SERGE SARGSIAN EXPRESSES HOPE THAT IN FUTURE ICRC REPORTS TO REFLECT
REALITY, ABSENCE OF HOSTAGES IN ARMENIA
YEREVAN, APRIL 7, NOYAN TAPAN. Serge Sargsian, the Secretary of the RA
National Security Council, the Defence Minister received on April 7
Jakob Kellenberger, the Chairman of the International Committee of Red
Cross (ICRC). Isabelle Barras, the ICRC responsible for Eastern Europe
and Yves Arnoldy, head of the ICRC Armenian delegation participated in
the meeting. Serge Sargsian attached importance to the ICRC activity
in Armenia, mentioning that this considerably supports solution of
some problems arisen in front of the state. Emphasizing that the
bilateral cooperation promotes rather actively and productively,
J.Kellenberger expressed gratitude for the assistance showed by the RA
Government, particularly, the Ministry of Defence. Touching upon the
works implemented till today in the direction of finding out people
lost traceless, the sides facted that beneficial conditions have
always existed in Armenia for the ICRC employees’ activity, and
obstacles have never been created. In this sense considering baseless
the information periodically published in press by the Azerbaijani
authorities about people lost traceless and hostages kept in Armenia,
Serge Sargsian expressed a hope that the ICRC reports will reflect the
reality in future, thus, the fact of absence of hostages in
Armenia. As Noyan Tapan was informed by Colonel Seyran Shahsuvarian,
the RA Defence Minister’s Press Secretary, the participants of the
meeting exchanged opinions concerning the present stage of settlement
of the Karabakh conflict. Within the context of the negotiation
process, the Minister considered causing anxiety the continuous
martial statements of the high-ranking authorities of Azerbaijan and
encouriging of interracial hatred among the people.

ARMENIAN FOREIGN MINISTER TO PAY 4-DAY WORKING VISIT TO SYRIA AND LEBANON
YEREVAN, APRIL 7, NOYAN TAPAN – ARMENIANS TODAY. Late April 7, the RA
Foreign MInister Vartan Oskanian will leave for a 4-day working visit
to Syria and Lebanon. At the invitation of the Armenian General
Benevolent Union (AGBU), V. Oskanian on April 9 will participate in
the festivities to mark the 100th anniversary of AGBU foundation and
the 75th anniversary of foundation of the Armenian Youth Association
(AYA), as well as will attend the opening ceremony of the Gyulbekian
Center. V. Oskanian will meet with Aleppo Governor in Aleppo.
According to the RA MFA Press and Information Department, meetings of
Vartan Oskanian with the Syrian President Bashar Assad and Foreign
Minister Valid Muallim are scheduled for April 8 in Damascus. V.
Oskanian will also meet with the heads of some Armenian religious and
secular bodies of Damascus. On April 10, V. Oskanian will leave for
Beirut, from where he will visit the Catholicosate of the Great House
of Cilicia in Antelias. RA Foreign Minister will return to Armenia on
April 11.

PREPARATORY WORK ON INTRODUCTION OF COMPULSORY AUTO INSURANCE IN
ARMENIA TO START IN 2007
YEREVAN, APRIL 7, NOYAN TAPAN. It is envisged to start in 2007 the
preparatory work on introduction of compulsory auto insurance – civil
liability of the owners of transport means with respect to third
persons – in Armenia. Levon Mamikonian, Director General of Cascade
Insurance CJSC, told NT correspondent about it. According to him, this
practice is common in many countries, thanks to which in particular
the expenses to compensate for the harm caused to health of those who
suffered as a result of a car accident are transferred from the budget
to the private sector. Besides, in a number of countries, the state
insures some groups of state employees and their civil liability by
using budget resources (state compulsory insurance). L. Mimikonian
said that the work on introduction of various types of compulsory
insurance first of all presupposes improving the financial stability
of insurance companies, enhancement of their technical capacities and
transparency of their activities.
Starting January 1, 2008, the authorized capital of an insurance
company must make at least 500 mln drams (about 1.1 mln USD). It was
noted that prior to the introduction of compulsory auto insurance, a
body to regulate the process of insurance claims should be set up, as
it is expected that after auto insurance is made compulsory, the
number of road accident registerted will increase 2-3fold. According
to L. Mamikonian, the development of the insurance market in many CIS
countries is conditioned by the introduction of compulsory insurance
services. By making use of compulsory insurance services and receiving
compensations, people started to understand the necessity and
advantage of insurance, after which various types of voluntary
insurance also began to produce results. For example, 37 types of
compulsory insurance are used in Russia. A few years ago they
accounted for 75% of insurance payments on the Russian insurance
market. L. Mamikonian noted that out of 22 licensed Armenian insurance
companies, only 10-12 are operating actively. An average annul growth
of 30% was registered on the insurance service market over the last
3-4 years, although recently the growth has slowed down. In 2003, the
market volume made 4 mln USD, in 2004 – 7 mln USD, while in 2005 –
7.5-8 mln USD (according to preliminary data).

DRAFT LAW ON COMPULSORY SOCIAL INSURANCE AGAINST ACCIDENTS AT WORK AND
PROFESSIONAL ILLNESSES DEVELOPED
YEREVAN, APRIL 7, NOYAN TAPAN. A draft law on compulsory social
insurance against accidents at work and professional illnesses has
been developed by the RA Ministry of Labor and Social Issues. Hrach
Ananian, chief technical inspector of the Republican Branch Union of
the RA Trade Union of Workers of Construction and Building Material
Production, told NT correspondent about it. According to the draft,
the compensations to the persons insured against accidents at work and
professional ilnesses will be paid from a state insurance fund to be
set up, whose resources will form from compulsory mothly payments made
by insured persons. These payments will make up 1.5% of salary and
other resources equated to it for those involved in hard and most
dangerous work, 1%- for those involved in hard and dangerous work, and
0.5% – for other workers. It was noted that the function of keeping
record of accidents at building sites was transerred in 2005 from the
branch trade unions to the RA State Labor Inspection. According to
Hrach Ananian, about 20 deaths and 400-500 injuries of various degrees
as a result of accidents at building sites were registered in the
Soviet time. After Armenia’s independence, construction volumes have
declined in Armenia, and 5-7 accidents resulting in death and about
100 accidents causing injuries are now registered in the country each
year.

RENEWABLE ENERGY PROGRAM SIGNED
YEREVAN, APRIL 7, NOYAN TAPAN. RA Minister of Finance and Economy
Vardan Khachatrian and Director of the World Bank Yerevan Office Roger
Robinson on April 7 signed the Renewable Energy Program approved by
the World Bank. The program’s total cost is 8 mln dollars, 5 mln
dollars of which is a credit provided by the International Development
Association (IDA), and 3 mln dollars is a grant of the Global
Ecological Fund (GEF). The program will be assisted by the Armenian
government for the purpose of enhancing the electricity generation
capacities, which are private property and are operated by the private
sector, by using renewable power-bearing substances, as well as for
reducing carbon dioxide emissions, removing the obstacles to the
development of renewable energy. According to the press service of the
RA Ministry of Finance and Economy, the Renewable Energy Program has
two components: 1) support for elimination of obstacles and assistance
to the program’s implementation, 2) investment financing. The IDA
resources and the grant will be provided to the Renewable Energy and
Energy Saving Fund, which will allocate money to private investors
through a financial intermediary. It is expected that after the
program’s completion, it will help create an extra capacity of about
80 megawatt for generation of renewable energy, adding an annual
amount of 200 gigawatt/hour to the electricity generation
structure. Carbon dioxide emissions are expected to decrease by about
130 thousands tons a year. The program will be co-financed by the
European Bank for Reconstruction and Development (EBRD) that will
allocate 7 mln dollars and the Cafesjian Family Foundation to provide
3 mln dollars. The credit will be given to Armenia on standard terms
of the Interenational Development Association – it is repayable over
40 years with a 10-year grace period.
From: Emil Lazarian | Ararat NewsPress

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.