PILOT PROGRAM ON CREATION OF FREE ECONOMIC ZONE TO BEGIN IN AREA ADJACENT TO ZVARTNOTS AIRPORT BY LATE 2010

Noyan Tapan
Feb 23, 2010

YEREVAN, FEBRUARY 23, NOYAN TAPAN – ARMENIANS TODAY. The pilot
program on the creation of a free economic zone will begin in the
area adjacent to Zvartnots Airport by late 2010. Hayk Mirzoyan,
Head of the Department of Industry of the RA Ministry of Economy,
said during the February 23 press conference that the program aims
to increase exports of agricultural products, raise agricultural
productivity, help introduce new technologies, and form brands of
Armenian agricultural products in international market.

In his words, since adoption of the Concept of the Creation of the Free
Economic Zone by the Armenian government in 2008, considerable work
has been done and the preparation for the program is now underway. In
2009, an expert of Flora Holland (the world’s biggest company engaged
in flower trade) was invited to Armenia. Jointly with that expert,
a business model of the free economic zone’s logistic center has been
prepared. Besides, with the assistance of the indicated expert and
the Armenian Development Agency, the free economic zone’s organizer –
the manager of Zvartnots Airport is currently developing a business
program of the free economic zone’s logistic center.

H. Mirzoyan said that under the program, it is envisaged establishing
pilot points of food-stuffs collection in rural areas of Armenia so
that farmers could store their products quickly and then to sell these
products to exporters. There will be storehouses, packaging facilities,
and quality control systems in the area of the airport.

The department head announced that 3 points of food-stuffs collection
have already been created.

According to him, the program coordination council is now being
formed. The council will have 3 components, each with its elected head.

The department head said the companies operating in free economic zones
will be exempt from profit tax, customs duties, and VAT. "Both Armenian
enterprises and foreign ones are quite interested in operating in the
free economic zone. I am convinced that by late 2010 the program will
become a reality, and one day all the Armenian marzes will have an
opportunity to be included in this program," H. Mirzoyan declared. It
was mentioned thar a law on free economic zones is being developed.

H. Mirzoyan informed those present that under the concept of free
economic zone, it is envisaged increasing exports by 20% annually.

Agricultural products of million were exported from Armenia in 2009.

"Free zones are created in economies with high growth rates and
they contribute to a growth in exports and job creation and they
enable to introduce new technologies in the country. I hope that
such activities in Armenia will promote exports, which will result
in economic development," H. Mirzoyan said.