Thursday, 10 June 2010
How far has the Government pushed on with its programs?
In March, 2009, Tamara Fruit Ltd presented to the Government a program on the founding of organic gardens according to which over the next few years plantations of highly productive blackberry, raspberry, red and black currant species would be installed on some 60 hectares all over the country. The company was subsidized to the amount of AMD 300mn under a decision adopted by the Operative Staff. High-yield berry species were imported from Europe to turn into a pilot nursery supplying saplings to partner farms There are already 20 hectares of organic gardens fully operational in Tavush marz (5 ha), Vaiots Dzor marz (12 ha) and Kotaik marz (3 ha), with an average of 5-6 persons employed on each hectare. The program will have about 200-300 jobs generated upon completion, with twice as many jobs available during the harvesting season.
Investing companies were offered fiscal privileges... Have they lived up to the Government’s expectations?
Those companies investing over 300mn dram in development projects were granted fiscal privileges last year consisting in a 3-year deferment on VAT settlements. At this point, 8 such companies have already been approved for such privilege. They stated USD 49mn worth of investment altogether, supposed to generate some 740 jobs over time. Some programs are effective, including:
Shamb Business Ltd for instance has imported equipment with some 70 job-strong production lines being mounted at a farm produce processing unit in Syunik marz. BIGA Ltd is importing equipment for cultivation of champignons. U-Com has brought in new technologies in the sphere of telecommunications. Golden Grape Armas has put in place vineyards and fruiters on 180 hectares of land in Aragatsotni marz to produce new brands of wine, brandy, cognac, as well as juices. Some 60 people are currently engaged in the facility. GGA Executive Director Zaven Sargsyan assures about 300 jobs will be available upon program completion.
There are 123 new jobs available at Arax poultry farm. The company is set to produce eco-chickens and eco-eggs in the wake of its AMD 3.3bn worth of modernization program.
From the Operative Staff to operative assistance
For a while now, the crisis has been spoken about in past tenses at the Yerevan plant of electrical devices. Some 24% growth was stated by the plant this January-April as compared to the first 4 months of 2009. There was a real threat of cutbacks as early as a year ago in this 160 job-strong entity. The banks seemed to be reluctant to provide lending since the company was facing serious sales bottlenecks. The Operative Staff made their mind to back plant of electrical devices: an AMD 150mn loan was made available in October, 2009, which allowed the company to get new equipment, refurbish the lab and come up with ten kinds of new production.
The Artashat cannery asked the Government for a 1.46 billion dram support to increase the volume of procurements and complement the shortage of its trade turnover. The request was given a favorable consideration on the part of the Operative Staff stipulating that new jobs should be created. Now “Artfood” has a new fruit juice production line fit for 61 different types of products. Also, the company has increased the number of jobs from 590 to 630.
Biokat’s refurbishment and reorganization program, too, was deemed to be calling for prompt intervention by the Operative Staff. AMD 123mn worth of support was extended to bring about tangible progress. “The funds borrowed were used to upgrade the production lines, set up new facilities, obtain the needed certificates and improve staff qualification,” founder and owner of Biokat Hrachik Hakobyan says.
The company, which produces 20 varieties of classic and dietary dairy products, has new premises, state-of-the-art technologies and a well-equipped lab for mechanical and microbiological control. There are 8 more jobs available to be complemented with new ones on the launch of the family ice-cream and yogurt units.
Over 300 business programs have so far been submitted to the Operative Staff, of which 49 have already been approved. 24 projects have been supported to a total amount of AMD 14.1 billion. 11 business programs as approved by the Staff to a total cost of AMD 1.725bn have been financed through the National SME Development Center. This stood for 1720 additional jobs and continued operations of some 730 farms in the crisis-hit 2009. The Government has further issued credit guarantees for 6 other entities to a total sum of AMD 11.396bn. Operative Staff-backed 4 other programs were financed through FREDA Foundation to the amount of AMD 596 million.
In statistical terms...
It is just owing to the foregoing measures that the 18.3% decline of September, 2009 was brought down to 14.2 % by yearend, with an estimated 7.2% growth stated as of this April by official sources. Note that this was mainly to 12.9 % growth in the real sector.
See details at:
Developed gardening to help generate new jobs
From the Operative Staff toward ever-expanding business: the Prime Minister visits “Biokat” company
The Prime Minister traveled to Vayotz Dzor marz on a working visit
