REFORMS UNDER PUBLIC CONTROL

Thur sday, 14 January 2010

The Cabinet called its first session of 2010, chaired by RA Prime
Minister Tigran Sargsyan. Before the agenda was approved, the Prime
Minister addressed those in attendance:

"We have a well-established program of action and a clear-cut list of
per-agency priorities as we usher in 2010. In a few days, we will be
discussing the annual reports of ministries. I would like to set forth
two important tasks for the year 2010. Firstly, all the ministers shall
submit to the public at least 3 pivotal programs under their control,
which may be conducive to breakthrough. By yearend they will have to
report back any progress made in relevant areas of activity.

During the upcoming report discussions you will get a more accurate
idea of target areas which must be kept under public control.

The second directive concerns the growth indicator. By summing up
the results of 2009, we must focus on the existing growth-conducive
potentialities and such actions as will have to be carried out in the
course of 2010, as well as on those obstacles which if removed will
provide for higher growth and implementation of specific projects. We
are supposed to agree upon the aforementioned two directions by
the end of this month so that all the ministers can get hold of the
tasks under their own control. All this is coming to complement the
Government’s 2010 program of action."

Then, the cabinet ministers passed on to the discussion of agenda
items.

The Government approved the framework financing and loan instruments as
signed in 2009 between the Government of Armenia and the Asian Bank,
referred to as "North-South Highway Corridor Investment Program." The
program covers Agarak-Kapan-Yerevan-Gyumri-Bavra highways and road
infrastructures. It will help improve road communications with
Iran and Georgia facilitating access to international trade routes
and markets. The economy and transport ministers informed that USD
120mn-worth of activities will be carried out in the year under review,
after which the Prime Minister told them to take all measures necessary
for their full and timely implementation.

The executive endorsed the concept of Armenia’s industrial development
which is supposed to create such favorable environment as may bring
about a shift toward industrial development by increasing the share of
industry in the GDP and shaping an export-oriented system of industry.

Prime Minister Tigran Sargsyan noted that the passed decision will
trigger out a larger process which will have to be examined in a
comprehensive manner. In any case, sector-management-related ideas
will have to be precised during this year.

The Government approved the level of funding available to local welfare
services for the settlement of family and lump-sum benefits based on
FY 2010 State budget allocations.

The session has also endorsed the results of the international
tender for construction of waste water collectors in Gavar, Martuni
and Vardenis towns under the Lake Sevan Environmental Project, won
by German Ludwig Pfeiffer. Prime Minister Tigran Sargsyan reminded
that sizeable work is to be carried out in this area during the year,
with 500km-long water-mains to be installed in the meantime.

The Government has amended Armenia’s passport system-related rules
and procedures stipulating accurate deadlines for passport-related
operations on the basis of State duties. This will make it possible
to differentiate the passport processing administrative functions
and the extension of paid services. The amounts of fees payable for
substitution of lost passports were defined under another decision
passed at the meeting.

Those decisions passed in connection with a series of legislative
initiatives will be submitted to the National Assembly for
consideration.

As whole, a total of 40 decisions were passed concerning the agenda.