Arminfo: News

US House Foreign Aid Panel proposes increase aid to Nagorno Karabakh from $2 to $5 million for 2013 FY

Thu, 17 May 2012 09:18:00 GMT

The U.S. House panel responsible for foreign aid this week adopted a number of provisions promoting U.S. interests and American values in the Caucasus, proposing sharply increasing aid to Nagorno Karabakh from $2 to $5 million and rejecting the Obama Administration's proposed $7.2 million cut in aid
to Armenia, reports the Armenian National Committee of America (ANCA).

The House Appropriations Subcommittee on State-Foreign Operations, led by Chairwoman Kay Granger (R-TX) and Ranking Democrat Nita Lowey (D-NY), also maintained military aid parity between Armenia and Azerbaijan, and called upon the Administration to formulate a strategy for targeted aid to the Armenian-populated Javakhk region of Georgia. In addition, the panel called on the Secretary of State to continue support for Armenians and other Christian populations at risk due to recent unrest in the Middle East. These provisions were included in the Committee's Fiscal Year 2013 version of the foreign aid bill, which is set to be voted on tomorrow by the full House Appropriations Committee.

Newspaper: Gagik Tsarukyan offers president to appoint Vardan Oskanyan speaker of parliament

Thu, 17 May 2012 09:11:00 GMT

The leader of the Prosperous Armenia Party (PAP) Gagik Tsarukyan has offered the president of Armenia, Serzh Sargsyan, to appoint ex-foreign minister, a members of the PAP, Vardan Oskanyan, to the position of the speaker of the parliament for the latter not to leave the PAP, "168 Zham" daily says referring to its own sources.

Oskanyan as well as other leaders of the PAP are against the PAP joining the ruling coalition of the Republican Party of Armenia and warned they will leave the future PAP parliamentary faction, but not to refuse their deputy mandates. Tsarukyan made such a proposal to the president in order to avoid the PAP split. Oskanyan is not against his appointment to the position of the speaker.

As for the prospects of setting up the coalition, another daily Haykakan Zhamanak says that the PAP and RPA will sing not a coalition memorandum but cooperation agreement. The issue will be resolved over today's sitting of the RPA executive body, which will be conducted by President Serzh Sargsyan. The prime minister and the speaker of the parliament will be also appointed at today's sitting of the RPA.

Moscow continues to play complicated balancing game on Karabakh

Thu, 17 May 2012 09:09:00 GMT

The Russian government continues to play a complicated balancing act with regards to the Karabakh issue, and in its relations with Armenia and Azerbaijan, commonspace.eu experts say.

A summit meeting of the Collective Security Treaty Organisation (CSTO) held in Moscow this week, which was attended by Armenia which is a member, but not by Azerbaijan, which is not, has called for the peaceful settlement of the Nagorno-Karabakh conflict and stressed the principles of non-use of force, territorial integrity and people's right for self-determination as the basis on which this settlement could be achieved.

On the other hand Russia continues to supply both sides in the Karabakh conflict with vast supplies of arms. Military equipment to Baku is sold at commercial prices, whilst Armenia, which is a member of CSTO gets most of its arms supplies at reduced prices.

Many observers see a contradiction between Moscow's appeals for a peaceful settlement of the conflict, and its military arming of the sides. It stems from Russia's concern that it remains the predominant power in the region, which requires the goodwill of both governments. Providing military supplies is one of the strategies in this direction. On the other hand Russia's diplomatic initiatives around the Karabakh conflict paused over recent months during the
Putin-Medvedev job swaps. It is not yet clear how they will be resumed, if at all.

Exchange rate of dram against US dollar and EUR

Thu, 17 May 2012 09:07:00 GMT

Today, the maximum buying rates at commercial banks of Yerevan were 396,5 drams for 1 dollar, 504,5drams for 1 EUR and 12,8 drams for 1 Russian ruble. The minimum selling rates stood at 398 drams for 1 dollar, 508,5 drams for 1 EUR and 12,9 drams for 1 Russian ruble .

Ara Hovsepyan: We should build a high quality highway

Thu, 17 May 2012 09:02:00 GMT

The Government of Armenia signed a $250 mln owner-contractor agreement with Corsan Corviam Construccion S.A for construction of the three sections of the North-South motorway on April 27: Yerevan-Ararat, Yerevan-Ashtarak and Ashtarak Talin. Why did they choose the sections that are in good state and not those that really need reconstruction?

Frankly speaking, I did not participate in selection of the road sections and cannot say exactly why we start with the given sections. Anyway, starting the southern border in Meghri up to the northern border in Bavra we will be building a four-lane highway covered with concrete. Sooner or later all the sections will be developed into a high quality regional highway. The goal of the given road’s construction is to involve Armenia into transit traffic.

When do you plan to launch construction?

Construction of the first three sections of the North-South motorway in Armenia will be launched by late summer. The contract with the general contractor Corsan Corviam Construccion S.A, Spain, has been divided into three parts: Yerevan-Ararat, Yerevan-Ashtarak, and Ashtarak-Talin. Within three months construction will be launched at all the three sections. In Talin we are to complete alienation of lands and provision of compensations. Yerevan-Ararat and Yerevan-Ashtarak sections are to be built within 18 months, while

construction of Ashtarak-Talin section will take 36 months because of enlargement of the two-way roads and other additional works.

Does Armenia use all the transit opportunities of the existing roads now?

Now Armenia has transit traffic with Iran and Georgia, but I cannot bring exact statistics of the country’s transit activity. It is not within my competence. Sure, after construction of the highway transit traffic will increase. The Meghri-Bavra highway will increase Armenia’s role in the freight activity in the region. It is an ultimate priority, but we are going to develop also internal traffic by means of the highway. In winters roads in the north and south of Armenia are often impassable and we should settle that problem.

Are you going to close any roads during the construction?

Under the contract the general contractor pledges to build an alternative road and bridge not to suspend traffic in the

period of construction.

It was reported earlier that some sections of the road might be paid for both trucks and cars. Do you study that issue?

There is no such decision yet, but the issue is under consideration. I can say that many issues related to the long-term strategy of road development are currently being discussed. So far, we are focusing on short-term tasks, such as our project. You can get more information on your question from the Ministry of Transport and Communication of Armenia.

The project is now estimated at $1.5 bln. The prime minister of Armenia has lately mentioned that figure as well. In line with the

Agreement with the Asian Development Bank (ADB), the latter is to allocate $500m under the project. Where will Armenia raise the remaining funds?

On September 15, 2009, the Armenian government and the Asian Development Bank signed a $962m framework agreement. ADB is to allocate $500m under the project. The project is now estimated at $1.5 bln. Negotiations are currently underway with the parties interested, donors, and private investors for additional funds. So far, there is no specific arrangement.

The maximum term on the two tranches is 36 months. What about the implementation deadline for the total project North-South?

Under the framework agreement with ADB, the project is to be implemented within 5-7 years depending on construction of the three sections of the highway. We have almost prepared the construction project of the fourth sector Talin-Gyumri which is 45 km long. At present this sector is two-lane and it will be extended to

the four-lane. I hope that in several months we will announce an international tender for attraction of a contractor. At present the cost of this sector of the highway is secret information.

The government co-financing on the first two tranches is $50 mln. Has the government approved that sum?

The government’s co-funding is envisaged for payments of taxes, for taxes are not included in ABD’s credit program. The co-funding on the first tranche is $10 mln, and on the second tranche - $40 mln.

How professional is Corsan Corviam Construccion S.A and will it participate also in the contest for the third tranche?

The company has international experience and implements big contracts in India, Pakistan, Mexico and Spain. It is the seventh largest construction company in Spain. It is early to speak of its participation in the next contest, though Spanish companies take an interest in our region.

How much will the new highway cut the travel time from the southern border in Meghri to the northern one in Bavra?

Theoretically, at the permissible speed of 100km/h the 560km way will be passed within 6 hours. But it is a very approximate calculation. Everything depends on the relief. At some sections the permissible speed may be lower. Forks will be available every 5km.

Construction of 1 km highway is estimated at $2.7 mln in average. Does this figure apply also to construction of tunnels?

The given figure is calculated taking into account bridges, forks and metal road barriers. The first two tranches will not be spent on construction of tunnels. Specialists say construction two-lane tunnel will cost at least $40 million per km, while construction of a four-lane tunnel will cost twice as much. In addition, it requires at least feasibility studies for every section of the highway to construct tunnels.

Social issues are often the most painful ones in implementation of any big project. The highway will extend via certain populated areas and the project envisages alienation of lands. Won’t it infringe the citizens’ rights?

We are studying this issue thoroughly. We will have to buy land lots from the population for the state needs to build the highway. A

purchase-and-sale contract will be made with everyone concerned. We will have to buy also enterprises if they are on the way of the

future motorway. The land alienation plan will be submitted for approval of the government shortly.

Road construction in Armenia has been, to put it softly, at a low level so far. What about the guarantee maintenance of the new highway?

We hope that high-quality concrete roads will be built. In such case, there will be no need for annual repair within 30-40 years. Concrete roads will be built in Armenia for the first time.

By our data, some roads in Armenia were on concrete basis yet in Soviet time as they were of military-strategic importance.

As far as I know Yerevan-Ararat road is covered with asphalt over concrete. There are such sections also on Yerevan-Sevan road. Under our project, these concrete layers will be fully liquidated and highway will be covered with new 24-26cm concrete layers.

Will you import construction materials or use the local products?

We will use crashed trap rock, sand and cement. All these materials are produced in Armenia but we will use them only if their quality meets international standards. We should build a high quality highway. The contractor has not adopted the final decision yet. If there is need for importing construction materials, the company cannot import them from the neighboring Iran as that country is not an ADB member.

Thank you