CENN – July 12, 2004 Daily Digest – Armenia
Table of Contents:
Armenian NPP to shut down for overhaul on July 23
NCI Determines Trends of Armenian Economic Growth
Armenian agriculture set to receive $10m loans in 2005
Cyprus, Armenia sign health cooperation agreement
Embassy in DC Hosts Presentation on Armenian Science and Lake Sevan
EU wants Armenia to close its nuclear power plant
1. Armenian NPP to shut down for overhaul on July 23
Source: Interfax, July 8 2004
The Armenian nuclear power plant, operated by ZAO Inter UES of Russia, will
shut down for an overhaul and refueling on July 23 and not, as planned, on
July 15, stated Armenian State Atomic Energy Oversight head Ashot
Martirosian. The decision was made because the plant is currently low on
fuel.
The plant was originally scheduled to shut down on July 15, “but the plant
reduced capacity because of high waters from the spring flooding and the
diversion of water resources to generate electricity,” Martirosian said.
The works will last 65 days, during which, after the nuclear fuel is loaded,
an overhaul is planned for the reactor and two operating turbines of the
second generating unit. One-third of the new fuel consignment, some 100
cassettes, will be loaded and paid for by Russia. This should be sufficient
for the plant to work until summer 2005, Martirosian said.
The Armenian NPP generated 1.9 billion kilowatt-hours of electricity in
2003, 36% of total electricity generation in Armenia.
ZAO Inter UES of Russia, which exports and imports electricity to Russia and
other countries, took over management of the plant in September 2003. Inter
UES is a subsidiary of Unified Energy System (UES) of Russia, with 60% of
the shares, and state-run enterprise Rosenergoatom, with 40%.
2. NCI Determines Trends of Armenian Economic Growth
PRESS RELEASE
The National Citizens’ Initiative
75 Yerznkian Street
Yerevan 375033, Armenia
Tel: (+374 – 1) 27.16.00, 27.00.03
Fax: (+374 – 1) 52.48.46
E-mail: [email protected]
Website:
July 8, 2004
National Citizens’ Initiative Determines Trends of Armenian Economic Growth
Yerevan–The National Citizens’ Initiative (NCI) today convened a
specialized policy roundtable on “The Trends of Economic Growth in Armenia.”
The discussion, focusing on the challenges of this vital issue of public
concern, brought together government officials, academic circles, experts of
the field, public figures, and the media community to define the priorities
and development opportunities in the economic sphere, to make realistic
assessments of the current state of affairs, and to address the imperative
of a true struggle against corruption and the shadow economy.
Karapet Kalenchian, director of administration of the Armenian Center for
National and International Studies (ACNIS), greeted the audience with
opening remarks. He stressed the significance of economic reforms and
pointed to several mechanisms for achieving the objective. “In order to
settle a number of issues of strategic importance, in particular
strengthening the new independent state system and improving the living
standards of the population, we need to create prerequisites for the
proportional development of modern industry, the agricultural sector and
other fields of the economy, to improve tax policy, and to provide sustained
economic growth so that every Armenian family really enjoys its benefits,”
Kalenchian said.
Gagik Vardanian, the Republic’s deputy minister for trade and economic
development, addressed “The Strategic Directions of Armenia’s Economic
Development in Light of the Global Information Revolution,” detailing key
issues of efficiency and productivity in the Armenian economy. In his
opinion, information technologies provide great access and thus facilitate
quick orientation in the market as well as application of state-of-the-art
networks and electronic equipment, all of which lead to sustained progress
in the economy. “Given their efficiency in all spheres of life, the Armenian
government attaches primary importance to ITs. It has worked out a
development concept and a program of activities to face the challenges of
the world market,” he noted. “The government of Armenia has adopted
strategic programs for the country’s sustainable regional economic
development in order to play an active role in integrating into the global
information field.”
Gagik Makarian, director of the “Haiconsult” firm, delivered an illustrated
paper on “The Key Obstacles to Armenia’s Economic Growth and the Ways to
Overcome Them.” “It is senseless to speak of sustained economic growth
unless we struggle against corruption and the shadow economy, make a due
assessment of the operational branches of industry, provide mechanisms for
an attractive investment climate, make export volumes predictable, and draft
appropriate tax and customs legislation,” Makarian opined. According to him,
there are about 20 negative factors that impede economic growth in Armenia
in view of the relevant transportation expenses, unfair and unequal
competition, poor marketing experience, the political situation in the
country, and a number of other circumstances.
Yerevan State University economics professor Gagik Galstian entitled his
presentation “The Anatomy of Armenian Economic Growth.” “Economic growth is
not an end unto itself.” he said. “If there is growth there should be
prosperity, whereas the living standard of the population as measured by
substantive food intake per capita has been reduced twice over the last
decade.” An analysis of the data from 2003 brought Galstian to a pessimistic
conclusion: Armenia’s living standard is today on par with that of 1977 in
terms of its Gross Domestic Product, with 1980 in terms of its industrial
productivity, and with 1956 in terms of its cargo transportation and
residential construction. Thus, society is lagging behind by more than 25
years.
The formal interventions were followed by exchanges of views and policy
recommendations among the public figures and policy specialists in
attendance. Noteworthy were contributions by MP Shavarsh Kocharian of the
National Democratic Party; former minister of state Hrach Hakobian;
economist Edward Aghajanov; Artak Zeinalian of the Republic Party; Stepan
Mantarlian of Armaveni consulting company; Alexander Butaev of National
Democratic Union; Petros Makeyan of the Democratic Fatherland Party; Ruzanna
Khachaturian of the People’s Party of Armenia; law professor Hrair
Tovmasian; and many others.
ACNIS analyst Hovsep Khurshudian closed the meeting with summary remarks.
“Unfortunately, it is difficult to conclude the seminar on an optimistic
note regarding Armenia’s economic growth,” he said, underlining that
economic growth remains erratic, illusory, and narrow-based despite
government assurances. “Moreover, the authorities have demonstrated little
or no political will to struggle against corruption, as they are mired in
the very clan system which impedes competition.”
The National Citizens’ Initiative is a public non-profit association founded
in 2001 by former foreign minister Raffi K. Hovannisian, his colleagues, and
fellow citizens with the purpose of realizing the rule of law and overall
improvements in the state of the state, society, and public institutions.
The National Citizens’ Initiative is guided by Coordinating Council, which
includes individual citizens and representatives of various public,
scientific, and educational establishments. Five commissions on Law and
State Administration, Socioeconomic Issues, Foreign Policy, Spiritual and
Cultural Challenges, and the Youth constitute the vehicles for the
Initiative’s work and outreach.
For further information, please contact:
Phone: (3741) 27-16-00 or 27-00-03;
Fax (3741) 52-48-46;
E-mail [email protected];
Web site:
3. Armenian agriculture set to receive $10m loans in 2005
Source: ArmenPress, July 6, 2004
Last week the minister of Agriculture of Armenia David Lokian stated that
the government is set to receive two new credits in 2005 to direct them to
agricultural development. The main components of the credits, according to
the minister, are leasing of technologies and machine building.
The minister said the government would provide 25-50 percent loan guarantees
to farmers in order to ensure collaterals for small and medium- sized
enterprises dealing with agriculture. He also said new loans would be made
available at lower interest rates. “President Kocharian has directly
instructed the Central bank and the ministry that the interest rates must
not exceed 10 percent,” the minister said, adding that this issue must be
also reconciled with World Bank.
A World Bank representative in Armenia said the anticipated amount of loans
is approximately $10 million.
4. Cyprus, Armenia sign health cooperation agreement
Source: Xinhua General News Service, July 5, 2004
Cyprus and Armenia signed on Monday a cooperation agreement in the field of
health and medicine.
Cyprus Minister of Health Constantia Akkelidou, who inked the pact, told
reporters after the signing ceremony that this agreement would provide
numerous exchange visits between the two countries and other ways of
cooperation.
Cyprus has fulfilled an old pledge it gave to Armenia by sending medicine
and medical equipments to the country, she said.
Armenian Ambassador to Cyprus Vahram Kazhoyan who represented his country
said there had been a long experience of cooperation in the field of medical
sciences and health care between the two countries.
“I am glad that finally we were able to sign the agreement which puts all
this cooperation in a legal framework,” he said.
As a good gesture stemming up from this agreement, Cyprus will send a
container of medicine to Armenia soon, he added.
5. Embassy in DC Hosts Presentation on Armenian Science and
Lake Sevan
PRESS RELEASE
July 9, 2004
Embassy of the Republic of Armenia
2225 R Street, NW, Washington, DC, 20008
Tel: 202-319-1976, x. 348; Fax: 202-319-2982
Email: [email protected]
Web:
Embassy of Armenia Hosts Presentation on Armenian Science and Lake Sevan
On July 7, 2004, the Embassy of Armenia hosted members of the Federal Water
Quality Association and the Greater Metropolitan Washington Area Section of
the Armenian Engineers and Scientists of America for a presentation on
Armenian science and environmental issues. Dr. Arman Kirakossian, Armenian
Ambassador to the U.S., delivered the keynote address, entitled “The State
of the Science in Armenia, with a View Toward the Water Environment of Lake
Sevan,” to an audience of some 60 experts, researchers, and officials from
the U.S. Environmental Protection Agency, Department of Agriculture, Nuclear
Regulatory Commission, Civilian Research & Development Foundation, and other
public and private entities.
In his presentation and the Q&A that followed, Ambassador Kirakossian
presented the modern state of scientific infrastructure, policies, and
directions in Armenia. He described the many challenges facing the Armenian
scientists today, such as drastic decrease in government funding, greater
need for commercial viability and involvement of the private sector in
directing and funding R&D, and curtailing the so-called ‘brain-drain.’
Despite these challenges, the Armenian scientists continue to make progress
in many areas of fundamental and applied science due to perseverance and
support from their foreign colleagues and international donors, the
Ambassador noted. He also presented the government’s plans to strengthen
science and education sectors.
Turning to Lake Sevan, Ambassador Kirakossian described the severity of the
anthropogenic ecological problems in Lake Sevan during the twentieth
century, caused by extensive irrigation and hydropower usage. The resulting
18-meter drop in water level and disruption of water balance in the lake was
a good example of Soviet era environmental damage, he added. The Ambassador
then noted the current positive trends in Lake Sevan ecology, but stressed
the need for continuing attention for and greater international cooperation
to preserve the unique environment of Lake Sevan.
6. EU wants Armenia to close its nuclear power plant
Source: RosBusinessConsulting, July 9, 2004
The European Union is planning to collect funds to close the Armenian
nuclear power plant, Janez Potocnik, a junior EU commissioner working with
enlargement commissioner Guenter Verheugen, declared at a briefing in
Yerevan, Armenia. According to him, the EU is ready to allocate up to
EUR100m for this purpose and attract its partners to this project, the ARKA
news agency reported.
The closing of the nuclear facility is necessary for technological and
seismic safety reasons, the commissioner specified noting that Bulgaria and
Baltic states also faced such problems.
At the same time, Potocnik admitted that this was a pretty complicated
process, since new sources of energy were to be found. According to Armenian
experts, some EUR1bn is necessary to create other energy generating
facilities that would replace the capacity of the Armenian nuclear power
plant.
The facility was put into operation in January 1980. Due to some political
circumstances it was closed in 1989. A second rector of the plant resumed
generating energy in 1995. The capacity of each reactor is 407.5 megawatts.
Experts believe that the power plant can operate until 2018.
Financial flows of the Armenian nuclear power plant are managed by Inter RAO
UES, which is a subsidiary of RAO UES (60 percent) and Rosenergoatom (40
percent).
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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