US embassy cable - 04YEREVAN260

UNCLAS YEREVAN 000260 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ECON, ATRN, AM 
SUBJECT: ARMENIAN PUBLIC TRANSPORTATION:  NO WAY TO GO 
BUT UP 
 
1. (U) This cable is sensitive but unclassified. 
Please protect accordingly. 
 
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SUMMARY 
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2. (SBU) The public transportation system in Armenia 
has gradually deteriorated during the last few years 
due to both a lack of funds for the operation and 
maintenance of the fleet and the lack of government 
attention to improve the system.  Private commuter 
minibuses now form the backbone of public 
transportation, although the city administration is 
beginning to take limited measures to improve public 
transportation service in Yerevan.  End summary. 
 
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STATE OF THE "FLEET" 
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3. (U) Roughly 2,500 privately owned commuter minibuses 
(the "marshrutkas"), around 20 used buses donated by 
the French Government, a few trolleybuses and the one- 
line, 10-km metro make up Yerevan's public 
transportation.  (NOTE:  Yerevan's last tram line was 
shut down as of January 22.  END NOTE.)  With 
trolleybuses and trams less attractive options because 
of high electrical costs and frequent disruptions in 
the power supply buses and minivans offer the most 
reliable form of transportation.  With ticket prices 
for public transportation set well below cost, there 
are few revenue streams available to fund any upgrades 
in the system. 
 
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DEPENDENT ON IMPORTED NATURAL GAS... 
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4. (U) The minivans and most of the buses run on 
liquified natural gas, the cheapest fuel.  Liquid gas 
is entirely imported, however, and the public 
transportation system's complete reliance on natural 
gas makes it extremely vulnerable to any disruption of 
the gas supply. 
 
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...AND NOT ALWAYS REGISTERED 
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5. (SBU) Along with the registered minibuses servicing 
the city population there is a significant number of 
unregistered ones (which are even less likely to follow 
traffic and safety rules, frequently exacerbating 
already chaotic traffic conditions).  These privately 
owned minibuses have become the principal means of 
public transportation in Yerevan in recent years.  Many 
of the commuter minibuses are very old, in poor 
condition and rarely inspected by the traffic police. 
 
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COMMENT:  A LUCRATIVE BUSINESS 
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6. (SBU) The Yerevan city administration leases the 
rights to the minibus routes for relatively modest 
fees, mostly to hugely successful businessmen, senior 
government officials or members of the National 
Assembly.  Operating the routes is extremely lucrative: 
with almost no money going for upkeep of the vehicles, 
only a very modest sum going to the drivers and to 
lease the rights to the routes, the constantly jammed 
minibuses generate huge profits.  Although there are 
periodic efforts to regulate safety in the system, a 
cynical observer might see in those efforts more 
opportunities for police shake-downs than genuine 
improvements in the system. 
ORDWAY