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Hayastan – All-Armenian Fund

PRESS RELEASE

"Hayastan" All-Armenian Fund
Governmental Building 3, Yerevan, RA
Contact: Anush Babayan
Tel: 3741 52 09 40
Fax: 3741 52 37 95
E-mail: pr@himnadram.org
Web:

3.07.06

Recently the Toronto Affiliate of "Hayastan" All-Armenian Fund
organized a fundraising dinner in Canada. Apparently, the presence
of Conservative MP Jason Kenney at the event caused concern of the
Azerbaijani Embassy and the Azerbaijani community.

Canadian Press put an article on the newswire in this regard. It was
picked up by several Canadian newspapers. Unfortunately, the reporter,
Jennifer Ditchburn, used solely Azeri sources while covering the
event. Moreover, the reporter tried to put a frivolous spin on the
fact that Canadian Armenians extended a helping hand to their kin
in Nagorno-Karabakh raising $300 thousand USD for construction of
schools in the area. The reporter purposefully mentioned that the
current Executive Director of "Hayastan" All-Armenian Fund used to
hold the position of the Foreign Minister of the Nagorno-Karabakh
Republic. In this regard we would like to stress that the Executive
Director is not appointed, but rather is voted into the office by the
Board of Trustees of "Hayastan" All-Armenian Fund, members of which
are influential, well-respected and well-known representatives of
the Armenian worldwide Diaspora.

"Hayastan" Fund brings to the attention of all interested parties
that during its 15-year history the organization has spend more than
$130 million on projects in Armenia and Nagorno-Karabakh, the nature
of which is purely humanitarian. This philanthropic organization
has always been transparent in its operations. Since 1992 "Hayastan"
Fund has been undergoing annual independent audits conducted by Grant
Thornton. Never have our auditors revealed any improper spending of
funds. Through its affiliate offices in 19 countries, "Hayastan" Fund
often received co-financing from European (France, the Netherlands,
Greece and others) and U.S. governments for its projects. Never has
the organization had any problems with any government in this regard.

"Hayastan" Fund considers unacceptable drawn parallels between the
Fund and a unrelated questionable political organization. We want to
remind that "Hayastan" Fund is a organization that is well-respected
in the world and is proud of its mission benefiting people of Armenia
and Nagorno-Karabakh.

We consider this disrespectful and unsubstantiated attack a result
and embodiment of Azerbaijan’s shortsighted policy. We believe that
this attack questions the reputation of the organizers of this smear
campaign against "Hayastan" Fund and only strengthens the resolve of
Armenians around the world to help Nagorno-Karabakh stand on its feet.

In this regard we would like to cite MP Jason Kenney from the mentioned
article: "…I can’t imagine anybody objecting to Canada supporting
clinics, schools, hospitals and the like". I think these words make any
further commentary unnecessary. "Hayastan" fund is strongly convinced
that the worldwide Armenian Diaspora will continue supporting their
ancestral homeland.

In her official letter to Mr. Russo, the Bureau Chief of "The Canadian
Press", Mrs. Naira Melkoumian, the Executive Director of "Hayastan"
All-Armenian Fund, mentions: "It was irrelevant to refer to the
status of Nagorno-Karabakh Republic, as the international status of
Nagorno-Karabakh is subject to the outcome of the peace talks that
have been mediated by the Organization of Security and Cooperation
in Europe (OSCE) Minsk Group, co-chaired by France, Russia and the
United States. Meanwhile, "Hayastan" All-Armenian Fund does not believe
that mere fact that the Nagorno-Karabakh Republic is not officially
recognized by the international community should stand in the way
of children’s education or people’s healthcare. The US Agency for
International Development (USAID), International Committee of the
Red Cross (ICRC), American Red Cross, Medecins Sans Frontier, Save
the Children, Halo Trust and other international humanitarian relief
organizations do not believe that either, since they have extensive
projects in Nagorno-Karabakh. For a number of years the US Congress
has been allocating nearly $5 million annually to the victims of
the NK conflict who reside in Nagorno-Karabakh Republic. We think,
these facts make any other commentary unnecessary."

3.07.06

Mardakert Regional Development Project Underway

The Regional Development project for the war-torn Martakert Region in
Nagorno-Karabakh is currently underway. The multi-level development
program focuses on developing the region through a series of
projects. The program is going on at a fast pace in different
directions.

Traditionally, construction competitive bid process is announced
for the major projects implemented in Nagorno-Karabakh. The Bid
committee consists of officials of the Fund’s Executive Board,
representatives of AGBU Armenian representative office, Armenian
Relief Society Regional Office, Yerevan Office of Armenian Assembly
of America and NKR Government. This year a representative appointed
by the RA President was also included in the committee.

A tender for the 4,865 km long Drmbon-Mardakert section of the
North-South highway will be conducted on June the 5th. Prior to
the tender the prequalification stage was conducted. Applications
from Karavan and Virage companies were received. Karavan met the
qualification requirements. The first tender for this section was
conducted on May 29. Due to high prices offered by the participants
the tender was cancelled and re-announced. The project of Mardakert
drinking water of 30 km is in tender stage. The NKR government has
ordered the design. The design cost worth of 40 million AMD was covered
by "Hayastan" Fund. It is a two-stage project. Two prequalification
proceedings were conducted for the construction on May 23. Dorozhnik,
Sfinks, Sokol group, Virage companies took part in it. Dorozhnik and
Virage companies have passed the prequalification stage. They will
submit their proposals at the tender on July 4. The "Hayastan" Fund
has also announced tenders for the construction of water supply system
for Varnkatagh, Maghavuz, Mets Shen and Vaghuhas villages. Tender
for Kichan-Drmbon section of the North-South highway is also announced.

The project design of the gas pipeline for Chldran and Arajadzor
villages is already ready. Currently, it is undergoing expertise. The
design was made by "Artsakhgas" closed JSC.

The planning and conceptual design of the Mardakert Regional Hospital
are already ready. The project is being spearheaded by the U.S.

Western Region affiliate. Conceptual design has been prepared by Los
Angeles based hospital architect in collaboration with the NKR Health
Ministry. The design of the hospital has been already ordered. The
Los Angeles affiliate will provide the hospital with medical equipment
contributed at the Telethon.

Since 2005 construction of Madaghis school is in process. The
Toronto/Canada/ affiliate of the Fund has undertaken the sponsorship
of the project. The school is designed for 120 pupils.

A tender is announced for Kochoghot village school. The project will
be financed by the French affiliate. The contract for construction
design was concluded on May 16. The Toronto affiliate has undertaken
also construction of a school in Verin Horatagh village. In coming
days, a design contract will be signed.

A large-scale agricultural development project will be implemented in
Mardakert. A commission is set to coordinate the works. The Executive
Director of the "Hayastan" Fund, NKR Minister of Agriculture,
leadership of US East Cost affiliate and representative of American
"Turnaround associates" company are involved in the commission. The
"Turnaround associates" is a qualified consulting company which
provides consultation to the developing countries free of cost.

The Fund will conclude an agreement with NKR government for joint
implementation of the project. According to the agreement the
"Hayastan" Fund will implement the project jointly with the NKR
Agricultural Support Fund, which will establish a closed joint stock
company and a NGO. The agreement will include charters of the NGO and
the JSC, as well as a contract on the relations of NKR Agricultural
Support Fund and the organization. All of these documents are prepared
by a qualified legal expert. The "Hayastan" Fund will provide the
closed joint-stock company with agricultural equipment.

The company will give equipment for use to the peasants with low
charges. Some of the modern tractors, trucks and other agricultural
equipment have already been ordered. In August they will be in
Mardakert. In addition, for about three years the Fund will pay
salaries to the employees and cover other expenses of the company.

After that period the company is envisaged to become a profit making
organization. At present, the only shareholder of the company is the
Agricultural Support Fund. During five years the peasants will buy the
shares and the equipment will become their ownership. The population of
the sub-region can use the agricultural equipment by becoming members
of the NGO. Interests of the NGO members will be defended. Members
of the NGO will be empowered to take part in decision-making and to
take direct control over the works.

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