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Official News

Friday, 3 February 2017

PM Addresses Kumayri Historic Center Rehabilitation Program Presentation: “It will have strong economic impact and generate jobs”

Prime Minister Karen Karapetyan paid a working visit to Gyumri. The Premier first called at Shirak airport in Gyumri to get a first-hand view of infrastructures and investment projects. Airport manager - Armenia International Airports - will spend USD10 million to improve infrastructure, of which 3 million will be invested during the year.

Work is underway to attract new budget airlines. The airport of Gyumri is practicing low tariffs for services, with some of the services provided even free of charge. “We need to work with travel agencies. We have to foster a business-friendly environment for the provision of different services,” the Head of Government told news reporters, confident that new budget airlines will come to fly in different directions from Gyumri.

The Premier was introduced to the construction of a malt producing factory in Gyumri, which is expected to provide 200 new jobs, with 18 thousand tons of malt produced annually. The plant will not only meet the domestic market demand for high-quality malt, but also arrange for exports.

The Prime Minister next visited Loft recreation and entertainment center, which opened its doors today. Karen Karapetyan familiarized with the amenities, calling at the cinema, music, sculpture, arts, crafts and cooking lounges. The Center will host different activities of social orientation.

Then Karen Karapetyan toured Kumayri reserve-museum in Gyumri, including Shiraz, Rustaveli and Abovyan streets, where there are buildings of historical and cultural importance. The Head of Government got acquainted with the current situation and the related private projects.

Following the tour, the Prime Minister participated in the presentation of the Kumayri historic center rehabilitation project, which was held in the technology center in Gyumri. The presentation was attended by potential investors, representatives of the agencies concerned, different organizations and associations. The project was developed by the Central Bank of Armenia and the the Hope for Gyumri Development Foundation. The public-private partnership based project will help stimulate the economy and tourism in Gyumri. A special fund will be set up to implement the project.

Addressing the event, Prime Minister Karapetyan stated in part, “An exciting and logical investment program has been developed that will generate jobs and bring about economic effect. But what matters most is that this program will change the atmosphere in Gyumri. We all and the Government in the first place are eager to attract investment in Gyumri. We are starting a huge investment project, which will provide a multiplier effect. While I do not have the possibility to get engaged in business activities, I will ask my family members to make a contribution. My family will be greatly honored to make the first contribution.”

During the presentation, based on analytical work, the project’s economic impact, expected results, approximate timing of investment payback and the estimated risks were introduced to the public.

The project implies creation of arts, crafts and entertainment centers in the historical center of Gyumri. There will be implemented various business programs, with an active and attractive environment provided for tourists and pedestrians.
7,700 square meters will be used as a business area to bring different ideas to life. The project was drafted based on cross-country know-how and the experience of neighboring Georgia.

A topical discussion was held, during which different proposals and recommendations were voiced. A number of business organizations expressed willingness to participate in investment funds for this program and for the development of the town. Commenting on payback opportunities, the Premier said them to be quite realistic.

“As a former successful businessman, I wish to assure you that the invested funds will be returned faster; the availability of the investment fund will not limit businessmen’s freedom to make decisions,” Karen Karapetyan pointed out.

The Prime Minister advised that that the State Tourism Committee has USD55 million-worth projects covering all the regions of Armenia.

“We intend to negotiate these programs and a certain part of the funds allocated to this investment fund, which was not envisaged originally. We prioritize the establishment of the fund and the restoration of the aforementioned streets as a catalyst of business processes and instruments. The Government will support the fund mediating all of its resources, including the State budget,” the Head of Government assured.

In conclusion, the Prime Minister instructed those responsible to complete work on the establishment of the investment fund as soon as possible and, at the same time, to continue cooperating with the prospective investors.

October 2020