IT’S PREFERABLE THAT THE STATE CONTROL ENERGY SECTOR, BUT NATIONAL
INTEREST IS PRIMARY, VICE CHAIRMAN OF ORINATS ERKIR SAYS
YEREVAN, APRIL 7, NOYAN TAPAN. The sale of the 5 unit of Hrazdan
Thermal Power Plant to the Russian side with the aim of mitigating the
effect of the gas tariff increase proceeds from the national interests
of Armenia. Mher Shahgeldian, Chairman of the RA National Assembly
Standing Committee on Defence, Internal Affairs and National Security,
Vice Chairman of the Orinats Erkir Party, made this statement during a
talk with reporters on April 7. In his words, it is preferable that
the state control the energy sector. “But it’s a matter of the
nation’s interests, and our national interests are primary for us,” he
noted. According to him, diversification of electricity sources is
necessary in order to ensure the energy independence, which is the
most important component of the country’s energy security. In this
connection the parliamentary standing committee chairman attached
importance to the construction of the Iran-Armenia gas pipeline and
ensuring the Iranian gas supply. M. Shahgeldian considered it
important that the rise in the gas price will not affect a large
section of the population, since it may cause social discontent. He
said that the application of compensation mechanisms against the gas
price increase is important in terms of business development as
well. According to the speaker, the investments to be made by the
Russian side in the 5th power unit will solve the problems related not
only to the generation of extra electricity but also its sale. Asked
by NT correspondent if there are any guarantees that the Hrazdan TPP
5th unit will be put into operation, taking into account the current
idleness of the enterprises which were transferred to the Russian side
5 years ago under the Debt for Equity Program, M. Shageldian said: “As
the legislative power, we raised this issue, are raising and will
continue to raise it.” According to him, the Armenian deputies
repeatedly told their Russian colleagues that these enterprises must
operate, since there are certain expectations connected to them. “In
this case we will try to do everything so that investments will be
made,” M. Shahgeldian assured.

5TH ANNIVERSARY OF ARMENIAN SCHOOLS CONNECTIVITY PROGRAM MARKED
YEREVAN, APRIL 7, NOYAN TAPAN. An exhibition-sale was organized on
April 7 at the foyer of the RA Government’s conference-hall, on the
occasion of the 5th anniversary of the Armenian School Connectivity
Program. Students of 90 schools of the program net from the 11 marzes
of the country participated in the exhibition. The money got from sale
of the schoolchildren’s hand works will be given to future development
of works of Internet-computer centers of schools. According to John
Evans, the U.S. Ambassador Extraordinary and Plenipotentiary to
Armenia, the 5-years activity gave excellent results. 64 thousand
Armenian teachers got computer knowledge. 8 thousand students
participated in the Armenian on-line program, more than 2900 students
were involved in the U.S.- Armenia on-line programs. U.S. Ambassador
John Evans mentioned that the program the goal of which is
introduction of modern technologies in the educational processes of
Armenia, has been functioned by co-financing of the RA Government
since 2005.

CORRUPTION IS A MAJOR OBSTACLE TO SUSTAINABLE DEVELOPMENT OF ARMENIA,
INTERNATIONAL CONFERENCE PARTICIPANTS STATE
YEREVAN, APRIL 7, NOYAN TAPAN. The 2-day international conference “The
Role of the RA National Assembly- Civil Society Cooperation in Fight
against Corruption” finished its work on April 7. In their concluding
statements, the conference participants stated once again that
corruption is a major obstacle to Armenia’s sustainable development
and promotion of democratic reforms. The newly established Armenian
national body of the Global Organization of Parliamentarians Against
Corruption (GOPAC) also made a statement. The body includes a
representative of each NA group and faction, except the Republican
Party of Armenia and the opposition faction Justice with their large
membership, which will have two representatives. According to the
statement, the creation of such a multiparty structure “will allow to
form a common political will and reach an agreement on creation and
development of mechanisms of fight against corruption in those spheres
that are under the jurisdiction of the parliament.” Director of the
OSCE Armenia Office Vladimir Pryakhin welcomed some proposals of the
conference participants, including the idea of setting up a social
council on coordination of the fight against corruption. According to
him, the implementation of the anticorruption strategical program,
which was adopted by the RA government in 2003, will finish in 2006,
and an international working group will soon summarize the results and
develop, jointly with Armenian authorities, a list of proposals to be
put in practice in the future.

TWO DRAFT DECISIONS ON APPROVAL OF PENSION REFORM STRATEGY TO BE
SUBMITTED TO ARMENIAN GOVERNMENT
YEREVAN, APRIL 7, NOYAN TAPAN. A draft decision on approval of the
pension reform strategy in Armenia must be submitted to the RA
government until July 20. In accordance with reforms, a mixed system
of pension security shall be introduced in the country, with the
pension system being composed of three components: state, compulsory
cumulative and voluntary pension insurance. Vazgen Khachikian,
Chairman of the RA State Social Insurance Fund, told NT correspondent
that two versions of the draft decision are being developed – one by
the Central Bank of Armenia (CBA), and another – by the Ministry of
Labor and Social Issues. According to the ministry’s draft, it is
necessary to introduce a conditional cumulative system in Armenia and
then gradually shift to a cumulative or mostly cumulative
system. Under the draft developed by the CBA, the pension reforms will
not be complete without the prevalence of the cumulative element. In
the opinion of V. Khachikian, the CBA proposal presupposes a more
rapid process of reforms, while the ministry’s version – a more
cautious one.

CONSISTENT ANTI-CORRUPTION STRUGGLE IS POLITICAL NECESSITY FOR ARMENIA
YEREVAN, APRIL 7, NOYAN TAPAN. The consistent anti-corruption struggle
is a political necessity for Armenia. Parliament Speaker Artur
Baghdasarian stated about this at the “Role of RA NA – Civil Soceity
Cooperation in Anti-Corruption Struggle” started at the RA National
Assembly on April 6. According to him, on the way of consistent
deepening of democratic reforms, creation of free and competitive
market, displays of corruption are a serious obstacle. Corruption, not
consoling indexes of shady economy, red-tape, bureaucratic usage of
not transparent methods in separate administrative-managing circles
obstacle the process of reforms,” the NA Speaker mentioned. According
to him, a number of problems closely relates to the anti-corruption
struggle, particularly, transparent and productive activity of the
state government bodies, consistent and impartial usage of the law,
reforms of the tax, customs, legal-judicial systems, the level of
citizens’ awareness of their rights, parliamentary control towards
budget processes, credits and loans. As for the latter, A.Baghdasarian
attached importance to the RA NA membership to the Global Organization
of Parliamentaries Against Corruption (GOPAC), and foundation of the
National Structure in Armenia. Representatives of all the political
forces of the Parliament are involved in the above-mentioned
structure. To recap, the GOPAC was created in 2002 and at present has
regional and national parliamentary structures in more than 70
countries of the world. It cooperates with the World Bank, Development
Agency of Canada and a number of international authoritative
structures.

“GAZPROM” REFUSES FROM IRAN-ARMENIA GAS PIPELINE
Yerevan, April 7. ArmInfo. “Gazprom” has refused from the gas pipeline
Iran- Armenia.
Within several hours, OJSC “Gazprom” has made corrections to the
information already published by the OJSC “Gazprom” Department for
Mass Media telling about an agreement with the Armenian Government
which determines the strategic principles of cooperation in the gas
and energy projects in the territory of the country for 25 years. The
new edition of the press release published by “Gazprom” official web
site contains no provisions on Iran-Armenian gas pipeline. The initial
press release submitted to Mass Media on April 6 was announcing that
the agreement provides for the CJSC “ArmRosgazprom” buying the
constructed 40 km section of Iran-Armenian gas pipeline and the fifth
power unit of Hrazdan TPP (Hrazdan-5) from the Armenian Government.
Besides, the initial press release was indicating that the CJSC
“ArmRosgazprom” is charged with the functions of the customer of the
second 197 km section of Iran-Armenian gas pipeline. Whereas, the new
edition tells only about the purchase of “Hrazdan-5.”
From: Emil Lazarian | Ararat NewsPress

Armenian president, EU envoy discuss expanding ties
Mediamax news agency
7 Apr 06
Yerevan, 7 April: Armenian President Robert Kocharyan and the EU envoy
for the South Caucasus, Peter Semneby, discussed issues “related to
the organization and holding the elections in 2007-2008 in line with
international standards”, the presidential press service has told
Mediamax.
The Armenian president hailed the establishment of institution of the
EU special representative for the South Caucasus “which made it
possible to make relations with European structures more coordinated”.
Semneby pointed that relations between the South Caucasus and European
Union have entered a qualitatively new level and the establishment of
peace and stability in the region is at the centre of the EU’s
attention.
At the meeting, the parties also discussed issues related to drawing
up Armenia’s action plan within the framework of the European
Neighbourhood Policy. Kocharyan noted the importance of implementing
the document as soon as possible.
At Semneby’s request, Kocharyan briefed him about the latest
developments in the Nagornyy Karabakh peace talks and outlined the
Armenian approach to the issue.

Armenian energy minister denies deal to hand Russia control of gas
pipeline from Iran
AP Worldstream; Apr 07, 2006

Armenia’s energy minister denied Friday that the impoverished Caucasus
Mountain nation had struck a deal with Russia’s state-run gas monopoly
to hand it control of part of a new Armenian-Iranian gas pipeline.
OAO Gazprom a day earlier announced that it had struck a 25-year-deal
giving Gazprom’s Armenian joint venture ownership rights to the
Armenian segment of a planned pipeline bringing Iranian gas to the
country and an electricity power generating unit.
Energy Minister Armen Movsisian, said that the pipeline was still
under construction and therefore “it cannot be sold.”
He insisted that Armenia had only agreed to transfer control of the
country’s Razdan-5 gas-fired power plant for almost US$250 million
(A205 million).
The deal was expected to draw fire from Armenia’s opposition, which
has expressed concern over Russia’s already heavy control over the
small, landlocked country’s energy infrastructure.
But Movsisian said the proceeds from the deal _ which will give
Gazprom the right to export electricity from the power plant unit _
were needed to soften the effect for the population of a doubling in
the price of Russian natural gas supplies.
The agreement sets a price for Armenia of US$110 (A90) per thousand
cubic meters of gas up to Jan. 1, 2009, according to a Gazprom
statement _ roughly twice what Armenia has paid in recent years.
Armenia earlier had turned over control for its national gas transport
system to a Russia-Armenian joint venture, ArmRosGaz, in which Gazprom
and an affiliated company control 55 percent.
Gazprom has sharply raised prices recently for Ukraine, Georgia and
Moldova, arguing that it is merely ending subsidies to ex-Soviet
republics and bringing the rates closer to market prices. The gas
giant is the dominant energy supplier in the former Soviet Union, and
has sought to take over pipeline networks, power grids and other
energy infrastructure in neighboring states.
Critics, including some Western countries, say the Kremlin is using
Russia’s energy wealth as a political and economic weapon.
Armenia is Russia’s chief ally in the poor, but strategic Caucasus
Mountain region and hosts a Russian military base.
Russia already largely controls the Razdan-5 plant, the country’s main
electricity producer, and Armenia is wholly dependent on Moscow for
gas supplies.

Man sought for 1994 Los Angeles murders arrested in Armenia
AP Worldstream; Apr 07, 2006

A man accused of killing two gang rivals in Los Angeles more than a
decade ago was arrested in his native Armenia, the FBI announced.
Vahagn Akopyan, 33, was arrested by Armenian authorities in the
capital of Yerevan on Wednesday, said J. Stephen Tidwell, assistant
director in charge of the FBI office in Los Angeles.
Akopyan was being held until it was determined whether he will be
deported to the United States or charged in Armenia, Tidwell announced
Thursday.
Akopyan had been sought in connection with the May 1994 murder of two
reputed gang rivals and the attempted murder of a third on Hollywood
Boulevard.
He was living in California but was believed to have returned to
Armenia shortly after the killings.

From: [email protected]
Subject: US aid chief faces challenge of tight funds
US aid chief faces challenge of tight funds
FT.com site; Apr 07, 2006
By Andrew Bounds in Brussels

The man in charge of doling out US development aid is facing
challenges on two fronts. At home, John Danilovich, chief executive of
the Millennium Challenge Corporation, is vying with other departments
for funding from cash-strapped Washington. Abroad, he wants poor
countries to compete against each other for the funds he has to offer.
Last month, Mr Danilovich asked Congress for $3bn (€2.4bn,
£1.7bn) for 2007. The indications are he will be lucky to get
much more than the $1.7bn the MCC received for this year.
“We have a complicated budget process because of the demands of Iraq
and Hurricane Katrina [which devastated New Orleans this year]. The
defence department needs the money first,” he admits.
It is a personal blow since the former ambassador to Brazil and Costa
Rica has reformed the MCC, established by President George W. Bush in
2004, to please Congress. Almost his first act after getting the job
in November was to suspend aid to Yemen for backsliding on its
commitments. “This communicated a strong message to other countries
that we do have the will and courage to take steps to ensure the money
comes to a screeching halt,” he said.
The MCC is now talking to Yemen about what it must do to have the aid
tap turned on again. It is also in deadlock with Bolivia. It agreed a
record $598m grant for infrastructure and export assistance weeks
before populist ex-coca farmer Evo Morales won a December election in
the Latin American state. Yet the plan is gathering dust. “We have had
no sign of engagement from the Morales government and we are dependent
on them to take this to the next stage.”
Mr Danilovich’s next act was to produce a “how to” manual for
countries seeking aid.
The MCC is set up more
as a company than a federal agency and gives out money in quarterly
instalments over five years, expecting business plans from its client
countries. Condoleezza Rice, secretary of state, is chairman, and Rob
Portman, trade representative, John Snow, Treasury sec-retary, and
Randall Tobias, USAID chief, are also members. Two seats are unfilled.
Mr Danilovich has been praised for his work. Bono, the rock star and
anti-poverty campaigner who helped to conceive the MCC idea, visited
its headquarters last month. “It has had its problems getting off the
ground but it is getting a lot better under Danilovich,” said Jamie
Drummond, director of Data, Bono’s organisation.
Some 23 countries have qualified for assistance by hitting the
indicators, drawn up by institutions such as the World Bank and the
rightwing Heritage Foundation. They measure indicators such as
standards of governance, economic liberalism, democracy and women’s
rights.
“The aim is to incentivise countries. The ones that move fastest can
jump from the back of the queue to the front,” said Mr
Danilovich. They are competing for the “honey pot” at the end. He
cites the west African state of Benin as a success story –
it completed a $307m deal in February in near-record time and has just
had a democratic transfer of power.
Seven other countries have agreed programmes totalling $1.2bn:
Madagascar, Honduras, Nicaragua, Georgia, Armenia, Cape Verde and
Vanuatu. Five more have concluded smaller so-called threshold
agreements to help them qualify for further funding. Mr Danilovich
expects to sign a deal with Ghana in the next few months, and El
Salvador, Sri Lanka, Mali and Mongolia by the end of the year.
This month he will accompany Jim Kolbe, the House of Representatives
foreign appropriations committee chairman, to Armenia and Georgia to
show what a difference US money is making.