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Official News

Thursday, 17 December 2015

Government Continues to Support Border Communities

A regular Cabinet meeting was held today, chaired by Prime Minister Hovik Abrahamyan.

AMD130 million will be allocated to border communities in Tavush Marz in order to address priority problems. There are actually a number of infrastructure-related issues faced in border communities regarding gas and water supply, irrigation and other sectors. The decision provides that the funds will be used to co-finance major projects of capital and social relevance.

Commenting on the decision, the Premier said the program is carried out in line with a presidential instruction. Hovik Abrahamyan reminded that an IFAD-supported project is being implemented in border communities relating to gasification and refurbishment of irrigation systems. Supposed to make a 10 percent contribution, communities are currently short of the necessary resources. “We are allocating 130 million drams to border communities in order to bring the project to successful completion,” the Head of Government said.

The Government made a decision to provide welfare assistance to residents in Paruyr Sevak border community of Ararat Marz . The decision implies that the Government will cover 50% of the cost of gas and electricity consumed (up to 30 m and 120 kW respectively) in the period from September 1 through September 31, 2015. Irrigation water fees will be refunded in part; arrears of property tax and land tax – in full.

The Government decided to grant a three-year VAT-holiday to Jermuk Group CJSC for goods and equipment imported under a planned investment program. Jermuk Group is planning to build a completely new state-of-the-art carbonated mineral water and potable water bottling plant in Jermuk town of Armenia with a total cost of around AMD 5 billion, of which AMD3.46 billion will be used for the procurement of equipment.

The projected investment will help get modern equipment of European production. The company is going to release over 5.4 billion dram-worth output annually starting next year, part of which will be realized on the domestic market. The program is expected to generate some 50 jobs with average wages of 170 thousand dram in 2016, 187 thousand in 2017 and 205 thousand in 2018.

The meeting approved a procedure for ensuring day care in the homes for persons with mental health problems and an alternative procedure for providing welfare services. The decision is expected to streamline the process of providing 24-hour services to persons with mental health problems.

Today’s Cabinet meeting endorsed a proposal to sign a 75 million euro-worth loan agreement between the French Development Agency and the Government of the Republic of Armenia with a view to funding the Vedi reservoir project.

The agreement will help implement a program aimed at alleviating the problem of water shortage in the Ararat Valley, as well as to switch from mechanical to gravity irrigation system, which in turn will lead to energy savings.

The Executive approved the letter-certificate between the London branch of Credit Swiss lending company, the European Bank for Reconstruction and Development and Armenia International Airports CJSC. The arrangement authorizes Armenia International Airports CJSC to conclude a loan agreement of 160 million US dollars with the London branch of Credit Swiss.

August 2020