PROFIT TAX REVENUES OF RA STATE BUDGET IN JANUARY-FEBRUARY 2006 GROW BY 51.8% ON SAME MONTHS OF LAST YEAR
Noyan Tapan
Apr 11 2006
YEREVAN, APRIL 11, NOYAN TAPAN. In January-February 2006, profit tax
revenues of the RA state budget grew by 51.8% on the same months
of last year and made about 6 bln 224.3 mln drams (about 15.9 mln
USD). According to the RA National Statistical Service, VAT revenues
of the state budget grew by 3.8% in the months under review to about
22 bln 142.8 mln drams, while excise tax revenues grew by 18.3%
to 6 bln 468.4 mln drams. Income tax revenues increased by 53.1% in
January-February 2006 to about 5 bln 112.9 mln drams, fixed payments –
by 8.1% to 2 bln 154 mln drams, and customs duties – by 1.7% to 2 bln
451.7 mln drams. Simlified tax revenues declined by 11.8% to about
1 bln 197.4 mln drams. Other tax revenues of the RA state budget
increased by 25.%5 in January-February and made about 639 mln drams.

REGULAR ISSUE OF MEDIUM-TERM COUPON BONDS TO TAKE PLACE ON APRIL 18
Noyan Tapan
Apr 11 2006
YEREVAN, APRIL 11, NOYAN TAPAN. A regular issue of medium-term coupon
bonds will take place in Armenia on April 18. NT correspondent was
informed at the RA Ministry of Finance and Economy that the bond issue
will amount to 1.5 bln drams (about 3.4 mln USD), with the annual
yield of coupons making 7%. The minimal volume of bond purchase makes
10 thousand drams.

CONTRACTS OF TOTAL COST OF 800 THOUSAND DOLLARS SIGNED BETWEEN INFORMATION TECHNOLOGY COMPANIES OF ARMENIA AND CANADA
Noyan Tapan
Apr 11 2006
YEREVAN, APRIL 11, NOYAN TAPAN. 64 Canadian companies and more than
20 Armenian ones are cooperating through the Toronto-based Armenian
Information Technologies (IT) Canada Office, with the total cost of
the contracts signed between them making 800 thousand USD. Bagrat
Engibarian, Director of the Enterprise Incubator Foundation, stated
this at the April 11 press conference.
According to him, these companies are now discussing many draft
programs, and in case of reaching agreements, contracts worth a
total of 1 mln USD will be signed as well. It was mentioned that
in parallel with extension of Armenia-Canada cooperation, various
programs on training, business trips, exhibition participation and
mutual visits are being implemented. B. Engibarian said that a pilot
program launched by the Armenian IT Canada Office in October 2004
will operate until December 2006.

ANNUAL OWN REVENUES OF GYUMRI INCREASE FROM 100 MLN TO 2.5 BLN DRAMS IN 6-7 YEARS
Noyan Tapan
Apr 11 2006
YEREVAN, APRIL 11, NOYAN TAPAN. 6-7 years ago the annual own revenues
of the city of Gyumri made about 100 mln drams, whereas in 2005 they
amounted to 2.5 bln drams (over 5.5 mln USD). According to Mayor
of Gyumri Vardan Ghukasian, this growth in the city revenues was
contributed by the fact that the number of land tax and profit tax
payers has significantly increased due to the urban development
programs being implemented since 2001. It was noted that the
revenues of the city budget are mainly spent on restoration of the
architectural monuments damaged by the 1988 earthquake and on asphalt
laying and repairs of Gyumri streets. V. Ghukasian said that the
mayor’s office provides the possible assistance for development of
small and medium business in Gynmri, thanks to which about 3 thousand
jobs are created in this sector annually. At the same time, there were
previously 75 thousand jobs, whereas now the number of the employed
is small since the big enterprises are not operating. With the aim
of restoring and developing the industrial capacities in Gyumri, the
mayor underlined the necessity of working out a special state program,
with the indication of local resources, opportunities and sectors, in
which the city and Shirak marz will develop. V. Ghukasian noted that
the land tax and property tax privileges, which were established by
the Armenian government for Shirak marz investors a few years ago,
are not quite efficient. In his opinion, in order to develop the
industry of Gymri, privileges (especially profit tax and income tax
ones) like those applied in free economic zones abroad should be set
for investors.

DRAFT LAW ON MAKING AMENDMENT TO RA LAW ON ENERGY PASSED IN FIRST READING
Noyan Tapan
Apr 11 2006
YEREVAN, APRIL 11, NOYAN TAPAN. The RA National Assembly on April
11 passed in first reading the revised version of the draft law on
making an amendment to the RA Law on Energy. The previously voted
draft proposed that the provision, according to which nuclear
energy is a state monopoly, should be removed from the current
law. Taking into account the proposals made during discussion,
the government agreed to stipulate additionally that the shares
of the Metsamor Nuclear Power Plant are state property and are not
subject to privatization. Besides, it is stipulated that the nuclear
facilities and subsatnces are property of the Republic of Armenia,
while nuclear substances and nuclear facilities to be built after
this law’s taking effect may be the property of legal entities. The
nuclear power plants and nuclear facilities considered important in
terms of security will be build and stopped operating under a separate
law to be submitted by the government.

VOTE ON GOVERNMENTAL DRAFT FAILS IN NATIONAL ASSEMBLY
Noyan Tapan
Apr 11 2006
YEREVAN, APRIL 11, NOYAN TAPAN. At the April 11 sitting, the RA
National As sembly failed to make a decision on the draft law that
was discussed in first reading at the previous session and envisages
amendments in the lists of goods, which are imported by organizations
and private businessmen, have a zero rate of customs duty, are
not subject to excise taxation and on which the customs bodies do
not calculate and charge VAT. Particularly, the amendments propose
reducing the list of these goods. Only 60 deputies voted for the draft,
without votes against and abstentions, whereas the participation of
66 deputies in voting is required for a decision being made. Only the
deputies representing the 3 factions of the political coalition have
taken part in the voting.
The United Labor Party (ULP), Justice and the National Unity factions
and the People’s Deputy group boycotted the voting.
From: Emil Lazarian | Ararat NewsPress

VICTOR DALLAKIAN: ALL ACTIONS OF COALITION ARE AIMED AT JUSTIFYING SHADOW ACTIVITIES
Noyan Tapan
Apr 11 2006
YEREVAN, APRIl 11, NOYAN TAPAN. The parliamentary majority ruined the
opposition’s initiative to organize a public discussion on the gas
tariffs increase and the privatization of the Hrazdan Thermal Power
Plant 5th unit. Secretary of the RA National Assembly Justice faction
Victor Dallakian stated this on April 11. Yesterday he made a proposal
to set up a NA standing committee for examining these problems. Only
20 deputies from the opposition factions “Justice” and “The National
Unity” and 3 independent deputies have put their signatures to the
draft decision within 24 hours – the period envisaged by the NA
by-laws. “I think that by the coaltion’s logic, it is completely
justified: being an illegal structure and protecting all illegal
processes, the colaition must naturally try to avoid making these
processes public. All actions of the coalition are aimed at justifying
the shadow activities,” the opposition deputy stated.

SCIENCE AND TECHNOLOGY ENTREPRENEURSHIP GRANT PROGRAM TO BE IMPLEMENTED FROM MAY
Noyan Tapan
Apr 11 2006
YEREVAN, APRIL 11, NOYAN TAPAN. Starting May 1, a one-year
Science and Technology Entrepreneurship Grant Program (STEP)
will be implemented by the Enterprise Incubator Foundation (EIF)
jointly with the US Civilian Research and Development Foundation
(CRDF). EIF Director Bagrat Engibarian stated this during the April
11 press conference. According to him, the grants will be provided to
those groups engaged in applied sciences that will submit the best
proposals for cooperation with US partners. Under the program, the
Armenian scientists will receive advisory assistance on development
of business programs, licensing of intellectual property objects,
and technology examination. Besides, the scientists will be provided
advice on how to enhance the capacities of establishing links with
enterprises in other sectors of the economy. EIF Director noted that in
case of availability of a contract on scientific developments between
a scientific group and an enterprise, the scientific group will be
allocated a grant in the amount of 50 thousand dollars. Scientific
groups or scientists will be allocated grants in the amount of 3-5
thousand dollars for realization of new development ideas. In the words
of B. Engibarian, it is envisaged that the grant component of STEP
will also be financed by some donor organizations in Armenia. He said
that the joint grant program of the EIF and the CRDF will be followed
by a venture conference, after which financing of the scientific
developments programs from a joint venture fund of the EIF and the
Cafesjian Family Foundation will start. The venture fund’s capital
makes 1 mln USD.

4,297 CITIZENS STILL NOT PROVIDED WITH APARTMENTS IN GYUMRI
Noyan Tapan
Apr 11 2006
GYUMRI, APRIL 11, NOYAN TAPAN. In the last 6-7 years, 8.5 thousand
families have been provided with apartments in Gyumri. However,
4,297 citizens still do not have their own apartments, so housing
consruction programs are underway in the city. Mayor of Gyumri Vardan
Ghukasian told reporters about it. He said that the mayor’s office
supervises the construction organizations’ compliance with the rules
of seismic resistance of the houses under construction.
Particularly, it is forbidden to do house construction work in those
parts of the city, which, according to the seismic map of Gyumri,
are located on the breaking lines of lithosphere. According to
V. Ghukasian, the new districts of Gyumri have municipal and other
communication infrastuctures. Gymri mayor noted that proper control
was kept over the quality the houses built under international
programs. At the same time, it was mentioned that there have been
some quality-related complaints from residents of the buildings
constructed within the framework of the World Bank programs. Roofs
of 30-50 buildings in new districts of Gyumri are repaired each year
with financial resources of the mayor’s office.

ARMENIA MAY BE OF STRATEGICAL SIGNIFICANCE FOR FRENCH INVESTORS, FRENCH AMBASSADOR SAYS
Noyan Tapan
Apr 11 2006
YEREVAN, APRIL 11, NOYAN TAPAN. Air France’s entry into Armenia
bears evidence of the strengthening of political relations between
the two countries.
During April 10 press conference, the French Ambassador to Armenia
Henri Cuny noted that the political will be crowned with success
only if it is based on economic logic. According to the ambassador,
the operation of three flights a week by the French airline is
consistent with the approach that other French enterprises have
taken in Armenia in the last two years. In his words, it all shows
that Armenia’s economic development continues, and the country may be
of strategical significance for French investors, while operation of
flights is indicative of trust in the Armenian economy and tourism. The
representative of Air France Central Europe Office noted that an
increase in the number of passengers of Paris-Yerevan-Paris flight has
been observed over two weeks. It is noteworthy that the world-famous
singer Charles Aznavour, who arrived in Armenia by Air France’s new
flight, has attended the press conference.
From: Emil Lazarian | Ararat NewsPress