YEREVAN, NOVEMBER 7, ARMENPRESS. The State Commission for the Protection of Economic Competition will submit recommendations to the government in order for Veolia Jur – the water supplying company – to comply with legislation requirements concerning procurement, chairman of the commission Artak Shaboyan said today.

He said that Veolia Jur – like the Electric Networks of Armenia CJSC and Gazprom Armenia – is also a public services sector and it should also be guided by competitiveness principles in procurement.

Shaboyan noted that Veolia Jur mst also make certain investments in the country under its obligations.

In the coming 15 years, the company should invest 37,5 billion drams in way of procuring water meters, constructing pipelines, constructing pump stations. And if these works are carried out in higher prices in turns out that the investment obligations of the company towards the country reduces, he said.

The governmental watchdog has fined Veolia Jur – the country’s water supply operator – 20 million drams for abuse of dominant position in the market.

State Commission for the Protection of Economic Competition chairman Artak Shaboyan unsealed the decision today at a sitting.

According to the commission, the price of water meters imported by the company are three times more expensive than the devices of local production available in the market.

“The commission rules that there is a competition problem here and is demanding to cease this conduct,” Shaboyan said, describing the company’s conduct as “irrational”.

An Armenian-German company called Arazen, a manufacturer of water meters, contacted the commission after being left out of business because of Veolia Jur.

CEO Ara Santrosyan said that their production is of high quality and 90% is being used in Artsakh, and 200,000 units are installed in Georgia.

Arazen has been operating since 2001.

Edited and translated by Stepan Kocharyan