Armenia Fund’s Martakert Regional Development Underway

Armenia Fund, Inc.
111 North Jackson St. Ste. 205
Glendale, CA 91206

Tel: 818-243-6222
Fax: 818-243-7222

Contact: Sarkis Kotanjian
[email protected]

FOR IMMEDIATE RELEASE
June 21, 2006

Armenia Fund’s Martakert Regional Development Underway
Large-Scale Program Implementation on Schedule

Los Angeles, CA – Armenia Fund – U.S. Western Region is pleased to
announce that its large-scale regional development plan for the war-torn
Martakert Region in Nagorno-Karabakh is currently underway. The multi-level
development program was developed by regional and urban planning experts
from the United States, France, and Armenia. The plan focuses on developing
the region through a series of projects that include construction of new
schools, healthcare facilities, drinking and irrigation water systems, and
regional agricultural development.

While Armenia Fund’s main affiliate in Armenia jointly with Nagorno
Karabakh’s relevant government agencies, including the office of the Prime
Minister and Ministries of Construction, Agriculture and Health was focusing
on the design and planning phase of the project, its 19 worldwide
affiliates, including the U.S. Western and Eastern Regions were busy
collecting the promised pledges from the past November Telethon. At the same
time, the regional affiliates are undergoing rigorous financial audits in
order to maintain high levels of transparency and ensure the proper
implementation of financial accounting policies, both internal and external.

All Armenia Fund projects undergo a comprehensive planning stage before the
construction begins. This includes preparation of a conceptual design,
construction design as well as independent architectural, technical and
technological expert review. Once the construction design package is ready,
Armenia Fund announces a two-stage construction competitive bid process in
the local newspapers and on its website and accepts construction proposals
from construction firms. Once the proposals are submitted, the Bidding
Committee, which consists of Armenia Fund construction and legal experts,
representatives of the Armenian General Benevolent Union, Armenian Relief
Society and Armenian Assembly of America, as well as government
representatives from Armenia and Nagorno Karabakh, reviews submitted
proposals. Participating construction firms are checked against their
qualifications, prior experience, organizational, technical and
technological ability as well as quoted time and cost needed for the
completion of the project. The winner is chosen by a vote. Armenia Fund then
signs a construction contract with the winning firm. Depending on the scale
of construction this process and its entire planning stage may take several
months.

During the construction, Armenia Fund, the designing firm, which produced
the construction design, as well as representatives from the Armenia Fund
affiliates sponsoring the project, controls the process by frequent visits
to the construction site. Once the construction is over, Armenia Fund
withholds 10% of the entire payment as the new structure enters its one-year
warranty period. If any defects are found, the construction firm is required
by law to correct them. Once the warranty period is over, Armenia Fund
disburses the remaining 10% of the payment and transfers the structure to
the balance sheets of the local government. From that point maintenance
becomes the responsibility of the government.

The statuses of the various projects within the Martakert Regional
Development Plan are presented below:

Water Main Pipeline – Drinking Water Systems

Armenia Fund will construct a 30-km-long drinking water pipeline to deliver
water to the town of Martakert, with a population of 5,000 people. The
pipeline will double water supply to the city. The construction competitive
bid process is in its final stages. The winning firm will begin construction
within a month.

Water Distribution Networks

Armenia Fund will construct drinking water distribution networks in the
villages of Maghavuz, Mets Shen, Vaghuhas and Varnkatagh. Armenia Fund’s
Argentinean affiliate is sponsoring the project in Vaghuhas. As a result of
the project every household of these villages will have a constant, abundant
supply of fresh drinking water. The construction competitive bid process is
in its final stages.

Healthcare
The healthcare component will largely focus on the complete reorganization
and reconstruction of the Martakert Regional Hospital, alongside with an
emergency ambulance dispatch center with 5 new ambulances. The project is
being spearheaded by the U.S. Western Region affiliate. Conceptual design
has been prepared by Los Angeles based hospital architect Arturo Fribourg in
collaboration with the NKR Health Ministry. Currently the final construction
design is being prepared. Five new ambulances have been ordered.

Agricultural Development

The U.S. Eastern Region affiliate, Armenia Fund USA is spearheading the
agricultural development program. The affiliate is closely working with the
Nagorno-Karabakh Republic Ministry of Agriculture. The first Agricultural
Development Association is in the process of being formed. Some of the
modern tractors, trucks and other agricultural equipment have already been
purchased from China and Belarus. More will be purchased as the project
progresses.

Education

Construction of the new school in Madaghis village has already begun. The
foundation and the first floor are complete. The project is sponsored by
Armenia Fund’s Canadian affiliate in Toronto. The affiliate has also
sponsored the construction of a new school in Verin Horatagh village, which
is in its construction design stage. Construction design of another school
in Kochoghot village, sponsored by Armenia Fund’s French affiliate, is in
the process as well.

Natural Gas Pipeline

Responding to the critical energy demands of the fledgling region, the
International Board of Trustees of Armenia Fund has decided to construct a
regional gas pipeline, including a distribution network for two
highly-populated villages – Chldran and Arajadzor. Currently, the plan is
undergoing design development.

Armenia Fund, Inc., is a non-profit 501(c)(3) tax-exempt corporation
established in 1994 to facilitate large-scale humanitarian and
infrastructure development assistance to Armenia and Nagorno Karabakh.

Armenia Fund, Inc. is the U.S. Western Region affiliate of "Hayastan"
All-Armenian Fund. Tax ID# 95-4485698

www.armeniafund.org