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CENN -- Armenia - July 12, 2004 Daily Digest

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  • CENN -- Armenia - July 12, 2004 Daily Digest

    CENN - July 12, 2004 Daily Digest - Armenia
    Table of Contents:
    Armenian NPP to shut down for overhaul on July 23
    NCI Determines Trends of Armenian Economic Growth
    Armenian agriculture set to receive $10m loans in 2005
    Cyprus, Armenia sign health cooperation agreement
    Embassy in DC Hosts Presentation on Armenian Science and Lake Sevan
    EU wants Armenia to close its nuclear power plant



    1. Armenian NPP to shut down for overhaul on July 23

    Source: Interfax, July 8 2004

    The Armenian nuclear power plant, operated by ZAO Inter UES of Russia, will
    shut down for an overhaul and refueling on July 23 and not, as planned, on
    July 15, stated Armenian State Atomic Energy Oversight head Ashot
    Martirosian. The decision was made because the plant is currently low on
    fuel.

    The plant was originally scheduled to shut down on July 15, "but the plant
    reduced capacity because of high waters from the spring flooding and the
    diversion of water resources to generate electricity," Martirosian said.

    The works will last 65 days, during which, after the nuclear fuel is loaded,
    an overhaul is planned for the reactor and two operating turbines of the
    second generating unit. One-third of the new fuel consignment, some 100
    cassettes, will be loaded and paid for by Russia. This should be sufficient
    for the plant to work until summer 2005, Martirosian said.

    The Armenian NPP generated 1.9 billion kilowatt-hours of electricity in
    2003, 36% of total electricity generation in Armenia.

    ZAO Inter UES of Russia, which exports and imports electricity to Russia and
    other countries, took over management of the plant in September 2003. Inter
    UES is a subsidiary of Unified Energy System (UES) of Russia, with 60% of
    the shares, and state-run enterprise Rosenergoatom, with 40%.


    2. NCI Determines Trends of Armenian Economic Growth

    PRESS RELEASE
    The National Citizens' Initiative
    75 Yerznkian Street
    Yerevan 375033, Armenia
    Tel: (+374 - 1) 27.16.00, 27.00.03
    Fax: (+374 - 1) 52.48.46
    E-mail: [email protected]
    Website: www.nci.am

    July 8, 2004

    National Citizens' Initiative Determines Trends of Armenian Economic Growth

    Yerevan--The National Citizens' Initiative (NCI) today convened a
    specialized policy roundtable on "The Trends of Economic Growth in Armenia."
    The discussion, focusing on the challenges of this vital issue of public
    concern, brought together government officials, academic circles, experts of
    the field, public figures, and the media community to define the priorities
    and development opportunities in the economic sphere, to make realistic
    assessments of the current state of affairs, and to address the imperative
    of a true struggle against corruption and the shadow economy.

    Karapet Kalenchian, director of administration of the Armenian Center for
    National and International Studies (ACNIS), greeted the audience with
    opening remarks. He stressed the significance of economic reforms and
    pointed to several mechanisms for achieving the objective. "In order to
    settle a number of issues of strategic importance, in particular
    strengthening the new independent state system and improving the living
    standards of the population, we need to create prerequisites for the
    proportional development of modern industry, the agricultural sector and
    other fields of the economy, to improve tax policy, and to provide sustained
    economic growth so that every Armenian family really enjoys its benefits,"
    Kalenchian said.

    Gagik Vardanian, the Republic's deputy minister for trade and economic
    development, addressed "The Strategic Directions of Armenia's Economic
    Development in Light of the Global Information Revolution," detailing key
    issues of efficiency and productivity in the Armenian economy. In his
    opinion, information technologies provide great access and thus facilitate
    quick orientation in the market as well as application of state-of-the-art
    networks and electronic equipment, all of which lead to sustained progress
    in the economy. "Given their efficiency in all spheres of life, the Armenian
    government attaches primary importance to ITs. It has worked out a
    development concept and a program of activities to face the challenges of
    the world market," he noted. "The government of Armenia has adopted
    strategic programs for the country's sustainable regional economic
    development in order to play an active role in integrating into the global
    information field."

    Gagik Makarian, director of the "Haiconsult" firm, delivered an illustrated
    paper on "The Key Obstacles to Armenia's Economic Growth and the Ways to
    Overcome Them." "It is senseless to speak of sustained economic growth
    unless we struggle against corruption and the shadow economy, make a due
    assessment of the operational branches of industry, provide mechanisms for
    an attractive investment climate, make export volumes predictable, and draft
    appropriate tax and customs legislation," Makarian opined. According to him,
    there are about 20 negative factors that impede economic growth in Armenia
    in view of the relevant transportation expenses, unfair and unequal
    competition, poor marketing experience, the political situation in the
    country, and a number of other circumstances.

    Yerevan State University economics professor Gagik Galstian entitled his
    presentation "The Anatomy of Armenian Economic Growth." "Economic growth is
    not an end unto itself." he said. "If there is growth there should be
    prosperity, whereas the living standard of the population as measured by
    substantive food intake per capita has been reduced twice over the last
    decade." An analysis of the data from 2003 brought Galstian to a pessimistic
    conclusion: Armenia's living standard is today on par with that of 1977 in
    terms of its Gross Domestic Product, with 1980 in terms of its industrial
    productivity, and with 1956 in terms of its cargo transportation and
    residential construction. Thus, society is lagging behind by more than 25
    years.

    The formal interventions were followed by exchanges of views and policy
    recommendations among the public figures and policy specialists in
    attendance. Noteworthy were contributions by MP Shavarsh Kocharian of the
    National Democratic Party; former minister of state Hrach Hakobian;
    economist Edward Aghajanov; Artak Zeinalian of the Republic Party; Stepan
    Mantarlian of Armaveni consulting company; Alexander Butaev of National
    Democratic Union; Petros Makeyan of the Democratic Fatherland Party; Ruzanna
    Khachaturian of the People's Party of Armenia; law professor Hrair
    Tovmasian; and many others.

    ACNIS analyst Hovsep Khurshudian closed the meeting with summary remarks.
    "Unfortunately, it is difficult to conclude the seminar on an optimistic
    note regarding Armenia's economic growth," he said, underlining that
    economic growth remains erratic, illusory, and narrow-based despite
    government assurances. "Moreover, the authorities have demonstrated little
    or no political will to struggle against corruption, as they are mired in
    the very clan system which impedes competition."

    The National Citizens' Initiative is a public non-profit association founded
    in 2001 by former foreign minister Raffi K. Hovannisian, his colleagues, and
    fellow citizens with the purpose of realizing the rule of law and overall
    improvements in the state of the state, society, and public institutions.
    The National Citizens' Initiative is guided by Coordinating Council, which
    includes individual citizens and representatives of various public,
    scientific, and educational establishments. Five commissions on Law and
    State Administration, Socioeconomic Issues, Foreign Policy, Spiritual and
    Cultural Challenges, and the Youth constitute the vehicles for the
    Initiative's work and outreach.

    For further information, please contact:
    Phone: (3741) 27-16-00 or 27-00-03;
    Fax (3741) 52-48-46;
    E-mail [email protected];
    Web site: www.nci.am


    3. Armenian agriculture set to receive $10m loans in 2005

    Source: ArmenPress, July 6, 2004

    Last week the minister of Agriculture of Armenia David Lokian stated that
    the government is set to receive two new credits in 2005 to direct them to
    agricultural development. The main components of the credits, according to
    the minister, are leasing of technologies and machine building.

    The minister said the government would provide 25-50 percent loan guarantees
    to farmers in order to ensure collaterals for small and medium- sized
    enterprises dealing with agriculture. He also said new loans would be made
    available at lower interest rates. "President Kocharian has directly
    instructed the Central bank and the ministry that the interest rates must
    not exceed 10 percent," the minister said, adding that this issue must be
    also reconciled with World Bank.

    A World Bank representative in Armenia said the anticipated amount of loans
    is approximately $10 million.


    4. Cyprus, Armenia sign health cooperation agreement

    Source: Xinhua General News Service, July 5, 2004

    Cyprus and Armenia signed on Monday a cooperation agreement in the field of
    health and medicine.

    Cyprus Minister of Health Constantia Akkelidou, who inked the pact, told
    reporters after the signing ceremony that this agreement would provide
    numerous exchange visits between the two countries and other ways of
    cooperation.

    Cyprus has fulfilled an old pledge it gave to Armenia by sending medicine
    and medical equipments to the country, she said.

    Armenian Ambassador to Cyprus Vahram Kazhoyan who represented his country
    said there had been a long experience of cooperation in the field of medical
    sciences and health care between the two countries.

    "I am glad that finally we were able to sign the agreement which puts all
    this cooperation in a legal framework," he said.

    As a good gesture stemming up from this agreement, Cyprus will send a
    container of medicine to Armenia soon, he added.


    5. Embassy in DC Hosts Presentation on Armenian Science and
    Lake Sevan
    PRESS RELEASE
    July 9, 2004
    Embassy of the Republic of Armenia
    2225 R Street, NW, Washington, DC, 20008
    Tel: 202-319-1976, x. 348; Fax: 202-319-2982
    Email: [email protected]
    Web: http://www.armeniaemb.org

    Embassy of Armenia Hosts Presentation on Armenian Science and Lake Sevan

    On July 7, 2004, the Embassy of Armenia hosted members of the Federal Water
    Quality Association and the Greater Metropolitan Washington Area Section of
    the Armenian Engineers and Scientists of America for a presentation on
    Armenian science and environmental issues. Dr. Arman Kirakossian, Armenian
    Ambassador to the U.S., delivered the keynote address, entitled "The State
    of the Science in Armenia, with a View Toward the Water Environment of Lake
    Sevan," to an audience of some 60 experts, researchers, and officials from
    the U.S. Environmental Protection Agency, Department of Agriculture, Nuclear
    Regulatory Commission, Civilian Research & Development Foundation, and other
    public and private entities.

    In his presentation and the Q&A that followed, Ambassador Kirakossian
    presented the modern state of scientific infrastructure, policies, and
    directions in Armenia. He described the many challenges facing the Armenian
    scientists today, such as drastic decrease in government funding, greater
    need for commercial viability and involvement of the private sector in
    directing and funding R&D, and curtailing the so-called 'brain-drain.'
    Despite these challenges, the Armenian scientists continue to make progress
    in many areas of fundamental and applied science due to perseverance and
    support from their foreign colleagues and international donors, the
    Ambassador noted. He also presented the government's plans to strengthen
    science and education sectors.

    Turning to Lake Sevan, Ambassador Kirakossian described the severity of the
    anthropogenic ecological problems in Lake Sevan during the twentieth
    century, caused by extensive irrigation and hydropower usage. The resulting
    18-meter drop in water level and disruption of water balance in the lake was
    a good example of Soviet era environmental damage, he added. The Ambassador
    then noted the current positive trends in Lake Sevan ecology, but stressed
    the need for continuing attention for and greater international cooperation
    to preserve the unique environment of Lake Sevan.


    6. EU wants Armenia to close its nuclear power plant

    Source: RosBusinessConsulting, July 9, 2004

    The European Union is planning to collect funds to close the Armenian
    nuclear power plant, Janez Potocnik, a junior EU commissioner working with
    enlargement commissioner Guenter Verheugen, declared at a briefing in
    Yerevan, Armenia. According to him, the EU is ready to allocate up to
    EUR100m for this purpose and attract its partners to this project, the ARKA
    news agency reported.

    The closing of the nuclear facility is necessary for technological and
    seismic safety reasons, the commissioner specified noting that Bulgaria and
    Baltic states also faced such problems.

    At the same time, Potocnik admitted that this was a pretty complicated
    process, since new sources of energy were to be found. According to Armenian
    experts, some EUR1bn is necessary to create other energy generating
    facilities that would replace the capacity of the Armenian nuclear power
    plant.

    The facility was put into operation in January 1980. Due to some political
    circumstances it was closed in 1989. A second rector of the plant resumed
    generating energy in 1995. The capacity of each reactor is 407.5 megawatts.
    Experts believe that the power plant can operate until 2018.

    Financial flows of the Armenian nuclear power plant are managed by Inter RAO
    UES, which is a subsidiary of RAO UES (60 percent) and Rosenergoatom (40
    percent).

    CENN INFO
    Caucasus Environmental NGO Network (CENN)

    Tel: ++995 32 92 39 46
    Fax: ++995 32 92 39 47
    E-mail: [email protected]
    URL: http://www.cenn.org
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