NATIONAL ASSEMBLY APPROVES REPORT ON IMPLEMENTATION OF 2001-2003 STATE PROPERTY PRIVATIZATION PROGRAM AND PROGRAM OF 2005-2007

Noyan Tapan
Apr 13 2006

YEREVAN, APRIL 13, NOYAN TAPAN. The RA National Assembly on April 13
approved with 65 votes in favor, 9 votes against and 10 abstentions the
report on implementation of the 2001-2003 state property privatization
program. Representatives of the United Labor Party (ULP) and Orinats
Erkir factions voted against and abstained from voting. The 19 deputies
who did not participate in the voting were representatives of Justice,
National Unity factions and the People’s Deputy group. At the same
time, a deputy from each of the ULP, Orinats Erkir and the opposition
National Unity factions, which took a negative position the day
before, voted in favor of the report. The parliament also approved
the 2005-2007 state property privatization program with 80 votes
in favor and 5 abstentions. The National Assembly passed in second
reading the draft law on state assistance for innovation activity,
as well as drafts on making amendments and additions to a number of
laws in the sphere of education.

ARMENIAN PRODUCTION EXHIBITION AND ARMENIAN-IRANIAN BUSINESS FORUM TO BE HELD IN MAZANDARAN ON MAY 12-14

Noyan Tapan
Apr 13 2006

YEREVAN, APRIL 13, NOYAN TAPAN. An exhibition of Armenian production
and an Armenian-Iranian business forum will be organized in the Iranian
province of Mazandaran on May 12-14. Executive Director of the RA
Chamber of Commerce and Industry (CCI) told NT correspondent about
it. In his words, the business forum participants will discuss issues
of setting up joint ventures for fish food production, agricultural
machinery assembly, dried fruit equipment, agricultural produce
processing, building material production, tourism, public catering and
consumer services. With the aim of promoting the activities of such
joint ventures, he underlined the necessity to create intermediary,
information investment infrastructures, which will allow to form
a system for implementation of Armenian-Iranian microecnomic
programs. S. Hovakimian noted that the second Armenian-Iranian
economic forum will be held in Yerevan on June 13-14, during which
it is envisaged to discuss issues related to terms of setting up a
joint investment fund and measures aimed at softening the mutual trade
terms. Executive director of the RA CCI said that the Armenian side
received an invitation to participate in an international universal
exhibition to be held in May in the port of Enzeli that was declared
a free economic zone. The Iranian side expressed a willingness
to allocate free pavilions of 500 square meters for 10 Armenian
enterprises. Besides, the Armenian side was offered to occupy a
total exhibition area of 5 thousand sq.m. during this event. The RA
CCI has chosen 50-60 enterprises in information technologies sector,
agricultural processing, machine-building, fishing industry and other
spheres for participation in this exhibition.

64 COMPANIES PRIVATIZED IN ARMENIA IN 2005

Noyan Tapan
Apr 13 2006

YEREVAN, APRIL 13, NOYAN TAPAN. At the April 13 sitting, the RA
government approved that the draft law on approval of the 2005 annual
report on implementation of the state property privatization program,
which will be submitted to the National Assembly in prescribed
order. It was noted that no new program on privatization was adopted
in 2005, so under the RA Law on State Property Privatization,
the RA Law on 2001-2003 State Property Privatization Program was
in force. Taking into account that the 2001, 2002 and 2003 annual
reports on implementation of this program, as well as reports on
the 2001-2003 state property privatization program were submitted
to the RA National Assembly for consideration, the above mentioned
report includes the process of privatization carried out in the
calender year of 2005. Deputy Head of the State Property Management
Department Ashot Markosian told reporters after the sitting that
64 companies were privatized in 2005, with 37 companies being sold
through investment-oriented direct sale, while the remaining ones –
through tender. According to A. Markosian, in 2005, the state budget
revenues from privatization made 75 mln 850 thousand 21 dollars and 1
bln 310,439 mln drams (about 2.9 mln dollars). Besides, the new owners
made investments of 20 mln USD and 20 mln Russian rubles and created
3,680 jobs. The State Property Management Department filed 14 claims to
law courts for nonfulfilment of investment obligations. A. Markosian
pointed out a number of obstacles to implementation of the state
property implementation process, particularly large debts of companies
subject to privatization, as well as the fact that some of the
companies included in the program are in the process of bankruptcy
and their property is being confiscated.

From: Emil Lazarian | Ararat NewsPress

MARTIN SARGSIAN RE-ELECTED CHAIRMAN OF CHAMBER OF COMMERCE AND INDUSTRY

Noyan Tapan
Apr 13 2006

YEREVAN, APRIL 13, NOYAN TAPAN. Issues related to elections of the
management of the RA Chamber of Commerce and Industry (CCI), amendments
to the CCI Regulations, and approval of the 2006-2010 strategy of
its activities were on the agenda of the 3rd special congress of
the RA Chamber of Commerce and Industry that took place on April
12. CCI Executive Director Samvel Hovakimian told NT correspondent
that the program on construction of a new exhibition center of the
RA CCI to be built in Yerevan, as well as program measures, were
presented during the congress. According to S. Hovakimian, Martin
Sargsian was re-elected Chairman of the RA Chamber of Commerce and
Industry at the congress. Head of the RA CCI Staff Kim Galoyan said
that the amendments to the CCI Regulations were made in compliance
with the new edition (June 2005) of the Law on Chambers of Commerce
and Industry in the RA. According to the new Regulations, the RA CCI
may have honorary members who participate in its activities with
the right of deliberative vote. Besides, it was stipulated that
the RA CCI chairmanship may express no confidence in the regional
CCI chairmans and chairmanships in the event they break their
regulations. In such cases, a congress shall be convened within
two months after no confidence is expressed, with new elections of
chairman and chairmanship to be held. K. Galoyan noted that under
the new edition of the Law on Chambers of Commerce and Industry
in the RA, regional chambers of commerce and industry are reserved
the right to open their offices abroad. Regional CCI may also have
their courts of arbitration, just as the RA CCI. The regulations
and file keeping orders of arbitration courts are approved by the RA
CCI Chairaman. According to the law, term of office of chairmen and
chairmanships of the RA CCI and regional CCI is 5 year instead of the
previous 3-year term of office. Congresses of the RA CCI and regional
CCI shall be convened at least every 5 years instead of every 3 years
as was required previously.

ARTUR BAGHDASARIAN DOES NOT SUPPORT APPROACH THAT EVERYTHING WAS LEGAL DURING PRIVATIZATION PROCESS

Noyan Tapan
Apr 13 2006

YEREVAN, APRIL 13, NOYAN TAPAN. The presentation of the report on
implementation of the 2001-2003 state property privatization program
was completed at the RA National Assembly on April 12. The report,
which also includes the privatization process in 2004, will be voted
on April 13. RA NA Speaker Artur Baghdasarian noted in his speech that
he does not support the approach that everything was legal during the
privatization process. According to him, it is also evident from the
facts registered in the annual report of the Control Chamber (CC) to
be discussed in the parliament soon. He promised to send the materials
containing these facts to the Office of the RA Prosecutor General after
the discussion of the CC report. Particularly, the CC has revealed that
the 3 thousand sq.m construction at 67 Hanrapetutyan Str. Yerevan
was sold for $65 a square meter, whereas the market price is no
less than $1,200; the Nairi Cinema – for $40 a sq.m. (market price –
$1,000-1,200), while a 1,840 sq.m construction at the intersection
of Bagramian Avenue and Aygedzor Street was sold for only $50,000,
that is, for $30 a sq.m. (market price – $900-1,000). It was found
as a result of a monitoring of about 200 privatized companies that
only 27 such companies have assumed investment obligations. According
to A. Baghdasarian, most of the companies were privatized by direct
sale at a previosly known price. He also pointed out the absence
of necessary state control over investment obligations assumed
by enterprises. The monitoring of nearly 100 enterprises allowed
the Control Chamber to reveal that obligations of only 37 mln USD
were fulfiled out of a total of 140 mln USD. In his words, while
“selling buildings with one hand”, at the same time the state has to
rent other buildings to ensure the activities of some state bodies,
and the state budget envisages allocations for this purpose.

“ARMINCO” COMPANY RECOGNIZED ONE HAVING PREDOMINANT POSITION IN INTERNET SERVICES MARKET

Noyan Tapan
Apr 13 2006

YEREVAN, APRIL 13, NOYAN TAPAN. The RA State Committee on Economic
Competition Protection recongized the “Arminco” company the one having
predominant position in the market of providing internet services. As
they informed from the committee’s Press Service, such a decision
was made at the April 12 sitting of the committee during which the
application got from “ArmenTel” on the occasion of that issue was
discussed. The committee researches found out that more than 1.9 bln
drams service was provided by 10 big internet providers during 2005,
37.1% of what falls to lot of “Arminco”. According to shares, the
“Netsys” (18.1%), “Kornet-AM” (15.6%), “Exolt” (14.5%), “Web” (9.8%)
companies follow “Arminco.” 454.6 mln drams service was provided by
21 economy entities acting in the market of international services of
satellite getting of data (getting of data with the help of satellite
to provide internet service to user). But none of them, according to
the research, occupies more than 33.3% of the market, though there
is no economy entity having predominant position in this market. It
was also found out, that only “ArmenTel” provides services of line
rented for exchanging data, just which was considered the one having
a predominant position in that market.

PRIVATIZATION OF “SMALL” OBJECTS ALMOST COMPLETED IN ARMENIA

Noyan Tapan
Apr 13 2006

YEREVAN, APRIL 13, NOYAN TAPAN. 1,925 companies, 7,266 “small”
objects and 80 incompleted construction objects were privatized in
Armenia in the period from 1994 to January 1, 2005. As a result, the
funds received from state property privatization made 142 bln drams
and 45 mln USD. Head of the State Property Management Department
adjunct to the RA government Karine Kirakosian stated this at the
April 11 sitting of the RA National Assembly, when presenting the
report on implementation of the 2001-2003 state property privatization
program. According to her, since 2004 the pace of the privatization
process has slowed down due to a number of objective reasons,
first of all, low attractiveness of some enterprises on the list of
companies subject to privatization. The maintenance, modernization and
operation of most of these enterprises require considerable investments
because of their deterioration and moral depreciation. Most of state
property was sold at 25% of its estimated value for the reason of
low attractiveness. However, there were cases when state property was
sold at a higher price than the estimated value. K. Kirakosian noted
that the privatization of “small” objects has almost been completed,
and one third of 1,000 companies included in the program have filed
for bankruptcy because of their “poor operation”. 300 companies have
not yet been privatized, so they were included in the 2005-2007 state
property privatization program sumitted to the NA for approval. The
privatization process was criticized by some representatives of
Justice, National Unity and Orinats Erkir factions and independent
deputy Manuk Gasparian who said that they will vote against the
report. The deputies brought examples of various companies that
were privatized at a lower price than the market value. According
to Secretary of Justice faction Victor Dallakian, Orbita company
assessed at 3 bln drams was privatized for 150 mln drams, the 45.7%
state stake of Luys Publishing House – for 10 mln 825 thousand drams,
while the construction complex, including the office of Orinats
Erkir Party, at 14 Koryun Str. – for 45 mln drams. According to the
deputy’s information, the compex was sold to the RA Minister of Trade
and Economic Development.

From: Emil Lazarian | Ararat NewsPress

SERGE SARGSIAN APPRECIATES OSCE MINSK GROUP’S EFFORTS AND EXPRESSES HOPE THAT FINALLY THEY WILL YIELD DESIRABLE RESULTS

Noyan Tapan
Armenians Today
Apr 13 2006

YEREVAN, APRIL 13, NOYAN TAPAN – ARMENIANS TODAY. The current state
and prospects of Nagorno Karabakh settlement were discussed at the
April 13 meeting of Secretary of the National Security Council under
RA President, Defence Minister Serge Sargsian with OSCE Minsk Group
French Co-chair Bernard Fassier. As Noyan Tapan was informed by Colonel
Seyran Shahsuvarian, Spokesperson for RA Defence Minister, Minister
Serge Sargsian appreciated the efforts of the Minsk Group expressing
the hope that finally they will yield their desirable result.

From: Emil Lazarian | Ararat NewsPress

THE RESIDENTS DIDN’T WANT TO CLEAN THEIR CITY

A1+
[04:15 pm] 13 April, 2006

A mass sanitary purification was held in Sisian. The cleaning was
initiated by the workers of the Municipality, Community organizations
and enterprises.

The pupils also had their active participation in the cleaning
process. “The Sisian sanitary purification” LTD implemented the
cutting of trees and garbage taking from the city streets.

In comparison with the workers of the Municipality, Community
organizations and enterprises the city inhabitants were rather
passive. Soon the city authorities will realize tree – planting.

“Sjuni” TV channel of Sisian

RUSSIAN MEDIATOR IN KARABAKH SETTLEMENT DOES NOT INTEND TO VISIT THE REGION ON HIS OWN

)
14: 21 04/13/2006

OSCE Minsk Group Co-Chair on Nagorno Karabakh conflict settlement Yuri
Merzlyakov does not intend to visit the region on his own following
the example of his colleagues from the US (Steven Mann) and France
(Bernard Fassier), reports a REGNUM correspondent.

According to Merzlyakov, another stage of consultations between the
co-chairs will be held in Moscow, where results of Mann and Fasser’s
visits to Armenia and Azerbaijan will be summed up and issues will be
discussed concerning a visit of the co-chairs to the region planned
for March.