÝ çñ³Ù³ï³Ï³ñ³ñÙ³Ý Å³Ù»ñáí ëå³ë³ñÏíáÕ µÝ³Ï³í³Ûñ»ñÇ % 2009 Ã-Ç ³ÙÇëÝ»ñÇÝ

105% AWSC/ ÐæÎ 100%

95%

South Region 90% Ð³ñ³í³ÛÇÝ ï³ñ³Í³ßñç³Ý 85,55% 85% 83,93% 81,40% 83,39% 80% North West 80,10% 79,40% Region 78,41% ÐÛáõëÇë 75% ³ñ¨ÙïÛ³Ý 74,07% ï³ñ³Í³ßñç³Ý 70% Center East 68,01% Region 65% Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý ï³ñ³Í³ßñç³Ý 60% Base year / Average 05 Average 06 Average 07 Average 08 March 09 June 09 September 09 December 09 ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 Ø³ñï 09 ÐáõÝÇë 09 ê»åï»Ùµ»ñ 09 ¸»Ïï»Ùµ»ñ 09 ï³ñÇÝ 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

85%

76,8% AWSC/ ÐæÎ 74,4% 75% 73,3% 70,6% 71,8% 67,5% 65% 61,6% 56,3% North West Region ÐÛáõëÇë ³ñ¨ÙïÛ³Ý

55% ï³ñ³Í³ßñç³Ý %

45% Center West Region Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý 35% ï³ñ³Í³ßñç³Ý 37,6%

25% South Region Ð³ñ³í³ÛÇÝ ï³ñ³Í³ßñç³Ý 15% Base year / December 05 December 06 December 07 December 08 March 08 June 08 September 08 December 08 ÐÇÙÝ³Ï³Ý ¸»Ïï»Ùµ»ñ 05 ¸»Ïï»Ùµ»ñ 06 ¸»Ïï»Ùµ»ñ 07 ¸»Ïï»Ùµ»ñ 08 Ø³ñï 08 ÐáõÝÇë 08 ê»åï»Ùµ»ñ 08 ¸»Ïï»Ùµ»ñ 08 ï³ñÇÝ

Months

QUARTERLY REPORT October-December 2009

INDICATOR 8

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

550

AWSC/ ÐæÎ 500 461 450 436 385 400 North West Region ÐÛáõëÇë ³ñ¨ÙïÛ³Ý ï³ñ³Í³ßñç³Ý 350 300 286 300 Center West Region

¸ñ³Ù/³ÝÓ/³ÙÇë 250 Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý Drams/cap/month 242 250 ï³ñ³Í³ßñç³Ý

200 181 166 South Region 150 Ð³ñ³í³ÛÇÝ ï³ñ³Í³ßñç³Ý

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

Months ²ÙÇëÝ»ñ

INDICATOR 9

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

120% AWSC/ ÐæÎ 110%

100% 93% 90% North West Region 81% 85% ÐÛáõëÇë ³ñ¨ÙïÛ³Ý ï³ñ³Í³ßñç³Ý 80% 72% 73% 70% 76% 63% Center West 60% Region Î»ÝïñáÝ

·³ÝÓí³Í »Ï³ÙïÇ % »Ï³ÙïÇ ·³ÝÓí³Í ³ñ¨ÙïÛ³Ý 50%

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

20% Base year / Average 05 Average 06 Average 07 Average 08 I Quarter 09 II Quarter 09 III Quarter 09 IV Quarter 09 ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 09Ã.I 09Ã.II 09Ã.III 09Ã.IV ï³ñÇÝ »é³ÙëÛ³Ï »é³ÙëÛ³Ï »é³ÙëÛ³Ï »é³ÙëÛ³Ï

Months ²ÙÇëÝ»ñ

QUARTERLY REPORT October-December 2009

INDICATOR 10

% OF SUBSCRIBERS WITH 4 MONTHS DEBT OR MORE THAN 4 MONTHS ²í»ÉÇ ù³Ý 4 ³Ùëí³ å³ñïù áõÝ»óáÕ µ³Å³Ýáñ¹Ý»ñÇ ïáÏáëÁ 95%

AWSC/ ÐæÎ 90%

85%

North West Region 80,4% 80,4% ÐÛáõëÇë ³ñ¨ÙïÛ³Ý 79,5% 79,0% 80% ï³ñ³Í³ßñç³Ý

% 77,8% 79,5% 76,7% 75,1% 75% Center West Region Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý 72,5% ï³ñ³Í³ßñç³Ý 70%

65% South Region Ð³ñ³í³ÛÇÝ ï³ñ³Í³ßñç³Ý

60% Base year / Average 05 Average 06 Average 07 Average 08 I Quarter 09 II Quarter 09 III Quarter 09 IV Quarter 09 ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 09Ã.I »é³ÙëÛ³Ï 09Ã.II 09Ã.III 09Ã.IV ï³ñÇÝ »é³ÙëÛ³Ï »é³ÙëÛ³Ï »é³ÙëÛ³Ï Months ²ÙÇëÝ»ñ

INDICATOR 11

AVERAGE DOMESTIC METERED CONSUMPTION PER METERED REGISTRED INHABITANT ØÇçÇÝ ëå³éáõÙÁ ßÝãÇ Ñ³ßíáí` çñ³ã³փ áõÝ»óáÕ µÝ³ÏÇã-µ³Å³Ýáñ¹Ý»ñÇ Ñ³Ù³ñ 115

AWSC/ ÐæÎ

105

95 North West Region 91 ÐÛáõëÇë ³ñ¨ÙïÛ³Ý 87 ï³ñ³Í³ßñç³Ý

85 81

78 Center West Region ÈÇïñ/³ÝÓ/ûñ Liters/cap/day 75 80 81 Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý 75 ï³ñ³Í³ßñç³Ý 71

65 South Region Ð³ñ³í³ÛÇÝ ï³ñ³Í³ßñç³Ý

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

100

QUARTERLY REPORT October-December 2009

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

160%

140% 144,1% 151,3% AWSC/ ÐæÎ 120% 100% 104,2% 80% North West Region 54,8% 72,6% 60% ÐÛáõëÇë ³ñ¨ÙïÛ³Ý 46,9% ï³ñ³Í³ßñç³Ý 40% 62,3% 20% Center West Region 16,2% Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý 0% ï³ñ³Í³ßñç³Ý AWSC/ ÐæÎ

%O FCOLLECTION REVENU South Region

ØÇçÇÝÁ 05 ØÇçÇÝÁ Ð³ñ³í³ÛÇÝ

Average 05 Average

ØÇçÇÝÁ 06 ØÇçÇÝÁ

Ð ³í³ù³·ñáõÙóëï³óí³Í »Ï³ÙïÇ %

Average 06 Average

ØÇçÇÝÁ 07 ØÇçÇÝÁ Average 07 Average

ØÇçÇÝÁ 08 ØÇçÇÝÁ ï³ñ³Í³ßñç³Ý

Average 08 Average

I Quarter 09 Quarter I

II Quarter 09 Quarter II

09Ã.I »é³ÙëÛ³Ï 09Ã.I

III Quarter 09 Quarter III

09Ã.II »é³ÙëÛ³Ï 09Ã.II

IV Quarter 09 Quarter IV

09Ã.III »é³ÙëÛ³Ï 09Ã.III

09Ã.IV »é³ÙëÛ³Ï 09Ã.IV Base year / ÐÇÙÝ³Ï³Ý ï³ñÇÝ ÐÇÙÝ³Ï³Ý / year Base

Month ²ÙÇëÝ»ñ

101

QUARTERLY REPORT October-December 2009

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

90%

AWSC/ ÐæÎ 80%

70% North West Region 66% 65% ÐÛáõëÇë ³ñ¨ÙïÛ³Ý 60% 63% 63% ï³ñ³Í³ßñç³Ý

% 59% 56% 50% Center West Region 47% Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý ï³ñ³Í³ßñç³Ý 40%

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

INDICATOR 15

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

1 190 AWSC/ ÐæÎ

1 090

990 North West Region ÐÛáõëÇë ³ñ¨ÙïÛ³Ý 890 ï³ñ³Í³ßñç³Ý 827 808 810 768 781 790

790 Center West Region

ÉÇïñ/³ÝÓ/ûñ 759 liters /cap/dayliters 754 Î»ÝïñáÝ 690 ³ñ¨ÙïÛ³Ý 668 ï³ñ³Í³ßñç³Ý 590

South Region Ð³ñ³í³ÛÇÝ 490 ï³ñ³Í³ßñç³Ý

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

Months ²ÙÇë

102

QUARTERLY REPORT October-December 2009

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

11%

AWSC/ÐæÎ 10% 9,4% 9,8% 9,8% 9% North West Region/ ÐÛáõëÇë ³ñ¨ÙïÛ³Ý 8,5% 8,6% 8% Ù³ëÝ³×ÛáõÕ 8,1%

% 7,8%

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

South Region/ 5% Ð³ñ³í³ÛÇÝ Ù³ëÝ³×ÛáõÕ

4% Base year / Average 05 Average 06 Average 07 Average 08 I Quarter 09 II Quarter 09 III Quarter 09 IV Quarter 09 ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 09Ã.I 09Ã.II 09Ã.III 09Ã.IV ï³ñÇÝ »é³ÙëÛ³Ï »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% 110,7% North West Region ÐÛáõëÇë ³ñ¨ÙïÛ³Ý 100,0% ï³ñ³Í³ßñç³Ý 97,5% 89,7% 94,5% 80,0% Center West Region

% 85,2% Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý 74,9% ï³ñ³Í³ßñç³Ý 60,0% 47,3% 53,0% 40,0% South Region Ð³ñ³í³ÛÇÝ ï³ñ³Í³ßñç³Ý

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

Months ²ÙÇëÝ»ñ

103

QUARTERLY REPORT October-December 2009

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% 155,2% 158,3% ï³ñ³Í³ßñç³Ý % 148,9% 147,2% 150,0%

130,0% Center West Region Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý 122,6% ï³ñ³Í³ßñç³Ý 110,0% 106,1% 90,0% 95,1% South Region Ð³ñ³í³ÛÇÝ 70,0% ï³ñ³Í³ßñç³Ý

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

120%

³ñÙ³Ý Ñ³Ù³ñ³ñÙ³Ý AWSC/ÐæÎ ×

100%

80% North West Region/ÐÛáõëÇë ³ñ¨ÙïÛ³Ý Ù³ëÝ³×ÛáõÕ 72,6% 60% 63,1% Center West 39,7% 39,2% 41,7% Region/Î»ÝïñáÝ 40% ³ñ¨Ùáõïù Ù³ëÝ³×ÛáõÕ 42,6% 30,3%

20% South 29,2% Region/Ð³ñ³í³ÛÇÝ 26,8% Ù³ëÝ³×ÛáõÕ

% OF COLLECTION USED FOR ELECTRICITY EXPENSIES ELECTRICITY FOR USED COLLECTIONOF % 0% Base year / Average 05 Average 07 Average 07 Average 08 I Quarter 09 II Quarter 09 III Quarter 09 IV Quarter 09 ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 09Ã.I 09Ã.II 09Ã.III 09Ã.IV ï³ñÇÝ »é³ÙëÛ³Ï »é³ÙëÛ³Ï »é³ÙëÛ³Ï »é³ÙëÛ³Ï

Ð³í³ù³·ñÙ³Ý % û·ï³·áñÍí³ÍÐ³í³ù³·ñÙ³Ý¿É»Ïïñ³¿Ý»ñ·Ç³ÛÇ% Í³Ëë»ñÇ í Month ²ÙÇë

104

QUARTERLY REPORT October-December 2009

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 Region/ÐÛáõëÇë 9,00 ³ñ¨ÙïÛ³Ý Ù³ëÝ³×ÛáõÕ

8,00 8,34 Center West 7,00 Region/Î»ÝïñáÝ ³ñ¨Ùáõïù 7,15 Ù³ëÝ³×ÛáõÕ 6,87 6,85 6,91 6,87 6,85 6,93

6,00 Staff per 1000 Staff1000 per Individual Subscribers

South Region/Ð³ñ³í³ÛÇÝ

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

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

INDICATOR 23

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

80,0%

75,0% AWSC/ÐæÎ 70,2% 69,6% 70,0% 68,9% 65,0% 61,9% 61,4% 62,2% North West Region/ÐÛáõëÇë 60,0% ³ñ¨ÙïÛ³Ý Ù³ëÝ³×ÛáõÕ

55,0% 52,2% 50,0% % of collectionof revenue% 47,1% Center West Region/Î»ÝïñáÝ Ð³í³ù³·ñí³Í»Ï³ÙïÇ% 43,8% ³ñ¨ÙïÛ³Ý Ù³ëÝ³×ÛáõÕ 45,0%

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

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

105

QUARTERLY REPORT October-December 2009

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 0,29 0,30 Center West Region/

KWH/m3 KWH/m3 0,24 0,24 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 I Quarter 09 II Quarter 09 III Quarter 09 IV Quarter 09 ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 09Ã.I 09Ã.II 09Ã.III 09Ã.IV ï³ñÇÝ »é³ÙëÛ³Ï »é³ÙëÛ³Ï »é³ÙëÛ³Ï »é³ÙëÛ³Ï

INDICATOR 25

PERCENTAGE OF WATER DISINFECTED ²Ëï³Ñ³ÝíáÕ çñÇ %

100,0%

AWSC/ ÐæÎ 91,21% 90,0% 90,30% 85,08% 88,51% 84,08% 80,0% North West Region 80,02% ÐÛáõëÇë ³ñ¨ÙïÛ³Ý ï³ñ³Í³ßñç³Ý

70,0% % 71,68% 67,83% Center West Region Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý 60,0% ï³ñ³Í³ßñç³Ý 60,87%

50,0% South Region Ð³ñ³í³ÛÇÝ ï³ñ³Í³ßñç³Ý

106