PRESS RELEASE
Fund for Armenian Relief
630 Second Avenue, New York, NY 10016
Contact: Edina N. Bobelian
Tel: (212) 889-5150; Fax: (212) 889-4849
E-mail: edina@farusa.org
Website:

June 4, 2007
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USAID CHOSES THE FUND FOR ARMENIAN RELIEF (FAR) FOR THIRD RECONSTRUCTION
PROJECT IN ARMENIA

The water comes every day, but not all day for the 100,000 Armenians who
live in the city of Artashat and its 27 surrounding villages. Through
Armenia’s water system, the villages generally only receive drinkable water
for a couple hours a day.

The problem is the water system in that part of Armenia, south of Yerevan,
is more than 40 years old. Installed by Soviet technicians, the iron and
steel pipes have corroded and cracked. It is estimated that 80% of the
water sent through the system is lost to leaks. That’s why the system can’t
meet the needs of the residents.

While the government of Armenia has been very active the past couple of
years in improving the water system in Armenia and modernizing its
management, pockets of population, such as the residents around Artashat,
are still without reliable water sources.

Now, thanks to the United States Agency for International Development
(USAID) and a two-year, $3.1 million contract, the Fund for Armenian Relief
(FAR), will begin work this May on an ambitious plan to repair and
reconstruct the region’s water system. This is the third contract USAID has
awarded to FAR in the past five years.

"We are glad to be part of the team that will help improve the quality of
life for so many Armenian families," said Garnik Nanagoulian, Executive
Director of FAR. "We’re also pleased USAID has recognized the success FAR
has had with the other contracts we have been awarded. We take very
seriously our responsibility to both the people of Armenia and the people of
America who fund these works."

PART OF A LARGER EFFORT

This USAID contract is just the latest of a multi-party effort to improve
Armenia’s water supply infrastructure and modernize the management of the
nation’s water company. The Armenian government has spent the past six
years revamping its water system, aiming to establish a
commercially-oriented, efficient water company.

In support of the government’s reform initiatives, the World Bank has
provided $23 million to Armenia’s water supply system. Through World Bank
financing, a French company, SAUR, was chosen to manage the nation’s water
system. Working together, the Armenian government, World Bank, and SAUR
have already accomplished much. However, much remains to be done to set
Armenia’s water utilities on the path to long-term solvency while providing
high-quality water and sanitation services.

USAID has been supporting the commercialization of Armenia’s water system
since 2003. It has provided funding for purchase of water meters and
supported the installation of filters for water meters. USAID has also
provided computers, accounting software, and training to strengthen the
financial management capacity and integrity of Armenia’s water system
operation.

HELPING ARTASHAT

Rehabilitating the water treatment facility in the Garni area that provides
water to Artashat and neighboring communities is outside the scope of work
being undertaken with the World Bank financing. That is why USAID, in
collaboration with FAR, is stepping up.

The region’s drinking water comes from water sources around Garni, while its
non-potable water is produced by 13 deep wells located closer to Artashat.
The water is pumped throughout the region.

Under the contract awarded to FAR on May 10, 2007, USAID aims to provide a
continuous, uninterrupted supply of safe drinking water to residents in the
town of Artashat and 27 surrounding villages by May 2009. FAR will also
undertake efforts to reduce energy consumption by increasing the volume of
water delivered by gravity flow systems, rather than pumps. The third part
of the contract covers plans to improve the quality of the water and the
water system infrastructure in Garni.

"This is an excellent example of various government and non-governmental
organizations coming together to fix a real problem, to improve the life of
thousands of families," Nanagoulian said.

— 6/4/07

E-mail photo available upon request.

PHOTO CAPTION: On May 16, 2007 in Yerevan, Armenia, USAID/Armenia
Contracting Officer David Brown (left) signed the $3.1 million USAID
contract awarding the Artashat Water Supply System Rehabilitation Program to
the Fund for Armenian Relief, represented by Deputy Manager Karen Sargsyan
(right).
From: Baghdasarian