Month: May 2008

GURGEN ARSENIAN IS SURE THAT RA AUTHORITIES WILL FULFIL DEMANDS OF PACE RESOLUTION

Noyan Tapan

Ma y 15, 2008

YEREVAN, MAY 15, NOYAN TAPAN. In the conviction of United Labour Party
Chairman Gurgen Arsenian, the April 17 resolution of the Parliamentary
Assembly of the Council of Europe will, no doubt, be implemented by
the authorities. As Gurgen Arsenian mentioned at the press conference,
which was held on May 15, he has no doubts concerning that as he is
well acquainted with the policy of the RA authorities. In addition
to this, in his words, the RA authorities cannot avoid a number of
obligations Armenia has assumed when becoming a member of the Council
of Europe, grounding that "you know, we do not like those rules."

Touching upon the demand of the opposition on holding
extra-parliamentary elections, the leader of the United Labour
Party stated that the latter considers as inadmissible "any extra
phenomenon". "Even taking into consideration the circumstance that in
case of extra-parliamentary elections we will gain an opportunity to
appear in the National Assembly, we do not welcome any extra process,"
Gurgen Arsenian clarified. He mentioned that not receiving necessary
number of votes in the latest NA elections, the United Labour Party,
according to the laws of democracy, accepted the fact of not entering
the National Assembly.

G. Arsenian reminded that the United Labour Party "assisted" the
pre-electoral program of current President Serge Sargsian in the
presidential elections. He stressed that they have chosen not between
persons but programs.

PRICE OF COMPRESSED GAS HAS DECLINED IN ARMENIA, CHAIRMAN OF STATE COMMISSION ON PROTECTION OF ECONOMIC COMPETITION CLAIMS

Noyan Tapan

Ma y 15, 2008

YEREVAN, MAY 15, NOYAN TAPAN. It is the second day that prices at
Armenia’s 214 compressed gas filling stations have been reduced
by about 40 drams. The chairman of the RA State Commission on
Protection of Economic Competition Ashot Shahnazarian said on May 15
that compressed gas is currently sold at 160 drams a cubic meter in
Yerevan, at 150 drams in Gyumri and 130 drams in Hrazdan.

To recap, on May 1 the price of gas went up as a result of abolishment
of the privilege of subsidising the gas tariffs, which in its
turn resulted in a growth of prices of taxi services. According to
A. Shahnazarian, however, by the commission’s calculation, the price
was to increase by 30 drams to 160 drams, whereas at some filling
stations it has reached 200 drams. He announced that the commission
is continuing studies of the compressed gas market, and there is no
company with a dominating position in this market.

A. Shahnazarian said that the commission is currently examining
markets of some foodstuffs in order to find out whether the decline
in the customs values of these goods has affected their prices.

From: Emil Lazarian | Ararat NewsPress

JBIC TO PROVIDE EXTRA SUM FOR CONSTRUCTION OF YEREVAN TPP’s NEW UNIT

Noyan Tapan

Ma y 15, 2008

YEREVAN, MAY 15, NOYAN TAPAN. The Japan Bank for International
Cooperation (JBIC) will provide an additional credit of 10.5 billion
yens for construction of a steam-and-gas unit with a combined cycle
at the Yerevan Thermal Power Plant (TPP), the RA minister of energy
and natural resources Armen Movsisian said at the May 15 sitting of
the Armenian government.

According to him, the credit is to be repaid in 40 years and has a
0.75% interest rate.

The necessity to change the amount was caused by the fact that
equipment prices have risen since 2005 when the JBIC and the
Armenian government signed the agreement on financing the unit’s
construction. The JBIC previously provided a credit of 15 bln 917
mln yens (about 150 million USD) for construction of a turbine.

The construction of the turbine is being done by the winner of the
international tender – a consortium composed of Mitsui & Co. Ltd
(Japan) and GS Engieering & Construction Corporation (South Korea).

It is envisaged completing the unit’s construction in September 2009.

FOREIGN INFORMATION TECHNOLOGY COMPANIES PERFORM ORDERS OF 20-30 MILLION DOLLARS A YEAR FOR ARMENIAN BANKS

Noyan Tapan

Ma y 15, 2008

YEREVAN, MAY 15, NOYAN TAPAN. Foreign companies receive orders for
IT production of 20-30 million dollars a year from Armenian banks,
the executive director of the Union of IT Enterprises of Armenia
(UITE) Karen Vardanian said at the May 14 press conference.

According to him, Armenian banks place orders for database development
and installation, as well as for other labor-intensive IT production
to be made by foreign companies. This is connditioned by the fact that
the banks are not sure that a local company to take the order will
not be liquidated or bought by another company in the near future,
as a result of which the bank may be left without services and the
necessary advice.

In the words of the executive director of the Union of Banks of
Armenia Mikael Hovsepian, the 22 Armenian banks place orders for
their software solutions with two local IT companies – Armenian
Software and L-Soft. The reason is that the software solutions of
the indicated companies are more localized – in accordance with the
Armenian legislation. According to K. Vardanian, these solutions are
mainly used for management of banks’ money flows and in the local
bank networks.

DRAFT POLITICAL DECISIONS ON TAX ADMINISTRATION TO BE SUBMITTED TO ARMENIAN PRESIDENT

Noyan Tapan

Ma y 15, 2008

YEREVAN, MAY 15, NOYAN TAPAN. The Armenian president will have a
meeting with representatives of Armenia’s business circles in a
few days. During the meeting, some draft political decisions on tax
administration will be submitted to the president, the chairman of
the Union of Employers (Manufacturers and Businessmen) of Armenia
(UMBA) Arsen Ghazarian stated at the May 14 press conference.

In his words, the rates of achieving a growth in the efficiency of
tax and customs administration will increase in case of using IT
tools. "As a public figure and businessman, I believe that if the
current government pursues the strategy and tactics it has adopted,
the situation in these sectors in a year will notably differ from the
current situation. We will finally be able to speak about qualitative
changes to be perceived by ordinary businessmen and citizens,"
he stated.

In the opinion of A. Ghazarian, it is impossible to improve efficiency
in the customs sector without a serious use of IT. The major task here
is e-governance, the introduction of the institution of electronic
customs brokers, which will allow to rule out the contacts of the
representatives of enterprises with customs officials.

He said that it is already the second month that quite serious steps
have been taken to make reforms in customs administartion, such as the
electronic declaration of goods subject to customs clearance, raising
the status of customs warehouses, and assessment of the values of
goods in customs warehouses and their customs clearance. "We have held
four discussions with employees of the State Customs Committee (SCC)
adjunct to the RA government, and a sitting of the newly-created Public
Council adjunct to the SCC took place on May 14. It is the second
month that the UMBA has not registered any cases of protectionism
and corruption with respect to the SCC," A. Ghazarian said.

According to him, the use of information technologies by the State Tax
Service adjunct to the RA government is a necessary but insufficient
means of improving administration. The procedures of presenting
tax reports in an electronic way and checking the tax liabilities of
enterprises, which have not made violations in the past, by an analysis
(without checks) are now being discussed and will be approved in a
week or two. A. Ghazarian underlined that the operative work of the
tax service will focus on the fight against shadow economy.

He said that the possibility of introducing the system of centralized
electronic control of the data of cash registers in fairs by the tax
service is being discussed.

"DIGITEC BUSINESS" TO BE HELD IN YEREVAN ON JUNE 26-27

Noyan Tapan

Ma y 15, 2008

YEREVAN, MAY 15, NOYAN TAPAN. DigiTec Business forum on the use of IT
in various business sectors will be held at Yerevan’s Armenia Marriott
Hotel on June 26-27. Representatives of about 3,000 companies of
IT and other sectors, various organizations, state departments are
expected in participate in the event. The director general of the
event’s organizer – the Union of IT Enterprises (UITE) Karen Vardanian
announced that at the May 14 joint press conference with the heads of
the structures assiting with the organization of the forum: Mikael
Hovsepian – deputy CEO of the Union of Banks of Armenia (UBA) and
Arsen Ghazarian – chairman of the Union of Employers (Manufacturers
and Businessmen) of Armenia (UMBA).

According to K. Vardanian, the efficiency of business and its
competitiveness in the foreign and domestic markets are one of the
main guarantees of Armenia’s economic development. The introduction
and use of ICT in the various sectors of business contribute to
its efficiency. He informed those present that an exhibition will
be held during DigiTec Business, at which a number of ICT companies
providing services in the banking sector, mining industry, tourism,
health, education, trade, construction and transport will present
their solutions for business automation.

A. Ghazarian said that a more widespread use of ICT in Armenian
companies will help increase the efficiency of their management and
their financial transparency and to reduce the shadow economy. In his
words, Armenian IT companies also have potential for participation in
the programs on introduction of e-governance systems by the Armenian
government. He expressed a hope that the joint work of UITE and UMBA
on introduction of ICT will have continuous character.

M. Hovsepian said that UBA is interested in developing ICT in banks
in order to improve the quality of their work. Besides, the increased
level of financial transparency of enterprises engaged in the real
sector of the economy – thanks to the use of ICT at these enterprises –
results in increased financial flows through these banks.

FINANCING OF EDUCATION INCREASES BY ABOUT 30% IN 2007

Noyan Tapan

Ma y 15, 2008

YEREVAN, MAY 14, NOYAN TAPAN. The state budgetary financing of the
education and science sector grew by about 32% or 22.9 billion drams
in 2007, the RA chief treasurer Atom Janjughazian said at the May 14
joint sitting of the RA National Assemly standing committees. According
to him, 95.8 bln drams was spent instead of 91.8 bln drams envisaged
by the state budget for education and science.

The share of science and education made 2.7% of GDP in 2006 and 3%
of GDP in 2007. The financing of science remained at the same level
making 5.9 bln drams, while the financing of education grew. Sums
given to secondary education (76.8%) made the largest share of the
allocations to education.

The minister of education and science Levon Mkrtchian said that in
2007 the budget of science and education had a programmed basis. In
his words, the ministry has already developed detailed programs for
up to 2015 and is cooperating under these programs with the World
Bank and several other international financial structures.

Last year some changes were made in the credit programs: in particular,
15 thousand teachers underwent training instead of the envisaged 8
thousand ones. The training of head masters finished in 2007. Besides,
a radical reform of the specialized secondary education system has been
prepared under the European Neighborhood Policy. Its implementation
is envisaged in 2008.

PRICES OF PRIVATE RESIDENTIAL HOUSES GROW BY 3.8% IN YEREVAN SINCE EARLY 2008

Noyan Tapan

Ma y 15, 2008

YEREVAN, MAY 15, NOYAN TAPAN. 1,447 transactions on purchase-sale of
private residential houses were concluded in Armenia in the first
quarter of 2008, including 321 transactions in Yerevan. The number
of purchase-sales of private houses declined by 29.6% as compared
with the 4th quarter of 2007, including a decline of 43.7% in Yerevan
and a decline of 24.2% in all the marzes taken together. The number
of transactions on purchase-sale of private houses grew by 0.2% as
compared with the 1st quarter of 2007, including a growth of 21.1%
in Yerevan and a decline of 4.5% in all the marzes taken together.

According to data of the State Committee of the Real Estate Cadastre
adjunct to the RA government, the average market ptices of private
houses in Yerevan’s communities grew by 3.8% in the 1st quarter of
2008 on the 4th quarter of 2007. The prices of a 250 sq.m. building
with a 400 sq.m. personal plot made (per square meter): in Kentron
community – 486 thousand drams (about 1,567 USD), in Arabkir –
396.4 thousand drams, in Kanaker-Zeytun – 307.4 thousand drams, in
Nork-Marash – 265.8 thousand drams, in Avan – 267.1 thousand drams,
and in Erebuni – 265.9 thousand drams.

The average prices of private residential houses grew by 7% in the
indicated period as compared with 4th quarter of 2007 and made (per
square meter): Ashtarak – 118.9 thousand drams, Aparan – 34.5 thousand
drams, Talin – 43.9 thousand drams, Artashat – 97.5 thousand drams,
Dilijan – 86.9 thousand drams.

LEVON ARONIAN TAKES 5th PLACE IN INTERNATIONAL CHESS TOURNAMENT IN SOFIA

Noyan Tapan

Ma y 15, 2008

SOFIA, MAY 15, NOYAN TAPAN. Levon Aronian was beaten by Veselin
Topalov (Bulgaria) on May 15, in the 6th tour of the International
Chess Tournament being held in Sofia. Aronian is in the 5th place
with 1.5 points and will compete with Ivan Cheparinov (Bulgaria)
in the 7th tour. Vasili Ivanchuk is the leader with 5.5 points.

ACTION OF PROTEST AGAINST TEGHUT MINE OPERATION HELD NEAR RA GOVERNMENT BUILDING (COMPLETED VERSION)

Noyan Tapan

Ma y 15, 2008

YEREVAN, MAY 15, NOYAN TAPAN. A group of members of the Group of Teghut
Protection organization, on May 15, organized an action near the RA
government building, complaining against the operation of Teghut mine.

Citizens carrying placards reading "Stop Robbing Our Country!,"
"Teghut, a Crime Towards the Generations," "Teghut, the Biggest
Tailing of the World," including RA National Assembly deputy Zaruhi
Postanjian, demaded stopping mine’s operation. The deputy said that
the government has always signed agreements without public control,
but in this case it will not be permitted to implement the program
of Teghut mine operation.

The action participants conveyed their demand to the RA Prime Minister
in a written form, that is, to stop the work already started in the
mine territory and to reconsider the government decisions on the
operation of the mine.

According to the statement spread by the Group of Teghut Protection,
it is envisaged that the actions will be held in front of the
RA government building every Thursday, until the government gives
solution to the above mentioned problems.