GOVERNMENT FORESEES STEEP INCREASE IN SUBSIDIES TO PROTECT FORESTS

Armenpress
Nov 06 2006

YEREVAN, NOVEMBER 6, ARMENPRESS: The government of Armenia believes
that a steep increase in government subsidies to restoration of
forests and planting new ones will result in dramatic decline of
illegal logging.

Thus, the government’s mid-term expenditure plan calls for a
significant upswing in allocations to protect and raise new forests
across the country. The government plans to release 650 million drams
for 2007 and as much for 2008. The increase is tangible if compared
with 459 million Drams released for 2006. The finance and economy
ministry explained the growth in subsidies by the necessity of proper
care after expanded forest areas. In 2007 the area under forests is
expected to grow by 4,500 and in 2008 by 5,000 hectares.

This project is part of the government Poverty Reduction Strategic
Paper (PRSP) and is supposed to reduce poverty levels in rural
communities close to forests. A massive inventory of forests launched
this year will continue into 2008. Experts estimate that around 22,000
hectares of forests are infected with different diseases.

In early 90-s when Armenia plunged into sever power crisis about 40,000
hectares of forests were logged and besides one third of forests are
no longer able to recover.