On which matters will Armenia’s consent be required? Mirzoyan on the TRIPP agreement
The National Assembly’s Committee on Foreign Relations is discussing the ratification of the Framework Agreement on Strategic Partnership between Armenia and the United States concerning the Trump Route for International Peace and Prosperity (TRIPP) project.
The agenda also includes the ratification of the Charter of the Board of Peace.
Presenting the agreement, Foreign Minister Ararat Mirzoyan noted that the word “sovereignty” appears eight times in the document.
“Armenia retains sovereignty over its borders and customs functions, as well as the right to maintain a physical presence at all its border control checkpoints,” Mirzoyan said.
According to Mirzoyan, Armenia will remain responsible for security, law enforcement, border security, and customs and migration control.
At the same time, services for citizens and cargo passing through the infrastructure may be organized according to a “front office–back office” model. The minister noted that certain services could be delegated to private operators and that the operating company could also maintain security units, which would be required to obtain licenses in Armenia.
Addressing the company’s governance and decision-making procedures, Mirzoyan emphasized that Armenia’s consent would be required for a range of matters, regardless of its 26% stake.
According to him, the American side will not hold a two-thirds majority stake in TRIPP Development Company. Armenia’s consent will be required for any change in control of the company; the sale, transfer, or donation of shares; major financial and contractual transactions; the approval of concession terms; and the establishment of subsidiaries or special-purpose vehicles (SPVs).
Mirzoyan explained that, without Armenia’s consent, the US side would not be able to transfer even 1% of its 74% stake to any individual or country. Armenia’s consent would also be required for several matters of national security and political significance.
The project envisages the construction and operation of various types of infrastructure, including railways, power grids, oil and gas pipelines, highways, and other communication routes. A separate subsidiary or special-purpose vehicle would be established to implement each type of infrastructure project.
Under the agreement, Armenia undertakes to take the necessary legal measures to clarify the ownership status of land plots allocated for the project and to ensure that they are free of encumbrances and third-party rights. Armenia will also bear the costs associated with transferring land-use and development rights.
For example, if a privately owned plot of land falls within the area designated for the project, Armenia may acquire it from its owner and grant the land-use rights to TRIPP Development Company.
According to Mirzoyan, a feasibility study for the project is already underway. To facilitate a swift launch, certain preparatory works may be carried out before the joint-stock company is incorporated and its charter is approved. Such works, including site clearance, may subsequently be counted toward Armenia’s investment contribution and transferred to the company.
