CONSTRUCTION VOLUMES INCREASE BY 38.8% IN ARMENIA IN JANUARY-OCTOBER 2006 ON SAME PERIOD OF LAST YEAR

Noyan Tapan
Dec 06 2006

YEREVAN, DECEMBER 6, NOYAN TAPAN. In January-October 2006, construction
work of 458 bln 605.7 mln drams (about 1 bln 78.6 mln USD), including
construction of production objects of 175 bln 362.9 mln drams,
was done in Armenia. The building and assembly work made 412 bln
425.7 mln drams, including that of production objects of 133 bln
879.9 mln drams. According to the RA National Statistical Service,
in January-October 2006, the construction grew by 38.8%, the building
and assembly work – by 36% on the same period of last year. In the
period under review, 4 new comprehensive schools for 700 pupils were
put into operation in Armenia. Particularly, a comprehensive school
for 200 pupils was put into operation in Artashat region with state
budget resources, and 3 comprehensive schools for 500 pupils with the
WB resources. During the indicated period, 31 comprehensive schools
were repaired, incuding 22 schools with state budget resources. In
January-October 2006, construction of 24 bln 609.8 mln drams (5.4%
of the total volume of construction in Armenia) was done in the
earthquake zone at the expense of all finance sources for construction,
restoration and repairs of residential buildings, social and production
objects, including construction of production objects of 20 bln 456.8
mln drams (11.7% of the total volume). In January-October 2006, 71 new
residential buildings of the total area of over 13 thousand sq.m. or
4.6% of the area delivered for operation in the country were put into
operation at the expense of the population’s resources in the cities
and villages hit by the earthquake. 2 new comprehensive schools for 300
pupils were put into operation in the earthquake zone with a WB loan.

AZERI, ARMENIAN FOREIGN MINISTERS FAIL TO MEET IN BRUSSELS – BAKU TV

Lider TV, Azerbaijan
Dec 5 2006

Addressing the 14th session of the OSCE foreign ministers today,
Azerbaijani Foreign Minister Elmar Mammadyarov said that the
constitutional referendum planned in Nagornyy Karabakh [on 12 December]
is illegal and will have a negative impact on a peaceful settlement
of the conflict.

Elmar Mammadyarov had a meeting with the OSCE Minsk Group co-chairmen
today. During the meeting, the sides discussed the current stage
of resolution of the Nagornyy Karabakh conflict and plans for the
near future.

In spite of preparation, the meeting between the Azerbaijani and
Armenian foreign ministers failed to take place because of different
working schedules of the two ministers.

VAHAGN CHAKHALIAN’S DEFENDER INTENDS TO APPEAL AGAINST SENTENCE AT APPEAL COURT

Noyan Tapan
Dec 06 2006

YEREVAN, DECEMBER 6, NOYAN TAPAN. The real purpose of moving
the trial on case of Vahagn Chakhalian, presidency member of the
United Javakhk Democratic Bloc, to Gyumri was to pass him to the
Georgian authorities, which was planned beforehand. Armen Aghayan,
Javakhk Board member, reported this at the December 6 meeting with
journalists at the Pakagits club. He said that immediately after the
end of the trial representatives of police presented RA Police Chief’s
order on banishment from Armenia to V.Chakhalian and accompanied
him to the Armenian-Georgian border. V.Chakhalian’s defender Tigran
Hayrapetian said that according to the law, administrative banishment
is carried out when a foreign citizen’s activity threatens to the
country’s national security, public order and customs, citizens’
rights and freedoms. It was mentioned that when making the decision
on banishment they disregarded the law’s provision, according to
which a foreign citizen’s leaving Armenia is prohibited if a criminal
case was instituted towards him, an investigation is going on or he
has not served his punishment yet. The defender considers that they
should not have made such a decision, as the sentence has not come
into a legal force yet.

T.Hayrapetian said that the defence party is going to appeal against
the sentence at RA Appeal Court on Criminal and Military Cases,
which cannot examine the case without the defendant’s presence.

US MEDIATOR RULES OUT MILITARY SOLUTION TO KARABAKH CONFLICT – ARMENIAN TV

Public Television, Armenia
Dec 5 2006

[Presenter] Armenian Foreign Minister Vardan Oskanyan met the
co-chairmen of the OSCE Minsk Group in Brussels yesterday. The
sides mainly assessed the current state of the talks after the
meeting between the Armenian and Azerbaijani presidents [in Minsk]
and discussed issues of continuing the negotiations.

A session of the Council of the OSCE foreign ministers will probably
made a statement on the settlement of the Nagornyy Karabakh conflict
in the afternoon today. In his exclusive interview to the "Aylur" news
bulletin, the US co-chairman of the OSCE Minsk Group, Matthew Bryza,
said that the frequent meetings between the Armenian and Azerbaijani
presidents testify to the progress [in the negotiations].

He also noted that the sides are carrying out huge work to achieve
progress. Bryza pointed out that the problem can not be resolved
militarily.

Commenting on bellicose statements by Azerbaijan, Bryza noted that
the military solution to the problem is unrealistic.

[Bryza speaking in English with Armenian voice-over] There is no
military solution to the conflict and any talk on using force is
unrealistic and pointless. There is no military option and we will
have to find a way to complete the negotiations.

PARLIAMENT DISCUSSES ISSUE OF RATIFICATION OF AGREEMENT ON SURRENDERING BETWEEN ARMENIA AND IRAN

Noyan Tapan
Dec 06 2006

YEREVAN, DECEMBER 6, NOYAN TAPAN. On December 6, RA National Assembly
discussed the issue of ratification of a number of international
agreements. The voting was postponed due to lack of quorum. The
parliament, in particular, discussed the Agreement on Surrendering
between RA and IRI signed on 2006 July 5 in Tehran. According to this
agreement, each of the sides is obliged on the basis of the inquiry
of another side to surrender a person in its territory who committed
a crime or for executing the sentence is legally prosecuted by the
competent bodies of the other side.

RA NA RATIFIES TWO INTERNATIONAL AGREEMENTS

Noyan Tapan
Dec 06 2006

YEREVAN, DECEMBER 6, NOYAN TAPAN. On December 6, RA NA ratified
agreement "On Order of Operative Extension, Use and Many-sided
Provision of Quick Extension Collective Forces of Collective Security’s
Central Asian Region" signed on 2006 June 23 in Minsk. The parliament
also ratified protocol on making amendments to the 2003 April 28
agreement "On Creation of a Untied System of Maintenance of CSTO
Member-States’ Railways" signed on 2006 June 26 in Minsk.

RESIDENTAIL AREA PUT INTO OPERATION IN JANUARY-OCTOBER 2006 EXCEEDS BY 19.8% RESPECTIVE INDEX OF LAST YEAR

Noyan Tapan
Dec 06 2006

YEREVAN, DECEMBER 6, NOYAN TAPAN. In January-October 2006, 514 new
residentail buidlings of the total area of 285 thousand 588 sq.m. were
put into operation at the expense of humanitarian aid and funds of
the population and organizations, which exceeds by 19.8% the index
of the same period of last year.

According to the RA National Statistical Service, in the first
ten months of 2006, 2 residentail buildings of the total area of
2,452 sq.m. were put into operation with humanitarin aid, and 11
residential buildings of 50,375 sq.m in Yerevan – with resources of
organizations. 501 residential buildings of the total area of 232,761
sq.m. were put into operation in Armenia. Construction of 83.2% of the
residential buildings delivered for operation in October 2006 was done
at the expense of the population’s resources (93% in October 2005).

LAVROV OBJECTS TO ANY DEADLINES IN KARABAKH SETTLEMENT
by Denis Dubrovin, Natalia Simorova

ITAR-TASS News Agency
December 5, 2006 Tuesday 01:20 PM EST

Promises to reach accord by a certain deadline hardly assist the
Karabakh settlement, Russian Foreign Minister Sergei Lavrov said
after the OSCE ministerial conference in Brussels on Tuesday.

The problem is being settled "by the sides with the assistance of
the Minsk Group cochairmen," he said. "This is a rather delicate
job, as the cochairmen proceed from the sides’ readiness to find a
solution. This job includes trustful and confidential meetings with
the sides at all levels."

"A statement in support of the existent settlement format, which is
acceptable for Armenia and Azerbaijan, was coordinated in Brussels.

It is important to send a political signal of support to the
negotiations, while, in my opinion, it would be counterproductive to
go into details and specify the rates of the process."

Support to settlement negotiations voiced at multilateral forums
"is a good example for others, including South Ossetia, the Dniester
region and Abkhazia," Lavrov said.

NEW OWNER OF ARMENTEL INTENDS TO INCREASE ITS REVENUES THROUGH INTRODUCTION OF NEW SERVICES

Noyan Tapan
Dec 06 2006

YEREVAN, DECEMBER 6, NOYAN TAPAN. The acquisition of 90% of ArmeTel
shares is the greatest deal of the Russian company Vympelkom, and
ArmenTel is the largest enterprise (in terms of the number of its
subscribers) belonging to the company. Vladimir Ryabko, Vymplekom’s
Vice Chairman for Corporate Development, stated this at the December
6 press conference. He added that the company is not against acquiring
10% of ArmenTel shares belonging to the government but it has not yet
made a final decision on this issue. According to V. Ryabko, the mobile
phone communication operators of the Vympelkom group provide services
in Russia, Kazakhstan, Ukraine, Tajikistan, Uzbekistan, Georgia and
Armenia. All these enterprises show high profit growth rates thanks to
provision of extra services rather than a growth of tariffs. V. Ryabko
said that ArmenTel will also adopt this approach. It was mentioned
that today the Armenian mobile phone communication market is occupied
by 25-30%, and there is much potential for its development. In the
words of V. Ryabko, the total number of mobile phone communication
subscribers makes one million, 400 thousand of whom are ArmenTel’s
subscribers, and 600 thousand – VivaCell’s subscribers.

Vymplekom is going to improve the mobile phone network’s coverage
and the quality of communication, as well as to introduce a number
of new services, particularly mobile television. V. Ryabko said that
Vymplekom has no intention to give up the provision of fixed-line phone
services. At the same time, the company is prepared to relinquish
gradually its monopoly, in particular, on Internet connection
services. According to Oleg Bliznyuk, Vymplekom’s Director General,
prior to the acquisition of ArmenTel, Vympelkom had not provided
fixed-line phone services. Despite this fact, he expressed a hope
that there will be development in this sector too. In particular,
it is envisaged to improve the quality of fixed-line phone services,
increase the user density (which curretly makes 20% or 600 thousand
subscribers) and digitalization rate (currently 50%). ArmenTel’s new
owner also intends to introduce a billing system for users of mobile
and fixed-line phone communication.

PRSP IS A GUIDELINE FOR ALL DONOR ORGANIZATIONS, RA MINISTER OF FINANCE AND ECONOMY SAYS

Noyan Tapan
Dec 06 2006

YEREVAN, DECEMBER 6, NOYAN TAPAN. During the December 6 meeting of the
RA Minister of Finance and Economy Vardan Khachatrian and the newly
appointed Head of the European Commission delegation in Armenia Per
Eklund, the interlocutors spoke about the work on implementation of
the Armenia-EU Action Plan. P. Eklund said that they consider the
measures implemented under the Poverty Reduction Strategy Paper (PRSP)
and the Millenium Callange Armenian Program as priorities of the action
plan’s directions. V. Khachatrian said that being the main economic
document of the government, the PRSP is a guideline for all donor
organizations because it indicates the priorities, tasks and terms in
a definite way. Speaking about the cooperation of donor organizations,
the minister noted that donor organizations hold meetings from time to
time to clarify their work and directions, and an electronic database
was created for their assistance. It is refreshed by donors, which
allows them to avoid similar programs. According to the press service
of the RA Ministry of Finance and Economy, during the meeting the
sides discussed other issues related to Armenia-EU economic relations.