Quarterly Report

QUARTERLY REPORT

PREPARED BY MANAGEMENT CONTRACTOR

PATRICK LORIN

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 1

QUARTERLY REPORT

TABLE OF CONTENTS

1.COMMERCIAL ...... 5 1.1 Commercial ...... 6 General ...... 6 Billing ...... 7 Diagrams 1,2 ...... 7 Payments ...... 8 Diagram 3 ...... 8 Diagrams 4-7 ...... 8 2. OPERATION AND MAINTENANCE ...... 11 2.1 Water Production ...... 12 Water Production and Losses Table-1 ...... 13 Diagram – 8 ...... 17 Quarterly Use of Disinfection Materials Table - 2 ...... 18 2.1.1 Electricity consumption and expenses ...... 20 Elecricity Expenses and Consumption Diagram - 9 ...... 21 Elecricity Expenses Table - 3 ...... 22 Electricity consumption Table - 4 ...... 23 Water Delivered through Pumping and Corresponding Electicity Consumption Table - 5 .... 24 Diagram – 10 ...... 25 Diagram – 11 ...... 25 2.1.2 Water meters, loggers ...... 26 Operation and maintenance of water meters, installation of loggers: ...... 26 Number of installed water meters in II quarter 2012 Table-6 ...... 26 Water Meters Installation Progress In Service Area Table – 7 ...... 27 Diagram - 12 ...... 27 2.2 Water Distribution ...... 28 Operation and Maintenance of Water Transmission and Distribution Systems Table – 8, Diagram-13 ...... 30 NETWORK ANALYSIS TABLE – 9 ...... 31 DIAGRAMS – 14,15 ...... 31

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 2

QUARTERLY REPORT

2.3 Wastewater ...... 32 MAINTENANCE OF WASTEWATER COLLECTION SYSTEMS TABLE-10 ...... 34 D I A G R A M – 16 ...... 34 D I A G R A M – 17 ...... 34 NETWORK ANALYSIS TABLE -11 ...... 35 DIAGRAMS – 18,19 ...... 35 2.4 Special Works ...... 36 3.TECHNICAL DIRECTORATE ...... 38 3.1 Technical investigation and design ...... 39 3.2 Capital Activities Implementation...... 42 3.3 Mapping of Technical Systems ...... 45 3.4 Management of Company’s Assets ...... 48 3.5 Community assets registration ...... 49 3.6 Company’s services ...... 51 3.6.1 Procurment ...... 51 Table – 12 ...... 51 3.6.2 Transport ...... 52 3.7 Water Quality ...... 53 The NOYEMBERYAN Laboratory of “South-West“ r/b ...... 53 Water quality analysis at water intake points (underground and surface sources) Table – 1355 Analysis of water taken from the pressure point, before the distribution network Table – 1458 Water quality investigation in the distribution network Table - 15...... 60 Potable water disinfection control Table – 16 ...... 61 3.7.1 Natural resource utilization ...... 64 Natural resources utilization and nature protection fees Table – 17 ...... 64 3.8 “Locator” monitoring program ...... 65 Diagram – 20 ...... 66 Mileage of transportation means of the Company during weekends ...... 66 Diagram -21 ...... 66 Mileage of transportation means during weekends by structural units ...... 66 4. QUALITY, SAFETY, ENVIRONMENT ...... 67 4. Quality, Safety ...... 68 5. ADMINISTRATION ...... 70 5.1 Finance and Accounting ...... 71 Subsidy From RA Government Table – 18...... 71

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 3

QUARTERLY REPORT

COMES AND EXPENSES OF AWS CJSC IN II QUARTER, 2012 Table – 19 ...... 72 CAHS FLOW – DIAGRAM 22 ...... 73 5.2 Human Resources ...... 74 5.3 Training Center ...... 76 List of training during First Quarter Table – 20 ...... 77 5.4 Legal And Insurance ...... 78 6.1 Public Relations ...... 80 6.2 Customer Service Center ...... 83 The distribution of calls according to issue types Table-21...... 83 The distribution of calls according to issue types Diagram-24 ...... 84 7. PROJECTS ...... 85 7.1 World Bank ...... 86 Table - 22 ...... 88 7.2 Asian Development Bank ...... 89 List of extended contracts Table-23 ...... 89 List of Finalized Contracts Table-24...... 90 Table – 25 ...... 93 7.3 European Bank for Reconstruction and Development ...... 94 Table-26 ...... 97 8. INDICATORS ...... 98 INDICATORS RECAPITULATION – TABLE 27 (INDICATORS 1-25) ...... 99 9. AMENDMENT # 4 TO MC ...... 113 9.1 Management contractor additional staff ...... 114 9.2 Core monitoring indicators ...... 114 9.3 Performance indicators ...... 114 9.4 Project investment plan ...... 116 9.5 Total Management Plan implementation ...... 117 CORE MONITORING INDICATORS Tables 28,29,30 ...... 118

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 4

QUARTERLY REPORT

1.COMMERCIAL

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 5

QUARTERLY REPORT

1.1 Commercial

General

Serious improvements have been registered again in the II quarter of 2012. There is progress regarding all indicators. The Billing Center of the Company is operating already for six months and it is possible to state, that all expectations have been fulfilled – fast summarizing of the data, timely provision of the payment data to the branches of the banks and post offices (before the 3rd or 4th day of the month successive to the reporting month).

The works for control of the customer readings through the photos are in process of development. A relevant procedure will be developed for an effective organization of the works.

The analysis with regard to the program results will be presented in the future reports

Among the priority goals of the Company for 2012 are the fight against illegal connections and reduction of losses. Despite the day-to-day works, there are a lot of illegal connections and wastages, which results in a high level of losses.

In 2012, compared to the previous years, a big focus will be put on the individual disconnections. The issue exists especially in the private houses and with legal entities. The natural water supply process is being disturbed due to water wastages and illegalities, especially during the summer months (especially in the settlements without an irrigation network).

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 6

QUARTERLY REPORT

Billing

One of the most important commercial indicators of the Company is the billing. The improvement of the latter is the result of several undertaken measures. The establishment of the Billing Center in the Head Office, control of the water meter readings with use of photos and regular inspection visits by the control teams are worth mentioning especially. The average monthly consumption of the residential customers with water meters is incomparably higher than in the same period of the last year. Generally, the billing of the II quarter of 2012 has increased for about 10% when compared to the same period of the last year. Diagrams 1,2

Average Invoiced Consumption per Residential Customer with Meter AWSC 11,0 9,9 10,0 9,6 9,1 9,0 8,3 8,0 8,1 9,1 8,0 8,1 8,3 m3 7,9 7,0 7,7 7,7

6,0

5,0

4,0 January February March April May June

2011 2012

Total Billing AWSC 1200 14% 1142 13% 1037 1000 12%

9% 10% 10% 800

. 8% 8% 600 6% mln.AMD 375 371 396 400 332 344 362 4%

200 2%

0 0% April May June

2011 2012 %

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 7

QUARTERLY REPORT

Payments

It is not a secret that the level of payments depends on the level of billing and trustworthiness. The results are satisfactory, except for April, which is due to the deficient payments of RA Ministry of Defense (for around 20.0 mln. AMD). When comparing to the same period of the last year, one can see the following picture:

Diagram 3

AWSC Income 1 200 20% 15% 1 025 1 001 15% 1 000

10% 800

5% 2% 600 2%

mln.AMD 0% 387 400 334 334 338 304 329 -5%

200 -9% -10%

0 -15% April May June Total

2011 2012 increasing %

Relevant measures are undertaken with regard to the regular non-payers, such as reminders, disconnections and court proceedings.

Despite the fact, that all indicators are increasing, there are still a lot of works to do, because the losses are at a high level (especially the commercial losses) and there are regular non-paying customers (about 5%). There are a lot of works to be done for increasing the levels of billing and customer service.

See also below

Diagrams 4-7

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 8

QUARTERLY REPORT

Di agram 4

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

450

400 387 375 360 357 361 353 346 350 334 325 371 347 343 322 301 340 334 300 327 322 278 294 304 250 259 262 272 242 200

MillionsAMD 196 150 179

100 85 50

0 01/05 12/05 12/06 12/07 12/08 12.09 12.10 12.11 01.12 02.12 03.12 04.12 05.12 06.12

Di agram 5

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

4 000 130% 3 688 3 677 3 500 3 417 120% 111% 3 227 3 000 110% 2 808 106% 101% 101% 101% 100% 2 500 99% 99% 98% 100% 98% 2 528 2 104 100% 92% 2 000 1 867 90% 2 073 1 792 1 731 90% 1 850 1 465 1 793 Millions Millions AMD 1 500 1 711 80% 1 130 1 435 1 211 1 242 1 000 848 1 124 70% 66% 568 842 500 60% 72 277 522 48 250 0 50% 01/05 12/05 12/06 12/07 12/08 12.09 12.10 12.11 01.12 02.12 03.12 04.12 05.12 06.12

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 9

QUARTERLY REPORT

Di agram 6

Cummulative billing & collection Billing Revenue Collection

5 000 4 624

4 500 4 183 4 220 4033 3 989 3 797 4 000 3 626 3 268 3 432 3388 3 500 3 220

3 000 2 683 2 308 2 443 2 500 2 135 2 126

Millions Millions AMD 1 834 1 937 2 000 1 593 1 599

1 500

1 000

500

0 2003 2004 2005 2006 2007 2008 2009 2010 2011 as of 01.07.2012

Di agram 7

BILLING PAYMENTS IN AWSC

2004 2005 2006 2007 2008 2009 2010 2011 2012

400 Pic due to the payment of 387 380 budget organizations for 3 361 360 months 357 340 353 320 300 280 New tariff from: 260 260 1st April 2009 240 243

220 mln.AMD 200 196 180 179 160 140 141 120 Management Contract New tariff from: started date: 100 1st May 2005 19th October 2004 80

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 10

QUARTERLY REPORT

2. OPERATION AND MAINTENANCE

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 11

QUARTERLY REPORT

2.1 Water Production

During the 2-nd quarter of 2012 as a result of active cooperation of Production Department and “Jrar” production units operating in the RBs it became

possible to stop the flow of polluted water into internal

network of communities by providing water supply in alternative ways.

It was mostly successful and became possible due to

the close cooperation of the Department with the staff

of the Regional Branches and the provision of operative and fast responses to the emergency situations.

«DZKNGET» catchments As a result of thawing the water of catchments were polluted.

Quarterly reports for the 2nd quarter of 2012 as well as references and letters have been prepared, summarized and presented to the relevant organizations.

The produced water volumes in the logger –equipped water production facilities, the working time and parameters of the pumps are being studied daily through online internet communication; detailed analysis are carried out and are being compared with the time schedules for the pumps assigned to the water production facilities by the Department.

The produced volume of water in the 2-nd quarter of 2012 was 41 963 thousands m3, (29 198,2 thousands m3

by gravity, 12 764.5 thousands m3 with pumping). The actual drinking water losses in the 2nd quarter have

been 78.4%, which is less by 5.1% compared with the

2nd quarter of 2011 (83.5 %) and by 3.1% with the 1st quarter of 2012 (81,4 %).

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 12

QUARTERLY REPORT

Water Production and Losses Table-1

WATER PRODUCTION / WATER DELIVERED UN-ACCOUNTED FOR WATER thousand m3/ /thousand m3/ Name of N Source(pumping April May June II Quarter II II station) April May June April May June water water water water SECTORS quarter quarter thous. thous. thous. thous. SUBSECTORS losses lossess losses lossess m3. m3. m3. m3. % % % %

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

Makravan-4p/s 538,6 544,0 536,2 1618,8 Bujakan s. 15,0 16,0 15,0 46,0 130,4 143,1 147,9 421,4 570,1 81,4 583,1 80,3 563,3 79,2 1716,5 80,3

Aramus p/s 117,8 138,0 131,0 386,8

Abovyan Akunq p/s 29,1 28,2 29,1 86,3 1 Total 700,5 726,2 711,3 2137,9 130,4 143,1 147,9 421,4 570,1 81,4 583,1 80,3 563,3 79,2 1716,5 80,3

Abovyan

Byure- gavan Nurnus s. 85,0 89,0 85,0 259,0 30,1 31,5 35,6 97,2 54,9 64,6 57,5 64,6 49,4 58,1 161,8 62,5 Total 85,0 89,0 85,0 259,0 30,1 31,5 35,6 97,2 54,9 64,6 57,5 64,6 49,4 58,1 161,8 62,5

Total 785,5 815,2 796,3 2396,9 160,5 174,6 183,5 518,6 625,0 79,6 640,6 78,6 612,7 76,9 1878,3 78,4

Solak p/s 19,8 21,3 26,1 67,2

Alapars s. 90,5 98,4 97,9 286,8 Makravan-4- 290,0 295,0 260,0 845,0 92,0 74,8 81,7 248,5 344,0 78,9 376,9 83,4 338,4 80,6 1059,3 81,0 Abovyan main 2

charenchavan

Charencavan Gyumush s. 28,5 29,5 28,5 86,5 Fantan b-h 7,2 7,5 7,6 22,3

Total 436,0 451,7 420,1 1307,8 92,0 74,8 81,7 248,5 344,0 78,9 376,9 83,4 338,4 80,6 1059,3 81,0

Makravan-2 p/s 45,7 18,6 31,8 96,1

Tegenis s. 11,0 40,0 15,0 66,0 25,5 20,2 21,0 66,6 33,2 56,6 40,4 66,7 27,8 57,0 101,5 60,4

Tsaghkadzor Ulashik WCS 2,0 2,0 2,0 6,0

Total 58,7 60,6 48,8 168,1 25,5 20,2 21,0 66,6 33,2 56,6 40,4 66,7 27,8 57,0 101,5 60,4 Makravan-4- 3 96,0 105,0 104,0 305,0

Hrazdan Abovyan main Makravan 2 p/s 508,0 525,0 491,2 1524,2 92,8 83,0 91,4 267,3 688,9 88,1 715,8 89,6 667,2 88,0 2071,8 88,6

Hrazdan Makravan 3 p/s 177,7 168,8 163,4 509,9 Total 781,7 798,8 758,6 2339,1 92,8 83,0 91,4 267,3 688,9 88,1 715,8 89,6 667,2 88,0 2071,8 88,6

Total 840,4 859,4 807,4 2507,2 118,3 103,2 112,4 333,9 722,1 85,9 756,2 88,0 695,1 86,1 2173,4 86,7

Golovin WCS 76,0 70,7 74,1 220,8 Florovi Balka

63,0 61,6 59,0 183,6 WCS Bldan WCS 62,0 62,5 60,0 184,5 41,3 43,0 48,8 133,1 162,7 79,8 154,8 78,3 147,3 75,1 464,8 77,7

4 Dilijan Dilijan Shamakhyan s. 2,0 2,0 2,0 6,0 Jiliut Tala s. 1,0 1,0 1,0 3,0

Total 204,0 197,8 196,1 597,9 41,3 43,0 48,8 133,1 162,7 79,8 154,8 78,3 147,3 75,1 464,8 77,7

Qarqarut s. 45,2 42,1 49,9 137,2

Spitak dzur s. 45,8 30,8 30,8 107,4

Getahovit s. 41,0 39,8 35,4 116,2

Anapat s. 24,8 13,0 13,0 50,8 Khozmarag s. 23,2 18,6 17,0 58,8 45,0 51,1 46,2 142,3 153,5 77,3 110,6 68,4 119,0 72,0 383,1 72,9

Ijevan Getapnya p/s 4,0 3,2 5,5 12,7 5 Jri dzor s. 8,5 8,8 8,5 25,8

Ijevan Gmbet s. 5,0 5,4 5,1 15,5 Azatamut s. 1,0 0,0 0,0 1,0 Total 198,5 161,7 165,2 525,4 45,0 51,1 46,2 142,3 153,5 77,3 110,6 68,4 119,0 72,0 383,1 72,9

Berd WTP 62,0 65,4 76,0 203,4 16,5 18,0 20,6 55,1 48,5 74,6 50,4 73,7 58,4 73,9 157,3 74,1 Berd Sharapey s. 3,0 3,0 3,0 9,0 Total 65,0 68,4 79,0 212,4 16,5 18,0 20,6 55,1 48,5 74,6 50,4 73,7 58,4 73,9 157,3 74,1

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 13

QUARTERLY REPORT

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Total 263,5 230,1 244,2 737,8 61,5 69,1 66,8 197,4 202,0 76,7 161,0 70,0 177,4 72,6 540,4 73,2 Berdavan b-h 62,2 63,4 55,2 180,8

Ayrumi p/s 0,0 0,0 0,0 0,0 Srocahanq s. 1,3 1,3 1,5 4,1 13,0 15,4 14,9 43,3 51,5 79,8 54,3 77,9 52,8 78,0 158,6 78,6 Gij sari s. 0,0 4,0 10,0 14,0

Spitakashen s. 0,5 0,5 0,5 1,5

Noyemberyan 6 Varar agbyur s. 0,5 0,5 0,5 1,5

Alaverdi Total 64,5 69,7 67,7 201,9 13,0 15,4 14,9 43,3 51,5 79,8 54,3 77,9 52,8 78,0 158,6 78,6 Lori-Berd s. 562,0 430,0 515,0 1507,0 Alave- 59,8 59,3 65,4 184,6 670,7 91,8 531,7 90,0 617,6 90,4 1819,9 90,8 rdi Agarak s. 168,5 161,0 168,0 497,5 Total 730,5 591,0 683,0 2004,5 59,8 59,3 65,4 184,6 670,7 91,8 531,7 90,0 617,6 90,4 1819,9 90,8 Total 795,0 660,7 750,7 2206,4 72,8 74,7 80,3 227,9 722,2 90,8 586,0 88,7 670,4 89,3 1978,5 89,7 Chakhkali s. 44,0 46,0 44,0 134,0

Jrashen b-h 52,0 50,0 48,0 150,0 Nalband b-h 47,0 48,0 45,0 140,0 33,9 33,1 38,0 105,0 120,4 78,0 123,6 78,9 113,1 74,8 357,1 77,3

Spitak Ghazanchi s. 4,0 4,0 4,0 12,0 Spitak b-h 7,4 8,7 10,1 26,1 Total 154,4 156,7 151,1 462,1 33,9 33,1 38,0 105,0 120,4 78,0 123,6 78,9 113,1 74,8 357,1 77,3

Gyulidar s. 5,0 5,0 5,0 15,0 Getavan p/s 169,9 178,3 139,6 487,8 39,1 39,2 40,7 118,9 311,8 88,9 259,1 86,9 279,9 87,3 850,9 87,7 7

Stepanavan Novoseltsovo s. 176,0 115,0 176,0 467,0

Stepanavan Total 350,9 298,3 320,6 969,8 39,1 39,2 40,7 118,9 311,8 88,9 259,1 86,9 279,9 87,3 850,9 87,7

Novoseltsovo p/s 31,6 31,8 29,0 92,4

Sevaberd s. 38,9 40,2 38,8 117,9 31,3 32,4 32,3 95,9 72,9 70,0 74,5 69,7 66,5 67,3 213,9 69,0

Tashir Kathnakhbyur 33,7 34,8 31,0 99,5 s. Total 104,2 106,8 98,8 309,8 31,3 32,4 32,3 95,9 72,9 70,0 74,5 69,7 66,5 67,3 213,9 69,0 Total 609,5 561,8 570,5 1741,7 104,3 104,7 111,0 319,9 505,2 82,9 457,1 81,4 459,5 80,5 1421,8 81,6

Total 3933,9 3776,7 3785,2 11495,8 650,7 644,0 684,4 1979,2 3283,1 83,5 3132,6 82,9 3100,8 81,9 9516,5 82,8 Center-West Regional Brench

Araratyan 1.2 p/s 351,0 361,0 360,0 1072,0 60,5 66,7 67,7 194,9 290,5 82,8 294,3 81,5 292,3 81,2 877,1 81,8

s c. s

Masi

Total 351,0 361,0 360,0 1072,0 60,5 66,7 67,7 194,9 290,5 82,8 294,3 81,5 292,3 81,2 877,1 81,8

Araratyan 1.2 p/s 345,0 346,0 345,0 1036,0 1 Masis 51,3 55,6 57,5 164,3 350,5 87,2 344,3 86,1 343,2 85,7 1038,0 86,3

Masis v. Masis Yerevan Djur 56,8 53,9 55,7 166,4 Total 401,8 399,9 400,7 1202,4 51,3 55,6 57,5 164,3 350,5 87,2 344,3 86,1 343,2 85,7 1038,0 86,3 Total 752,8 760,9 760,7 2274,4 111,8 122,3 125,2 359,2 641,0 85,2 638,6 83,9 635,5 83,5 1915,2 84,2

Ghazaravan b-h 0,0 0,0 68,3 68,3

Bazmagbyur 0,0 0,0 0,0 0,0

Bazmagbyur 3 s. 950,0 985,0 940,0 2875,0 211,3 218,2 223,1 652,5 791,1 78,9 814,2 78,9 840,0 79,0 2445,3 78,9 2 Ghazaravani s.

Echmiadzin Echmiadzin Artameti p/s 8,6 9,4 9,6 27,6

Kozdasheni p/s 43,9 37,9 45,1 126,9 Total 1002,4 1032,4 1063,0 3097,8 211,3 218,2 223,1 652,5 791,1 78,9 814,2 78,9 840,0 79,0 2445,3 78,9

Garni s. 842,0 950,0 930,0 2722,0 219,9 203,1 203,6 626,5 622,1 73,9 747,0 78,6 726,4 78,1 2095,5 77,0 3

Artashat Artashat Total 842,0 950,0 930,0 2722,0 219,9 203,1 203,6 626,5 622,1 73,9 747,0 78,6 726,4 78,1 2095,5 77,0

Garni s. 292,5 311,0 282,0 885,5 151,4 152,5 169,1 473,0 217,6 59,0 236,5 60,8 179,9 51,5 634,0 57,3 4 Vedi Jermanis s. 76,5 78,0 67,0 221,5

Vedi Total 369,0 389,0 349,0 1107,0 151,4 152,5 169,1 473,0 217,6 59,0 236,5 60,8 179,9 51,5 634,0 57,3

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 14

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

Garni s. 108,5 102,5 98,0 309,0 46,7 48,9 46,2 141,8 61,8 57,0 53,6 52,3 51,8 52,9 167,2 54,1

Ararat

Total 108,5 102,5 98,0 309,0 46,7 48,9 46,2 141,8 61,8 57,0 53,6 52,3 51,8 52,9 167,2 54,1 Total 477,5 491,5 447,0 1416,0 198,1 201,4 215,3 614,8 279,4 58,5 290,1 59,0 231,7 51,8 801,2 56,6 Artik reservoir 125,0 130,0 77,8 332,8

Mantash 32,0 34,0 32,0 98,0 reservoir 61,6 55,2 61,0 177,8 618,4 90,9 514,5 90,3 619,0 91,0 1751,9 90,8

Arthik Mantash 523,0 405,7 570,2 1498,9 reservoir Total 680,0 569,7 680,0 1929,7 61,6 55,2 61,0 177,8 618,4 90,9 514,5 90,3 619,0 91,0 1751,9 90,8 Zovasar s. 41,0 42,0 32,5 115,5 Jinj Akner s. 36,3 36,3 37,8 110,4 37,4 50,7 43,9 54,8 43,6 53,6 124,9 53,1

Talin

Kentagbyur s.N 809 32,7 38,2 48,9 119,8 Total 73,7 80,2 81,4 235,3 36,3 36,3 37,8 110,4 37,4 50,7 43,9 54,8 43,6 53,6 124,9 53,1 5

Arthik Daghdzutner s. 19,7 20,4 20,7 60,8 Sari s. 6,0 6,2 4,3 16,5

Ghazanchi s. 12,9 15,6 20,9 49,4 12,6 14,8 15,1 42,5 41,0 76,5 41,7 73,8 44,9 74,8 127,6 75,0 Lusagbyur s. 5,2 5,4 5,0 15,6

Ashotsk Zuygaghbyur s. 3,6 3,8 3,6 11,0 Bavra b-h 6,2 5,1 5,5 16,9 Total 53,6 56,5 60,0 170,1 12,6 14,8 15,1 42,5 41,0 76,5 41,7 73,8 44,9 74,8 127,6 75,0 Total 807,3 706,4 821,4 2335,1 110,6 106,2 113,9 330,7 696,7 86,3 600,1 85,0 707,5 86,1 2004,4 85,8 Karbi b-h 114,6 111,3 99,0 324,8 Artak p/s 184,8 4,8 11,8 201,4 Aratashavan s. 22,4 192,8 189,0 404,2

Sagmusavan s. 46,0 51,0 52,0 149,0 Wosketas s. 8,0 8,5 8,5 25,0 107,1 105,5 116,2 328,8 583,2 84,5 587,7 84,8 557,5 82,8 1728,3 84,0 Bazmagbyur b- 0,0 0,0 0,0 0,0

Ashtarak h Kazaravan s. 9,5 9,8 8,5 27,8

6 Bazmagbyur 3 Ashtarak 305,0 315,0 305,0 925,0 Kazaravan s. Total 690,2 693,2 673,7 2057,1 107,1 105,5 116,2 328,8 583,2 84,5 587,7 84,8 557,5 82,8 1728,3 84,0

Ortachia s. 17,0 18,5 18,0 53,5 Geghagzor s. 16,3 17,0 19,2 52,4 108,5 87,0 80,1 82,5 76,8 80,0 265,4 83,5

Aparan Eznak p/s 107,8 78,6 78,0 264,4 Total 124,8 97,1 96,0 317,9 16,3 17,0 19,2 52,4 108,5 87,0 80,1 82,5 76,8 80,0 265,4 83,5 Total 815,0 790,3 769,6 2375,0 123,4 122,6 135,3 381,2 691,7 84,9 667,8 84,5 634,3 82,4 1993,7 83,9

Total 4697,1 4731,4 4973,7 14220,2 975,0 973,7 1016,3 2965,0 3722,1 79,2 3757,8 79,4 3957,4 79,6 11437,2 79,4 South Regional Brench

Sarnaghbyur s. 50,1 56,6 54,4 161,1 11,3 9,7 12,1 33,1 38,8 77,5 47,0 83,0 42,3 77,7 128,0 79,5

Qarasun s. 66,3 63,3 62,8 192,4 12,8 11,9 14,5 39,2 53,5 80,7 51,4 81,2 48,3 76,9 153,2 79,6

Eghegnadzor Vostan s. 53,6 55,6 51,8 161,0 18,5 15,1 18,3 51,9 35,1 65,5 40,5 72,9 33,5 64,7 109,1 67,8

Total 170,0 175,5 169,0 514,5 42,6 36,6 44,9 124,1 127,4 75,0 138,9 79,1 124,1 73,4 390,4 75,9 1 Malishka s. 12,5 12,8 14,9 40,2 Vayq 28,9 28,7 32,1 86,9 157,1 84,5 162,1 85,0 151,9 82,6 471,1 84,0 Bazmagbyur s. 173,5 178,0 169,1 520,6

Eghegnadzor Total 186,0 190,8 184,0 560,8 28,9 28,7 32,1 89,7 157,1 84,5 162,1 85,0 151,9 82,6 471,1 84,0

Jrasar s. 75,0 77,0 74,0 226,0 19,3 24,5 18,1 61,9 55,7 74,2 52,5 68,2 55,9 75,6 164,1 72,6

Jermuk

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QUARTERLY REPORT

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Total 75,0 77,0 74,0 226,0 19,3 24,5 18,1 61,9 55,7 74,2 52,5 68,2 55,9 75,6 164,1 72,6 Total 431,0 443,3 427,0 1301,3 90,8 89,9 95,1 275,8 340,2 78,9 353,5 79,7 331,9 77,7 1025,5 78,8

Shaqe s. 264,3 126,6 257,2 648,1 96,4 49,3 97,4 243,1 167,9 63,5 77,3 61,0 159,8 62,1 405,0 62,5

Mukhuturyan s. 52,9 51,9 50,2 155,0 3,7 4,6 4,1 12,3 49,2 93,1 47,3 91,2 46,1 91,8 142,7 92,0

Sisyan

2 Sisyan Zor-Zor s. 2,8 2,7 2,6 8,1 0,2 0,2 0,2 0,5 2,6 93,9 2,6 94,4 2,4 92,3 7,6 93,6 Ընդամենը 320,0 181,2 310,0 811,2 100,2 54,1 101,7 256,0 219,8 68,7 127,1 70,2 208,3 67,2 555,2 68,4

Akner s. 125,5 125,0 120,8 371,3 28,9 26,3 27,7 82,9 96,6 77,0 98,7 79,0 93,1 77,1 288,4 77,7

Goris 3 Goris Mukhuturyan s. 284,5 290,0 280,2 854,7 47,3 45,7 52,8 145,7 237,2 83,4 244,4 84,3 227,4 81,2 709,0 83,0

Total 410,0 415,0 401,0 1226,0 76,2 72,0 80,5 228,6 333,8 81,4 343,1 82,7 320,5 79,9 997,4 81,4 Geghi s. 28,0 28,0 28,6 84,6 8,9 9,2 10,4 28,5 19,1 68,3 18,8 67,1 18,2 63,6 56,1 66,3 Surin kap s. 33,0 33,0 33,6 99,6 8,3 9,8 11,0 29,1 24,7 74,8 23,2 70,3 22,6 67,3 70,5 70,8 Jrakhor s. Geghi WCS 777,1 702,1 715,9 2195,1 82,6 85,8 97,1 265,5 694,5 89,4 616,3 87,8 618,8 86,4 1929,6 87,9

Kapan Chanakhchi

146,6 146,2 149,0 441,8 21,7 21,3 23,6 66,6 124,9 85,2 124,9 85,4 125,4 84,2 375,3 84,9 WCS Vachagan WCS 2,3 2,3 2,3 6,9 0,2 0,3 0,5 1,0 2,1 91 2,1 89,1 1,8 78,3 6,0 86,2

4 Kapan Total 987,0 911,6 929,4 2828,0 121,7 126,3 142,6 390,5 865,4 87,7 785,3 86,1 786,8 84,7 2437,5 86,2

Agarak WCS 934,0 900,2 822,3 2656,5 834,4 797,5 718,9 2350,8 99,6 10,7 102,7 11,4 103,4 12,6 305,7 11,5 Setenc s. 24,0 26,0 22,0 72,0 1,2 1,2 1,4 3,8 22,8 95,0 24,8 95,4 20,6 93,6 68,2 94,7

Meghri Meghri WCS 85,0 397,0 133,0 615,0 10,8 11,9 16,9 39,6 74,2 87,3 385,1 97,0 116,1 87,3 575,4 93,6 Total 1043,0 1323,2 977,3 3343,5 846,4 810,6 737,2 2394,2 196,6 18,9 512,6 38,7 240,1 24,6 949,3 28,4 Total 2030,0 2234,8 1906,7 6171,5 968,0 936,9 879,8 2784,7 1062,0 52,3 1298,0 58,1 1026,9 53,9 3386,8 54,9

Dzknget s. 0,0 0,0 0,0 0,0 Hatsarat p/s 87,0 108,0 101,0 296,0 46,2 47,2 51,8 145,2 331,9 87,8 352,4 88,2 321,9 86,1 1006,2 87,4 Sevan Lchashen b-h 291,1 291,6 272,7 855,4

Total 378,1 399,6 373,7 1151,4 46,2 47,2 51,8 145,2 331,9 87,8 352,4 88,2 321,9 86,1 1006,2 87,4

Sevan 5 Kushchinski s. 9,0 10,0 10,0 29,0 3,5 4,5 4,2 12,2 12,5 78,0 11,5 72,0 11,8 73,6 35,8 74,5

barak Cham Taqa s. 7,0 6,0 6,0 19,0 Total 16,0 16,0 16,0 48,0 3,5 4,5 4,2 12,2 12,5 78,0 11,5 72,0 11,8 73,6 35,8 74,5 Total 394,1 415,6 389,7 1199,4 49,7 51,7 56,0 157,4 344,4 87,4 363,9 87,6 333,7 85,6 1042,0 86,9 Akunq s. 593,7 460,6 445,3 1499,6

St. Vardan s. 84,3 65,4 63,2 212,9 34,1 37,1 30,8 102,0 1054,7 96,9 807,9 95,6 786,2 96,2 2648,8 96,3 Akner s. 200,6 155,1 150,0 505,7

Vartenis Shat Jreq s. 210,2 163,9 158,5 532,6 Total 1088,8 845,0 817,0 2750,8 34,1 37,1 30,8 102,0 1054,7 96,9 807,9 95,6 786,2 96,2 2648,8 96,3

Tsakqari s. 238,6 246,7 238,4 723,7 18,5 16,8 20,4 55,7 232,1 92,6 241,9 93,5 229,7 91,9 703,6 92,7 Hopoyi var s. 12,0 12,0 11,6 35,6

Martuni

6 Gavar Total 250,6 258,7 250,0 759,3 18,5 16,8 20,4 55,7 232,1 92,6 241,9 93,5 229,7 91,9 703,6 92,7 Kaleri p/s

497,4 485,0 471,4 1453,8 Hatsarat p/s 67,1 97,4 105,6 270,1 550,2 89,1 530,7 84,5 494,1 82,4 1575,0 85,4

Gavar Sarukhan p/s 71,5 84,7 87,7 243,9 Gandzak b-h 48,4 58,5 40,5 147,4 Total 617,4 628,2 599,6 1845,1 67,1 97,4 105,6 270,1 550,2 89,1 530,7 84,5 494,1 82,4 1575,0 85,4 Total 1956,8 1731,9 1666,6 5355,2 119,7 151,4 156,7 427,8 1837,1 93,9 1580,5 91,3 1509,9 90,6 4927,5 92,0

Total 5541,9 5421,8 5101,0 16064,6 1404,7 1355,8 1369,9 4130,3 4137,2 74,7 4066,0 75,0 3731,2 73,1 11934,3 74,3

Grand Total 14172,8 13929,9 13860 41962,6 3030,4 2973,5 3070,6 9074,5 11142,4 78,6 10956,4 78,7 10789,4 77,8 32706,2 78,4

Water supply system with installed operating bulk flow meters

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QUARTERLY REPORT

Diagram – 8

W A T E R P R O D U C T I O N 45 000 40 000 35 000 30 000 25 000 20 000 15 000 10 000 5 000 - I quarter April May June II quarter Delivered through pumps 13 144 4 375 4 244 4 146 12 765 Gravity 20 581 9 798 9 686 9 714 29 198 Total 33 725 14 173 13 930 13 860 41 963

Operation of the chlorination stations and consumption of the disinfectants

The works for disinfection of the produced drinking water were carried out without interruptions during the 2nd quarter.

The purchasing and supply of the liquid chlorine to the Company are being done on a contract basis through other supply organization.

During the quarter 4 pieces of broken, liquid chlorine operated “ALLDOS” type chlorination equipments were repaired by the Production and Chlorination Division.

Repair of «ALLDOS» type chlorination of Repair of «ALLDOS» type chlorination of SOLAK chlorination station BERDAVAN chlorination station

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QUARTERLY REPORT

The Production and Chlorination Division has carried out the installation, calibration and commissioning works for the equipment of the newly constructed “Kozdashen” chlorination station, which have resulted in the significant increase of the qualitative indicators of the supplied drinking water.

During the 2nd quarter of 2012, 25 285 kg of liquid chlorine and 2 647 kg of hypochlorite tablets have been used in the water supply systems for disinfection of the drinking water and washing of the systems

Quarterly Use of Disinfection Materials Table - 2

BALANCE in the BALANCE of the end of beginning of reporting RECEIVED UTILIZED reporting quarter SECTORS & quarter N SUBSECTORS Liquid Liquid Hypochlori Liquid Liquid Hypochlorite Hypochlorite Hypochlorite Chlorine Chlorine te PILLS Chlorine Chlorine PILLS (kg) PILLS (kg) PILLS (kg) (kg) (kg) (kg) (kg) (kg) 1 2 3 4 5 6 7 8 9 10 NORTH-WEST 1 Abovyan 684 80 1 866 80 1 915 110 635 50 2 Bjureghavan 20 25 104 0 103 0 21 25 3 Hrazdan 764 80 1 758 0 1 812 60 710 20 4 Tsaghkadzor 0 10 0 120 0 104 0 26 5 Charentsavan 88 15 290 40 275 25 103 30 6 Ijevan 205 83 0 160 191 207 14 36 7 Berd 90 0 208 40 208 10 90 30 8 Dilijan 175 73 496 80 604 79 67 74 9 Nojemberyan 0 30 52 200 0 145 52 85 10 Alaverdi 336 0 802 80 1 020 15 118 65 11 Stepanavan 108 21 104 40 204 19 8 42 12 Spitak 20 35 104 160 92 140 32 55 13 Tashir 50 0 416 80 381 40 85 40 TOTAL 2 540 452 6 200 1 080 6 805 954 1 935 578 CENTER-WEST 1 Artashat 744 36 2 698 0 3 417 28 25 8 2 Echmiatsin 789 0 2 728 40 3 060 8,5 457 32 3 Masis 728 45 1 726 0 1 765 45 689 0 4 Vedi 10 0 248 60 214 42 44 18 5 Ararat 0 0 0 60 0 40 0 20 6 Ashtarak 787 0 1 144 80 1 315 80 616 0 7 Aparan 4 10 248 120 190 120 62 10 8 Artik 202 0 1 800 40 1 191 16 811 24 9 Talin 0 31 270 80 215 103,1 55 8 10 Ashotsk 0 5 0 320 0 283 0 42 TOTAL 3 264 127 10 862 800 11 367 766 2 759 162

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 18

QUARTERLY REPORT

GRAND TOTAL 7 963 1 024 24 338 2 978 25 285 2 647 7 016 1 356

Remark* The information is presented based on operative data

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 19

QUARTERLY REPORT

2.1.1 Electricity consumption and expenses

Operation of the pumping stations and electrical facilities, consumption of energy

Due to operative work a number rehabilitation activities were organized and carried out for quick repair and operation of broken pumps units and electrical equipments thus ensuring water supply with reserve pumps or in alternative ways during this period.

The actual consumption of the electrical energy in the 01.01-01.01 of 2012 was 19 532 thousand Kwt/h or 471 101 thousand AMD. This value is for 2 532 thousand Kwt/h or 49 372 thousand AMD (11.73 %) higher than the value planned in the budget.

The higher consumption of the el. energy in comparison to the budget is mostly due to:

. Due to thaw and heavy rains the water in many gravity water production facilities have been polluted, therefore the reserve pumps units have been put in operation and the operation time schedules of the operating pump units have been extended (“Maqravan 2”, “Berdavan”, “Novoseltsovo”, “Spitak”, “Hatsarat”, “Araratyan ½”, etc.).

. Due to the investment works, the pump units of “Kosh-Agarak” mechanical water supply system have been put into operation on everyday working schedule (previously - two pumping per week),

. Due to the rehabilitation works for ”Maqravan 2” pumping station the operation of 3 borehole pump units, located in the sanitary zone of “Maqravan 4” pumping station, have been restarted on 24-hour operation time-schedule.,

. It was foreseen to replace the old and morally worn-out pump units of “Getavan”, “Gandzak”, “Kosh”, “Maqravan 2”, “Novoseltsovo” and “Solak” pumping stations with the new, more efficient pump units until January 1 2012 and the consumption of the el. energy in the budget of 2012 was calculated for the pump units with less power. However, due to the objective and subjective reasons the replacement works for the pump units were postponed, which resulted in the higher consumption of el. energy.

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 20

QUARTERLY REPORT

Newly constructed pumping station

A number of rehabilitation activities were carried out for the connection of electrical supply and for putting into operation the newly constructed “Solak”, “Verin Aghbyurak”, “Hrazdan-Mikro” pumping stations.

The maintenance of the borehole pump units was carried out by a professional organization on a contract basis, which resulted in a significant decrease of the pump breakdowns.

Elecricity Expenses and Consumption Diagram - 9

100 000 90000

90 000 80000

80 000 70000

70 000 60000 60 000

50000 1000 KWH 1000 1000 AMD 1000 50 000 40000 40 000 30000 30 000 Cost 2012 Cost 2011 KWH 2012 KWH 2011 20000 20 000

10 000 10000

May

June

April

March January February

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 21

QUARTERLY REPORT

Elecricity Expenses Table - 3

January February March April May June Total 2012 Variation between total N S E C T O R S BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL 2012 actual and 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 AMD budget % 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 21 22 23

North-West R/B 43 899 46 049 37 675 41 949 37 437 42 418 35 577 38 345 35 725 37 498 34 484 35 163 224 798 241 421 7,39 1 Abovyan 12 495 11 638 11 270 10 711 11 515 11 604 11 025 11 016 11 515 11 161 11 270 10 303 69 090 66 432 -3,85

2 Bjureghavan 338 421 312 356 325 353 325 349 325 377 325 332 1 950 2 187 12,18

3 Hrazdan 12 300 14 881 10 500 13 213 10 000 13 003 9 500 12 823 10 000 12 586 9 500 11 671 61 800 78 177 26,50

4 Tsaghkadzor 4 250 3 184 3 000 3 203 3 000 3 087 3 000 1 835 1 625 734 1 625 1 277 16 500 13 320 -19,27

5 Charaentsavan 4 046 5 244 3 863 4 765 3 915 4 833 3 863 4 703 3 915 4 851 3 915 4 938 23 516 29 333 24,74

6 Ijevan 270 253 240 262 240 197 240 116 270 134 240 153 1 500 1 115 -25,64

7 Berd 120 64 90 69 90 75 90 40 75 26 75 17 540 290 -46,28

8 Nojemberyan 6 480 4 730 5 130 4 186 5 400 4 102 4 860 3 915 5 130 3 931 4 860 3 475 31 860 24 339 -23,61

9 Dilijan 690 511 660 504 600 486 540 522 600 444 540 465 3 630 2 932 -19,23

10 Stepanavan 2 120 3 125 1 940 2 801 1 940 2 792 1 840 2 606 1 940 3 023 1 840 2 283 11 620 16 629 43,11

11 Spitak 225 219 165 197 195 166 165 169 195 160 165 184 1 110 1 095 -1,31

12 Tashir 461 1 649 434 1 549 163 1 602 81 226 81 50 81 38 1 301 5 112 293,02

13 Alaverdi 105 131 72 132 54 118 48 27 54 23 48 27 381 457 19,98

Center -West R/B 18 974 20 741 16 258 19 656 17 507 20 397 16 294 23 403 17 626 18 930 16 294 19 697 102 951 122 825 19,30 225 227 180 206 135 210 135 141 135 130 135 144 945 1 057 11,81 1 Artashat 60 129 60 138 60 125 60 83 60 60 60 60 360 595 65,24 2 Vedi 5 736 7 861 5 139 7 436 5 617 7 913 5 258 7 645 5 736 7 703 5 258 7 631 32 743 46 189 41,07 3 Masis 30 129 30 138 30 125 30 83 30 31 30 26 180 532 195,61 5 Ararat 3 360 3 016 3 024 2 836 3 024 2 942 2 800 2 744 3 024 2 551 2 800 3 088 18 032 17 176 -4,75 6 Echmiatsin 7 153 7 162 5 764 6 829 6 550 6 947 6 026 11 049 6 550 7 050 6 026 7 396 38 069 46 433 21,97 7 Ashtarak 1 811 1 519 1 581 1 360 1 581 1 368 1 505 1 191 1 581 996 1 505 955 9 563 7 389 -22,73 8 Aparan 60 123 60 156 60 162 60 72 60 18 60 21 360 550 52,88 9 Talin 60 101 60 119 60 117 60 61 60 40 60 23 360 461 28,00 10 Artik 480 474 360 439 390 489 360 336 390 352 360 353 2 340 2 443 4,38 11 Ashotsk

South R/B 15 430 18 037 14 487 17 336 14 884 17 667 14 345 16 635 14 780 16 507 14 315 15 489 88 239 101 672 15,22 600 461 300 455 300 397 240 277 240 221 240 116 1 920 1 928 0,43 1 Kapan 177 269 148 295 148 184 148 135 118 124 118 81 856 1 087 27,11 2 Meghri 105 104 75 118 90 121 90 60 90 37 90 33 540 473 -12,34 3 Goris 210 360 159 307 144 284 132 126 144 86 132 81 921 1 244 35,10 4 Sisian 75 120 60 93 60 25 45 78 45 32 45 32 330 380 15,03 5 Egheghnadzor 60 6 60 5 60 5 60 5 60 0 60 5 360 24 -93,33 6 Jermuk 120 19 105 12 105 13 105 11 105 10 105 9 645 74 -88,52 7 Vayq 9 450 11 429 9 030 10 956 9 345 11 423 9 030 11 190 9 345 11 219 9 030 10 785 55 230 67 002 21,31 8 Gavar 4 483 5 114 4 400 4 923 4 483 5 063 4 345 4 705 4 483 4 744 4 345 4 321 26 538 28 870 8,79 9 Sevan 75 96 75 105 75 80 75 17 75 7 75 8 450 314 -30,30 10 Martuni 75 59 75 67 75 72 75 32 75 27 75 18 450 275 -38,81 11 Vardenis

Administrative 1 191 1 034 910 1 061 910 1 051 910 519 910 714 910 804 5 741 5 184 -9,70 Building Administrative 35 1 191 1 034 910 1 061 910 1 051 910 519 910 714 910 804 Building 5 741 5 184 -9,70 T o t a l 79 494 85 861 69 329 80 002 70 737 81 533 67 125 78 902 69 041 73 648 66 003 71 153 421 729 471 101 11,71

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 22

QUARTERLY REPORT

Electricity consumption Table - 4

Total Variation Variation 2011 January February March April May June Total 2012 between between N S E C T O R S ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL of year total 2012 2011 and actual and 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 2012% budget % KWH KWH KWH KWH KWH KWH KWH KWH KWH KWH KWH KWH KWH KWH KWH 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 22 23 24 25

North-West R/B 9 857 1 750 1 901 1 504 1 728 1 495 1 739 1 422 1 570 1 427 1 541 1 378 1 444 8 976 9 924 0,68 10,56 1 Abovyan 2 170 510 497 460 458 470 495 450 471 470 479 460 435 2 820 2 835 30,66 0,54 2 Bjureghavan 69 13 15 12 12 13 12 13 12 13 13 13 12 75 75 8,80 0,31 3 Hrazdan 4 233 492 608 420 544 400 528 380 517 400 507 380 474 2 472 3 178 -24,92 28,57 4 Tsaghkadzor 532 170 128 120 129 120 124 120 73 65 30 65 51 660 536 0,67 -18,85 5 Charaentsavan 1 071 155 198 148 178 150 181 148 176 150 183 150 189 901 1 105 3,20 22,62 6 Ijevan 37 9 9 8 9 8 7 8 4 9 4 8 5 50 37 1,38 -25,29 7 Berd 17 4 2 3 2 3 2 3 1 3 1 3 1 18 10 -44,23 -46,28 8 Nojemberyan 624 240 185 190 163 200 160 180 150 190 148 180 136 1 180 943 51,18 -20,11 9 Dilijan 124 23 17 22 17 20 16 18 17 20 15 18 16 121 98 -21,31 -19,23 10 Stepanavan 778 106 159 97 141 97 140 92 132 97 154 92 117 581 843 8,30 45,09 11 Spitak 25 8 7 6 7 7 6 6 6 7 5 6 6 37 37 45,01 -1,31 12 Tashir 159 17 73 16 63 6 64 3 9 3 2 3 2 48 212 33,65 342,54 13 Alaverdi 18 4 4 2 4 2 4 2 1 2 1 2 1 13 15 -15,10 19,98

Center -West R/B 4 286 735 819 630 776 680 813 633 935 685 762 633 797 3 994 4 903 14,37 22,76 1 Artashat 95 8 9 6 8 5 8 5 6 5 5 5 6 32 41 -56,34 31,36 2 Vedi 18 2 4 2 5 2 4 2 3 2 2 2 2 12 20 9,28 63,92 3 Masis 1 837 240 324 215 305 235 326 220 317 240 323 220 324 1 370 1 920 4,52 40,14 5 Ararat 17 1 4 1 5 1 4 1 3 1 1 1 1 6 18 5,33 198,43 6 Echmiatsin 678 120 111 108 105 108 108 100 100 108 92 100 116 644 632 -6,82 -1,83 7 Ashtarak 1 232 273 284 220 270 250 281 230 442 250 283 230 294 1 453 1 854 50,52 27,62 8 Aparan 291 71 59 62 55 62 56 59 49 62 43 59 41 375 302 3,82 -19,42 9 Talin 15 2 4 2 5 2 5 2 2 2 1 2 1 12 18 21,78 52,88 10 Artik 19 2 3 2 4 2 4 2 2 2 1 2 1 12 15 -17,73 28,00 11 Ashotsk 85 16 16 12 15 13 16 12 11 13 12 12 12 78 81 -3,88 4,38

South R/B 4 337 663 793 625 757 643 779 620 741 640 734 619 701 3811 4505 3,88 18,23 1 Kapan 60 20 16 10 16 10 14 8 10 8 8 8 4 64 68 13,14 5,62 2 Meghri 45 6 9 5 10 5 6 5 4 4 4 4 3 29 36 -19,44 24,99 3 Goris 13 4 3 3 4 3 4 3 2 3 1 3 1 18 16 22,26 -12,34 4 Sisian 48 7 13 5 11 5 10 4 5 5 3 4 3 31 46 -5,33 48,45 5 Egheghnadzor 8 3 4 2 3 2 1 2 3 2 1 2 1 11 13 74,72 19,64 6 Jermuk 13 2 0 2 0 2 0 2 0 2 0 2 0 12 1 -93,67 -93,33 7 Vayq 8 4 1 4 0 4 0 4 0 4 0 4 0 22 3 -67,73 -87,40 8 Gavar 3 087 450 547 430 523 445 550 430 539 445 537 430 525 2 630 3 222 4,37 22,49 9 Sevan 1 037 163 194 160 183 163 188 158 176 163 178 158 163 965 1 082 4,33 12,13 10 Martuni 12 3 3 2 4 3 3 3 1 3 0 3 0 15 11 -10,55 -30,34 11 Vardenis 7 3 2 2 2 3 2 2 1 2 1 2 1 14 9 31,50 -35,81

Adm. Building 193 45 40 35 41 35 41 35 20 35 28 35 31 220 201 3,92 -8,82 35 Adm. Building 193 45 40 35 41 35 41 35 20 35 28 35 31 220 201 3,92 -8,82 Total 18 673 3 193 3 553 2 794 3 302 2 853 3 373 2 709 3 265 2 787 3 065 2 665 2 974 17 000 19 532 4,6 14,9

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 23

QUARTERLY REPORT

Water Delivered through Pumping and Corresponding Electicity Consumption Table - 5

WATER ELECTRICITY ELECTRICITY DELIVERED SUBSECTORS CONSUMPTION CONSUMPTION N THROUGH PUMPING KWH/m3 KWH/month thous. m3/month

1 2 3 4 5 1 Ashtarak 526,2 1,9 1 008,1 2 Aparan 264,4 0,5 126,0 3 Vayq 11,7 0,2 2,9 4 Echmiadzin 250,6 0,7 168,2 5 Gavar 2 142,2 0,7 1 518,3 6 Sevan 855,4 0,4 384,5 7 Tashir 92,4 0,1 6,0 8 Stepanavan 487,8 0,8 401,8 9 Noyemberyan 180,8 2,4 431,2 10 Spitak 26,1 0,4 11,7 11 Abovyan 3 061,7 0,4 1 278,8 12 Charentsavan 368,3 1,1 392,9 Hrazdan and 13 2310,4 0,7 1 561,3 Tsakhkadzor 14 Ijevan 12,7 0,9 11,4 15 Masis 2 108,2 0,5 955,4 16 Ashotsk 66,1 0,5 31,9 T O T A L 12 765 0,6 8 290

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 24

QUARTERLY REPORT

Diagram – 10

ELECTRICAL CONSUMPTION KWH/m3 1 0,9 0,8 0,7 0,6 0,5 0,4 0,3 0,2 0,1 I Quarter May June July II Quarter El.Energy 0,66 0,70 0,64 0,64 0,66

Diagram – 11

WATER DELIVERED THROUGH PUMPING AND CORRESPONDING ELECTRICITY CONSUMPTION

14 000

12 000

10 000

8 000

6 000

4 000

2 000

- I Quarter May June July II Quarter Water 13 143 4 376 4 243 4 146 12 765 El.Energy 8 657 2 908 2 736 2 647 8 291

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 25

QUARTERLY REPORT

2.1.2 Water meters, loggers

Operation and maintenance of water meters, installation of loggers:

During the 2nd quarter of 2012 the staff of the Water Metering Division was studying the technical conditions of the operating metering devices through field visits and was repairing them where possible.

24 broken water meters were repaired and 5 water meters with impulse output were replaced in the water production systems of the Company with our own means. The process for installation of the loggers for the water production facilities and the water metering equipment is continuous. During the quarter, 31 loggers have been installed.

Installation and regulation works for the loggers Site selection for the installation of main of HATSARAT pumping station bulk flow-meters water meter SHAT JREQ main facility

Logger’s installation process For the precise calculation of the water volume produced by the production facilities preliminary working plan was developed with the relevant time-schedule (site selection for the installation of measuring devices, manholes and water metering devices, procurement of pointer equipments, etc).

Number of installed water meters in II quarter 2012 Table-6

Branch April May June Total North-West 60 425 424 909 Center-West 295 127 215 637 South 51 137 189 377 Total 406 689 828 1 923

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 26

QUARTERLY REPORT

Water Meters Installation Progress In Service Area Table – 7

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

N SECTORS NAME

installed

condition

Installed in in Installed

requirements requirements requirements requirements requirements requirements requirements

Not in working working in Not

reporting quart reporting

meters installed meters meters installed meters installed meters installed meters installed meters installed meters

reporting month reporting 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 18 308 34 2 686 21 132 2 197 3 930 7 67 131 704 5 330 25 885 253 381 71

2 Charencavan 0 9 178 18 1 615 9 086 1 062 3 111 11 64 106 371 2 972 12 659 - 8 54 33

3 Hrazdan 1 10 339 0 3 822 13 255 1 928 3 504 13 89 96 654 6 199 17 512 139 55 38

4 Dilijan 2 9 97 1 1 336 2 210 1 208 2 108 14 47 30 156 2 687 4 531 8 29 28

5 Ijevan 0 14 177 0 1 444 4 262 454 3 729 6 58 19 325 2 100 8 388 - 18 94 58

6 Stepanavan 1 48 148 34 991 4 081 2 411 8 320 6 104 61 403 3 618 12 990 - 82 41 81

7 Alaverdi 3 40 246 0 1 334 6 855 1 946 6 089 7 99 28 259 3 564 13 342 132 255 32 Total 8 148 1 493 87 13 228 60 881 11 206 30 791 64 528 471 2 872 26 470 95 307 424 909 341 CENTER WEST

1 Artashat 0 79 123 0 821 5 286 6 701 13 855 29 139 96 369 7 770 19 728 75 119 149

2 Vedi 0 28 159 0 905 5 530 4 957 7 793 31 80 95 344 6 147 13 775 - 13 20 208

3 Echmiadzin 0 85 247 0 520 9 080 7 613 12 242 47 108 55 713 8 482 22 228 64 190 247

4 Masis 14 17 69 0 521 4 096 2 837 8 077 18 71 30 523 3 489 12 784 3 38 103

5 Ashtarak 3 58 209 0 793 4 365 6 740 7 427 37 96 55 409 7 837 12 355 40 127 54

6 Artik 9 63 257 0 1 735 3 814 7 810 5 621 49 122 76 368 9 936 9 988 46 143 57 Total 26 330 1 064 0 5 295 32 171 36 658 55 015 211 616 407 2 726 43 661 90 858 215 637 818 SOUTH 1 Goris 0 13 154 0 434 3 143 790 4 163 18 73 46 224 1 442 7 616 4 30 30

2 Eghegnadzor 0 17 124 1 926 5 841 614 3 315 0 105 19 572 1 683 9 851 42 83 47

3 Sisian 1 13 97 188 3 766 253 1 953 2 73 8 260 549 6 065 34 39 20

4 Kapan 3 17 339 1 1 390 16 093 1 418 2 664 12 127 109 1 020 3 271 19 922 36 98 35

5 Gavar 11 46 120 28 2 006 2 915 9 784 8 713 58 132 144 375 12 123 12 209 58 86 123

6 Sevan 0 16 134 12 1 195 6 531 440 2 516 14 66 49 435 1 832 9 576 15 41 121 Total 15 122 968 42 6 139 38 289 13 299 23 324 104 576 375 2 886 20 900 65 239 189 377 376

MAIN TOTAL 49 600 3 525 129 24 662 131 341 61 163 109 130 379 1 720 1 253 8 484 91 031 251 404 828 1 923 1 535

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 meter is calculated based on the number of customers, applying the k-1.2 index. Diagram - 12

N U M B E R O F W A T E R M E T E R

1000 900 800 700 600 500 400 300 200 100 0 I quarter May June July II quarter North-West 486 60 425 424 909 Center-West 684 295 127 215 637 South 55 51 137 189 377

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 27

QUARTERLY REPORT

2.2 Water Distribution

Activities of Distribution Department were planned to be organized more effective during the II Quarter of 2012 due to typical water supply problems of summer period, it was necessary to ensure not only continuous water supply but also to carry out activities aimed at detection of water losses and reduction of illegal connections. For this reason activities were implemented in Gavar, Sevan, Masis, Ashatark, Hrazdan, Goris and Artashat towns.

After the corresponding assignment the technical operation works of Dzknget-Sevan pipeline was taken under the control by the Distribution Department. A number of activities directed at restoration, detection of water losses were implemented. As a result of testing the water volume of Dzknget sources was supplied to Sevan town, however, the pipeline will be finally operated after the cleaning and disinfection works.

Restoration in DZKNGET-SEVAN facility

The division has implemented daily supervision of water reservoirs of the service area of the Company, equipped with electronic level transmitters, DRRs operation schedules are developed and together with the Sectors regulated water supply is implemented.

Every day through internet schedules, received on the basis of readings of level transmitters and loggers, installed on the water production units, are reviewed and analysis are implemented. Distribution Department underlines equal distribution of water volume in the distribution networks, which is the result for strictly following the foreseen schedules.

During the II Quarter, together with the monthly reports, received from the Branches, all the damages sheets are checked, in the result of which defined damages are partially repaired by the Branches and the work productivity is increased.

In the distribution network the following repairing works were implemented: 2 268 damages repairing, registration of 298 linear and partial repairing, 51 reinforcements. Average water supply duration during the II Quarter was equal to 15.28 hours, which comparing with the same period of the last year increased for about 0.05 hour.

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 28

QUARTERLY REPORT

Detected damages in HASTARAT-LCHASHEN facility

AWSC service time schedules were edited and published in April in compliance with RA Public services regulatory commission N62N Decree requirements from 01.07.2004.

The data received on water schedule interruptions, written complaints and the feedbacks, the customers’ phone calls of the II quarter were submitted to RA Public services regulatory committee.

Water loss detection During the II Quarter Water losses detection division implemented a number of activities, particularly the works on pipelines in Ararat, Artashat, Masis, Sevan sectors as well as on Garni-Eraskh, Araratyan1/2-Masis, Dzknget-Sevan, Hatsarat-Lchashen water supply facilitates as a result of which huge number of illegal pipes and water losses was detected. The reports on illegal connections submitted by the branches were summarized.

Center-West Regional Branch 116 North-West Regional Branch 126 South Regional Branch 129 AWSC T o t a l 371

The above mentioned activities had its positive results both in the reduction of water losses and organizing of continuous water supply.

Illegal connections in HATSARAT- LCHASHEN

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 29

QUARTERLY REPORT

Operation and Maintenance of Water Transmission and Distribution Systems Table – 8, Diagram-13

NUMBER OF BREAK-DOWNS NUMBER OF LIQUIDATED BREAK-DOWNS

NETWORK PARTLY NETWORK LINEAR

ARMATURE REPAIRED ILLEGAL MAIN TOTAL REPAIRED REPAIRED

DOWNS NOT NOT DOWNS

WATER WATER

- WATER TRANSMISSION WATER DISTRIBUTION

SYSTEMS SYSTEMS

REPAIRED ARMATURE TOTAL INSPECTION SYSTEM SYSTEM

WATER WATER

TOTAL

SYSTEM SYSTEM

TRANSMISSION TRANSMISSION

AND DISTRIBUTION AND DISTRIBUTION ARMATURE

DISTRIBUTION

BREAK

TRANSMISSON

) )

) ) ) )

AMD AMD AMD AMD Materi Total pc pc pc km pc pc pc pc pc pc pc pc pc pc

us.

cost cost cost cost cost cost cost cost

aterial aterial aterial aterial aterial aterial aterial aterial

Total Total Total Total Total

NAME OF REGIONAL BRANCH REGIONAL OF NAME

Total Total Total Total Total AMD) AMD) AMD) AMD) AMD) AMD) AMD) AMD) AMD) al cost cost

M M M M M M M

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

thous. AMD)thous.

thous. AMD thous. AMD thous.

(thous. (thous. (thous. (tho

(

( (

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 CENTER 20 64 337 40 1637 3940 0 0 0 0 0 200 752 27 729 25 781 0 28 357 836 729 2099 11880 25 188 1293 781 2644 14009 4345 19038 WEST

SOUTH 22 535,8 966,4 57 2140,4 3261,8 28 1608,6 1897,5 9 1 15 0 83 701 0 784 0 68 252,6 1788 716 1568 9134 0 0 0 784 1820,5 10922 6105,3 17049

NORTH 52 146,9 766,3 107 3103,6 5860,4 23 167,1 751 7 13,9 94 239,5 73 628 2 703 0 73 145 1295 628 1019 7781 2 0 10,8 703 1164,3 9086,6 4581,9 16718 WEST

TOTAL 94 746,7 2069,7 204 6881 13062 51 1775,7 2648,5 16 14,9 309 991,5 183 2058 27 2268 0 169 754,6 3919 2073 4686 28795 27 188 1304 2268 5628,8 34018 15032 52805

CUMU-LATIVE 193 1229 4041,1 360 11545 21803 112 3429,7 6015,6 16 14,9 331 1132 332 3951 45 4328 0 318 1324 6564 3966 9539 55238 45 449,5 1904 4328 11313 63706 27517 96713

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

NUMBER OF REPAIRED BREAK DOWNS ARMATURES AND WATER TRANSMISSION & DISTRIBUTIONS 1 400 1 200 1 000 800 600 400 200 0 I Quarter April May June II Quarter North-West 822 337 319 323 979 Center-West 790 294 389 358 1 041 South 764 337 310 258 905

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 30

QUARTERLY REPORT

NETWORK ANALYSIS TABLE – 9

WATER TRANSMISSION AND DISTRIBUTION SYSTEMS

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

1 2 3 4 5 6 7 1 CENTER-WEST 1 025 1 462 2 487 47 0,11 2 SOUTH 844 977 1 821 63 0,12 3 NORTH-WEST 785 1 232 2 016 61 0,10 T O T A L 2 654 3 671 6 324 56 0,11

DIAGRAMS – 14,15

MUMBER OF BREAK-DOWNS ON I KM WATER PIPE 0,45 0,40 0,35 0,30 0,25 0,20 0,15 0,10 0,05 0,00 I Quarter April May June II Quarter North-West 0,32 0,14 0,11 0,16 0,41 Center-West 0,29 0,10 0,11 0,10 0,31 South 0,38 0,16 0,14 0,12 0,42

WATER LOSSES - M3/DAY*KM 80 70 60 50 40 30 20 10 0 I Quarter April May June II Quarter North-West 56 62 62 61 62 Center-West 45 47 47 47 47 South 42 67 63 63 64

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 31

QUARTERLY REPORT

2.3 Wastewater

During the reporting quarter, 58.14 km of sewers and 129 manholes were cleaned, 75 (1 084 m) sewers and 56 manholes were repaired and 1 325 blockages were eliminated using the current operation expenses and without additional investments.

In the reporting quarter, as a result of the cooperation of the Head Office Wastewater Department and Regional Branches of the Company, repair and cleaning works of the sewerage collectors and installation and fitting of WTP (HUBER) equipments of sewer networks of Spitak, Jermuk, and Martuni towns have been implemented as well as steps are taken for the improvement of the issues on the polluted environment.

1. A large blockage happened in the sewer located on K11 district of Spitak town, the pipeline was filled with soil which resulted in the whole street being flooded with sewerage, which created an anti- sanitary situation. With joint efforts of the Wastewater Department, “North- West” regional branch and “Spitak” sector the above mentioned problem was solved, numerous activities were carried out in the result of which sewer pipeline of 120m PVC d=200mm was replaced as well as 3 new manholes were constructed. As a result the normal operation of the sewerage system was restored and

anti-sanitary situation was SPITAK town, K11 district eliminated. During the damage After the damage

2. During the installation and fitting of “HUBER” equipments in the newly constructing WTP of Martuni town in the scope of “Sevan Lake Environmental Project”.

MARTUNI town WTP area

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 32

QUARTERLY REPORT

3. A big damage happened in the sewerage collector constructed parallel to “Kectcut” reservoir of Jermuk town as well as damages were detected in the result of which the wastewater flowed to reservoir.

With joint efforts of the Wastewater Department, “South” regional branch and “Jermuk” subsector the above mentioned damages were eliminated, 9 manholes were installed and cracks of inverted siphon were welded as a result of which the wastewater flow to Ketchut reservoir was stopped and its normal operation was

restored. JERMUK town, near the chamber

During damage After the damage

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 33

QUARTERLY REPORT

MAINTENANCE OF WASTEWATER COLLECTION SYSTEMS TABLE-10

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

Name of

Regional

Branch

n of Head

km km km l/m Unit Unit n of HO

N -

Unit Unit

AMD) AMD)

materials materials

Total cost

Other costs Other costs

cons

(thous. AMD) (thous. AMD) (thous. AMD) (thous. AMD) (thous. AMD) (thous. AMD) (thous. AMD)

of HOof reserve HOof reserve

Total fuel costTotal fuel costTotal fuel costTotal fuel costTotal fuel costTotal fuel costTotal fuel

Total consum

Total other costs reserve materials

Total fuel costTotal fuel and

Total consumption

Other costs (thous. Other costs (thous.

Office reserve Office mat

Total cons

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 North- 1 26 1000,3 0,1 25,9 14 218 488,8 256,9 1107,4 22 169,3 156,8 2128,2 0 0 0 622 0 3340,3 658,1 4754,3 3235,6 7989,9 8648 West Center- 2 20,5 548,2 2,9 17,6 15 185,3 138,7 158,9 1349,1 7 39,2 86,6 346,6 9 5,7 35,4 379 5,2 1527,9 188,8 2357 1695,7 4052,7 4241,5 West

3 South 11,642 2367,6 1,12 10,522 46 681 355,5 832,7 1528,1 27 607 406,3 346,6 120 0 206,11 324 0 369,2 962,5 4181,91 1874,7 6056,61 7019,11

TOTAL 58,142 3916,1 4,12 54,022 75 1084,3 983 1248,5 3984,6 56 815,5 649,7 2821,4 129 5,7 241,51 1325 5,2 5237,4 1809,4 11293,21 6806 18099,21 19908,61

D I A G R A M – 16 D I A G R A M – 17

MAINS CLEANED / km / NUMBER OF REMOVAL OF OBSTRUCTIONS, MAINS AND MANHOLES REPAIRED

30,00 700 25,00 600 20,00 500 400 15,00 300 10,00 200 5,00 100

0,00 0 I Quarter April May June I Quarter I Quarter April May June II Quarter North-West 25,45 7,70 9,70 8,60 26,00 North-West 558 196 232 230 658 Center-West 0 1,20 6,70 12,60 20,50 Center-West 495 148 143 119 410 South 10,49 3,92 3,74 3,98 11,64 South 565 176 163 178 517

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 34

QUARTERLY REPORT 2.2 Water Distribution

NETWORK ANALYSIS TABLE -11

WASTEWATER COLLECTION SYSTEM Number of Wastewater Cleaned # REGIONS Collectors Total Obstructions System Network km km Collection km % piece/ km 1 2 8 9 10 11 12 1 NORTH-WEST 160,6 830,8 991,4 0,66 2,62 2 CENTER-WEST 67,5 430,3 497,8 0,82 4,12 3 SOUTH 90,9 521,1 612,0 0,84 1,90 TOTAL 319,0 1 782,2 2 101,2 0,75 2,77

DIAGRAMS – 18,19

NUMBER OF OBSTRUCTIONS IN KM 1,4

1,2

0,8

0,6

0,4

0,2

0 I Quarter April May June II Quarter North-West 0,56 0,2 0,23 0,23 0,66 Center-West 0,99 0,3 0,29 0,24 0,83 South 0,92 0,29 0,27 0,29 0,85

LENGTH OF CLEANED WASTE WATER PIPELINE % 4,5 4 3,5 3 2,5 2 1,5 1 0,5 0 I Quarter February March June I Quarter North-West 2,56 0,78 0,98 0,87 2,63 Center-West 0 0,24 1,35 2,53 4,12 South 1,71 0,64 0,61 0,65 1,9

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 2012 35

QUARTERLY REPORT

2.4 Special Works

During the II quarter of 2012 the Special Works Department of the Exploitation Directorate has carried out works for studying non-working floating valves installed DRR as well as eliminating the water losses. Particularly in DRRs of Surenavan, Eraskhavan and Ujan floating valves were replaced and reinstalled by reinforcing with additional polystyrene layers and filling with polymeric substance as well as the pushing pressure of the floats was added and now the valves are properly operating.

Installation of floating valves of SURENAVAN DRR

Assembly of reagents facility of BERD WTP

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 2012 36

QUARTERLY REPORT

The Department has studied and is dealing with the operation and installation issues of the reagent facilities.

The priority has been the installation of the reagent facility in Berd WTP, as well as the calculation and submission of the applications for purchase of the materials needed for the installation, based on the local and positional specifics of the given WTP.

As a result of the corresponding written communications, the unclear issues were clarified with “SEBA” Company with regard to the permission to carry out the necessary modifications. During the reporting quarter the Special Works Department was also busy with elimination of water losses in clarifiers of Kapan “ Geghi” and Agarak WTPs.

Kapan “Geghi” WTP -injection

Inventory works were also carried in warehouse of “Geghi” WTP as well as in non-operating facilitates and devices. Polymeric injections were done in Stepanavan and Tsakhadzor Writers Union DRRs.

DRR of TSAKHADZOR Writers Union

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 37

QUARTERLY REPORT

3.TECHNICAL DIRECTORATE

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 2012 38

QUARTERLY REPORT

In the II quarter of 2012 the Technical Department implemented the following activities:

. Technical investigations, design

. The control of capital works

. The mapping of technical systems

3.1 Technical investigation and design

The construction quality investigations of the new pipe line constructed on the spot of the changed parts of the main pipe line concerned with the building of the “North-South” way and the participation in disinfection activities and the hand-over receiving of the first part of the water main.

The investigation of “Kosh” pumping station area where instead of Ashtarak “Aghdzq reservoir new reservoir of 500m2 is to be built, the compilation of new technical order and its submission to the RA Ministry of Transportation and Communication.

The conduction of negotiations with the Armenian branch of “Fund for Armenian Relief of America”, in accordance with the required standards the compilation and submission of suggestions for the improvement of water supply in rural areas.

Geodetic extractions were implemented for the reconstruction of sewer networks of certain districts and streets of Sevan, Gavar, Martuni, Vardenis cities of RA Gegharkunik Marz and based on them a hydraulic calculation, the planning of reconstructing parts and longitudinal sections were compiled and submitted, including:

Sevan 1.5 km Gavar 4.0 km Martuni 3,8 km Vardenis 3,5 km

The compilation and submission of required technical information about the activity of small hydropower plants installed in “Kamenka-Vanadzor” water main and the participation in the judicial processes together with the company’s Legal Department.

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 39

QUARTERLY REPORT

Pursuant to the Decree N0 50-A, on 5 April 2012 by the State Committee of Water Economy under the RA Ministry of Territorial Administration the AWSC plan for population defense and providing of drinking water in case of strong earthquake was developed and approved by the General director.

The technical state investigation of “Hovdara” water supply facilities and water mains of Tashir city and rural communities were implemented together with design and project implementation department.

During the pre-election tours of the RA National Assembly the Department studied and organized discussions in the interested communities for the applications about water and wastewater supply and introduced proposals for the improvement of the situation. Water loss of “HOVDARA” water main system

The capitation constructions of Eghengnadzor “Vostan” water source were investigated and proposals were introduced for constructing small hydropower plant, the protection of the sanitary zone of water sources, complex technical solutions for passing the pipe lines of the hydropower plants through the surrounding area. The adequate justifications were submitted to design, client and construction organizations of hydropower plant. The damaged parts of Eghegnadzor “VOSTAN” water source and pipe line

The compilation of the draft changes of the Decree N 1110-N on 17 August 2003 by the RA government about the delay of the environmental protection fees in case of the absence of Sewage Treatment plants prior to their construction and operation, and the discussion and justification of the project in the RA Ministry of Environmental Protection.

The department observed and submitted proposals about the technical state of delivering certain water quantity from the capitation of Maqravan 3rd group water sources to “Maqravan-2” pumping station intakes.

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 40

QUARTERLY REPORT

The observation of the technical state of the capitation constructions of Sevan “Dzknget” water sources and main pipe lines together with exploitation specialists.

For extending the authorization for the water system operation by the Company, the Department compiled the package of documents required by the RA legislation and submitted it to the RA Public Service Regulatory Commission.

“DZKNGET” capitation area

The technical conditions were developed for the following entities:

. For the industrial needs of “Lichvaz-Tey” gold mine in the city Meghri of the RA Syuniq Marz

 For providing water supply to the own constructions of the “A and M Rare” LLC in Artvaz community of the RA Kotayq Marz.

The capital expenses and investment project drafts were developed which are intended to be done by the means of the State budget of 2013 which was afterwards submitted to the company’s Administrative Directorate.

The preliminary projects were studied and discussed with the consulting organizations for the water supply improvement of Masis and surrounding 6 rural communities foreseen by the 3rd loan investment project of the WB and the list of activities intended to be done in the working draft was defined. The measuring of N5 and N3 wastewater pumping station areas of Sevan city was done for checking the sanitary zones, as well for the renovation of the area and the necessary working volume was developed for the repair of the roof of power station of pumping station.

The Department studied and discussed with the consulting organization the following:

 The preliminary projects for the water supply improvement of Abovyan and Byureghavan cities foreseen by European Bank for Reconstruction and Development the list of activities intended to be done in the working draft was defined.

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 41

QUARTERLY REPORT

3.2 Capital Activities Implementation

In the II quarter The Capital Works implemented the following activities:

Based on the initial application received from regional branches the approving application were developed and submitted for capital works implementation.

Current Reconstruction Activities.

Based on the initial application received from regional branches the approving application were developed and submitted for capital works implementation.

“SOUTH” R/B

 The reconstruction of the pipe line of A. Melikyan street,Vayq  The reconstruction of the pipe line of Proshyan street, Martuni

The complete list of capital works and their technical parameters.

“SOUTH” R/B

 The construction of de=50mm polyethylene pipe lines of 700m length for customer- residents in Jermuk highway of Vayq city.

 The construction of de=40mm polyethylene pipe lines of 250m length in G. Ziroyan street of Martuni city.

“NORTH-WEST ” R/B

 The reconstruction of decomposed parts of “Alaverdi-Archis” water main situated in the surrounding area of Akhtala bridge of the RA Lori Marz by means of D273mm steel pipes of 520m length.

The damaged part of “ALAVERDI-ARCHIS” water main of the RA Lori Marz

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 42

QUARTERLY REPORT

“CENTER-WEST” R/B

 The pipe line reconstruction of Arbat community of the RA Ararat Marz by de=63mm polyethylene pipe lines of 870m length.

 The pipe line reconstruction of Dashtavan community of the RA Ararat Marz by de=63mm polyethylene pipe lines of 600m length

The pipe line construction of ARBAT community of the RA Ararat Marz

The performance packages of the final activities based on the initial application received from regional branches was observed and after the checking by Technical Department it was delivered to the Cost Control and Internal Audit Department.

The following checkups and quality control has been done.

 The Capital works implemented by received application

 The Renovation of AWSC potable water reservoirs, sanitary zones of pumping stations, garbage and mowing activities according to the contract N98/ , 17.05.1

 The partial internal repair works in the pumping stations and treatment plants according to the Contract N 98/Ծ, 17.05.11 and Contract Amendment N 2, including:

Aparan Eznak PS partial repair Sevan Lchashen PS partial repair Sevan Gomadzor PS partial repair Gavar Hacarat PS partial repair

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 43

QUARTERLY REPORT

Supervision of the work quality carried out for the repair of the AWSC Head Office 6th floor in accordance with the Contract AWSC 12-17 (N62/ ) 10.04.12, Contract AWSC 12-16 N 65/ , 11.04.12.

The quality control over capital works for water supply improvement of Ddmashen community of the RA Gegharkunik Marz and for the construction of de=160mm 1300m and de=90mm 100m poliethyelene pipes together with the community.

Together with Design Division the investigations were implemented for wastewater systems reconstruction of Sevan, Gavar, Martuni, Vardenis cities of the RA Gegharkunik Marz and the parts for reconstruction were measured.

Measurment in VARDENIS Measurment in SEVAN

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 44

QUARTERLY REPORT

3.3 Mapping of Technical Systems

Mapping Division has implemented a presentation with GIS soft on for some structural departments of AWSC, which are:

Human Resources Department, Billing and collection Department, Asset Control Division.

According to mapping program, presented by the Company, geo-information (GIS) activities with MapInfо Professional program are ongoing. With the purpose of establishment of GIS system for the perimeter of the Company, activities were implemented by the corresponding specialists of the Company on organization of a database on technical characteristics of W&W systems of the settlements.

During the II quarter of 2012 the following activities were implemented:

 Tsaghkadzor town final mapping activities have been accomplished. Ijevan and Charentsavan towns draft mappings are also accomplished, which will be finalized during the III quarter.

 Together with the production Department locations of water mains, reservoirs, CHs and PSs were identified. Corrections were done and RA water supply maps were brought to possible final shapes.

 Berd and Byureghavan towns maps development activities have been started, which are planned to be accomplished during the next quarter.

 Together with distribution Department the water distribution and regulation schemes of separate districts were imported on the map.

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 45

QUARTERLY REPORT

G O R I S

Activities implemented in the frame of I and II loan investment projects on Goris town W&W systems improvement, imported on the map with AutoCad program

K A P A N

Activities implemented in Kapan town with the investment of the ADB: R. Melikyan, Charents, Tumanyan, Azatamartikner and other streets, imported on the map with AutoCad program

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 46

QUARTERLY REPORT

Drawings of Sisian town W&W systems improvement activities, imported on the map with AutoCad program

S I S I A N

During the quarter mapping activities were implemented also for different other divisions of the Company, according to the assignments.

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 47

QUARTERLY REPORT

3.4 Management of Company’s Assets

A contract was signed with “Mets Masreni” LLC for the implementation of M1:2000 scale surveying works for “Kamenka-Vanadzor” water supply system for submitting it to the Armenian State Committee of Real Estate Cadastre.

Two new deep wells which were constructed in Noyemberyan area by the investments of Asian Development Bank have been measured with the surrounded land.

The inventory activities of pumps, electric motors, transformers of AWSC 3 regional branches are in the process. “KAMENKA-VANADZOR” water supply systems

The preparatory works for writing off the assets of AWSC head office and 3 regional branches which have zero value and are physically and morally worn-out are being implemented.

The works for the development of the auction procedure for the written off fixed assets are being implemented.

The State Committee of Water Economy under the RA Ministry of Territorial Administration was applied for dismantling and writing off from balance the broken valves and water meter regulating units which are situating in the Maqravan-2 pumping station area of the city Hrazdan.

An accounting of the water metering chambers present in the AWSC 3 Regional Branches has been implemented.

The decommissioned property present in the Head Office of “Armenian Water and Sewerage” CJSC, which is not subject to future use, has been transported to the Abovyan warehouse of the AWSC “North-West” Regional branch.

A corresponding documentation and registration of the internal moves of the property among the employees of the Head Office have been carried out.

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 48

QUARTERLY REPORT

MAQRAVAN-2 pumping station

3.5 Community assets registration

The Signing of Free Use Contracts with the Communities

The schedule for the signing of free use contracts with communities included in the AWSC service area has been developed, following the necessity for signing free use contracts with communities. With this regard a letter has been sent to The State Committee of Water Economy.

The analysis was done based on the lists of the communities included in 3 regional branches. The lists received from the regional branches were

compared with the one submitted by the Commercial Directorate. As a result of the comparison the additional list had been compiled joint with the Technical Department which was afterwards submitted to the RA Public

Service Regulatory Commission for the

registration of the new communities. GAVAR city

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 49

QUARTERLY REPORT

Following the necessity of signing free use contracts with the communities and registering them in RA Cadastre as well as paying state fees associated with activities the financial reference was compiled for submitting it in the budget of 2013 which was based on the lists of the communities included in 3 regional branches. The reference contains information about the values of the contracts signed with each community according to sectors and regional branches.

Hand over-Accept of Assets

Discussions were organized regarding the letter N31 received on 05.04.12 from the Bankruptcy Manager of “Water and Sewerage” CJSC Mr. G. Avagyan for solving the issue concerned with the sewerage collector repairing of the left bank of Dilijan Aghstev river with the help of loan investments of European Bank of Reconstruction and Development and the issues of the non exploitation parts of the main collector by “Fichtner” Company and its future operation by “Armenian Water and Sewerage” CJSC.

The Asset Hand Over to “Water and Sewerage” The Asset Hand Over to “Water and Sewerage” CJSC from STEPANAVAN sector. CJSC from TASHIR sector.

The Reassessment of Fixed Assets

The reassessment activities of the water pipelines registered in the balances of the three Regional Branches are being continued. The reassessment will be done for the residual value by the sectors and sub-sectors.

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QUARTERLY REPORT

Summary and Planning for the Next Quarter

1. Ensure the process for signing the free use contracts in accordance with the time-schedule

2. Carry out preparatory works for the registration of servitudes for the water pipelines, which are registered in the balances of the Regional Branches of “Armenian Water and Sewerage” CJSC.

3. Do the analysis based on the inventory results of the fixed assets of AWSC 3 regional branches and to implement preparatory works for the reassessment

4. Continue finding solutions for the issue of the fixed assets, in cooperation with the State Committee of Water Economy, which have been transferred to “Water and Sewerage” CJSC but are still operated by “Armenian Water and Sewerage” CJSC.

3.6 Company’s services 3.6.1 Procurment

Table – 12

PROCUREMENT AMMOUNT, AMD

66 985 319 1.Car services, petrol diesel and gas 134 495 2. Pipes, fittings, valves and other

0 3. Water chlorination

4. Office supply, IT and cellular phones 7 249 209

5. Safety devices 9 637 060

6. Equipment for works 9 683 276

16 279 642 7. Other works/ goods

0 8. Echmiatsin Training Center

3 599 385 9. Laboratories

1 970 980 10. Publications and TV broadcasting.

115 539 366 TOTAL ALLOCATED

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3.6.2 Transport

 Gas filling system: In I quarter the transport facilities equipped with gas bottle systems and operating with natural gas have saved around AMD 3 000 000 /three million/ due to the differences of the natural gas and petrol prices.

 Technical Maintenance: The Transportation Division regularly organizes and implements the repairing activities of those vehicles of regional branches in Yerevan which have on-site repairing difficulties.

 Technical Inspection-2012: The Transportation Division organized and implemented the annual technical inspection of vehicles.

The Technical Service of The Technical Service of NEW HOLLAND excavator VAZ 2121 car

 Certification of gas bottles: The Transportation Division organized and implemented works for certification of the gas bottles for the vehicles equipped with more than one gas bottle.

The repairing of VAZ 2121 broken car The certification of gas bottles of UAZ car

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3.7 Water Quality

In the II quarter of 2012 water quality laboratories defined generalized indicators and made physico-chemical examinations of around 293 samples taken from production unites, bacteriological examination of around 4 284 samples taken from production units, daily regulating reservoirs (DRR) and distribution networks and defined almost 20 155 residual chlorine samples up to the distribution network and in distribution networks.

Deviations from the bacteriological indicators were equal to 1.4%.

The NOYEMBERYAN Laboratory of “South-West“ r/b

According to the annual schedule of examinations defined by the regional general sanitary doctors of the National Hygiene and Anti-Epidemiological Surveillance Inspectorate under the Ministry of Health, the disinfection of the company’s Daily regulating reservoirs (DRR) was partially done during the II quarter and it is still in the process.

During the II quarter, the examinations of water quality were done for the improvement of number of functions. The consultations were held with the heads of The computer and internet installation laboratories and meetings and discussions were activities were finished due to which all organized with the staff. 20 laboratories have internet access and are in continuous connections with the help of internal network.

The GORIS Laboratory of “South” r/b ECHMIADZIN central laboratory of “Center West” r/b

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In order to strengthen the control and coordination over the production activity of water quality the Water Quality Division was expanded and reorganized into the Water Quality Department. For making the water quality information transparent and legal for the customers the newly established department take the initiative and made an agreement with the “National Institute of Metrology” CJSC together with the company and according to the RA law on “The unification of measurements” AL-22-N, 24.03.2012 voluntarily measured the devices of 4 regional laboratories. The measurement activities are supposed to be over up to the III quarter.

The Water Quality Department organized an “Open Sampling” auction taking into consideration the constant complaints receiving from the customers of Masis city, the RA Ararat Marz. According to the above mentioned on 19, June the staff of the laboratories of South- West regional branch and Masis sector examined water quality. The auction was held with Sahak Khachatryan, the leading specialist of communal issues of Masis municipality.

The tap water quality examination of the building N10 nearby Masis Kayaran district

The water quality examinations were held in more problematic areas. Among them are city Masis Nor district, drinking fountain of N36 building, app 1 of N36 building, app 50 of N35 building of the same district, house 86a of the 3rd district, tap water of the building N10 nearby Masis Kayaran district, house 43 of 5th street, the center tap of Zorak community.

By the field equipment the residual chlorine was detected and the samples taken for phsyco-chemical and bacteriological examinations were taken to laboratories with refrigerator bags for further analysis.

The results of water quality examinations of the mentioned addresses and the professional conclusions were provided to Masis municipality.

Residual chlorine detection on site

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The results of the potable water quality examinations were presented in the 13-16 tables.

Water quality analysis at water intake points (underground and surface sources) Table – 13

Microbiological analyses

Number of Number of

Water intake N Number of planned deviations (Spring, WTP, PS) planned samples among the

analyses analyses

including

Number of generalized samples actually actually taken

physicochemical

Number of customer taken samples 1 2 3 4 5 6 7 “North-West” Regional Branch 1 Makravan 4 12 296 2 1 1 1 2 Aramus 2 059 1 1 1 1 3 Akunq 187 3 3 3 1 4 Bujakan 377 1 1 1 1 5 Nurnus 2 364 2 4 4 4 6 Alapars 2 700 1 1 1 1 7 Solak 345 1 1 1 1 8 Gyumush 521 1 1 1 0 9 Fantan 137 1 1 1 1 10 Makravan 2 5 847 2 1 1 1 11 Makravan 3 2 500 2 1 1 1 12 Tegenis 72 1 1 1 1 13 Ulashik 1 1 1 1 1 14 Dilijan water intake 3 136 13 13 13 13 15 Ijevan water intake 3 344 15 8 7 7 16 Azatamut (not serviced) 0 0 0 0 0 17 Berd water intake 1 744 6 4 4 2 18 Lori-Berd, Agarak 6 184 2 2 2 2 19 Ayrum (back up) 0 1 1 1 1 20 Berdavan 1 599 1 1 1 1 21 Noyemberyan water intake 50 3 4 3 3 22 Shirakamut, Jrashen 2 369 2 2 2 0 23 Chakhkali 800 1 1 1 0 24 Ghazanchi 200 1 1 1 1 25 Spitak bore hole N. 1 50 1 1 1 0 26 Spitak bore hole N .2 50 0 1 1 0

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Microbiological analyses

Number of Number of

Water intake N Number of planned deviations (Spring, WTP, PS) planned samples among the

analyses analyses

including

Number of generalized samples actually actually taken

physicochemical

Number of customer taken samples 1 2 3 4 5 6 7 27 Gjulidar 200 2 1 1 1 28 Getavan 334 2 1 1 1 29 Novoseltsovo 3 177 1 1 1 1 30 Katnakhbyur 500 2 1 1 1 31 Sevaberd 7 2 1 1 1 Total 53 150 74 62 60 50 “Center-West” Regional Branch

1 Garni 26 398 1 1 1 0 2 Bazmagbyur 10 933 1 1 1 0 3 Ghazaravan 9 475 1 1 1 0 4 Artamet 2 1 1 1 0 5 Kozdashen 2 1 1 1 0 6 Araratyan 8 889 2 1 1 0 7 Jermanis 1 860 2 1 1 0 8 Artashavan, Sagmusavan, Artak 2 407 3 3 3 1 9 Wosketas 3 1 1 1 1 10 Karbi 3 000 1 1 1 0 11 Eznak 1 110 1 1 1 0 12 Ortachi 205 1 1 1 1 13 Geghadzor 780 1 1 1 1 14 Mantash water source 3 127 1 1 1 0 15 Mantash pond 1 854 3 3 3 1 16 Katnakhbyur, N809 1 072 1 1 1 1 17 Zovasar, Jinj Akner 104 2 2 2 2 18 Dagdzutner 552 1 1 1 0 19 Sari 64 1 1 1 0 20 Gazanchi 158 1 1 1 0 21 Bavra 87 1 1 1 0 22 Lusagbyur 116 1 1 1 0 23 Gharaghachi 95 1 1 1 0 Total 72 293 30 28 28 8

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Microbiological analyses

Number of Number of

Water intake N Number of planned deviations (Spring, WTP, PS) planned samples among the

analyses analyses

including

Number of generalized samples actually actually taken

physicochemical

Number of customer taken samples 1 2 3 4 5 6 7 “South” Regional Branch 1 Shaqe 3 099 1 1 1 0 2 Zor-Zor 1 0 0 0 0 3 Mukhuturyan 998 1 1 1 1 4 Mukhuturyan, Akner 5 102 1 1 1 1 5 Geghi WTP 7 846 4 4 4 3 6 Surin Kap, Jrakhor 500 1 1 1 1 7 Vachagan WTP 25 3 3 3 3 8 Chanakhchi WTP 170 3 3 3 3 9 Agarak WTP 1 174 3 3 3 2 10 Setenc 300 1 1 1 0 11 Meghri WTP 838 3 3 3 3 12 Egheghnadzor 2 509 3 3 3 2 13 Bazmagbyur 1 252 1 1 1 1 14 Mets Aghbyur 465 1 1 1 1 15 Jrasar 1 118 1 1 1 0 16 Dzknget (not serviced) 0 0 1 1 1 17 Lchashen 4 343 0 1 1 0 18 Hatsarat 5 197 0 1 1 0 19 Kaleri 100 0 1 1 0 20 Sarukhan 1 148 0 1 1 0 21 Gandzak 541 0 1 1 0 22 Chambarak water intake 660 0 2 2 2 23 Tsakqar 1 348 0 1 1 0 24 Hopoyi Var 550 0 1 1 1 25 Akunq 600 0 1 1 1 26 St.Vardan 350 0 1 1 1 27 Akner 650 0 1 1 1 28 Shatjreq 722 0 1 1 1 Total 41 606 27 41 41 29

Grand Total 167 049 131 131 129 87

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Analysis of water taken from the pressure point, before the distribution network Table – 14

Microbiological analyses

Number of Number of deviations Number of % of deviations N Sectors planned among the planned among the actually

analyses

customer samples actually

Number of Number of Number generalized generalized samples taken samples actually taken taken

physicochemical physicochemical analyses including including analyses samples 1 2 3 4 5 6 7 8 North-West Region 1 Abovyan 11 076 3 61 61 1 1.6 2 Bjureghavan 2 364 1 12 12 0 0.0 3 Charentsavan 7 252 6 72 72 0 0.0 4 Hrazdan 8 401 1 37 37 0 0.0 5 Tsaghkadzor 313 2 33 33 0 0.0 6 Dilijan 3 136 3 62 62 4 6.5 7 Ijevan 3 344 1 18 18 0 0.0 8 Berd 1 744 3 62 53 0 0.0 9 Alaverdi 6 184 5 60 60 0 0.0 10 Noyemberyan 1 649 2 24 24 0 0.0 11 Stepanavan 2 452 2 24 24 0 0.0 12 Spitak 3 469 1 12 12 0 0.0 13 Tashir 1 766 2 24 24 0 0.0 Total 53 150 32 501 492 5 1.0

Center-West Region 1 Artashat 17 769 244 244 0 0.0 17 769 2 Echmiatsin 17 425 204 204 0 0.0 17 425 3 Masis 8 889 144 144 0 0.0 8 889 4 Vedi 7 280 110 109 0 0.0 7 280 5 Ararat 3 202 28 28 0 0.0 3 202 6 Ashtarak 8 389 84 84 0 0.0 8 389 7 Aparan 2 095 39 39 12 30.8 2 095 8 Arthik 4 976 84 82 14 17.1 4 976 9 Talin 1 160 12 12 1 8.3 1 160 10 Ashotsk 1 072 84 84 0 0.0 1 072 Total 72 257 1 033 1 030 27 2.6

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Microbiological analyses

Number of Number of deviations Number of % of deviations N Sectors planned among the planned among the actually

analyses

customer samples actually

Number of Number of Number generalized generalized samples taken samples actually taken taken

physicochemical physicochemical analyses including including analyses samples 1 2 3 4 5 6 7 8 South Region 1 Sisian 3 345 2 18 18 0 0.0 2 Goris 5 854 1 24 24 0 0.0 3 Kapan 8 541 43 216 216 0 0.0 4 Meghri 2 312 9 186 186 0 0.0 5 Egheghnadzor 2 509 3 18 18 0 0.0 6 Vayq 1 717 2 24 24 0 0.0 7 Jermuk 1 118 1 12 12 0 0.0 8 Sevan 4 902 2 36 36 0 0.0 9 Chambarak 660 1 12 4 0 0.0 10 Gavar 6 427 10 39 39 0 0.0 11 Martuni 1 898 2 12 6 0 0.0 12 Vardenis 2 322 1 12 4 0 0.0 Total 41 605 77 609 587 0 0.0 Grand Total 167 048 162 1 795 1 757 8 0.5

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Water quality investigation in the distribution network Table - 15

Microbiological analyses Number of Number of Number of % of deviations N Sectors Number of customers deviatioons among planned planned samples among the actually the actually taken samples actually taken taken samples samples 1 2 3 4 5 6 7 North-West Regional Branch 1 Abovyan 11 076 114 114 3 2.6 2 Byureghavan 2 363 15 15 0 0.0 3 CHarencavan 7 252 84 84 2 2.4 4 Hrazdan 8 401 87 87 0 0.0 5 Tsakhkadzor 312 6 6 0 0.0 6 Dilijan 3 136 30 30 8 26.7 7 Ijevan 3 344 30 30 1 3.3 8 Berd 1 744 15 15 0 0.0 9 Alaverdi 6 184 120 120 2 1.7 10 Noyemberyan 1 649 21 21 0 0.0 11 Stepanavan 2 447 33 33 1 3.0 12 Spitak 3 467 54 54 8 14.8 13 tashir 1 759 27 27 1 3.7 Total 53 134 636 636 26 4.1 Center-West Regional Branch 1 Artashat 17 769 244 244 0 0.0 2 Echmiatsin 17 425 204 204 0 0.0 3 Masis 8 889 144 144 0 0.0 4 Vedi 7 280 110 109 0 0.0 5 Ararat 3 202 28 28 0 0.0 6 Ashtarak 8 389 84 84 0 0.0 7 Aparan 2 095 39 39 12 30.8 8 Arthik 4 976 84 82 14 17.1 9 Talin 1 160 12 12 1 8.3 10 Ashocq 1 072 84 84 0 0.0 Total 72 257 1 033 1 030 27 2.6 South Regional Branch 1 Sisian 3 345 60 60 0 0.0 2 Goris 5 854 99 99 0 0.0 3 Kapan 8 541 162 162 21 13.0 4 Meghri 2 312 42 42 5 11.9 5 Yeghegnadzor 2 509 39 39 6 15.4 6 Vayq 1 717 30 30 0 0.0 7 Jermuk 1 118 30 30 2 6.7 8 Sevan 4 902 105 105 5 4.8 9 Chambarak 660 12 12 4 33.3 10 Gavar 6 427 90 90 5 5.6 11 Martuni 1 898 33 33 2 6.1 12 Vardenis 2 322 30 30 0 0.0 Total 41 605 732 732 50 6.8 Grand Total 166 996 2 401 2 398 103 4.3

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Potable water disinfection control Table – 16

Disinfectants used / kg Residual chlor analysis / unit Water intake Number of Within distribution N Before distribution network (Spring, WTP, PS ) customers Liquid Hypochlorite network Chlorine Pills Total Deviations Total Deviations 1 2 3 4 5 6 7 8 9 North –West Regional Branch 1 Maqravan 4 12 296 1 826 0 358 24 95 0 2 Aramus 2 059 89 65 236 18 11 1 3 Akunq 187 0 0 0 0 0 0 4 Buzhakan 377 0 45 244 45 0 0 5 Nurnus 2 364 103 0 267 0 8 0 6 Alapars 2 700 175 0 139 0 5 0 7 Solak 345 39 0 61 0 0 0 8 Gyumush 521 61 0 61 0 0 0 9 Fantan 137 0 25 122 0 0 0 10 Maqravan 2 5 847 1 400 109 255 0 60 0 11 Maqravan 3 2 500 412 20 159 0 0 0 12 Teghenis 72 0 20 7 0 0 0 13 Ulashik 1 0 15 6 0 0 0 14 Dilijan water intake 3 136 604 79 735 12 5 0 15 Ijevan water intake 3 344 191 207 353 10 51 5 16 Azatamut 0 0 0 0 0 0 0 Water intakes in Berd 17 1 744 198 10 279 0 14 0 town 18 Lori – Berd, Agarak 6 184 1 020 15 450 3 0 0 19 Ayrum 0 0 0 0 0 0 0 20 Berdavan 1 599 0 130 488 0 0 0 Water intakes in 21 50 0 15 244 0 0 0 Noyemberyan town 22 Chakhkal 800 0 100 118 15 4 4 Water intakes in Spitak 23 2 669 92 40 235 7 11 6 town 24 Gyulidar 200 0 13 202 3 6 0 25 Getavan 334 204 6 71 1 23 1 26 Novoseltsovo 3 177 381 0 386 11 11 1 27 Katnaghbyur 500 0 20 4 0 0 0 28 Sevaberd 7 0 20 2 0 0 0 Total 53 150 6 795 954 5 482 149 304 18

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1 Garni 26 398 3 417 68 842 1 827 2 2 Bazmaghbyur 10 933 817 0 266 0 326 0 3 Ghazaravan 9 475 2 222 9 260 0 200 0 4 Artamet 2 21 0 74 0 0 0 5 Kozdashen 2 0 0 0 0 0 0 6 Araratyan 1, 2 8 889 1 765 45 297 0 312 0 7 Jermanis 1 860 214 42 389 0 97 0 Artashavan, 8 2 407 1 189 50 215 5 49 0 Saghmosavan, Artak 9 Vosketas 3 0 30 6 4 0 0 10 Karbi 3 000 126 0 127 2 6 0 11 Eznak 1 110 190 20 73 0 113 0 12 Ortachia 205 0 10 0 0 0 0 13 Geghadzor 780 0 90 9 0 26 6 14 Mantash spring 3 127 691 16 268 4 156 4 15 Mantash rezervoir 1 854 500 0 0 0 24 0 16 Kentaghbyur , N809 1 072 110 36 293 0 32 5 17 Zovasar, Jinj Akner 104 105 67 103 0 16 6 18 Daghdzutner 552 0 116 218 1 89 0 19 Sari 64 0 31 52 0 26 0 20 Xazanchi 158 0 59 85 0 42 0 21 Bavra 87 0 24 45 0 14 0 22 Lusaghbyur 116 0 26 97 0 32 0 23 Gharaghachi 95 0 27 89 0 38 0 Total 72 293 11 367 766 3 808 17 2 425 23 South Regional Branch 1 Shaqe 3 099 158 14 361 0 233 0 2 Zor – Zor 1 0 0 0 0 0 0 3 Mukhuturyan 998 0 0 0 0 0 0 4 Mukhuturyan, Akner 5 102 736 60 260 0 381 3 Geghi WTP , Surin kap, 5 8 346 3 071 80 282 0 432 10 Jrakhor 6 Vachagan WTP 25 0 38 52 0 152 2 7 Chankhchi WTP 170 662 92 122 3 26 9 8 Agaraki WTP 1 174 69 74 68 0 189 14 9 Setents 300 16 5 56 0 154 6 10 Meghri WTP 838 92 86 69 0 180 20

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Disinfectants used / kg Residual chlor analysis / unit Water intake Number of Within distribution N Before distribution network (Spring, WTP, PS ) customers Liquid Hypochlorite network Chlorine Pills Total Deviations Total Deviations 1 2 3 4 5 6 7 8 9 Water intakes in 11 2 509 343 34 255 0 388 5 Yeghegnadzor 12 Bazmaghbyur 1 252 172 8 282 0 268 0 13 Metsaghbyur 465 9 20 318 0 133 0 14 Jrasar 1 118 52 5 470 0 194 0 15 Dzknget 0 0 0 0 0 0 0 16 Lchashen 4 343 459 9 241 7 141 4 17 Hatsarat 5 197 779 40 268 5 126 1 18 Kaler 100 0 27 227 11 66 7 19 Sarukhan 1 148 83 0 228 8 78 8 20 Gandzak 541 60 0 64 7 212 12 Water intakes in 21 660 0 66 193 4 60 7 Chambarak town 22 Tsakqar 1 348 52 60 26 0 74 3 23 Hopoyi var 550 0 129 186 0 148 0 24 Akunq 600 0 80 94 2 15 7 25 Surb Vardan 350 0 0 0 0 0 0 26 Akner 650 124 0 114 0 22 7 27 Shat jreq 722 176 0 193 1 35 9 Total 41 606 7 113 927 4 429 48 3 707 134 Grand Total 167 049 25 275 2 647 13 719 214 6 436 175

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3.7.1 Natural resource utilization

Natural resources utilization fee during the reporting quarter of the Company was equal to 5.2 mln. AMD, nature protection fee 9.2 mln. AMD (about 2.3 mln. AMD by «3» coefficient),

Natural resources utilization and nature protection fees Table – 17

Calculated natural resources Calculated nature protection fee utilization fee (thousand AMD) (thousand AMD) Sector Surface Underground Surface Underground water water water water North-West RB Abovyan 0.0 404.8 404.8 0.0 0.0 0.0 Hrazdan 11.8 435.3 447.1 629.3 123.6 752.9 Charentsavan 0.0 282.7 282.7 0.0 0.0 0.0 Ijevan 15.8 74.9 90.7 412.4 65.1 477.5 Dilijan 35.6 2.0 37.6 139.6 49.7 189.3 Alaverdi 0.0 311.8 311.8 256.7 112.0 368.7 Stepanavan 29.6 293.7 323.3 745.6 16.0 761.6 Total 92.8 1 805.2 1 898.0 2 183.6 366.4 2 550.0 “Center-West” Regional Branch Artashat 0.0 346.9 346.9 223.0 475.5 698.5 Echmiatsin 0.0 437.6 437.6 680.2 491.8 1172.0 Masis 0.0 192.2 192.2 507.5 38.6 546.1 Vedi 0.0 182.2 182.2 435.8 116.0 551.8 Ashtarak 0.0 302.0 302.0 332.5 0.0 332.5 Artik 0.0 227.2 227.2 221.2 0.0 221.2 Total 0.0 1 688.1 1 688.1 2 400.2 1 121.9 3 522.1 “South” Regional Branch Sisian 0.0 122.2 122.2 650.3 0.0 650.3 Goris 0.0 194.7 194.7 134.4 254.8 389.2 Kapan 135.0 129.5 264.5 524.9 379.2 904.1 Yeghegnadzor 0.0 189.4 189.4 202.0 118.7 320.7 Sevan 0.0 263.2 263.2 317.2 70.7 387.9 Gavar 0.0 546.8 546.8 522.2 0.0 522.2 Total 135.0 1 445.8 1 580.8 2 351.0 823.4 3 174.4

Grand Total 227.8 4 939.1 5 166.9 6 934.8 2 311.7 9 246.5

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3.8 “Locator” monitoring program

Control of transportation means with “Locator” monitoring program

Daily activities on antitheft control of operating transportation means are ongoing. Operation efficiency indicators have considerably improved, particularly on non working days and hours, over speed cases have decreased, consequently, activities were implemented towards safe and effective operation of Locator systems, installed on the transportation means.

In case of any problem with the locators, visit of corresponding specialists and regulation activities were organized right away.

Meantime comparison was implemented of data registered by Locator system on over speed of transportation means of AWSC with control automated system data, installed by RA Police Department.

GPS receiving devices testing and sealing activities

Meantime, together with a specialist of Locator Company the following activities were implemented: installation of another 3 GPS devices, technical maintenance of GPS devices installed on about 30 transportation means of 7 Sectors, sealing, speedometers data testing. In the result, replacement of GPS/GPRS antennas, connection wires and GPS receiving devices reprogramming on 3 units was implemented.

GPS receiving devices testing activities

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Diagram – 20 Mileage of transportation means of the Company during weekends

12 000 km 10 767

10 000 km

8 000 km

6 000 km

2 781 4 000 km 2 184 1 144 2 000 km 806 935

0 km Jan Februery March April May June

I Quarter II Quarter

Diagram -21 Mileage of transportation means during weekends by structural units

Head Office North-West 3679 km 3520 km 26% 25%

South Center-West 4229 km 2874 km 29% 20%

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4. QUALITY, SAFETY, ENVIRONMENT

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4. Quality, Safety

Being loyal to the principles of the team work, the Quality division and Safety Measures and Work Protection division of the QSE department has continued working together and have implemented complex measures aimed at assessment, mitigation and prevention of QSE risks.

Inspections have been carried out in “Agarak” and “Geghi” WTPs, the area of “Shaqe” water sources, “Mukhuturyan” chlorination station of “South” Regional Branch, “Alapars” and “Makravan-2” pumping stations, “Golovino”, “Frolovo”, “Bldan” WTPs of “North-West” Regional Branch, “Araratyan 1-2”, “Norabats”, “Artamet” pumping stations of “Center-West” Regional Branch. The quality of the implementation of instructions, completing the logbooks for the operation of the hydro-technical structures, safety requirements, instructions for exploitation and technical maintenance and cleaning of the sanitary zones by the exploitation staff of the hydro- technical structures has been inspected. After the inspection visits, tasks and instructions were given for elimination of the deficiencies. In parallel, the basic approaches to the QSE risks management were presented.

Labeled control panels for pumps Application of the warning posters for electrocution risks in electrical sub-stations

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In parallel, the works for labeling of the plant and equipment, as well as the works for the installation of the warning signs for technogenic risks have been carried out in “Makravan-2” and “Artamet” pumping stations.

The Quality, Assets Management divisions, in cooperation with the Cost Control and Internal Audit department have developed the procedure for the implementation of the auction process for the assets of the Company, which are subject to alienation, as well as for the formation and approval of the members of the corresponding commission.

The Head of the Quality division, together with 2 employees of the Company was on a business trip to «Saur-Neptun-Gdansk» company in Gdansk (Poland) for experience sharing and studying the modern approaches to the management. During the business trip, the relevant environmental, management, legislative experience of several leading european countries was discussed as well. They have presented the progress of the works implemented in the Company's system during the recent years and the In the central water quality control laboratory of ”SAUR-NEPTUN-GDANSK” future plans.

The cooperation was continued with “Technical Safety National Center” SNCO:

 the technical safety expertize was carried out for the elevator of the Head office of the Company as for a dangerous production object and a positive conclusion was provided,

 a services provision contract was signed for the implementation of the technical safety expertize by the corresponding expert of the loading-lifting vehicles, which are operating in the system of the Company.

 A bid was developed and presented for organizing the training on “The inspection, control, instructing the operation staff of the Dangerous Production Objects” and acquiring the corresponding certificate for the Safety Measures and Work Protection specialist of the “North- West” Regional Branch.

The Safety Measures and Work Protection division has participated to the public hearings for “Rehabilitation of water supply systems of Masis town and seven villages” project, which is implemented with the funds of the World Bank. During the public hearings, the list of the measures for mitigation and prevention of the negative impacts on the environment and life and health of the people during the construction works was presented to the interested parties.

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5. ADMINISTRATION

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5.1 Finance and Accounting

Subsidy From RA Government Table – 18

RECEIVED AMOUNT MONTH 2011 COMMENTS (mln AMD)

0,59 salary 5,20 payment for water use JANUARY 67,63 8,23 natural resources protection fee 1,27 mandatory payments for Regulatory Committee

79,54 salary FEBRUARY 67,63 10,42 income tax 25,97 social security payment

MARCH 67,03 69,88 salary

64,22 salary APRIL 210,37 1,28 mandatory payments for Regulatory Committee 142,74 EBRD credit repayment

MAY 62,41 65,26 salary

JUNE 62,41 62,97 salary

TOTAL AMOUNT 537,48

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COMES AND EXPENSES OF AWS CJSC IN II QUARTER, 2012 Table – 19 thousand drams

Current expenses Received

from other Proceeds activity Net salary Total N H/O from main Total (including Payment. expenses activity

Current Current

Subsidy sell of Total

expenses

fund

income income

Other

Taxes water Social

of credit

Covering

payments

insurance

Electricity meters) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 NORTH–WEST REGION BRANCH 1 Abovyan 303 192,6 3 768,7 306 961,3 15 423,7 113 526,8 ------128 950,5 TOTAL 303 192,6 3 768,7 306 961,3 15 423,7 113 526,8 ------128 950,5 CENTER–WEST REGION BRANCH 2 Artashat 371 802,4 727,5 372 529,9 15 009,4 116 738,3 ------131 747,7 TOTAL 371 802,4 727,5 372 529,9 15 009,4 116 738,3 ------131 747,7 SOUTH REGION BRANCH 3 Sisian 268 236,6 668,6 268 905,2 14 798,0 86 618,2 - - - - 145,0 145,0 101 561,2 TOTAL 268 236,6 668,6 268 905,2 14 798,0 86 618,2 - - - - 145,0 145,0 101 561,2 Total from 943 231,6 5 164,8 948 396,4 45 231,1 316 883,3 - - - - 145,0 145,0 362 259,4 Branches

TOTAL 72 879,8 335 183,8 11 044,4 419 108,0 17 364,0 67 888,4 250 440,0 83 487,8 308 884,6 142,7* 338 891,9 981 847,0 1 067 099,4 HEAD OFFICE

MAIN TOTAL 1 016 111,4 335 183,8 16 209,2 1 367 504,4 62 595,1 384 771,7 250 440,0 83 487,8 308 884,6 142,7* 339 036,9 981 992,0 1 429 358,8

* Repayment credit at EBRD

See also

Table – 25

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7.3 European Bank for Reconstruction and Development

Lake SEVAN Environmental Project Funded by The European Ban for Reconstruction and Development

Contract: On 26 April 2007 the Republic of

Armenia and the European Bank for Reconstruction and Development (EBRD) signed the Loan agreement (Operation number 37030) and on the same date EBRD and “Armenian Water and Sewerage” CJSC signed the Agreement on Investment Grant Co-financing for

implementation of Lake Sevan Environmental project.

Financial means: 12.0 mln EUR, from which EBRD loan -7.0 mln EUR, EBRD grant -5.0 mln EUR, RA Co-financing- 1.76 mln EUR. The loan declared effective on 09 October 2009. The Project completion date is October 2012.

Physical Implementation of Works

Contract LSEP-WWTP-2009 «Design and Construction of waste water treatment plants for GAVAR, MARTOUNI and VARDENIS towns”.

Contract foresees the implementation of the following works, as follows:

. Mechanical wastewater treatment plant in Gavar, capacity` 10.476 m3/day,

. Mechanical wastewater treatment plant in Martouni, capacity` 4.626 m3/day,

. Mechanical wastewater treatment plant in Vardenis, capacity` 5.018 m3/day.

During the reporting period the Contractor actively continued the construction activities in all construction sites. In line with the civil works he started with the installation of mechanical part of the “Huber-Compact-Treatment-Unit” in Vardenis and Martuni WWTPs and also started with the connection of the electrical part of the subject units.

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Screening Building Construction in GAVAR WWTP Outlet pipline instalation in GAVAR WWTP

Administrative building Construction in General view of Construction site in MARTUNI WWTP MARTUNI WWTP

Flow meter chamber in VARDENIS WWTP Construction works in VARDENIS WWTP

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Contract LSEP-WORKS-2011 (3 lots) “Rehabilitation of waste water networks in GAVAR, MARTOUNI, VARDENIS, SEVAN towns”:

During the reporting period the Contractors continue the construction activites. Moreover, there was a need to construct/reconstruct new sewer branches in the Contract towns as the openned trenches revealed a number of exhausted and damaged sewer branches, which could bring to the epidemy situation in the region. Therefore, all the saved and unutilized funds were directed to cover the sanitation systems of the other districts. The calculations showed that about 12 km of sewer pipes should be constructed.

By the end of the reporting period about 19.4 km of pipes were covered by all three lots, including 12.0 km – from the original contract scope and 7.4 km – additionally added volumes.

The works will be finalized by the 15 August 2012.

“ARMENIAN SMALL MUNICIPALITIES WATER PROJECT” FUNDED BY EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT

Contract: On 14 July 2011 the Republic of Armenia and the European Bank for Reconstruction and Development (EBRD) signed the Loan agreement (Operation number 40718) and on the same date EBRD and “Armenian Water and Sewerage” CJSC signed the Project Agreement for implementation of “Armenian Small Municipalities Water Project”.

On 20 January 2011 the Republic of Armenia and European Union represented by the European Commission through the Neighborhood Investment Facility and “Armenian Water and Sewerage” CJSC signed Financing Agreement (“Grant-Co-Financing”) for the implementation of the same Project.

The Project foresees the contribution from the European Investment Bank (“EIB Co-financing”) and provision of the technical grant from other donor organizations.

Financial means: 26.04 mln EUR, from which EBRD loan -6.5 mln EUR, EIB loan - 6.5 mln EUR, NIF grant -7.6 mln EUR, other donors – 1.1 mln EUR, RA Co-financing- 4.34 mln EUR.

The loans are not declared effective yet.

The Project completion date is 30 June 2015.

Objective of the Project is (i) improvement of municipal water supply in Tavush, Lori, Shirak, Gegharkunik, Kotayk, Syunk and Vayots Dzor marzes and (ii) rehabilitation of wastewater treatment plants and sewerage collectors in the Tavush (town of Dilijan) and Vayots Dzor (town of Jermuk) marzes.

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Physical Implementation of Works

During the reporting period Consultant submitted the draft version of the Inception Report and Detailed Action plan. The Inception reports has been amended and commented by all the involved specialist of IPCD. Anyhow, with the prior agreement of the Client the Consultant offer the splitting of the whole scope of the Project into 13 lots, as follows:

(i) Rehabilitation of the water supply networks of Byureghavan and Abovyan (ii) Rehabilitation of the water supply networks of Sevan (iii) Rehabilitation of water supply networks and rehabilitation of Water Treatment Plants of Kapan (iv) Rehabilitation of waste water networks of Jermuk (v) Rehabilitation of water supply networks of Spitak, Jrashen and Akhtala (vi) Rehabilitation of water supply networks of Tashir (vii) Rehabilitation of water supply networks of Artik (viii) Rehabilitation of water supply networks of Gavar and Saroukhan (ix) Rehabilitation of water supply networks of Martuni (x) Rehabilitation of waste water networks and water supply network of Dilijan (xi) Rehabilitation of water supply networks of Ijevan and Azatamout (xii) Rehabilitation of water supply networks of Chambarak (xiii) Design and construction of the Waste Water Treatment Plants in Dilijan and Jermuk

Moreover, the Consultant already started with the design activities and first Preliminary design “Rehabilitation of the water supply networks of Byureghavan and Abovyan” has been discussed with the Client.

Environmental and Social Issues

Environmental and Social Action Plan was finalized and approved by EBRD. The ESAP will be main guideline for “Armenian Small Municipalities Water Project” on environmental protection, work safety, public participation and other project related issues. All above listed documents approved by EBRD have been provided to the Consultant as well as explanation meeting has been organized for Consultant team. The inception report which was submitted by Consultant was commented and amended for further best implementation of

environmental and social issues.

Environmental explanation meeting with Consultant staff See also

Table-26

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8. INDICATORS

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Indicators

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 27 (INDICATORS 1-25)

BASE Average Average Average Average Average Average Average II quarter № INDICATORS UNIT YEARS 2005 2006 2007 2008 2009 2010 2011 2012

1 2 3 4 5 6 7 8 9 10

hours/ 1 Weighted average number of daily hours of 6,04 7,39 9,62 10,98 12,10 13,0 14,0 15,0 15,28 drinking water service day

2 % of individual subscribers billed on the basis % 40,2 53,6 57,3 62,5 64,6 73,9 77,2 82,2 82,2 of metered consumption

3 Weighted average water bacteriological % 93,8 93,8 93,9 96,2 96,6 98,6 98,2 98,5 97,3 safety compliance

4 Company working ratio % 194,9 176,4 138,8 133,8 133,7 106,6 102,4 106,7 100,8

5 % of cities with minimal daily hours of % 68,1 74,1 80,1 83,9 85,6 80,7 90,1 94,0 94,6 services

6 % of block apartment buildings with % 38,6 56,3 61,6 67,5 70,6 76,8 79,9 82,1 82,5 individual or common block meter

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

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BASE Average Average Average Average Average Average Average II quarter № INDICATORS UNIT YEARS 2005 2006 2007 2008 2009 2010 2011 2012

1 2 3 4 5 6 7 8 9 10 Revenue collected on domestic subscribers Drams/ 8 166 181 242 250 286 396 446 484 508 per registered inhabitant month Collection ratio (excluding budget 9 % 47,9 36,2 62,6 72,3 75,9 83,5 89,7 95,4 93,6 organizations) % of subscriber with more than 4 months 10 % 79,5 75,1 76,7 77,8 79,5 78,1 48,9 29,4 23,4 debt

Liters/ 11 Average domestic metered consumption per 81 71 75 78 87 87 91 100 109 metered registered inhabitant cap/day

Drams/ 12 Average price of m3 metered and billed to 100,41 126,80 140,00 140,00 140,00 159,50 179,98 179,98 179,78 domestic subscribers m3 Growth of the total collected revenue 13 (excluding budget organization) from base % 114 568 16,2 46,9 54,8 72,6 119,5 146,2 160,7 166,6 year

Ratio of water volume billed on the basis of 14 metering to the total metered and normative % 25,0 26,0 47,3 56,2 59,1 64,5 77,8 85,9 91,3 billed volume Average daily production per equivalent Liters/ 15 668 759 754 790 827 792 742 693 729 registered inhabitant at water catchments cap/day levels

Liters/ 16 Average daily supply to distribution reservoir per equivalent registered inhabitant cap/day Ratio of metered final consumption (m3) to 17 % 6,8 6,4 7,8 8,1 8,5 9,4 11,6 14,0 19,7 water production at water catchments levels

Working ratio for branches with gravity 18 % 89,7 121,0 97,5 94,5 85,2 65,9 58,0 59,6 51,7 systems

Working ratio for branches with pumping 19 % 223,3 196,8 155,2 148,9 147,2 115,5 105,0 111,6 103,8 stations or treatment plants

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BASE Average Average Average Average Average Average Average II quarter № INDICATORS UNIT YEARS 2005 2006 2007 2008 2009 2010 2011 2012

1 2 3 4 5 6 7 8 9 10 Electricity cost as % of revenue collected in 20 % 72,6 63,1 42,6 39,7 39,2 30,8 25,7 23,6 22,6 systems with pumping or treatment plants Amount of chlorine effectively used per g/cap/ 21 equivalent inhabitant per year year

22 Total staff per 1000 individual subscribers u 9,45 8,34 7,15 6,87 6,85 6,9 6,3 5,8 6,0

23 Staff and assignment contractors total costs % 70,2 68,9 61,9 61,4 62,2 51,1 49,4 50,9 46,5 as % of collected revenue

24 Electricity consumption kwh/m3 0,43 0,38 0,31 0,30 0,29 0,25 0,23 0,24 0,22

25 % of water disinfected % 60,9 67,8 80,0 90,3 91,2 82,6 78,8 88,2 92,1

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

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INDICATOR 1

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

24,00 AWSC/ ÐæÎÀ

20,00

15,28 15,25 North-West Region/ áÕáõÃÛáõÝÁ 15,02 ¨ 16,00 ÐÛáõëÇë-²ñ¨Ùáõïù 14,03 î³ñ³Í³ßñç³Ý 13,01 12,10 12,00 Center-West 10,98 Region/ 9,62 Î»ÝïñáÝ- Number of hours of water supplies water of hours of Number 8,00 ²ñ¨Ùáõïù î³ñ³Í³ßñç³Ý æñ³Ù³ï³Ï³ñ³ñÙ³Ý Å³Ù»ñÇ ï Å³Ù»ñÇ æñ³Ù³ï³Ï³ñ³ñÙ³Ý 7,39

6,04 South Region/ 4,00 Ð³ñ³í î³ñ³Í³ßñç³Ý

0,00 Average 2004Average 2005Average 2006Average 2007Average 2008Average 2009Average 2010Average 2011 March 12 June12 Ø³ñï 12 ÐáõÝÇë 12 Months ³ÙÇëÝ»ñ

INDICATOR 2

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

90,0%

82,2% 82,2% 82,2% AWSC/ ÐæÎ 77,2% 80,0% 73,9%

70,0% 64,6% North West Region 62,5% ÐÛáõëÇë ³ñ¨ÙïÛ³Ý 57,3% ï³ñ³Í³ßñç³Ý 60,0%

53,6% %

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

20,0% Base year / December 05 December 06 December 07 December 08 December 09 December 10 December 11 March 12 June 12 ÐÇÙÝ³Ï³Ý ¸»Ïï»Ùµ»ñ 05¸»Ïï»Ùµ»ñ 06¸»Ïï»Ùµ»ñ 07¸»Ïï»Ùµ»ñ 08¸»Ïï»Ùµ»ñ 09¸»Ïï»Ùµ»ñ 10¸»Ïï»Ùµ»ñ 11 Ø³ñï 12 ÐáõÝÇë 12 ï³ñÇÝ Months ²ÙÇëÝ»ñ

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INDICATOR 3

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

100,00% 98,58% 98,50% 98,61% 99,00% 98,21% AWSC/ÐæÎ 98,00% 96,56% 97,00% 96,24% 97,32% 96,00% North West Region/ 95,00% ÐÛáõëÇë ³ñ¨ÙïÛ³Ý Ù³ëÝ³×ÛáõÕ 94,00% 93,81% 93,84% 93,86%

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

90,00%

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

87,00% Base year / Average 05 Average 06 Average 07 Average 08 Average 09 Average 10 Average 11I Quarter 12 II Quarter ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 ØÇçÇÝÁ 10 ØÇçÇÝÁ 11 12Ã. I 12 ï³ñÇÝ »é³ÙëÛ³Ï 12Ã.II Months »é³ÙëÛ³Ï

INDICATOR 4

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

AWSC/ ÐæÎ 220,0% 194,9% 200,0%

180,0% 176,4% North West Region ÐÛáõëÇë ³ñ¨ÙïÛ³Ý 160,0% ï³ñ³Í³ßñç³Ý 138,8% 133,8% 140,0% 133,7%

% Center West Region 120,0% 106,6% Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý 111,8% ï³ñ³Í³ßñç³Ý 100,0% 102,4% 106,7% 100,8% 80,0% South Region Ð³ñ³í³ÛÇÝ 60,0% ï³ñ³Í³ßñç³Ý

40,0% Base year / Average 05 Average 06 Average 07 Average 08 Average 09 Average 10 Average 11 I Quarter 12 II Quarter 12 ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 ØÇçÇÝÁ 10 ØÇçÇÝÁ 11 12 I 12Ã.II ï³ñÇÝ »é³ÙëÛ³Ï »é³ÙëÛ³Ï Months ²ÙÇëÝ»ñ

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INDICATOR 5

% OF CITIES WITH MINIMAL DAILY HOURS OF SERVICE FROM THE BEGINNING OF 2011 Üí³½³·áõÛÝ çñ³Ù³ï³Ï³ñ³ñÙ³Ý Å³Ù»ñáí ëå³ë³ñÏíáÕ µÝ³Ï³í³Ûñ»ñÇ % 2011 Ã-Ç ³ÙÇëÝ»ñÇÝ

105%

AWSC/ ÐæÎ 100%

95% 94,65% 94,65% 94,04% 90% South Region Ð³ñ³í³ÛÇÝ 88,56% ï³ñ³Í³ßñç³Ý 85% 85,55% 83,93% 80% 80,10% 80,65% North West Region ÐÛáõëÇë ³ñ¨ÙïÛ³Ý 75% ï³ñ³Í³ßñç³Ý 74,07% 70% Center East Region 65% Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý ï³ñ³Í³ßñç³Ý

60% Average 05 Average 06 Average 07 Average 08 Average 09 Average 10 Average 11 March 12 June 12 ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 ØÇçÇÝÁ 10 ØÇçÇÝÁ 11 Ø³ñï 12 ÐáõÝÇë 12

Months ²ÙÇëÝ»ñ

INDICATOR 6

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

95%

AWSC/ ÐæÎ 85% 82,5% 82,1% 82,3% 79,9% 75% 76,8%

70,6% North West Region 65% ÐÛáõëÇë ³ñ¨ÙïÛ³Ý 67,5% ï³ñ³Í³ßñç³Ý % 61,6% 55% 56,3% Center West Region 45% Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý ï³ñ³Í³ßñç³Ý

35% 37,6%

South Region 25% Ð³ñ³í³ÛÇÝ ï³ñ³Í³ßñç³Ý

15% Base year / December 05 December 06 December 07 December 08 December 09 December 10 December 11 March 12 June 12 ÐÇÙÝ³Ï³Ý ¸»Ïï»Ùµ»ñ ¸»Ïï»Ùµ»ñ ¸»Ïï»Ùµ»ñ ¸»Ïï»Ùµ»ñ ¸»Ïï»Ùµ»ñ ¸»Ïï»Ùµ»ñ ¸»Ïï»Ùµ»ñ Ø³ñï 12 ÐáõÝÇë 12 ï³ñÇÝ 05 06 07 08 09 10 11 Months

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INDICATOR 8

REVENUE COLLECTED ON DOMESTIC SUBSCRIBERS PER REGISTERED INHABITANT ԲÝ³ÏÇã µ³Å³Ýáñ¹Ý»ñÇó ³Ùë³Ï³Ý Ñ³í³ù³·ñáõÙÁ Áëï ·ñ³Ýóí³Í µÝ³ÏãÇ 700

AWSC/ ÐæÎ

600

508 484 500 North West Region 460 ÐÛáõëÇë ³ñ¨ÙïÛ³Ý

ÙÇë ï³ñ³Í³ßñç³Ý ³ 446

ÝÓ/ 400 ³

Ù/ 396

³ Center West Region ¸ñ Drams/cap/month Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý 300 ï³ñ³Í³ßñç³Ý 286 242 250 200 South Region Ð³ñ³í³ÛÇÝ 181 ï³ñ³Í³ßñç³Ý 166 100 Base year / Average 05 Average 06 Average 07 Average 08 Average 09 Average 10 Average 11 I Quarter 12 II Quarter 12 ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 ØÇçÇÝÁ 10 ØÇçÇÝÁ 11 12Ã.I 12Ã.II ï³ñÇÝ »é³ÙëÛ³Ï »é³ÙëÛ³Ï Months ²ÙÇëÝ»ñ

INDICATOR 9

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

110%

95% AWSC/ ÐæÎ 100% 90% 94% 94% 90% 83%

80% North West Region ÐÛáõëÇë ³ñ¨ÙïÛ³Ý ï³ñ³Í³ßñç³Ý 70% 76%

ÙïÇ % ÙïÇ 72% ³

Í »Ï Í 60% ³ 63% Center West Region

ÝÓí Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý

³ 50% · ï³ñ³Í³ßñç³Ý

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

20% Base year / Average 05 Average 06 Average 07 Average 08 Average 09 Average 10 Average 11 I Quarter 11 II Quarter 11 ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 ØÇçÇÝÁ 10 ØÇçÇÝÁ 11 11Ã.I 11Ã.II ï³ñÇÝ »é³ÙëÛ³Ï »é³ÙëÛ³Ï

Months ²ÙÇëÝ»ñ

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INDICATOR 10

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

AWSC/ ÐæÎ 90%

80% 79,5% 77,8% 79,5% 75,1% 76,7% 78,1% 70% North West Region ÐÛáõëÇë ³ñ¨ÙïÛ³Ý ï³ñ³Í³ßñç³Ý

60% %

50% 48,9% Center West Region Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý 40% ï³ñ³Í³ßñç³Ý

29,4% 30% 24,5% 23,4% South Region 20% Ð³ñ³í³ÛÇÝ ï³ñ³Í³ßñç³Ý

10% Base year / Average 05 Average 06 Average 07 Average 08 Average 09 Average 10 Average 11 I Quarter 12 II Quarter 12 ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 ØÇçÇÝÁ 10 ØÇçÇÝÁ 11 12Ã.I 12Ã.II ï³ñÇÝ »é³ÙëÛ³Ï »é³ÙëÛ³Ï Month ²ÙÇëÝ»ñ

INDICATOR 11

AVERAGE DOMESTIC METERED CONSUMPTION PER METERED REGISTRED INHABITANT ØÇçÇÝ ëå³éáõÙÁ ßÝãÇ Ñ³ßíáí` çñ³ã³փ áõÝ»óáÕ µÝ³ÏÇã-µ³Å³Ýáñ¹Ý»ñÇ Ñ³Ù³ñ 135

AWSC/ ÐæÎ 125

115 109 North West Region ÐÛáõëÇë ³ñ¨ÙïÛ³Ý ï³ñ³Í³ßñç³Ý 105

100

ÝÓ/ûñ ³ 95

91 Center West Region ÈÇïñ/ Liters/cap/day 94 Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý 87 87 ï³ñ³Í³ßñç³Ý 85 81

78 South Region 75 71 75 Ð³ñ³í³ÛÇÝ ï³ñ³Í³ßñç³Ý

65 Base year / Average 05 Average 06 Average 07 Average 08 Average 09 Average 10 Average 11 I Quarter 12 II Quarter 12 ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 ØÇçÇÝÁ 10 ØÇçÇÝÁ 11 12Ã.I 12Ã.II ï³ñÇÝ »é³ÙëÛ³Ï »é³ÙëÛ³Ï Months ²ÙÇëÝ»ñ

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INDICATOR 12

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

200 179,78 180 154,47 Water/æáõñ 160 140,00 140 115,65

120 3 100,41 Sewerage/ Ù/ Ëáñ.Ù.Ù/ 100

³ 90,36 ÎáÛáõÕÇ

Drams/m ¸ñ 80

40 Total/ ÀÝ¹³Ù»ÝÁ 24,35 25,31 20 10,05

0 Period Ժամանակահատված

INDICATOR 13

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

180% 166,6% ÙïÇ % ÙïÇ AWSC/ ÐæÎ

³ 160% 160,7%

Í »Ï Í 140% 146,2%

³ óí

³ 120% North West Region 119,5% 139,0% 100% ÐÛáõëÇë ³ñ¨ÙïÛ³Ý ï³ñ³Í³ßñç³Ý

80%

·ñáõÙóëï

³ ù

³ 60% 46,9% Center West Region %O FCOLLECTION REVENU í 72,6%

³ Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý Ð 40% 54,8% ï³ñ³Í³ßñç³Ý 20% 0% 16,2% South Region

Ð³ñ³í³ÛÇÝ

05 ñÇÝ

05 ï³ñ³Í³ßñç³Ý

³ 07

07 AWSC/ ÐæÎ

Ý ï Ý

Ï Ï

ØÇçÇÝÁ

Average

ØÇçÇÝÁ

Average

ØÇçÇÝÁ

Average

Base year year Base

ØÇçÇÝÁ08

ÙëÛ

Average08

ØÇçÇÝÁ

ÙëÛ

Average

ØÇçÇÝÁ

Average

ØÇçÇÝÁ11

Average11

ÐÇÙÝ

Ã.I »é Ã.I

I Quarter I

Ã.II »éÃ.II

II Quarter II

12 12

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 107

QUARTERLY REPORT

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

110%

AWSC/ ÐæÎ 100%

90% 91% 86% 87% 80% North West Region 78% ÐÛáõëÇë ³ñ¨ÙïÛ³Ý ï³ñ³Í³ßñç³Ý

70% % 65% 60% Center West Region 59% 56% Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý 50% ï³ñ³Í³ßñç³Ý 47% 40% South Region 30% Ð³ñ³í³ÛÇÝ ï³ñ³Í³ßñç³Ý 26% 20% 25% Base year / Average 05 Average 06 Average 07 Average 08 Average 09 Average 10 Average 11 I Quarter 12 II Quarter 12 ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 ØÇçÇÝÁ 10 ØÇçÇÝÁ 11 12Ã.I »é³ÙëÛ³Ï 12Ã.II ï³ñÇÝ »é³ÙëÛ³Ï

INDICATOR 15

AVERAGE DAILY PRODUCTION PER EQUIVALENT REGISTRED INHABITANT úñ³Ï³Ý ³ñï³¹ñí³Í ÙÇçÇÝ çñ³ù³Ý³ÏÁ Ù»Ï ßÝãÇ Ñ³ßíáí 1 400

AWSC/ ÐæÎ

1 200

1 000 North West Region ÐÛáõëÇë ³ñ¨ÙïÛ³Ý 827 ï³ñ³Í³ßñç³Ý

790 792 ÝÓ/ûñ

³ 800 742 729 759 754

ÉÇïñ/ Center West Region liters/cap/day 668 693 Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý 600 ï³ñ³Í³ßñç³Ý 591

400 South Region Ð³ñ³í³ÛÇÝ ï³ñ³Í³ßñç³Ý

200 Base year / Average 05 Average 06 Average 07 Average 08 Average 09 Average 10 Average 11 I Quarter 12 II Quarter ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 ØÇçÇÝÁ 10 ØÇçÇÝÁ 11 12Ã.I 12 ï³ñÇÝ »é³ÙëÛ³Ï 12Ã.II »é³ÙëÛ³Ï Months ²ÙÇë

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 108

QUARTERLY REPORT

INDICATOR 17

RATIO OF METERED FINAL CONSUMPTION M3 TO WATER PRODUCED æñ³ã³փ áõÝ»óáÕ µ³Å³Ýáñ¹Ý»ñÇ ÏáÕÙÇó ëå³éí³Í çñÇ Í³í³ÉÇ ïáÏáëÁ ` ³ñï³¹ñí³Í çñÇ ÁÝ¹Ñ³Ýáõñ Í³í³ÉÇ Ñ³Ù»Ù³ï 29%

AWSC/ÐæÎ

24%

19,7% North West Region/ ÐÛáõëÇë ³ñ¨ÙïÛ³Ý 19% Ù³ëÝ³×ÛáõÕ

16,2% % 14,0% 14% Center West Region/ Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý 11,6% Ù³ëÝ³×ÛáõÕ

9% 6,8% 9,4% South Region/ 8,5% Ð³ñ³í³ÛÇÝ 7,8% 8,1% Ù³ëÝ³×ÛáõÕ 6,4% 4% Base year / Average 05 Average 06 Average 07 Average 08 Average 09 Average 10 Average 11 I Quarter 12 II Quarter ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 ØÇçÇÝÁ 10 ØÇçÇÝÁ 11 12Ã.I 12 ï³ñÇÝ »é³ÙëÛ³Ï 12Ã.II »é³ÙëÛ³Ï

INDICATOR 18

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

160,0%

AWSC/ ÐæÎ 140,0%

121,0% 120,0% North West Region ÐÛáõëÇë ³ñ¨ÙïÛ³Ý 100,0% ï³ñ³Í³ßñç³Ý 97,5% 89,7% 94,5%

% 80,0% 85,2% Center West Region 65,9% Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý 58,0% 59,6% 59,8% ï³ñ³Í³ßñç³Ý 60,0% 51,7%

South Region 40,0% Ð³ñ³í³ÛÇÝ ï³ñ³Í³ßñç³Ý

20,0% Base year / Average 05 Average 06 Average 07 Average 08 Average 09 Average 10 Average 11 I Quarter 12 II Quarter 12 ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 ØÇçÇÝÁ 10 ØÇçÇÝÁ 11 12Ã.I 12Ã.II ï³ñÇÝ »é³ÙëÛ³Ï »é³ÙëÛ³Ï

Months ²ÙÇëÝ»ñ

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 109

QUARTERLY REPORT

INDICATOR 19

COMPANY WORKING RATIO FOR BRANCHES WITH PUMPING STATIONS OR WATER TREATMENT PLANTS äáÙå³Ï³Û³ÝÝ»ñáí Ï³Ù Ù³ùñÙ³Ý Ï³Û³ÝÝ»ñáí ³ßË³ïáÕ Ù³ëÝ³×ÛáõÕ»ñÇ ³ßË³ï³ÝùÇ ³ñ¹ÛáõÝ³í»ïáõÃÛ³Ý ïáÏáëÁ

250,0% 223,3% 230,0% AWSC/ ÐæÎ

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

170,0% ï³ñ³Í³ßñç³Ý % 150,0% 155,2% 148,9% 147,2% 130,0% Center West Region 111,6% 113,6% Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý 115,5% 105,0% ï³ñ³Í³ßñç³Ý 110,0% 103,8% 90,0% South Region Ð³ñ³í³ÛÇÝ 70,0% ï³ñ³Í³ßñç³Ý

50,0% Base year / Average 05 Average 06 Average 07 Average 08 Average 09 Average 10 Average 11 I Quarter 12 II Quarter 12 ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 ØÇçÇÝÁ 10 ØÇçÇÝÁ 11 12Ã.I 12Ã.II ï³ñÇÝ »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

ñ ³

Ù 120% ³

Ý Ñ Ý AWSC/ÐæÎ

ñÙ ³

× 100%

Ëë»ñÇ í Ëë»ñÇ ³ 80% North West ÛÇ Í ÛÇ Region/ÐÛáõëÇë

³ 72,6% ³ñ¨ÙïÛ³Ý

63,1% Ù³ëÝ³×ÛáõÕ ¿Ý»ñ·Ç

³ 60%

Center West 42,6% Region/Î»ÝïñáÝ Í ¿É»ÏïñÍ 39,7% 39,2%

³ ³ñ¨Ùáõïù 40% 30,8% Ù³ëÝ³×ÛáõÕ

·áñÍí 25,7% 27,1% ³ 23,6% 22,6% 20% South

Region/Ð³ñ³í³ÛÇÝ Ý % û·ï % Ý

% OF COLLECTION USED FOR ELECTRICITY EXPENSIES ELECTRICITY FOR USED COLLECTIONOF % Ù³ëÝ³×ÛáõÕ

³ ·ñÙ

³ 0%

ù ³

í Base year / Average 05 Average 07 Average 07 Average 08 Average 09 Average 10 Average 11I Quarter 12 II Quarter

³ ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 ØÇçÇÝÁ 10 ØÇçÇÝÁ 11 12Ã.I 12 Ð ï³ñÇÝ »é³ÙëÛ³Ï 12Ã.II Month »é³ÙëÛ³Ï ²ÙÇë

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 110

QUARTERLY REPORT

INDICATOR 22

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

12,00

AWSC/ÐæÎ 11,00

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

8,00 7,15 6,87 6,85 6,87 Center West 7,00 Region/Î»ÝïñáÝ 6,30 5,96 ³ñ¨Ùáõïù Ù³ëÝ³×ÛáõÕ 5,79 5,93

6,00 Staff per 1000 Staff1000 Individual per Subscribers South 5,00 Region/Ð³ñ³í³ÛÇÝ

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

4,00 Base year Average Average Average Average Average Average Average I Quarter II Quarter / 05 06 07 08 09 10 11 12 12 ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 ØÇçÇÝÁ 10 ØÇçÇÝÁ 11 12Ã.I 12Ã.II ï³ñÇÝ »é³ÙëÛ³Ï »é³ÙëÛ³Ï

INDICATOR 23

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

75,0%

70,2% AWSC/ÐæÎ 70,0% 68,9%

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

60,0% North West Region/ÐÛáõëÇë 54,8% ³ñ¨ÙïÛ³Ý 55,0% Ù³ëÝ³×ÛáõÕ 51,1% 50,9% 50,0% Center West

% of collection of revenue% 46,5% 49,4% Region/Î»ÝïñáÝ Ð³í³ù³·ñí³Í»Ï³ÙïÇ% ³ñ¨ÙïÛ³Ý 45,0% Ù³ëÝ³×ÛáõÕ

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

30,0% Base year / Average 05 Average 06 Average 07 Average 08 Average 09 Average 10 Average 11I Quarter 12 II Quarter ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 ØÇçÇÝÁ 10 ØÇçÇÝÁ 11 12Ã.I 12 ï³ñÇÝ »é³ÙëÛ³Ï 12Ã.II »é³ÙëÛ³Ï

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 111

QUARTERLY REPORT

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

3 0,43 North West Region/ ÐÛáõëÇë ³ñ¨ÙïÛ³Ý Ù³ëÝ³×ÛáõÕ

0,40 0,38

/ÏíïÅ/Ë.Ù 3 3 0,31 0,30 0,30 0,29 0,30 KWH/m Center West Region/ 0,25 0,24 0,23 0,22 Î»ÝïñáÝ ³ñ¨ÙïÛ³Ý Ù³ëÝ³×ÛáõÕ 0,20

0,10 South Region/ Ð³ñ³í³ÛÇÝ Ù³ëÝ³×ÛáõÕ

0,00 Base year / Average 05 Average 06 Average 07 Average 08 Average 09 Average 10 Average 11 I Quarter 12 II Quarter 12 ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 ØÇçÇÝÁ 10 ØÇçÇÝÁ 11 12Ã.I 12Ã.II ï³ñÇÝ »é³ÙëÛ³Ï »é³ÙëÛ³Ï

INDICATOR 25

PERCENTAGE OF WATER DISINFECTED ²Ëï³Ñ³ÝíáÕ çñÇ % 100,0% 92,08% AWSC/ ÐæÎ 91,21% 90,08% 88,23% 90,0% 90,30% 82,61% North West 80,0% Region 80,02% ÐÛáõëÇë 78,80% ³ñ¨ÙïÛ³Ý ï³ñ³Í³ßñç³Ý

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

South Region 50,0% Ð³ñ³í³ÛÇÝ ï³ñ³Í³ßñç³Ý

40,0% Base year / Average 05 Average 06 Average 07 Average 08 Average 09 Average 10 Average 11 I Quarter 12 II Quarter 12 ÐÇÙÝ³Ï³Ý ØÇçÇÝÁ 05 ØÇçÇÝÁ 06 ØÇçÇÝÁ 07 ØÇçÇÝÁ 08 ØÇçÇÝÁ 09 ØÇçÇÝÁ 10 ØÇçÇÝÁ 11 12Ã.I 12Ã.II ï³ñÇÝ »é³ÙëÛ³Ï »é³ÙëÛ³Ï

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 112

QUARTERLY REPORT

9. AMENDMENT # 4 TO MC

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 113

QUARTERLY REPORT

9.1 Management contractor additional staff

In accordance with article 8 of amendment #4 of management contract a full time expatriate

“Total Management Plan Development and Technical Coordination Expert ” is on duty st since January the 1 , 2012.

His profile and key responsibilities are matching with annex five of amendement #4 of management contract

9.2 Core monitoring indicators

Statistics on core monitoring indicators are included in the quarterly report for quarters 2 and 4 for the amendment period. These core indicators figures are submitted in Table - 28

They’re used to monitor the Company yearly operations in its main activities: commercial, technical & financial & to improve our level of services.

9.3 Performance indicators

Improvement of the Company activity by the contractor will be assessed by the following performance indicators and connected target values.

ARMENIAN WATER AND SEWERAGE COMPANY CJSC | April-June 2012 114

QUARTERLY REPORT

SERVICE DURATION INDICATORS

Table for service duration regarding the 3 group of cities & rural communities specified in Amendment #4 is the following:

Baseline SETTLEMENTS YEAR 1 (2012) YEAR 2 (2013) YEAR 3 (2014) year Urban Communities hours/day Objective Reached Objective Reached Objective Reached 1st GROUP OF CITIES 22,1 22,1 22,2 22,2 22,5

2nd GROUP OF CITIES 12,1 12,5 15,4 13,4 16,6

3rd GROUP OF CITIES 6,7 8,3 8,9 10,9 12,9

RURAL COMMUNITIES

268 rural communities 13,2 13,7 14,3 14,7 15,2 served by Company

FINANCIAL PERFORMANCE INDICATOR

June 2012 Target for Year 1 - 2012

Collected revenue, mln AMD (including VAT) 1 937 4 200

WATER LOSSES INDICATORS

. Schedule for installation of production flow meters has been

sent to Water Committee in June 2012. 24 water meters will be installed by our means before end of 2012, or included in next project works.

. Non revenue water (= (Produced water – Consumed water) / Produced water) follow up:

Baseline 2010 June 2012 Target for year12012

Water losses % 83 79,8% 83

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 115

QUARTERLY REPORT

Water Quality indicators

Year 2012

Bacteriological test

June December

N of implemented tests 8 163

N of compliant tests 167

Compliancy ratio % 98,0 %

9.4 Project investment plan

Project advancements are detailed in specific chapter of this quarterly report.

We just want to notice that for “Design and Author Supervision for reconstruction of water supply systems of Masis town and nearby seven villages – MWP-C1.1/3-1” the contract signature planned in February 2012 has been postponed to May 2012. The delay is the result of the procedures for loan agreement acceptance out of the Management Contractor responsibilities. So, implementation of this project and expected aims should be postponed with the same delay.

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 116

QUARTERLY REPORT

9.5 Total Management Plan implementation

ASSET SUITABLE MANAGEMENT TARRIF This is the first time that such Total

NON SUITABLE TARRIF Management Plan is required in a LEVEL OF SERVICE management contract. So, in agreement with

FINANCIAL & ECONOMIC MODEL the Water Committee & the World Bank

representatives we decided to be very close

during its implementation to ensure the final

INVESTMENTS PLAN DRAWNING result will satisfy each stakeholder.

Proposed implementation advancement table is the following:

TMP draft framework TMP draft document Inception validation TMP draft report Water World Core Final presentation Summary Committee Bank document document Management contract 30/06/2013

deadline Current Done Done Done Done advancement Total advancement 10 % 15 % 20 % 30 % 80 % 90 % 100 % %

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 117

QUARTERLY REPORT

CORE MONITORING INDICATORS Tables 28,29,30

COMMERCIAL INDICATORS – JUNE 2012

Indicators Unit June 2012

Operated area coverage & metering

Water connections 1 Residents u 296 854

2 Budgetary organization u 1 948

3 Other retail customers u 8 649

4 Bulk water customers u 55

5 Total u 307 506

Water connections metered 6 Residents u 240 471

Ratio (= 6/1) % 81%

7 Budgetary organization u 1 630

Ratio (= 7/2) % 84%

8 Other retail customers u 8 453

Ratio (= 8/3) % 98%

9 Bulk water customers u 31

Ratio (= 9/4) % 56%

10 Total u 250 585

Ratio (= 10/5) % 81%

Sewerage connections 11 Residents u 154 179

12 Budgetary organization u 1 089

13 Other retail customers u 6 124

14 Bulk water customers u 0

15 Total u 161 392

Billing & collection

16 Total invoiced volume m3 15 356 276 17 Total billing amount (with VAT) AMD 2 126 255 990 18 Collected revenue (with VAT AMD 1 937 017 800 Collection efficency ratio (=18/17) % 91,1% Commercial efficiency (=17/19) AMD/ m3 25,52

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 118

QUARTERLY REPORT

TECHNICAL INDICATORS – JUNE 2012

Indicators Unit June 2012 Water production

3 19 Produced volume m 75 888 700

3 20 Consumed volume m 15 356 276

Production efficiency ratio (=20/19) % 20,2% Unaccounted for water (UfW)

3 UfW volume (=19-20) m 60 532 424

UfW ratio (=(19-20)/19) % 79,8% Network and service duration Minimum level of service duration

21 1st group of cities h/d 22,1

22 2nd group of cities h/d 14,8

23 3rd group of cities h/d 7,3

24 Average service duration in rural settlements h/d 14,2 Water quality

25 Total number of bacteriological tests u 8 163

26 Total non-compliant results u 167

Compliance ratio (=(25-26)/25) % 98,0%

ARMENIAN WATER AND SEWERAGE CJSC | April-June 2012 119

QUARTERLY REPORT

ECONOMICAL INDICATORS – JUNE 2012

Indicators Unit June 2012 Costs and staffing

27 Operation & maintenance cost AMD 2 392 353 634

28 Financial cost (charges) AMD 68 595 454

30 Number of employees by group 1 622 Financial performance

31 Operating expenses (without VAT) AMD 3 412 659 801

32 Operating revenue (without VAT) AMD 2 405 871 375

Operating ratio (=31/32) % 142%

33 Operating expenses (with VAT) AMD 2 517 498 640

34 Operating revenue (with VAT) AMD 1 937 016 800

Working ratio (=33/34) % 130

35 Current assets AMD 5 364 199 000

36 Current liabilities AMD 3 600 607 000

Current ratio (=35/36) % 149%

37 Net income of reporting period AMD 30 398 533

38 Debt service for next reporting period AMD 121 831 000

Debt service coverage ratio (=37/(1,2x38)) % 21%

39 Liabilities AMD 46 006 043 000

40 AWSC equity (capital) AMD -3 466 039 000

Debt-to-equity ratio (=39/40) % -1335%

41 Net income AMD -3 466 039 000

42 Net operating assets AMD 41 727 091 000

Return on net operating assets (=41/42) % -8%

42 Net income AMD -3 466 039 000

43 Revenue AMD 2 405 871 375

Profitability (=42/43) % -144%

ARMENIAN WATER AND SEWERAGE COMPANY CJSC | April-June 2012 120

QUARTERLY REPORT

ARMENIAN WATER AND SEWERAGE COMPANY CJSC | April-June 2012 121