RECEPTION ORGANIZED AT ARMENIAN FOREIGN MINISTRY ON OCCASION OF ARMENIA
RECEIVING STATUS OF OBSERVER AT INTERNATIONAL ORGANIZATION OF FRANCOPHONY

YEREVAN, DECEMBER 21. ARMINFO. A solemn reception was held at the
Ministry of Foreign Affairs of Armenia (MFA) devoted to granting a
status of an observer at the International Organization of Francophony
to Armenia.

The MFA press-service informs ARMINFO that attending the reception
were parliamentary and governmental representatives, ambassadors,
representatives of international organizations accredited in
Armenia, representatives of priesthood, art workers and scientists,
businessmen, professors of the French University of Armenia and
other high educational establishments with a French bias. “I am sure
that membership of our country at the International Organization of
Francophony will contribute to even more devotion of Armenia to the
principles and values acknowledged by Francophony, as well as to even
more involvement of Armenia into international processes. It also
reflects the traditional friendship and exclusive relations between
Armenia and France, and it will, undoubtedly, allow the country to
more deepen the especial dialogue between our states and peoples,” said
Armenian Foreign Minister Vardan Oskanyan in his speech at the event.

In his turn, French Ambassador to Armenia Henry Cuny pointed out in
his speech Armenia’s efforts to participate in the organization, as
well as gave a high assessment of the purposefulness and possibilities
of Armenia to act in the new space.

ARMAVIA STARTS FLIGHTS IN FIX NEW DIRECTIONS IN JANUARY, 2005

YEREVAN, DECEMBER 21. ARMINFO. The national air carrier of Armenia,
Armavia company, will start flights in six new directions in January,
2005, the company’s press-service informs ARMINFO.

According to the source, these are the flights U8-303/304
Yerevan-Dubai-Yerevan on Wednesdays and Saturdays at 00:30,
U8-305/306 Yerevan-Beirut-Yerevan on Wednesday at 22:50, U8-
101/107 Yerevan-Paris-Yerevan on Mondays and Thursdays at 05:00,
U8-105/106 Yerevan-Athens-Yerevan on Saturdays at 06:35, U8-888/889
Yerevan-St.Petersburg-Yerevan on Saturdays at 16:35 and U8-855-856
Yerevan-Kiev-Yerevan ¬ on Thursdays at 7:00.

The first flight Yerevan-Paris-Yerevan is fixed on January
3. Armavia Press Secretary Garik Siroyan states that Armavia will
carry out non-stop flights from Yerevan to Beirut, Dubai, Paris,
Athens. Meanwhile, as to the flights to Saint Petersburg and Kiev,
Armavia has rivals, “Pulkovo” air carrier (one flights weekly) and
“Donbassaero” air carrier (one flight to Kiev weekly). The flights
to all the six directions will be carried out by Airbus A320.

It should be noted that flights in these directions are currently
carried out by the “Armenian International Airlines.” The license of
this company exhausts on Dec 31, 2004. It should be noted that within
9 months of 2004, Armavia transported over 316,000 passengers and 1.1
thousand tons of post and cargoes. The company’s passenger-turnover
totaled 557.7 mln p/km, with cargo turnover being 2.3 mln t/km. The
share of Armavia in the total passenger turnover in Armenia in 9 months
of 204 grew as compared to the same period of 2003 by 17% and totaled
43%. The company serves 20 routes and has interline-agreement with
over 40 air carrier in the world. The company was founded in 2001. Its
strategic partners the second large Russian air line Siberia.-

–Boundary_(ID_52wpPzxFrh0JoT3z7shGJg)–

Armenians concerned about Karabakh peace process – opinion poll

Arminfo
21 Dec 04

Yerevan, 21 December: According to an opinion poll conducted by the
Armenian centre for the strategic and national studies, 49 per cent
of experts and 41 per cent of ordinary participants have expressed
their concern about the current stage of the peaceful settlement of
the Nagornyy Karabakh conflict. Hundred independent domestic experts
and 2,002 residents of Yerevan and all regions of the republic were
the respondents in the opinion poll.

None of the participants in the opinion poll expressed their
satisfaction with the current stage of the peaceful settlement of the
Nagornyy Karabakh conflict, the centre’s expert, Stepan Safaryan,
said today. He added that 24 per cent of the experts thought that
the inclusion of the term “the occupied territories” in the UN
agenda will lead to sanctions pertaining to Armenia and Nagornyy
Karabakh. Eighteen per cent of the ordinary participants in the
opinion poll were convinced that this will draw the attention of the
international community to the demands of the Armenian side.

As for the prospects for sending the Armenian peace-keepers to Iraq,
67 per cent of the experts and 70 per cent of the ordinary citizens
were against this initiative. Thirty one per cent of the experts
believe that this poses threat to the lives of the Armenians living
in Iraq, while 32 per cent of the remaining part of the participants
think that this action will turn Armenia into a target for the Islamic
terrorists, Safaryan said.

Armenian president seeks to push through social security reform

Arminfo
21 Dec 04

Yerevan, 21 December: Armenian President Robert Kocharyan today held
a working meeting on the reform of the social security sphere.

The Armenian prime minister, the labour and social security minister,
the head of the State Social Security Fund and Central Bank and
representatives of other state bodies participated in the meeting,
the Armenian presidential press service told Arminfo.

The president drew the attention of the participants in the meeting to
the fact that although individual stages of the reform of the social
security system have been debated and definite steps have already
been taken by different departments, for the time being there is no
single and comprehensive programme.

“There is no document, which could in terms of its timetable and
responsibility show what needs to be done and what needs to be asked of
the relevant ministries and departments, but reforms demand coordinated
and consecutive work,” the president said.

Kocharyan said that reforms of the social security system are the
most difficult and drawn-out, but using the work already done it is
possible to elaborate a coordinated programme and from next year to
begin to implement it. “These reforms entail regulated work which
is not the job only of the Labour and Social Security Ministry. It
is necessary to involve in this a range of bodies as well. It is
necessary to understand what stage we are at and what we must do so
that next year is decisive,” Kocharyan said

The president instructed participants in the meeting to form an expert
working group, which, on the basis of the work done, will draw up a
general outline of the reforms within a month.

JAN 10 ARMENIAN-RUSSIAN-GEORGIA MEETING TO DISCUSS KAVKAZ-POTI TRAIN FERRY ISSUES

YEREVAN, DECEMBER 21. ARMINFO. An Armenian-Russian-Georgian meeting
will be held Jan 10 2005 to discuss the details of the contract to
exploit the Kavkaz-Poti train ferry which will directly connect the
Russian and Georgian railroads, says the spokesperson of Armenia’s
Transport and Communication Ministry Tamara Galechyan.

The sides will specify the schedule and scheme of the ferry
exploitation. The formerly announced date of the ferry operation,
Jan 5, is not true, says Galechyan.

Now the railroad operations Armenia-Georgia-Russia are carried out via
Ukraine who charges 40% of the transportation costs. The Port Kavkaz
train ferry was launched in May 2004 and can carry 500,000 tons of
cargo a year. But it has one serious problem – it can receive only
small ships because of its shallow coast.

From: Emil Lazarian | Ararat NewsPress

CENN — DECEMBER 16, 2004 DAILY DIGEST
Table of Contents:
1. Elaboration of Program “Safety of Gas Supply to Armenia Within The
Framework of Conservation of The Armenian Atomic Power Plant” To Be
Completed on December 15
2. Armrosgasprom To Start Negotiations With Foreign Banks For 27 Mln USD
Credit For Modernization of Abovyan Underground Gas Holder
3. Saur French Company Starts Managing Armenia’s Water Systems
4. Prizes For Highlighting Environmental Problems
5. EU Aids Armenian Gas Network In Metsamor Closure Hope
6. Project to Restore Abovyan Underground Gas Depository is as Important
as Iran-Armenian Gas Pipeline Construction
7. Gazprom to take part in Iran-Armenia pipeline construction tender
8. Zangezour Copper Molybdenum Group To Sold For $132 Mln
9. Armenian Medicine: in the Infirmary
10. II International Seminar on Mountain Tourism

1. ELABORATION OF PROGRAM “SAFETY OF GAS SUPPLY TO ARMENIA WITHIN THE
FRAMEWORK OF CONSERVATION OF THE ARMENIAN ATOMIC POWER PLANT” TO BE
COMPLETED ON DECEMBER 15

Source: Arminfo, December 10, 2004

The work on elaboration of a program “Safety of gas supply to Armenia
within the framework of conservation of the Armenian atomic power plant”
is to be completed on December 15, 2004. Head of the project office,
Fransua Kolinion (name as given) representing the French consulting
company “SOFRECO” made this statement at a presentation of the program’s
results, Friday.

In his words, the total cost of the project, which has been implemented
since July 2002, under the program of technical assistance INOGATE TACIS
financed by the EU, is 3 mln EUR. The basic goal of the program is
establishment of a modern system of production control and elaboration
of a business-plan on attraction of investments in modernization of
Abovyan underground gasholder. In 2003, the EU-announced international
open tender resulted in signing of 2 contracts with equipment suppliers,
the Russian company “Kalugaglavsnab” and German Siemens Company. The
contract with the first company costs 1.207 mln EUR, that with the
second one – 792,000 EUR. Due to active participation of the Russian
company, three powerful pump for brine liquidation were established in
the gas holder, Earth Physics research was carried out, a mobile Earth
Physics laboratory was established etc.

Under the project, a forecast of gas sale by 2020 is drafted; a
business-plan was elaborated on reconstruction of Abovyan underground
gasholder. Siemens established SCADA system at production control center
of CJSC ArmRosgasprom. This system consists of 8 satellite stations
along the gas main able to transfer information to the chief dispatcher,
which will upgrade the safety of the gasholder. However, it is not
enough for its full modernization, which requires $27 mln.

2. ARMROSGASPROM TO START NEGOTIATIONS WITH FOREIGN BANKS FOR 27 MLN USD
CREDIT FOR MODERNIZATION OF ABOVYAN UNDERGROUND GAS HOLDER

Source: Arminfo, December 10, 2004

ArmRosgasprom intends to start negotiations with a number of foreign
banks in the nearest future for a 27 mln USD credit necessary for
modernization of Abovyan underground gas holder (UGH), Director General
of the company Karen Karapetyan tells journalists, Friday.

He says that the negotiations are in process with Armsavingsbank, Black
Sea Reconstruction and Development Bank, the International Financial
Corporation and a number of Iranian banks. Karapetyan says that
reconstruction of UGH is planned for two stages within four years. The
volumes of pumping of gas into the UGH are planned to be reached to 250
mln cubic meters as against the current 100 mln cubic meters. At
present, 1,3 bln cubic meters of gas is used in Armenia, these volumes
are to be increased to another 300 mln cubic meters in the nearest
future. In this case, the Director General says, 250 mln cubic meters of
stored gas will be enough for safe gas supply and solution to
force-majeure situations. With completion of Iran-Armenian gas
pipeline’s construction, the problem of energy safety in Armenia will be
fully solved, Karapetyan says.

It should be noted that in conformity with the project of UGH’s
reconstruction, at the first stage, the outdated compressors need
replacement with new ones, which requires $8 mln. At present some $1 mln
is spent annually to keep the compressors in order. Another $20 mln is
required for modernization of underground wells and other works. To
note, Abovyan UGH was constructed in 1968. It is unique with its gas
wells on a salt layer in 1000 m depth. There are nine 1,500 HP
compressors which work in three degrees. The first degree allows
increasing the pressure to 20 atm., the second to 50 atm. and the third
to 125 atm. The European Commission recognizes the UGH as one of the
strategic instruments ensuring safe gas supply to Armenia.

3. SAUR FRENCH COMPANY STARTS MANAGING ARMENIA’S WATER SYSTEMS

Source: Arminfo, December 10, 2004

The Saur Company (France) has already started managing the ArmWaterCanal
CJSC to fully undertake the company’s administration in 2005, says the
chairman of the State Water Economy Committee of Armenia Andranik
Andreassyan.

He is sure that Saur is capable of solving the sphere’s problems this
particularly concerning the 80% commercial and technical losses in
Yerevan’s drinking water system. In 2005 the committee is going to
introduce a leasing model in the sphere to minimize the role of state
structures in making economic decisions and to ensure maximum conditions
for the new operator to fulfill its commitments. 7 foreign companies
have applied for implementing the second credit program. The high
interest in the project speaks to its high attractiveness, says
Andreassyan.

Water tariffs will be revised in Armavir, Lori and Shirak where credit
programs will be launched. YerWaterCanal and ArmWaterCanal may also
apply for a tariff raise staring from Apr 1 2005. As for water quality
Andreassyan says: “We get water from high quality sources but give it to
consumers in a much worse condition for technical reasons.”

Concerning the effective use of crediting in the sphere Andreassyan says
that he does not agree with the findings of the relevant parliamentary
commission. “I accept them from the political point of view but not
technically. The Parliament’s motives are not always economic,” he says.

To remind, the management contract of A-Utility (Italy) expires in May
2005. The commission for the effective use of water economy crediting
says that the company has failed to fulfill its contractual commitments.
The company’s work is unsatisfactory – the results are not adequate to
the investments.

4. PRIZES FOR HIGHLIGHTING ENVIRONMENTAL PROBLEMS

Source: A1 Plus, December 10, 2004

Authors of the best environmental articles were awarded prizes on
Friday, December 10, 2004 at the contest announced by OSCE Yerevan
office and Aarhus center. 40 TV and printed profiles were presented.

Concrete Civilization Edik Baghdasryan’s film and Professionalism Cut in
Forest Susanna Shahnazaryan’s article were found the best. A special
prize was given to Hrachya Papinyan for his film highlighting problems
related to water and forests pollution.

The majority of contenders are from Armenia’s regions.

5. EU AIDS ARMENIAN GAS NETWORK IN METSAMOR CLOSURE HOPE

Source: RFE/RL Armenia Report, December 10, 2004

Armenia’s natural gas operator officially completed on Friday the
reconstruction of some of its key facilities that has been financed by
the European Union in the hope of speeding up the closure of the
Metsamor nuclear plant.

Top executives from the Armrosgazprom Company, joined by government
officials and European diplomats, inaugurated three underground gas
storage facilities just north of Yerevan. They were refurbished with 2
million euros ($2.7 million) provided by the EU’s executive Commission
in 2002. The purpose of the program was to help to render Armenia’s gas
network more modern and reliable.

Natural gas is used for generating more than a third of Armenia’s
electricity. EU officials hope that increased use of the fuel would
create an additional incentive for Yerevan to decommission Metsamor
which satisfies over 40% of the resource poor’s country’s energy needs.

`In essence, the European Union is helping us to create the
prerequisites for the closure of the nuclear plant,’ Deputy Energy
Minister Areg Galstian told RFE/RL. One of those prerequisites is
`reliable supplies of energy resources,’ he said.

The EU believes that Metsamor’s Soviet-built reactor fails to meet
modern safety standards and should be shut down as soon as possible. The
bloc had hoped that this will happen in 2004. However, Armenian
officials insist that the plant is secure enough to operate for at least
ten more years.

Galstian reiterated the government’s position that Metsamor will not be
closed without an alternative source of power created in its place. `We
must have a new facility of the same capacity,’ he said, adding that it
could be a new thermal power station.

`In my view this [EU project] has in no way affected the closure of the
nuclear plant,’ said the Armrosgazprom director, Karen Karapetian. `We
had to carry out this modernization anyway.’

Karapetian said the Russian-Armenian joint venture needs an additional
$27 million for the network’s modernization and has already approached
potential investors.

6. PROJECT TO RESTORE ABOVYAN UNDERGROUND GAS DEPOSITORY IS AS IMPORTANT
AS IRAN-ARMENIA GAS PIPELINE CONSTRUCTION

Source: Arminfo, December 11, 2004

The project to restore the Abovyan underground gas depository is as
important as the construction of a gas pipeline from Iran to Armenia,
says the director general of the ArmRosgazprom Company Karen Karapetyan.

Armenia’s energy and strategic security is based on this depository. “I
hope that necessary money will be found for the project next year which
is a serious problem though considering the present volume of gas market
in Armenia,” says Karapetyan noting that some $30 mln is needed to
restore the depository. But the project can well be carried out in
stages – some $7 mln for the beginning. It is also necessary to solve
the problem of brine. “Unless the Nairit chemical plant is restarted we
will have to build a special reservoir for brine production,” says
Karapetyan.

The project is to increase the amount of stored gas from 100 mln c m to
200 mln c m. The Russian Gazprom may take part in it. “We hope that
Gazprom will invest money in Armenia including in the Iran-Armenian gas
pipeline project but Armenia should take certain obligations.” The same
is for the cooperation with the EU who has provided 3 mln EUR for
drafting the project feasibility report, says Karapetyan noting that
experts of the Podzemgazstroy (Underground Gas Construction) company
from Russia are also examining the project.

7. GAZPROM TO TAKE PART IN IRAN-ARMENIA PIPELINE CONSTRUCTION TENDER

Source: ITAR-TASS News Agency, December 13, 2004

The Russian Gazprom company will take part in a tender for the
construction of a gas pipeline from Iran to Armenia, which the gas giant
expects to win, the executive director of the ArmRosgazprom joint
venture told Itar-Tass.

The executive director of the Russian-Armenian joint venture, Karen
Karapetyan, said the date of the tender would be announced shortly. The
Armenian government and Gazprom have 45 percent of ArmRosgazprom shares
each, while the remaining ten percent belong to the ITERA company.

Karapetyan dismissed allegations that the gas pipeline from Iran to
Armenia is intended for the transit of Iranian gas to Europe. The
pipeline of a bigger diameter is needed for the transit, and that would
involve bigger investments, he said. Besides, a free sales market in
third countries is necessary for the transit of gas, and there is no
such market, he stressed.

Iran extends a credit of 30 million dollars for the construction of the
40-kilometer-long Armenian section, the press service of the Armenian
government told Itar-Tass. An agreement on that was signed when Iranian
President Mohammad Khatami paid an official visit to Yerevan last
September.

The construction of the pipeline will be launched simultaneously on both
sides. A total of 100 kilometers of the pipeline will run across Iran.
The construction is expected to be finished in January 2007, after which
the gas systems of the two countries will be united.
Armenia expects to pay for the supplies of Iranian gas with electricity.

The Armenian leadership is confident that the gas pipeline from Iran
will strengthen the republic’s energy security.

8. ZANGEZOUR COPPER-MOLYBDENUM GROUP TO BE SOLD FOR $132 MLN

Source: Arminfo, December 14, 2004

A contract to sell for $132 mln 100% shares of Zangezour
Copper-Molybdenum Group was signed in Yerevan today.

Armenia’s Trade and Economic Development Minister Karen Tchshmarityan
says that 60% stake has been given to Cronimet Mining (Germany), 15%
Pure Iron Plant (Yerevan), 12.5% to Armenian Molybdenum Production and
12.5% to Zangezour Mining. The shareholders will set up a joint managing
company. The first $45 mln payment will be made by Jan 1 2005, the rest
till Dec 31 2005. The contract is financed by Deutsche Bank and
Creditten Stadt Bank.

$250-350 mln is to be invested in the group by 2012 under preliminary
agreement with the final amount to be specified by feasibility report in
2005.

The project is expected to pay off in 6-7 years, says Tchshmarityan. Jan
1 2005 Armenia is stopping to export molybdenum concentrate to process
it fully at home. In 2005-2008 the group will deepen its molybdenum
processing activities to receive a maximally finished product. In
2008-2012 it will launch a rolled copper. The investments will allow the
group to redouble its ore production, says Tchshmarityan.

Cronimet Mining President Hunter Pilarsky says that his company is an
international trade group covering 4 continents. It owns 51% of Pure
Iron Plant, an enterprise processing 50% of Zangezour molybdenum
concentrate. Pilarsky says that international molybdenum prices are high
today which is normal even considering high transportation costs from
Armenia. The company exports its production to Europe via Iran and
Georgia.

In 2003 Zangezour Copper Molybdenum Group registered a $20 mln balance
sheet profit. In Jan-June 2004 its output totalled 24.8 bln AMD – 2.1%
less than in Jan-June 2003. In 2003 the group mined and processed 8.1
mln tons of ore producing 6,300 tons of molybdenum concentrate and
11,000 tons of copper in copper concentrate. Zangezour has the biggest
molybdenum reserves in the whole former USSR.

9. ARMENIAN MEDICINE: IN THE INFIRMARY

By Shant Korkigian
You can contact him at [email protected]

You do not have to spend a very long time in an Armenian hospital to
realize that it is a vastly different world than its American, French or
German counterparts. In fact the whole of medicine in Armenia-from
treatment methods to the healthcare system itself-is very different from
the West.

As a young medical student from the US I did not know exactly what to
expect when I first walked into Yerevan’s Clinical Hospital No. 1. I had
taken an observational position in the department of Plastic,
Reconstructive and Microsurgery for three months and had the pleasure to
work with some of the best physicians in all of Armenia. The surgeons I
worked with are graduates of Yerevan State University’s Medical
University during the Soviet era, had further training in the West, are
fluent in English (among other languages).

The full story is available on the following address:
Medicine.doc

10. II INTERNATIONAL SEMINAR ON MOUNTAIN TOURISM
Mountain Huts – Challenges For Tourists and Nature?

Source: Mountain Forum, December 14, 2004

First Announcement and Call for Papers

Organized by: International Friends of Nature, Institute of Tourism and
Recreation of Cracow Academy of Physical Education

Polish Tourist Country Lovers’ Society (PTTK) – Cracow Academic Section
to be held in Szklarska Poreba (Poland)

14 – 17 April 2005

Mountain huts play a pivotal role in access to the World’s high places.
They allow climbers to commence their ascents early in the morning,
backpackers can create adventurous high-level treks, but they should not
be viewed simply as facilities; properly managed mountain huts evoke a
powerful atmosphere of fellowship, helpfulness and responsibility which
has an educational impact, especially on younger tourists. Some mountain
huts are very old, possessing rich historical and architectural values,
and should be protected as cultural monuments in their own right. On the
other hand mountain huts are a form of enterprise, which have to be
economically viable. Finally, mountain huts are invariably sited within
a very fragile natural environment, intruding upon the landscape and
impacting upon local biodiversity. Technical and economic developments
together with the growing and increasingly sophisticated demands of
people are changing the nature and extent of mountain tourism. Mountain
huts are not immune to these pressures. Larger, more accessible, and
increasingly comfortable huts inevitably results in increased impacts on
local resources.

This is why the organizers have decided to invite people involved in the
various aspects of this complex issue to jointly discuss the present and
the future of mountain huts. The objectives of the Seminar are to
exchange information, experience and ideas on topics which include:

o mountain huts as historical monuments and witnesses to the past;
o huts in the mountain landscape (disfigurement or additional value?);
o environmental impact of mountain huts and how to limit it;
o mountain huts as a place of interpretation and education;
o creating the right social atmosphere in mountain huts;
o nature – friendly mountain huts;
o mountain huts and protected areas – conflict or cooperation?

In addition the Seminar will provide participants with an opportunity to
visit the Giant (Karkonosze) Mountains National Park – an area of
exceptional bio-cultural diversity and with more than two hundred years
history of mountain tourism. Visits to other national parks in the
Sudety Mountains will be possible during the post-seminar excursions.

Participants/Audience:

The organisers invite participation from all people with an involvement
or interest in mountain tourism – natural as well as cultural –
including managers of mountain huts, mountain guides, tour leaders,
interpreters, rangers, park managers responsible for environmental
education, scientists, writers and journalists interested in mountain
issues from all over the world.

Call for papers:

Participants are kindly invited to submit papers, posters or any other
kind of presentation related to the theme of the Seminar. Papers,
accepted by the Editorial Committee, will be published in the
post-conference issue of Folia Turistica – the scientific journal edited
by the Institute of Tourism and Recreation in Cracow.

All colleagues wishing to participate or to be informed about further
details are requested to send an e-mail or fax to:

Michael Prochazka – [email protected]
Fax: ++43 1 8129789
Or Piotr Dabrowski – [email protected]
Fax: ++48 12 4231697
Indicating: name, surname, e-mail address and represented
Institution/society/protected area/company/media organization. The
organizers will forward full details and a registration form.

We look forward to seeing you in Szklarska Poreba!
Michael Prochazka – Secretary General IFN
Piotr Dabrowski – Chairman of the Cracow Academic Section of PTTK

CENN INFO
Caucasus Environmental NGO Network (CENN)

Tel: ++995 32 92 39 46
Fax: ++995 32 92 39 47
E-mail: [email protected]
URL:

NEW RESOURCE CENTER ECMI TO SERVE POPULATION OF JAVAKHK

AKHALKALAKI, December 20 (Noyan Tapan). The presentation of the new
resource center of the Akhalkalaki office of the European Center
on National Minorities Issues (ECMI) was held in Akhalkalaki on
December 14.

According to Mikael Gertoft, manager of the program of the Akhalkalaki
Office of the center, the resource center will serve the population
of Javakhk. The center will render free computer and internet
services here. The resource center will provide the population with
a library. According to the “A-Info” Agency, they will also have an
opportunity to use the halls of the resource center for the holding
of seminars and conferences.

2005 NKR STATE BUDGET REALISTIC AND GROUNDED

STEPANAKERT, December 20 (Noyan Tapan). The preliminary discussions
of NKR state budget in NKR NA standing commissions finished. Major
Danielian, Chairman of the NKR NA standing commission on management
of financial-budget and economic issues, said in his interview to
Noyan Tapan that the draft budget is perfect in terms of structure and
unprecedented in terms of volume (22b drams, about m). He especially
emphasized the fact that the new budget envisages allocation of
unprecedented sums for solution of territorial development issues. In
particular, 350m drams will be allocated for finishing the program of
gasification. M. Danielian said that capital investments in the amount
of 500-600m drams were made in Stepanakert in the previous years while
a state order of capital construction in the amount of 1b, 57m drams
is envisaged in 2005. According to the MP, it’s the first time that a
complete package of capital investments is represented. The package is
divided according to the regions, spheres, constructions and entities
of republican importance. The budget envisages to allocate 800m drams
for the program of assistance to small and medium business.

According to M. Danielian, the dynamics of budget execution, as well as
the economic growth of the country during the previous 2 years permit
to register that the 2005 NKR state budget is realistic and grounded.

From: Emil Lazarian | Ararat NewsPress

VARDAN OSKANIAN’S ABOUT NEGOTIATIONS CONCERNING TURKEY’S ACCESSION TO EU

YEREVAN, DECEMBER 21. ARMINFO. With the beginning of the negotiations
concerning Turkey’s accession to European Union the issue on
recognition of the Genocide of Armenians in 1915 in Ottoman Turkey will
be in the center of attention of Europe. Minister of foreign affairs
of Armenia Vardan Oskanian stated in the interview to Armenia TV.

According to him, the fact that the problems of Armenian-Turkish
relations proved to be in the center of Europe’s attention and that
these issues will be included in the agenda of the negotiations,
is positive at the beginning of the negotiating progress of EU
with Turkey.

During the last two weeks the issue of the Genocide of Armenians were
discussed and marked as often as it was not mentioned during the
last 5 years. All the aforementioned testifies about the doubtless
successes both of Armenian diplomacy and the efforts made by Armenian
foreign communities, the foreign minister stressed.

At the same time the foreign minister of Armenia especially mentioned
the fact, which was positively estimated by the international
community, that Armenia did not and will not put the issue on the
Genocide as a term of normalization of relations with Turkey. Drawing
parallel with the Holocaust, the obvious difference is that Germany
admitting it, officially apologized and paid compensation to suffered
Jewish. And the problem of the recognition of the Genocide of Armenians
is in political aspect, as Turkey not only admits the Genocide,
but also denies the fact, resort to economic blockade and political
blackmail. In this connection, we should not expect that in 2005,
the year of 90th anniversary of the Genocide this problem will be
included in the agenda of UN General Assembly. Though Armenia intends
further to present its position in the highest instances of UN in New
York and Geneva, that’s why the year 2005 will launch a new phase in
the problem of the international community’s recognizing the Genocide
of Armenian, the foreign minster of Armenia said.

CENN – DECEMBER 21, 2004 DAILY DIGEST
Table of Contents:
1. International NGO Letter Protesting Against the Proposed Weakening of
the World Bank’s Social and Environmental Safeguard Policies
2. Additional Funds for Protection of Oil Pipeline Baku-Tbilisi -Ceyhan
3. Armenia Sells Zangezur Combine for $132 mln
4. By the End of 2004 Sanir Company to Announce Tender for Subcontractor
Work on Armenian Section of Iran-Armenia Gas Pipeline
5. UNDP Anti-corruption Project Backs Development of Law on Lobbing
6. War and Cold Have Depleted Armenia’s Only Natural Resource: Trees
7. Armenian Official Calls for Iran’s Fuel

1. INTERNATIONAL NGO LETTER PROTESTING AGAINST THE PROPOSED WEAKENING OF
THE WORLD BANK’S SOCIAL AND ENVIRONMENTAL SAFEGUARD POLICIES

Dear friends,

Thank you for endorsing the international NGO letter protesting against
the proposed weakening of the World Bank’s social and environmental
safeguard policies. So far, this letter has been signed by 131 NGOs from
44 countries. Almost two thirds of the signatures are from groups in the
South.

We will only send the letter to the World Bank in the first days of
January. There is therefore still time for further endorsements. We will
resend you the letter with all endorsements once it has been sent.

The World Bank proposal includes many cases of weakened policies. Upon
suggestion from NGO colleagues, we have decided to mention two more
examples in the letter, as follows:

*On involuntary displacement: “OP 4.12 stipulates that preference be
given to land-based resettlement for all persons whose livelihoods are
land-based. The policy also requires that the needs of vulnerable groups
must be given particular attention. The new country systems proposal
qualifies the right to land-based resettlement for people who do not
hold land titles, and does not require that particular attention be
given to the needs of vulnerable groups.”

*On indigenous peoples: “OD 4.20 requires the preparation of an
Indigenous Peoples Development Plan in projects that affect indigenous
peoples. OD 4.20 requires, as part of such Plans, the establishment of a
baseline regarding the situation of indigenous peoples, an assessment of
the legal status of indigenous peoples, and the creation of mechanisms
for indigenous participation in project design, implementation and
monitoring. OD 4.20 requires the Bank to advise borrowing governments in
recognizing traditional land tenure systems of indigenous peoples prior
to project implementation, and stipulates that the Bank not appraise
projects where adverse impacts are unavoidable and adequate mitigation
plans have not been developed. None of these provisions are included in
the country systems proposal.”

We assume that these additions are fine with you. If not, please let us
know.

Thank you again for your support.

Peter Bosshard
International Rivers Network

2. ADDITIONAL FUNDS FOR PROTECTION OF OIL PIPELINE BAKU-TBILISI-CEYHAN

Source: Sarke, December 20, 2004

The draft of the budget-2005 envisages disbursing of 30.9 million lari
to the special state protection service, what exceeds the financing
volume of the current year by 56%. The Finance Ministry explains the
volume has been increased due to the funds, directed to protection of
the oil pipeline Baku-Tbilisi-Ceyhan, which launches in 2005.

3. ARMENIA SELLS ZANGEZUR COMBINE FOR $132 MLN

Source: Interfax, Russia, December 17 2004

Armenia has sold the Zangezur Copper- Molybdenum Combine to four
companies for $132 million.

The sales contract was signed December 14 in Yerevan, Trade and Economic
Development Minister Karen Chshmaritian said at a news conference.

He said 60% of ZMMK shares went to Germany’s Cronimet Mining, 15% to
Yerevan’s Pure Iron, 12.5% to Armenian Molybdenum Production (AMP) and
12.5% to Zangezur Mining.

The new ZMMK shareholders will create a unified management company, the
minister said.

The first $45 million will be paid by January 1, and the remainder by
the end of 2005. The deal will be financed by a consortium of Germany
banks that includes Deutsche Bank, Chshmaritian said.

According to a preliminary agreement, $250 million to $350 million will
be invested in ZMMK by 2012. The final figure will become clear after a
feasibility study is prepared in 2005 for the company’s modernization.

The investment is expected to boost ore production by 50% to 100%. The
project is expected to pay for itself in 6-7 years.

Armenia will stop exporting molybdenum concentrate as of January 1, as
it will all be processed inside the country, the minister said. Given
the current high world prices for molybdenum, even high shipping costs
are not expected to cause problems. The company exports to Europe
through Iran and Georgia.

Zangezur decreased production by 2.1% year-on-year to $24.8 billion dram
in the first half of 2004.

ZMMK mined 8.1 million tonnes of ore in 2003, and produced 6,300 tonnes
of molybdenum and 11,000 tonnes of copper in copper concentrate. The
Kadzharan copper and molybdenum mine, which ZMMK works, has the largest
reserves of any in the former Soviet Union.

4. BY THE END OF 2004 SANIR COMPANY TO ANNOUNCE TENDER FOR SUBCONTRACTOR
WORK ON ARMENIAN SECTION OF IRAN-ARMENIA GAS PIPELINE

Source: Arminfo, December 17, 2004

By the end of this year the Sanir company from Iran will give start to a
tender to enroll subcontractors or laying the Armenian section of the
Iran-Armenia gas pipeline, says the director general of ArmRosGazprom
company Karen Karapetyan.

He says that his company will certainly take part in the tender and has
quite good chances to win it. “Even if we lose the winners will be
forced to cooperate with us considering that we have domestic gas market
monopoly,” says Karapetyan. He notes that after the Iran-Armenia gas
pipeline is built and the Abovyan underground gas depositary is restored
Armenia will have almost no energy security problems.

Sanir is the general contractor of the project. Iran will lend Armenia
$30 mln for laying the Armenian section of the pipeline – from Megri to
Kajaran. The loan will be given for 7.5 years at 5% a year. The project
will be finished in two years to be launched Jan 1 2007.

5. UNDP ANTI-CORRUPTION PROJECT BACKS DEVELOPMENT OF LAW ON LOBBYING

Source: ArmenPress, December 17, 2004

Today, at the Congress Hotel in Yerevan, the United Nations Development
Program (UNDP), in cooperation with the Ministry of Justice and the
Ministry of Trade and Economic Development of Armenia, held a discussion
of the draft Concept of the Law on Lobbying of the Republic of Armenia.

Representatives of the Government, Parliament, local and international
organizations, trade unions and business associations, as well as
experts participated in the discussion, UNDP Country Office in Armenia
told Armenpress.

The aim of the discussion was to review the approaches and suggestions
on the draft concept of interested NGOs including those representing
interests of the private sector. At the event, the international
experience of regulating lobbying, ways, restrictions, financing and
reporting of lobbying, rights and responsibilities of lobbyists,
licensing and accreditation issues will be discussed. A special
importance will be attached to the suggestions on NGO lobbying.

Developing the regulatory framework for lobbying is the request of the
Poverty Reduction Strategy Paper (PRSP) and the Anti-Corruption Strategy
adopted by the Government of Armenia. At the same time, it is a key step
towards providing equal and transparent opportunities for civic
participation in decision-making and is called to foster participatory
processes in Armenia.

Vahan Asatryan, Coordinator, UNDP/Government Project on “Support to
Information Society and Democratic Governance”, noted in his speech:
“Within the United Nations System, UNDP plays an important role of
providing assistance for equal political, economic and social
opportunities. In this context UINDP supports the Government of Armenia
in developing legislation and implementing policies promoting efficient
participation of citizens in decision-making processes. Our mission in
Armenia is to help reducing political inequalities in the country
through promoting effective and broad civil society participation in
decision-making. We help the Government to establish responsive
participatory policy frameworks and to foster consolidation of
information society. We support establishing a civil society
anti-corruption network in the country and strengthen the capacity of
civil society to participate in anti-corruption initiatives
effectively.”

The UNDP support to the Government of Armenia and the Parliament in
developing a viable law on lobbying will continue in 2005.

6. WAR AND COLD HAVE DEPLETED ARMENIA’S ONLY NATURAL RESOURCE: TREES

Source: Agence France Presse, December 17, 2004

Since Armenia became locked in war over Nagorno-Karabakh, it has been
under an energy blockade from the oil-rich post Soviet republic as well
as from Turkey. As a result, when the war was in full swing much of the
tiny land-locked nation’s forests were cut to be used as fuel.

Now Armenia has a new gas pipeline linking it to Russia, but today the
problem for many Armenians is the fuel’s price, so the cutting
continues.

“During the Soviet Union we had as much gas as we wanted,” Vladimir
Gregorian, a 75-year-old pensioner, said as he pulled a cart stuffed
with brush and branches down a slope leading out of the woods around the
Genocide Memorial.

He said his 20-dollar monthly pension was not enough for him to buy a
new gas line for his house or even pay for the gas itself, so he heats
water for baths with wood collected in the area.

But environmentalists warn that if wood cutting in Armenia continues in
an unsustainable way, much of the country’s harsh mountainous terrain
could turn to desert, a process they say would be irreversible if left
to itself.

“The winters of 1991 and 1992 were very severe, Armenians had no
alternative but to cut trees and burn park benches,” said Susan Yacubian
Klein, the director of the Armenian Tree Project, a US donor-sponsored
organization dedicated to reforestation and sustainability.

But today loggers continue to cut forests illegally, Yacubian Klein
said, delivering their contraband goods to cities in covered trucks, “If
forest cutting continues at the same rate in 20 years Armenia will face
desertification.”

Today deforestation is already causing erosion and landslides and is
throwing dust that used to be held down by roots into the air of
Armenia’s cities, and according to the Armenian Tree Project the
situation could get worse.

In some areas, roads have collapsed as a result of the powerful erosion
forces that deforestation has unchained in rivers.

But there are ways to revitalize the forests. The ATP has launched a
number of projects including one around the Genocide Memorial where
workers use a technique called coppicing to rejuvenate tree stumps.

By cutting away excess shoots that grow out of a stump people can help
one healthy branch utilize the tree’s root system to grow into a tree.
However the work “is just a drop in the bucket,” Yacubian Klein
admitted.

In 1900 forests covered 25% of Armenia, after 70 years of Soviet rule
that figure dropped to 12%, but the decline of wooded areas in the last
decade has been the most dramatic, bringing forest cover to just 8%.

Armenia’s energy crisis has had at least one benefit.

Its isolation and lack of hydrocarbon reserves has lead to some
innovative ideas about alternative energy sources, in contrast to its
two Caucasus neighbors, Georgia and Azerbaijan, whose policies have been
dominated by a geopolitical tug-of-war for pipelines, electricity cables
and global alliances.

A few years ago a small firm called SolarEn started up a project to
explore solar energy in Armenia and has since branched out to wind power
and hydrogen powered fuel cells.

Spurring companies like this on is legislation requiring the state
electricity monopoly to buy electricity generated by alternative means
at a higher price to encourage private investment in the sector.

SolarEn is not in the black yet but its sales of affordable solar
powered water heating systems and alternative energy consultancy
services have given it an annual turnover of nearly 100,000 dollars.

Its sister firm Zod Wind is involved in a 25 million dollar project to
build a set of wind turbines in the east of Armenia next year and an
Iranian firm has already begun construction of two wind turbines in the
south as a 3.5 million dollar gift to the country.

“We don’t have oil, we don’t have gas, all we have is the sun and the
wind,” said SolarEn Executive Director Viktor Afyan, “we need to use
it.”

7. ARMENIAN OFFICIAL CALLS FOR IRAN’S FUEL

Source: MehrNews.com, Iran, December 19, 2004

Khachaturian, the governor-general of Armenian Siunik Province on
December 19, 2004 called for Iran to provide fuel and fertilizers
required by the farmers of his province. According to ISNA, Khachaturian
visiting governor-general of the Iranian East Azarbaijan Province,
Mohammad Ali Sobhanollahi said that Iran-Armenia ties and East
Azarbaijan-Siunik relations should be in the way to represent a model
for other provinces.

“We attempt to carry out the previously made contracts between the two
provinces coupled with fulfilling duties in implementation of contracts
signed by presidents of Iran and Armenia”, he stated.

The Armenian governor-general also said that dam construction and the
third electricity transmission line are among projects that are
presently being implemented between the two countries.

In his part, Sobhanollahi said, “Our cooperation in agricultural,
medical, and sanitary fields has been started, as presently Siunik
exports cement and meat to East Azarbaijan. In return, we can help
Siunik modernize its agricultural sector.”

In conclusion, the Iranian governor-general called for the
re-establishment of Tabriz-Yerevan airline as well as removing the
impediments in expansion of ties between the two provinces.

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CENN INFO
Caucasus Environmental NGO Network (CENN)

Tel: ++995 32 92 39 46
Fax: ++995 32 92 39 47
E-mail: [email protected]
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