The TRIPP Implementation Framework (TIF) has affirmed that the key connectivity project is to be developed within designated transit routes in Armenian territory, in locations to be detailed in the future, while maintaining Armenia’s full sovereignty over all project areas within Armenia’s sovereign territory.
The TRIPP Development Company, with U.S. controlling stake and Armenian oversight of reserve matters, is intended to ensure the development and implementation of the TRIPP infrastructure.
Armenia intends to authorize and facilitate the establishment of the TRIPP Development Company. The company is expected to be responsible for the development of the TRIPP and is expected to be granted the right to development for an initial term of 49 years. Armenia intends to offer the United States a 74% share and to hold itself a 26% share in the TRIPP Development Company. This arrangement is expected to be extended for an additional term of 50 years with a grant of additional equity to the government of Armenia bringing its share to 49%. The change of the TRIPP Development Company’s shareholders (including sale, donation of the shares, merger, demerger, reorganization, or any other legal or factual act) and ultimate beneficial owners is expected to be subject to the prior consent of the Governments of Armenia and the United States. Armenia and the United States plan to work together on the corporate structure of the TRIPP Development Company. The structure is expected to reflect the following objectives: 1) Armenian and U.S. governments’ involvement in particular key decisions and issues related to the operation of the multimodal transit route; and 2) financial return to the U.S. for its initial contribution or other economic benefits to the U.S. government or for U.S. companies. Decisions that touch on certain sensitive issues covered by specified reserve matters are expected to be resolved jointly through an Armenia-U.S. Steering Committee. The TRIPP Development Company is expected to directly implement any TRIPP rail and road projects and is envisioned to have subsidiaries or special purpose vehicles for other components of the TRIPP. Armenia’s stake in the TRIPP Development Company reflects its contribution of the following: Land use (development) rights within the transit routes, Existing infrastructure assets (subject to further discussions), Regulatory facilitation and streamlined permitting, In-kind contributions related to border and customs infrastructure, Cash investments as determined appropriate.
Each country intends to designate a senior government official as the primary coordinator for TRIPP implementation, responsible for inter-ministerial coordination and serving as the main point of contact with the TRIPP Development Company.
GRANT OF DEVELOPMENT RIGHTS
Armenia intends to provide the TRIPP Development Company the exclusive right to:
Plan, design, develop, construct, operate, and maintain multimodal transit infrastructure within designated transit routes
Establish Special Purpose Vehicles for specific infrastructure projects
Contract with construction firms, operators, and service providers
Generate and collect revenues from infrastructure operations
Manage the TRIPP route as part of an integrated system
Development rights may cover but not be limited to:
Rail infrastructure – railways, terminals, stations, rolling stock facilities
Road infrastructure – highways, roads, bridges, tunnels
Energy infrastructure – electrical transmission, oil pipelines, gas pipelines
Digital infrastructure – fiber optic networks
Supporting infrastructure – administrative facilities, utilities, safety and security systems in accordance with Armenian law
The TRIPP Development Company may collect and retain revenues from various sources to include but not limited to:
Infrastructure access fees
Commercial activities within the transit route
Property rent and development
Service charges
Revenue shares from Special Purpose Vehicles
Armenia explicitly retains:
Legislative, regulatory, and judicial authority due to full sovereignty and territorial integrity over all TRIPP areas within Armenia’s sovereign territory including the ability to enforce laws and regulations in line with Armenia’s domestic laws and international agreements
Control over national security and law enforcement
Authority over border control and customs for trade and transit through the TRIPP
Authority over taxes, customs duties, and other mandatory fees on trade and transit
Right to access all areas within Armenia’s sovereign territory
Authority to enforce all Armenian laws within the parts of the transit route in Armenian sovereign territory
SPECIAL PURPOSE VEHICLES (SPVs)
The TRIPP Development Company is expected to establish separate legal structures for major infrastructure components in addition to directly implementing any TRIPP rail and road components pending additional study and analysis. Each structure is expected to have governance, financing, and operational models suited to the specific infrastructure type and strategic considerations. All SPVs are expected to initially be founded by the TRIPP Development Company, with the understanding that private sector investment opportunities may be discussed in later stages on a case-by-case basis.
