Investment Opportunities in Armenia
BISNIS Armenia Update
26 July 2005
Contents:
1. Now on the BISNIS web site
2. Upcoming Events in Yerevan
3. News briefs and press releases
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1.) New on the BISNIS web site
The Product Certification Process in Armenia, see
List of Major Freight Forwarding companies in Armenia, see
Press release – EBRD lends $1 million to microbusiness in Armenia, see
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2.) Upcoming Events in Yerevan
Armenia EXPO 2005
September 14-17, 2005
Yerevan, Armenia
Organizer: LOGOS EXPO Center
Official support: – Ministry of Trade and Economic Development of the
Republic of Armenia – Ministry of Foreign Affairs of the Republic of
Armenia – Union of Manufacturers & Businessmen of the Republic of
Armenia – National Association of Publishers of the Republic of Armenia
Website:
Includes:
– “EXPO Food & Drinks 2005” Third specialized exhibition
– “BUILD EXPO 2005” Third specialized exhibition
– “Industrial Armenia EXPO 2005” Fifth regional universal
trade-industrial exhibition
– “COMP_EXPO 2005” Third specialized exhibition
– “TRANS EXPO 2005” Third specialized exhibition
– “Polygraphy. Publishing. Advertisement. EXPO 2005” Fifth specialized
exhibition
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DigiTec 2005
September 30 – October 2, 2005
Yerevan, Armenia
DigiTec 2005 is an Information and Communication Technology (ICT)
exhibition for computing, communications systems and applications
dedicated to the ICT industry and the advancement of entire business
environment.
DigiTec 2005 exhibition profile includes IT Equipment,
Telecommunication, Wireless Networks, Software Applications, Banking
Technology & Financial Services, R&D, IT and general business, Internet
applications and e-commerce, IT and education, E-governance, Computer
graphics and multimedia etc.
DigiTec 2005 ensures non-stop presentations of international and local
companies where visitors and exhibitors can maximize their participation
and demonstrate products, technologies and innovations targeting both
Armenian and regional and NIS markets.
Website:
Press coverage of the event:
UITE to Present Armenian IT Sphere in New Perspective
Yerevan, July 22. /PanARMENIAN.Net/
The Union of Information Technology Enterprises (UITE-) is
going to radically change the perception of IT consumers by means of
Digitech 2005 exhibition, UITE Executive Director Karen Vardanian said
in a conversation with a PanARMENIAN.Net reporter. In his words, earlier
the attempts to hold such exhibitions were not successful, as similar
equipment was displayed. Digitech 2005 () will present
special exhibition sectors, which remained broach so far. It will
present not only hardware but also a wide range of ending solutions. In
part, solutions for information and communication technologies for
business, multimedia products, IT labor market with the information on
vacancies, job requirements and projects will be presented. IT in
banking sphere including the software companies and automation systems
of banks. Karen Vardanian informed that UITE is carrying out an active
work for attracting foreign organizations and is cooperation with the
Armenian Council of Informational Technologies of America and Armenian
diplomatic representations abroad. Companies from the U.S., Malaysia and
Iran wish to participate in the exhibition. `We also rendered 5 cubic
meters to the embassies for free’, he noted. Though the exhibition will
be the first in Armenia the organizers are going to make it traditional.
To note, Digitech 2005 will be held in Yerevan September 30 – October 2
with the assistance of Enterprise Incubator Foundation ().
During this period a number of events including Internet-search
contests, programming and e-contents will be organized.
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News Briefs
WORLD BANK APPROVES $20-MLN AGRICULTURAL LOAN FOR ARMENIA
YEREVAN. July 8 (Interfax) – The World Bank’s board of directors has
approved a $20-million agricultural credit for Armenia, Roger J.
Robinson, director of the World Bank’s Yerevan office, said at a press
conference on Friday.
He said the resources will be extended to the Armenian government to
implement the Rural Enterprise and Small-Scale Commercial Agriculture
Development program (RESCAD). The four-year program is aimed at
in-creasing productivity and revenue at farms.
The $20-million credit will be extended to Armenia on discount terms of
the World Bank’s International Development Association for 40 years at
an annual 0.75% with a delayed payment for the first ten years.
Robinson said the resources will not be allotted to big farms.
The official exchange rate on July 8 was 440.16 dram/$1.
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ARMENIAN FOREIGN TRADE UP 27% IN JAN-MAY
YEREVAN. July 5 (Interfax) – Armenian foreign trade in January-May 2005
amounted to $994.8 million, up 27.4% year-on-year, a source in the
National Statistics Service told Interfax.
Imports into the republic in January-May increased 27% to $650.4
million, with exports up 28.2% to $344.4 million.
The trade deficit in the first five months amounted to $306 million, up
25.7% year-on-year.
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Source: RFE/RL Newsline, 22 July 2005 ()
IMF LAUDS ARMENIAN ECONOMIC GROWTH
Speaking on 21 July at a press conference following two days of talks in
Yerevan with Armenian government officials, International Monetary Fund
(IMF) Deputy Managing Director Agustin Carstens praised Armenia’s
continuing high rate of GDP growth and progress in reducing poverty,
Noyan Tapan and RFE/RL’s Armenian Service reported. He noted that “very
few countries…have achieved such important progress in such a short
period of time,” and said the IMF “stands ready to assist Armenia with
policy and technical advice.” GDP in Armenia grew on average by 11
percent in each of the past four years, and by a further 8 percent
during the first six months of this year. At the same time, Carstens
pointed out that tax revenues still account for only a small proportion
of GDP, and he implied that some individuals or companies liable for
large tax payments seek to withhold them. He said an increase in tax
revenues would permit the government to increase spending on health
care, education, and infrastructure development. LF
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World Bank Press Release
Armenia: World Bank Supports Implementation of Government’s Urban
Heating Strategy
Contact
Washington: Miriam Van Dyck (202) 458-2931
Email: [email protected]
Yerevan: Vigen Sargsyan, (374 1) 524-884
Email: [email protected]
WASHINGTON, July 12, 2005. The World Bank’s Board of Directors today
approved an Urban Heating Project (UHP) for Armenia in the amount of
US$15 million. The project will support the implementation of the
Government’s Urban Heating Strategy for multi-unit apartment buildings
and will improve heating in urban schools.
The development objective of this four-year project is to increase the
use of clean, efficient, safe and affordable heating technologies in
urban schools and multi-unit apartment buildings. The project will
achieve this objective by removing barriers and creating market
conditions for the commercial provision of heating services; providing
long-term financing to service providers and consumers for their
investments in heat supply systems and energy efficiency measures;
building the capacity of local financial institutions in financing heat
supply and energy efficient systems to ensure sustainability after
project closing; promoting efficient and safe boilers, heaters, and
equipment to meter and control fuel and heat consumption; and
stimulating the creation and effective functioning of self-regulating
community organizations.
“We do hope that with the joint efforts of the Government of Armenia,
the World Bank, and other donors involved in the sector, that by the
completion of this Project the foundation for the sustainable
development of commercial heating services in Armenia will be laid,”-
said Gevorg Sargsyan, head of the World Bank team designing the Project.
— The Project combines investment, line of credit and technical
assistance financing:
— The technical assistance component will be targeted at community and
private sector mobilization and development of an enabling environment
for effective and safe provision of heating services, including the
improvement of the legal and regulatory framework, the development of
safety norms and standards, and the certification of suppliers and
equipment, capacity building of heat service providers, local financial
institutions, and home owner associations, implementation of broad
information campaigns and public education programs, etc.
— Investment financing for heating of residential buildings will be
supported under two subcomponents. The first subcomponent consists of
lending to heat providers, home owner associations, municipalities and
individual home-owners for heating infrastructure investments. It is
estimated that about 7,000 households in multi-apartment buildings
without access to operational heating services would benefit from these
investments. The second subcomponent consist of capital grants to
finance investments for the connection of gas, heat and hot water supply
to the apartments of the poor households. Roughly 10,000 poor households
are expected to be provided with a basic level of service from clean
heat sources.
–Installation and/or rehabilitation of gas-based local heating systems
for schools. Roughly 100 schools will receive funding under this
component. The primary focus of this component will be on urban schools
outside Yerevan.
The project will also be supported by a US$ 2.9 million co-financing
Grant from the UNDP/GEF project “Improving the Energy Efficiency of
Urban Heating and Hot Water Supply in Armenia”, which is designed as
technical assistance complementing the WB project.
The Credit will be made to Armenia on standard IDA terms, including 40
years maturity and a 10-year grace period.
Since joining the World Bank in 1992 and IDA in 1993, commitments to
Armenia total approximately US$896 million for 40 operations.
For more information on the World Bank’s activities in Armenia, please
visit:
********** Forwarded by: ***************************
Ellen S. House, BISNIS Trade Specialist for Armenia
U.S. Department of Commerce
Tel: 202/482-2284, Fax: 202/482-2293
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From: Emil Lazarian | Ararat NewsPress