World Bank approves US$30 million loan for improved governance in Armenia’s energy sector

he World Bank Board of Executive Directors approved today a US$30 million loan for the .

This Project will support the Government’s efforts to maintain adequate and reliable electricity supply by improving the financial condition and governance of the state-owned power generation companies and the private power distribution company.

Throughout the last five years, the state-owned generation companies have been experiencing a shortage of cash to finance key expenditures, because of lending and spending for purposes not related to their core business of generating and supplying energy. This is how the Armenian Nuclear Power Plant (ANPP) and Yerevan Thermal Power Pant (YTPC) have accumulated large cash deficits amounting to US$104 million which accounts to 80 percent of their total estimated revenues for 2015.

If the financial difficulties of the ANPP and YTPC are not overcome, it will have significant impact on their ability to maintain the current levels of generation with resulting negative consequences on the cost and adequacy of electricity supply in the country. In 2012-2014, those two plants accounted for 42 percent of total annual electricity generated for domestic needs. Inability of ANPP and YTPC to generate power at current levels could push up the average cost of electricity supply and possibly cause an electricity deficit.

“Improvement of the financial standing and governance of the state-owned power generation companies, and a better managed financial relationship with the private power distribution company is critical for maintaining adequate and reliable electricity supply at affordable tariffs, “ says Laura E. Bailey, World Bank Country Manager for Armenia. “The Government is committed to improving the financial governance of these companies, and has already undertaken a number of steps in that direction as reflected in the Program for Financial Recovery of the Power Sector.”

There are four results areas which this Program will achieve: elimination of cash outflows of state-owned power generation companies for non-core business related reasons; reduction of expensive commercial loans, recovery of receivables, and repayment of YTPC’s payable for natural gas; setting of tariffs reflecting changes in the cost of electricity supply, and maintaining the generation capacity of the gas turbine at YTPC’s Combined Cycle Gas Turbine (CCGT) plant.

Since the end of January 2016, the generation companies were able to start repaying the loans because of the recovery of receivables from Electricity Network of Armenia (ENA), the only company operating the power distribution network. The recovery of receivables from ENA will allow financing the backlog of expenditures for critical repairs and maintenance, however, additional cash injection is needed to help YTPC and ANPP as they regain their solid financial condition.

“The beneficiaries of the Program are all electricity consumers in Armenia along with the state-owned generation companies and the private power distributer. Financial health of ANPP and YTPC, as well as ENA, will ensure they have enough resources to spend on maintenance and finance some of the new investments required for reliable supply of electricity. Moreover, 140,000 businesses and other legal entities connected to the network will also benefit because the Program will help to fully meet their demand for electricity in a reliable manner,” says Arthur Kochnakyan, World Bank Task Team Leader of the Project.

In 2012-2014, ENA suffered a cumulative loss of around US$50 million due to revenue shortfall, accumulated for reasons not under its control (e.g. dry years in terms of hydrology, longer-than-planned recurrent repair of ANPP). In addition, the existing regulation did not allow Public Services Regulatory Commission (PSRC) to adjust ENA’s tariff margin to reflect the full amount of difference between the actual and forecast cost of purchased electricity in subsequent tariff period.

The tariff margin was revised in 2015 to compensate for those losses incurred during previous years. Going forward, PSRC will be revising the methodology to allow reflecting in ENA’s tariff margin the 100 percent of loss (profit) plus interest cost (profit) due to the above highlighted difference.

The World Bank will provide a US$30 million IBRD loan of variable spread with a 14.5-year grace period and the total repayment term of 25 years. Since joining the World Bank in 1992 and IDA in 1993, the total IDA and IBRD commitments to Armenia amount to around US$2.3 billion.

French lawmaker calls for recognition of the Nagorno Karabakh Republic

In an article published by , French MP Valérie Boyer insists that it’s time to recognize the de facto independent Republic of Nagorno Karabakh.

She reminds that the night of April 2 Azerbaijan launched a major military offensive against the Republic of Nagorno Karabakh in what became the worst escalation since the conclusion of cease-fire in 1994.

“Azerbaijan  mobilized assaults tanks, combat helicopters, drones and even Grad missiles that targeted the cities of Nagorno-Karabakh and caused casualties among civilians, including children. The attack was pushed back so that dictator Aliyev had to agree on a ceasefire. With more than 200 dead, about twenty tanks destroyed and no territorial gain, this inept offensive has indeed shown the military weakness of Azerbaijan,” Boyer writes.

“How come that Azerbaijan stuffed with petrodollars is unable to triumph over tiny Nagorno Karabakh? Because no one in Azerbaijan, except Aliyev is interested in waging war,” the lawmaker writes.

“The Republic of Nagorno Karabakh has been de facto independent for nearly twenty-five years. For 25 years it has been striving to make each day even more democratic, while Azerbaijan sinks into the most desperate dictatorship,” she continues.

“The international community believed that postponing the question of the political status of Nagorno-Karabakh would favor negotiations and the establishment of peace. Experience shows, however, that it is not so and it only encourages the bellicose ardor of Baku. We must put an end to this situation. We must now recognize Nagorno-Karabakh,” Valerie Boyer concludes.

Valerie Boyer is a Member of French National Assembly. She represents the Bouches-du-Rhône department and is a member of the Union for a Popular Movement.

Karabakh MOD: Aerial footage reveals Azeri lies – Video

The NKR Defense Army has released a video, proving Azeri lies about the number of casualties along the Nagorno Karabakh line of contact.

Footage shows 21 Azeri troops killed in one battle, while the Azerbaijani side puts the number at 12.

“The Video shows the bodies of the Azeri soldiers, who were claimed to have conquered Seysulan, while Seysulan has been Armenian, and will stay Armenian,” the Ministry of Defense says in a statement.

ANCA outlines foreign aid priorities in testimony submitted to House and Senate Committees

In the wake of last week’s grassroots Fly-In to Washington, Armenian National Committee of America (ANCA) Legislative Affairs Director Raffi Karakashian has submitted testimony to key U.S. House and Senate panels supporting the foreign aid priorities of the Congressional Armenian Caucus and outlining the Armenian American community’s specific appropriations requests for Fiscal Year (FY) 2017.
Among the highest priority issues raised by Karakashian were 1) increased aid to Artsakh, including for the Lady Cox Rehabilitation Center in Stepanakert, a regional clinic serving over 1,000 children and adults with physical and mental disabilities every year, 2) a full suspension of military aid to Baku until Azerbaijan agrees to pull back snipers and heavy arms, ceases cross-border attacks, ends its threats of renewed war, assents to the deployment of gunfire locators and the addition of OSCE observers, and agrees to a settlement of regional conflicts through peaceful means alone, and; 3) a $10 million appropriation to help Armenia provide transition support to individuals from Syria who have found safe haven in Armenia.
Parallel to this effort, friends of Armenia from across America have emailed and called their U.S. Representatives using the ANCA’s online activism portals ( and ) to co-sign a Congressional Armenian Caucus letter, led by Caucus Co-Chairs Robert Dold (R-IL) and Frank Pallone (D-NJ), calling upon the bipartisan leadership of the House Appropriations Subcommittee on State-Foreign Operations to support a similar series of Armenian-related foreign aid provisions.  That letter is anticipated to be sent this week.
The full text of the ANCA’s House testimony is provided below:
The Armenian American community requests:
1) At least $5 million in U.S. developmental aid to Nagorno Karabakh, with special focus on expanding the Lady Cox Rehabilitation Center in Stepanakert, a regional clinic serving over 1,000 children and adults with physical and mental disabilities every year.
2) Zero-out U.S. military aid to Azerbaijan until its leaders agree with the Royce-Engel peace proposals to withdraw snipers and heavy arms, add OSCE observers, and deploy gunfire locator systems.
3) At least $40 million in U.S. economic assistance to Armenia, targeted to growing the U.S.-Armenia trade and investment relationship.
4) At least $10 million in emergency aid to help Armenia provide transition assistance to the nearly 20,000 people who have fled to Armenia from Syria and elsewhere in the Middle East.
5) At least 10% of U.S. assistance to Georgia to be used for job creation programs in the Samtskhe-Javakheti region of that country.
6) Language strengthening Section 907 restrictions on U.S. aid to Azerbaijan.
7) Ending the exclusion of the Republic of Nagorno Karabakh from the peace process.
 
1) At least $5 million in development assistance for Nagorno Karabakh:
Since FY 1998, direct U.S. aid to Nagorno Karabakh has represented a powerful investment in peace and an enduring expression of America’s leadership in supporting a negotiated and democratic resolution of security and status issues related to the Republic of Nagorno Karabakh.  This direct aid has met pressing humanitarian needs, providing, most recently, desperately needed clean water to families and the clearance of villages and farmlands of mines and unexploded ordnance.  According to the Nagorno Karabakh Republic, the war caused an estimated over $5 billion in damages.  More than twenty years since the cease-fire established in 1994, Karabakh is still suffering from significant infrastructure damage, including the shortage of safe drinking water.  In addition, Nagorno Karabakh continues to suffer one of the highest per capita landmine accidents in the world.
We urge the Subcommittee to expand this vital assistance program, to support a needy population that has strived mightily against aggression and blockades to build a strong democracy, develop a free market economy, and work toward an enduring peace for all the peoples of this region.  Since 1991, Nagorno Karabakh has successfully conducted six parliamentary and five presidential elections which have been praised by international observers as free, fair, and transparent.
We specifically encourage the Department of State and USAID to support the expansion and operations of the Lady Cox Rehabilitation Center in Stepanakert, a regional clinic serving over 1,000 children and adults with physical and mental disabilities every year.
2) Suspension of U.S. military aid to Azerbaijan:
The Azerbaijani government of Ilham Aliyev neither needs nor deserves American military aid. It does not serve our national interests or advance our values to provide aid to a military whose leadership frequently threatens to start a new war and regularly launches cross-border attacks not only into Nagorno Karabakh, but also Armenia, a NATO Partnership for Peace country, where border villages are under siege by Azerbaijani sniper fire and artillery.
In addition to threatening to renew full-scale hostilities, President Aliyev refuses U.S. and international calls to pull back snipers and heavy arms, has made land claims on all of Armenia, and openly incites anti-Armenian hatred, including against Americans of Armenian descent.  Our State Department warns that not all Americans are safe in Azerbaijan, noting that Americans of Armenian heritage will likely be denied a visa because Azerbaijan cannot guarantee their safety.
As was widely reported in the international media, on August 31, 2012, Azerbaijani President Ilham Aliyev personally pardoned an unrepentant, convicted axe-murderer for killing a NATO Partnership for Peace participant (while he slept) because he was Armenian. Immediately after his pardon, this convicted killer received a promotion in the Azerbaijani military, an apartment, and years of back pay for his prison time.  The pardon was condemned around the world, including by President Obama, Members of Congress, the European Parliament, OSCE, Council of Europe, and NATO.
Azerbaijan’s regional aggression is closely tied to its pattern of domestic abuse, including its brutal crack-down on dissent.  As is well known by this panel, government forces have raided and shut down the offices of U.S.-supported Radio Free Europe, unjustly imprisoned a Radio Free Europe reporter, as well as several other civil society leaders, including Arif and Leyla Yunus, who supported U.S. calls to promote Armenia-Azerbaijan Track II dialogue and have been denied medical care during their pretrial detention.  We associate ourselves with the aims of H.R.4246, the Azerbaijani Democracy Act and support the adoption of this legislation.
We respectfully call upon the Subcommittee to suspend the appropriation of Fiscal Year 2017 U.S. military aid to Azerbaijan until its government agrees to pull back snipers and heavy arms, ceases cross-border attacks, ends its threats of renewed war, and agrees to a settlement of regional conflicts through peaceful means alone.
 
3) At least $40 million in Assistance to Armenia:
As members of the Subcommittee know, Armenia, a crucial ally in a strategic region of the world, has extended robust support for U.S.-led peace-keeping deployments in Afghanistan, Iraq, Lebanon, Kosovo, and Mali, and is cooperating with the U.S. on a broad range of regional and security challenges.
At the same time, Armenia, the world’s first Christian state and a nation that has survived genocide, continues to face the devastating impact of Turkey and Azerbaijan’s dual economic blockades.  Our assistance has played a vital role in helping alleviate these blockades (among the longest in modern history) and promoting Armenia’s free market system and democratic development.  It is for this reason that we ask the Subcommittee to appropriate no less than $40 million in overall FY17 economic aid (including Economic Support Fund, International Narcotics Control and Law Enforcement, and Global Health Programs) for Armenia.
 
4) Assistance to Christian and other minority communities from Syria:
As has been widely reported, nearly 20,000 individuals from Syria have sought safety in Armenia, a state, which despite being one of the poorest nations accepting Syrian refugees, has received only very modest levels of U.S. and international relief and resettlement assistance.  Armenia has generously provided full citizenship rights to many Armenian Syrian refugees, and has sought to compassionately integrate arriving families into Armenian society.
We ask the Subcommittee to appropriate at least $10 million to help Armenia provide transition support to the nearly 20,000 individuals from Syria who have found safe haven in Armenia.
Within Syria, we remain troubled that distribution gaps in need-based international aid deliveries to Aleppo and elsewhere have resulted in desperately needed food, medicine, and other relief supplies not reaching Armenians, Christian communities, and other at-risk and vulnerable minorities.  We ask the Subcommittee to formally call upon the Administration to put in place policies and practices to ensure that need-based aid reaches all at-risk populations in Syria.
 
5) Assistance to the Javakhk Region in Georgia:
We join with the Congressional Armenian Caucus in encouraging the Subcommittee, as part of a robust U.S. aid package to Georgia, to ensure that 10% of U.S. assistance to Georgia is targeted to the largely Armenian-populated region of Samtskhe-Javakheti (Javakhk) in south-central Georgia, including funding for badly-needed job-creation programs and ongoing improvements to transportation and communication infrastructure.
6) Strengthening Section 907 of the FREEDOM Support Act:
Enacted in 1992, Section 907 of the FREEDOM Support Act stands as a statutory expression of U.S. opposition to Azerbaijan’s blockades and other aggressive uses of force against Armenia and Nagorno Karabakh.  Since its enactment, Azerbaijan has not lifted its illegal blockades and has ignored House Appropriations Committee Report language opposing its destabilizing threats.  The Congress should limit the President’s waiver authority in the face of these provocations by Baku by adding the following certification requirement, effectively narrowing the President’s waiver authority: “In the last fiscal year, Azerbaijan has not taken hostile action, either through military force or incitement, including but not limited to threatening pronouncements by government officials toward Armenia or Nagorno Karabakh, and has both stated and demonstrated its commitment to pursuing a lasting peace with Armenia and Nagorno Karabakh through solely non-violent means.”
 
7) Ending the exclusion of the Republic of Nagorno Karabakh from the peace process:
The best and most sustainable path to peace requires direct engagement with the people and government of Nagorno Karabakh, whose fate and future are the subject of ongoing talks and whose security will rest on the outcome of these negotiations.  As is well know, the Nagorno Karabakh Republic was one of the three parties to the 1994 cease-fire, which ended military hostilities between Nagorno Karabakh and Azerbaijan.  In its aftermath, Nagorno Karabakh participated in the OSCE Minsk Group peace process as a partner, along with Armenia and Azerbaijan.  Since 1998, however, at Baku’s insistence, Nagorno Karabakh has been excluded from the peace process.  Nagorno Karabakh should, in the interests of peace and common sense, be a full participant in all talks regarding its very future.
In addition to these seven specific priorities, we would like, in closing to add a final thought about the future of the U.S.-Armenia economic relationship.  In light of the downward trend in U.S. economic aid to Armenia, we encourage the Subcommittee to encourage the Administration to prioritize bilateral U.S.-Armenia trade and investment promotion.  We welcomed last year’s signing of a Trade and Investment Framework Agreement and the finalization of the Vorotan hydro-electric power plant deal, the largest ever U.S. investment in Armenia.  We look forward to negotiations toward a modern Double Tax Treaty, a long overdue accord that is supported by the American Chamber of Commerce in Armenia, the Armenian government, the ANCA, and many corporations operating in both countries, including Microsoft, FedEx, NASDAQ, and Marriot.

Oscars 2016: Woopi Goldberg wears bracelet made by Istanbul-Armenian jeweler

Award-winning American actress, producer and television host Woopi Goldberg wore accessories made by Istanbul-based Armenian jeweler for the Oscars 2016.

Twenty-five years after her last appearance at the Academy Awards in 1991, Whoopi Goldberg appeared  in a glamorous Old Hollywood style gown and some insanely chic jewelry.

“Sevan Biçakçi is the gentleman’s name who created this,” Goldberg said, pointing to her exquisite octopus-inspired ring on her right hand, while an intricate bracelet rested on her left wrist.

Sevan Biçakçi had earlier posted the photo of the bracelet on his .

Of Armenian descent, Sevan Bıçakçı was born in 1965 in the Fatih district of Istanbul, Turkey. He is known as the King of Rings.

Some of Sevan Bıçakçı’s famous clientele include Catherine Zeta-Jones, Elizabeth Hurley, Celine Dion, Liv Tyler, Mariah Carey, Brooke Shields, Angie Harmon, Kim Raver, Halle Berry, Mary Kate and Ashley Olsen, Michelle Monaghan, and Tory Burch.

Los Angeles community prepares to commemorate 100+1 years of Armenian Genocide

Community organizations have come together once again to call for justice for Armenian Genocide. On Sunday, April 24, at 1 p.m., a community-wide RALLY FOR JUSTICE will be held in front of the Turkish Consulate at 6300 Wilshire Boulevard in Los Angeles to commemorate the 100+1 anniversary of the Armenian Genocide as we continue to fight for a just resolution and against denial of this still unpunished crime against humanity.

All leading religious, political, youth, and advocacy organizations of the community have come together once again after last year’s unprecedented Centennial March for Justice to organize the 2016 Rally for Justice. They call upon all segments of the community to join the Armenian Genocide Committee in making the  collective voice heard as one Nation for one Cause.

Armenian Genocide Committee
Western Diocese of the Armenian Church of North America
Western Prelacy of the Armenian Apostolic Church
Armenian Catholic Church of North America
Armenian Evangelical Union of North America
Armenian Revolutionary Federation
Armenian Democratic Liberal Party
Social Democrat Hunchak Party
Armenian General Benevolent Union – Western District
Armenian Relief Society – Western USA
Armenian Youth Federation
Armenian Assembly of America
Armenian National Committee of America – Western Region
Armenian Council of America
Armenian Rights Council
Armenian Bar Association
Organization of Istanbul Armenians

Kim Bakshi awarded a “Gratitude” medal

On 22 February NKR President Bako Sahakyan signed a decree, awarding writer and Armenian studies expert Kim Bakshi with the “Gratitude” medal for substantial contribution to the popularization of the Artsakh’s cultural heritage and in connection with the 85th birthday, Central Information Department of the Office of the Artsakh Republic President reports.

Tigran Sargsyan’s farewell meeting at the Department of State

On January 27, Ambassador Peter Selfridge, U.S. Chief of Protocol, bid farewell to outgoing Ambassador Tigran Sargsyan on behalf of the Government of the United States at the Department of State.

Ambassador Peter A. Selfridge and Ambassador John Heffern, Principal Deputy Assistant Secretary of State, made short farewell remarks, followed by Ambassador Sargsyan’s speech outlining the recent progress and achievements in U.S.–Armenia relations. Ambassador Sargsyan also underscored the commitment of the government of Armenia to strengthening bilateral relations and friendly partnership with the United States. “We share the same values, stand for the same principles and work towards achieving similar objectives”, he said.

The event was attended by Deputy Assistant Secretary Bridget Brink, former U.S. Ambassadors to Armenia Marie Yovanovitch and John Evans, the Department of State staff, members of the diplomatic corps, representatives of various Armenian American organizations.

Syrian Army advances on all fronts

The Syrian Army and the country’s popular forces, backed by Russian airstrikes, have continued their advance, inflicting heavy losses on the terrorist groups in the country’s key provinces, Iranian media wrote on Wednesday, Sputnik News reports.

Over the past 24 hours the Syrian Air Force has attacked and destroyed the terrorists’ positions in Lattakia, Homs, Damascus, Deir Ezzur, Aleppo, Dara’a and Hama provinces, Fars news agency .

On Tuesday the government forces stormed a terrorist concentration center in Dara’a al-Balad leaving many militants dead and causing serious damage to their weapons and military equipment.

In Hama province, Syrian Army troops stormed a number of enemy strongholds, the agency reported, citing military sources in the area.

“Concentration centers of Ahrar al-Sham terrorist group near Atshan village in the northern part of Hama were massively attacked by the Syrian forces, leaving at least eight terrorists dead and wounding ten others,” the sources said.

n Aleppo province, Syrian fighter jets pounded a number of terrorist gathering centers in the town of Manbaj in the eastern part of the region.

In the meantime, the Syrian Army’s artillery hit the military positions of the terrorists in the village of Mansoura in the eastern part of the city of Aleppo, the agency reported.

Syrian government forces have recently been making rapid advances against the terrorists in several parts of the country.