CENN – DECEMBER 22, 2004 DAILY DIGEST
Table of Contents:
1. Evaluation of CENN Activities During the Period of 2004-2005
2. CENN Launches Environmental Trainings/Workshops
3. BTC: No Need for Additional Financing
4. Contract on Transfer of Vanadzor Chemical Plant to Slovakian Company
SLZ TOL be Concluded on January 10, 2005
5. State Budget of Armenia for 2005 Envisages Over 1 mln Drams for
Solution Housing Problems in Lori Region: Armenian President
6. 10% GDP Growth Registered in Armenia in Jan-Nov, 2004

1. EVALUATION OF CENN ACTIVITIES DURING THE PERIOD OF 2004-2005

CENN – Caucasus Environmental NGO Network is conducting evaluation of
its activities for the period of 2004-2005 and would like to ask you to
participate in the study by answering this checklist as accurately as
possible. The information will help us assess the CENN activities and
improve our work in the future. We ask you to answer the checklist and
return it via e-mail till December 27, 2004.

Thank you for your cooperation!

The English and Russian versions of the checklists are available on the
following address:

2. CENN LAUNCHES ENVIRONMENTAL TRAININGS/WORKSHOPS
within the framework of the project “Raising level of public
environmental awareness and information in the transboundary region of
the South Caucasus Countries” implemented by five partner organizations

CENN launched first cycle of environmental trainings / workshops within
the framework of the ENVSEC Initiative project “Raising level of public
environmental awareness and information in the transboundary region of
the South Caucasus Countries” implemented by GTZ (GTZ Food Regional
Cooperation and Security (FRCS) project) and supported by the ENVSEC
Initiative (OSCE, UNEP, UNDP).

The trainings / workshops are focused to provide the participants with
the information on:
ž Natural resource and their use;
ž Sustainable development;
ž Environmental problems- result of non-sustainable use of natural
resources;
ž Environmental security as the cross-cutting aspect of human and
national security;
ž ENVSEC Initiative;
ž “Cause-Problem-Solution” of the local environmental problems;
ž Elaboration of environmental action plans for solution of the
environmental problems.

The project includes two cycles of trainings / workshops and
implementation of environmental actions / campaigns to take place in
transboundary districts of Armenia, Azerbaijan and Georgia. After the
workshops in a later stage, the local community associations will
establish Public Environmental Information Points / Centers. The Public
Environmental Information Points / Centers will work in close
cooperation on solution of local and regional environmental problems and
implementation of the Aarhus Convention on the local and regional levels
together with other organizations in the neighboring districts (e.g.
CENN Public Environmental Information Centers in Bolnisi, Kazakh and
Akhtala supported by the Eurasia Foundation).

For further information on the project, please contact: GTZ FRCS office:
frcs@access.sanet.ge

For information on the environmental trainings and workshops, please
contact the CENN office: info@cenn.org

3. BTC: NO NEED FOR ADDITIONAL FINANCING

Source: The Messenger, December 22, 2004

British Petroleum and its partners in the Baku- Tbilisi- Ceyhan (BTC)
pipeline project will not ask international financial institutions for
an extra loan to cover the 10% increase of the project cost, BP
Azerbaijan President David Woodward said at a press conference in Baku
on Tuesday, December 21, 2004. The shareholders borrowed USD 2.6 billion
from foreign credits this February. Mr. Woodward said they borrowed more
than needed, so an extra loan was unnecessary. He said the stakeholders
would bear any extra expenses.

Projects like BTC always imply a 10-15% change from the initial estimate
and the increase of the Baku- Tbilisi- Ceyhan pipeline project cost does
not go beyond that, Mr. Woodward said.

He said over 90% of work had been done in the Azerbaijani sector of the
pipeline, over 85% in the Georgian section of the pipeline and 85% in
the Turkish sector.

4. CONTRACT ON TRANSFER OF VANADZOR CHEMICAL PLANT TO SLOVAKIAN COMPANY
SLZ TOL BE CONCLUDED ON JANUARY 10, 2005

Source: Arminfo, December 20, 2004

A contract on transfer of Vanadzor chemical plant to Slovakian company
SLZ will be concluded on January 10, 2005. Armenian President Robert
Kocharyan made this statement at a press conference after his visit to
Lori region on December 18, 2004.

He says that next year it will become clear whether it is possible to
exploit the plant with profits on the investments the Slovakian party
intends to attract. The transfer of the plant does not mean that its
work will be guaranteed as it is connected with a possibility of
receiving profits the following year, the president says. He emphasized
that the owner of Vanadzor chemical complex has invested funds in the
plant, but failed to put it into exploitation. “One should not make rash
steps in the big business, everything must be well-calculated here,” the
president says.

It should be noted that SLZ intends to reactivate the plant on February
15, 2005 and to restore the production of carbide, corundum and acetate
ribbon. For this purpose, the company intends to invest $880 mln for
purchase of raw materials and $600,000 for current expenses. The owner
of 100% of the plant’s shares is the OJSC “Zakneftegazstroy Prometey,”
which belongs to the Russian businessman, Armenian by origin, Senik
Gevorgyan. Vanadzor chemical complex consisting of the chemical plant,
the chemical fibre plant and Vanadzor thermal power plant was privatized
in the May of 1999 for $1.5 mln. It has been idling since then. The
owner has already invested some $20 mln in the enterprise.

5. STATE BUDGET OF ARMENIA FOR 2005 ENVISAGES OVER 1 MLN DRAMS FOR
SOLUTION HOUSING PROBLEMS IN LORI REGION: ARMENIAN PRESIDENT

Source: Arminfo, December 20, 2004

The state budget of Armenia for 2005 envisages over 1-mln drams for
solution to housing problems of rural residents of Lori region for the
first time. Armenian President Robert Kocharyan made this statement at a
press conference in the town of Vanadzor.

In his words, next year large-scale construction is planned in the rural
areas. Active construction in regional centers will start with various
facilities to be erected in the town of Spitak. Construction of dwelling
houses in Spitak will be continued as well. A special stress will be put
on the certificates due to which the above 1-bln drams will be
distributed. The logic is as follows: a flat in Gyumri costs some 3 mln
drams, while construction of the given flat requires 10 mln drams – due
to distribution of the certificates, the problem of the families which
have not received flats will be solved. The methodology of the given
action already exists. In Armenia it was introduced by Urban Institute
and USAID, the president says.

He notes that the roads Stepanavan-Tashir, Stepanavan-Odzun-Alaverdi,
Armavir-Gyumri (along the boundary), Gyumri-Amasia and Aparan-Artik will
be constructed within three years in the regions of Shirak and Lori.
Next year, funds will be allocated for reconstruction of the roads of
regional importance. By increasing the financing year by year, we shall
achieve a progress in the sphere, Robert Kocharyan says.

The president says that due to reforms in the taxation sphere, more
predictable conditions in the sphere of entrepreneurship have been
created. A great attention is paid to improvement of the living
conditions of the region’s population. As regards gas supply to the
country, on the whole, and in the region, in particular, the president
notes that the gas users in the country number more than 80,000 and
8-10,000 in Lori region. The same indicators are observed in Shirak
region. As regards water supply to the region, project works are in
process and 24-hour water supply will become real both in Vanadzor and
Gyumri within the coming 2-3 years. In Vanadzor 3 of 5 operating ATXs
are digital, the remaining two are being digitized. Considerable changes
are expected in the sphere of telecommunications, with the existing
inconveniences felt earlier because of the monopoly of ArmenTel company
were connected not only with its monopoly but also with poor management
and irresponsible attitude to its obligations. However, as compared to
many CIS member-countries, Armenia is among leaders, as to introduction
of digital tele-phone network, which can be called an achievement, the
president notes.

Besides, Robert Kocharyan informs that the budget for 2005 envisages
rather big sum (some 1 mln drams) to upgrade the level of social
well-fare of refugees as this issue is one of the priorities of the
program of refugees. The budget plans a rise in the wages of teachers,
militaries and medical personnel. Another 1 bln drams will be allocated
for construction work in the communities, including 800 mln to Lori
region as majority of the villages in that region have remained
unnoticed by the government. A community center will be built in
Stepanavan, and construction of a new municipality building and regional
center in Gyumri will start in 2006.

The results of 2004 will be summed up by the Statistical Service after
January 20, 2005. However, one can state that the government has
fulfilled its commitments for 2004, the president says in conclusion.

6. 10% GDP GROWTH REGISTERED IN ARMENIA IN JAN-NOV, 2004

Source: Arminfo, December 20, 2004

The highest GDP growth in Armenia was registered in Jan-Nov, 2004 –
10.0%. ARMINFO was informed in the press service of the National
Statistical Service of Armenia, according to preliminary data, in
November as against October the economic drop made up 22.2%. By the end
of November 2004 the GDP totaled 1,672.1 bln drams or ($3,109.5). The
GDP index-deflator grew by 6.0%. In January – November the AMD/USD
exchange rate was 537.74 drams against one U.S. dollar.

In January – November of the current year the volume of industrial
produce totaled 473.9-bln drams or $881.4 mln (or 27.2% out of GDP –
ARMINFO), increasing by 1.6% as against the same period of last year, in
Nov as against Oct it increased by 1.1%. Electricity generation in
January – November increased by 8.6%, and in Nov as against Oct it
increased by 16.5%, totaling 5,341.5-mln kW/h.

In January – November of the current year the Gross agriculture produce
increased by 14.3% as against the same period of 2003, totaling 412.5
bln drams or $767.1 mln and in Nov as against Oct it decreased by 41.5%.
Volume of construction increased by 9.1% in Nov as against Oct, and in
Jan-Nov it increased by 16.2%, reaching 229.3-bln drams or $426.5 mln.
Retail trade turnover totaled 699.9 bln drams by the end of Nov,
increasing by 9.2% in Jan-Nov as against the same period of last year,
and in Nov as against Oct it increased by 2.5%.

By the end of Nov, 2004 foreign trade turnover totaled $1.9 bln (1,001.6
bln drams), increasing by 4.5% as against the same period of 2003, and
in Nov as against Oct it decreased by 6.3%. In its structure the exports
increased by 3.2% in Jan-Nov as against the same period of 2003, and in
Nov as against Oct it increased by 14% totalling $645.9 mln. The imports
totaled $1,219.3 mln, increasing by 5.3% during the first eleven months
of the current year, and in Nov as against Oct it increased by 16.2%.
Negative trade balance was $573.4 mln by the end of Nov.

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CENN INFO
Caucasus Environmental NGO Network (CENN)

Tel: ++995 32 92 39 46
Fax: ++995 32 92 39 47
E-mail: info@cenn.org
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