Thursday, 18 July 2013
Major Investment Programs Encouraged
The Cabinet held today a regular meeting, chaired by Prime Minister Tigran Sargsyan.
The government approved an investment program proposed by Global Medical Solutions CJSC. The decision will result in the establishment of a modern in-patient oncology center in Armenia, with 150 medical beds and state-of-the-art diagnostic and therapeutic equipment to a total cost of about USD 12-14 million.
“This is one of the most important projects conceived by the National Competitiveness Foundation. We have for a while been discussing it with private investors. Now we have an investor that is going to invest 12-14 million U.S. dollars. Well-known and experienced in this sphere, they are involved in different countries around the world. As stated by the President of Armenia, we encourage investment programs worth over USD10 million which provide high-paying jobs in tune with the government’s priorities. This is one of those programs, the cost of which exceeds 10 million U.S. dollars, so we declare that we are ready to discuss the possibility of granting tax benefits to the investor. A relevant agreement will be signed today with the investor to lay down the approaches of the Investor and the State, considering that the program is carried out under the principle of public-private sector partnership,” the Prime Minister said.
Continuing the policy of supporting large-scale investment programs worth over AMD300mn, the government decided to extend for up to three years the VAT holiday for KAGA Group LLC and RUSAL-ARMENAL CJSC.
KAGA Group plans to invest 1.25 billion drams for a 3ha-wide greenhouses project in Kotayk Marz of Armenia, import modern Dutch equipment, create some 60 jobs, while RUSAL-ARMENAL is set for another refurbishment to provide 55 new jobs, reduce emissions and other harmful factors, improve the working conditions.
Highlighting the aforementioned additional initiatives taken by the government to provide support for large investors, Prime Minister Tigran Sargsyan said, “The greenhouse sector has become quite interesting in terms of investment as we can see that modern technologies are being imported in excess of AMD300mn, which is quite encouraging, and we should continue providing incentives because the first pilot projects have shown that this is a profitable and job-extensive business, which represents serious export potential. Either ARMENAL is introducing modern technologies, which can significantly reduce the consumption of oil, i.e. there will be no need for additional imports. The environmental situation will thereby improve and modern technologies will be used to help solve the problem of ecology.”
To attract foreign direct investment, introduce advanced technologies for export growth, provide for new jobs and sustainable economic growth, the government decided to set up a free economic zone on the territory of RAO Mars JSC and YerSRIMM CJSC.
The meeting determined the criteria and the requirements mandatory for the operator, that is Sitronics Armenia CJSC.
The government approved the program of activities and priorities for 2013 and adopted three dozen other decisions.
