Thursday, 27 April 2017
“We need to modernize the regulatory framework as soon as possible” - PM discussed problems and solutions with State Urban Development Committee
Prime Minister Karen Karapetyan visited the State Urban Development Committee by the Government (SUDC) to discuss priority tasks, programs and solutions with the senior staff.
The Premier was briefed on the activities aimed at drafting and revising a total of 997 normative documents (construction norms regulating the sphere of urban development, regulations, standards, policies, etc.).
436 documents were said to have been updated and put into circulation already. At the same time, it was noted that 561 regulations and normative acts adopted in the ex-USSR are still applicable in the Republic of Armenia. The Committee has identified 36 priority documents subject to revision, which call for an investment of 257 million drams. Steps are underway to attract grants to this end.
The Head of Government stressed the need for speedy overhaul of the normative framework in order to get rid of obsolete regulations. “AMD 257 million will not be given for nothing. We have been independent for over 25 years now: why are we still working with 561 norms inherited from the USSR, and why have we not updated them so far? What is the logic? Please make an inventory of what we need, classify financial resources and grant opportunities, as well as the international experience in order to modernize the regulatory framework at least at the base level. You are the driver in this domain and you are the ones to introduce a new culture,” Karen Karapetyan said.
Karen Karapetyan asked about the process of creation of condominiumsin apartment buildings and was told that a relevant survey carried out in this field has revealed a number of problems associated with the enforcement of the rules governing the condominiums, operators’ and population’s rights and obligations and the need to streamline the normative framework. To this end, the SUDC has developed a set of amendments to the law On Condominiums, which is being discussed at this point of time.
“Collective responsibility is not a working mechanism. Condominium managers must be professional and competitive. The State should play a key role in making this institution active and operational. We must do everything to promote the institute of private managers. We need to develop a mechanism of State support to deal with the existing problems, after which we can hand over management to the private sector. We should give a fundamental solution by promoting this institute, and community residents should pay for services by virtue of their right of ownership. If we lay a solid foundation by putting it right, we will get a multiplier effect. Only then we may have investors and a new culture,” the Prime Minister said. Highlighting the condominium reform’s importance, Karen Karapetyan urged the stakeholders to study the international experience and present options for a comprehensive solution.
Chairman of State Committee for Urban Development Narek Sargsyan gave details of the situation in the construction sector, dwelling on the planned investment projects. According to Committee’s estimate, construction industry will be up 15 percent this year, which is about 1-1.5 percent of GDP over the previous year.
Coming to the need to streamline work with investors, the SUDC Chairman suggested establishing a task force that will regularly discuss topical issues and give solutions.
The Prime Minister noted in this connection, “If the management system does not work, it will have to be changed. If we need to set up a functional Commission, I do not mind to do so, but I expect all of you to make recommendations on the bottlenecks faced by prospective investors. Based on that platform and the statistics of several months of work, we will be able to cope with systemic problems in addition to everyday issues.”
Prime Minister Karapetyan was provided detailed information on the development of master plans, modernization of the components of pricing principles, introduction of new technologies, improved procurements, maintenance of public and industrial buildings, enhanced reliability and seismic safety, complex measures to improve urban architecture, increased efficiency in the licensing process and the exercise of stricter State control.
Highlighting the need for continued and consistent efforts, Karen Karapetyan instructed to submit a package of proposals and recommendations.
