Saturday, 1 August 2015
PM Pays Working Visit to Shirak Marz
Prime Minister Hovik Abrahamyan traveled today to Shirak Marz of Armenia on a working visit. The Premier first visited the newly-built Institute of Geophysics and Engineering Seismology after A. Nazarov by NAS in the city of Gyumri, the construction of which was funded by the Government.
Construction work lasted from 2006 to 2015. The project’s total cost amounted to 890 million drams. Hovik Abrahamyan toured the building getting acquainted with the results of the work performed and the conditions created in the building for staff activities.
The Prime Minister was briefed on the main activities of the Institute (seismic construction, engineering seismology, geophysical instrumentation, geomagnetism and others.), as well as the main areas of activity (evaluation of seismic risk and seismic hazard in Armenia, development of systems of seismic safety of buildings and structures, territories, and the study of seismic resistance the stress-strain state of the Republic of Armenia, etc..).
The Premier’s next stop was LENTEX LLC, which is one of the largest manufacturers of hosiery products in Armenia. Hovik Abrahamyan got acquainted with the production process, the range and volume of output, as well as with the Company’s development prospects and programs.
Founded in 200, LENTEX LLC is furnished with modern equipment, produces men’s, women’s and children’s socks and hosiery and knitwear as well. The annual volume of manufactured products amounts to 550 million drams. The Company employs around 290 people with an average salary of 85000 drams. A new production facility was built and commissioned in 2014 with a total area of 2900 square meters.
Hovik Abrahamyan next visited the Gyumri Hayordats Toun of the Armenian Apostolic Church, which opened in December 2014. The Center has 170 students who are taking classes of classical and folk dance, painting, sculpture, singing and theatrical art, as well as pre-school classes. Starting this September, the students will be attending classes of karate, sambo, acrobatics, design and contemporary dance. Applications have already been from 130 teenagers.
The Prime Minister went around the classrooms talking to the students, and expressed satisfaction with the activities of the Gyumri Hayordats Toun. On behalf of his government, Hovik Abrahamyan expressed willingness to promote the deepening and development of the activities of the organization.
Prime Minister Abrahamyan next called at High Voltage Electric Networks JSC, to get acquainted with Gyumri-2 220 kV high-voltage substation’s operations. The substation is being constructed with funding from the German KfW bank (14.7 million euros). Incoming high-voltage electricity from nuclear plants, hydroelectric power stations and thermal plants is transferred through Gyumri-2 to other substations in Shirak Marz.
In a briefing with journalists, the Prime Minister noted that the main purpose of his working visit to Shirak is the initiation and implementation of steps to revitalize the region’s economy, create new jobs and implement a variety of key programs.
The Prime Minister stressed that the Government will be assisted in this matter by Swiss businessman of Armenian origin, philanthropist, President of Franck Muller Co. Vartan Sirmakes.
“We have discussed this issue with Mr Sirmakes. He expressed readiness to invest USD10 million in Gyumri in order to set up a structure that will finance any business program developed by Shirak Marz-based SMEs. I believe it can promote economic activity and create new jobs in the region. I suggested that the Government should co-finance the program to the extent of 20 percent, taking the total cost of the project to USD12 million, and most importantly, it would be of 5 percent annual interest for a period of seven years,” Hovik Abrahamyan noted.
The working visit of the Head of Government ended with a consultative meeting held in the administration of Shirak Marz. The Prime Minister first referred to the activities of LENTEX LLC, noting the importance of the presence of such companies in Shirak Marz conducive to economic development and job creation and, on behalf of the Government, expressed willingness to contribute to the company’s expansion programs. LENTEX Director Karen Gomtsyan said that with an appropriate site and borrowed resources the Company could increase production and create about 300 new jobs.
In this connection, the Prime Minister gave relevant instructions to the heads of government agencies and asked the Director of the Company to develop a business program for Ministry of Economy’s consideration. Hovik Abrahamyan noted that he will personally follow the organization of all of the above processes - from the granting of territory to the allocation of credit resources.
Then Governor of Shirak Marz Felix Tsolakyan reported on the work of the harvest in the field, said that work continues, and it is expected to collect about 140 tons, which is a record in the history of the region. The Prime Minister asked about the grain harvest procurement and sales prices and said that the Government will hold talks with the processing entities over mutually advantageous prices.
Then noting that jobs, poor road conditions and the presence of unsafe buildings remain a priority concern in the region, the Governor of Shirak Marz reported on the progress of the ongoing State-funded programs.
In particular, Felix Tsolakyan noted that AMD530 million has been allocated this year under a government decision in the framework of emergency programs, of which 304 million will be spent on road maintenance and construction. The remaining amount will be directed to the improvement of schools, kindergartens, municipalities, repair of infrastructure in communities, and others. Hovik Abrahamyan asked about the progress in the State-supported housing programs for families left homeless as a result of the earthquake of 1988.
Note that on instructions from the Head of Government, housing ownership certificates have been granted in Gyumri since October 2014.
Governor Tsolakyan advised that AMD146 million-worth savings were made on 1.5 billion drams allocated last year and discussions are being held with the Ministry of Urban Development on the possibility of earmarking AMD61 million for the purchase of housing for 8 large and needy families.
The Prime Minister responded positively to the proposal and ordered to include the issue in the agenda of the forthcoming Cabinet meeting. Prioritizing the continuity of the whole process, the Premier issued relevant instructions.
