The Government of the Republic of Armenia

A regular Cabinet meeting was held today, chaired by Prime Minister Karen Karapetyan.

Before the agenda, the Prime Minister gave a number of instructions. "First of all, I would like to announce that we will set up a center for strategic initiatives as envisaged in the government program. The center will operate under the Government based on the public-private partnership format. The center’s main function will be to develop a long-term strategy, as well as short-term and long-term concepts and reform packages in the priority areas specified by the Government of Armenia in close cooperation with the private sector.

Also, I wish to inform you that we have used this platform several times, there have been numerous discussions, and the center will be established and begin its activities by this yearend. At the same time, it should be noted that various government agencies either with the technical assistance of international organizations or on their own have over years developed and submitted to the Government for approved reform policies and strategies relating to their management sectors. These documents have different names, strategy, program development, concept reform package and so on. Among the standing concepts there are ones on which no work is being carried out at this point of time, whether because they are deemed to be somewhat obsolete today or not complying with our resources or maybe for other considerations,” the Prime Minister said.

Accordingly, all ministries and government agencies were given a week’s time to submit all such strategies and concepts to the Government Staff so that the Center could summarize them in a three-week period: the documents so submitted shall first of all contain a reference note on the resources needed to implement them and, secondly, a notice substantiating the expediency of keeping in reserve such reform strategies and concepts.

The Prime Minister’s next instruction concerned the dissolution of project implementation offices. “Under the ongoing optimization effort, 5 project implementation offices have been dissolved in accordance with the government’s relevant decisions. Now, 17 such facilities are implementing foreign and international organizations-supported programs. As far as I can remember, there are 11 project implementation offices, several groups and units, closed joint-stock companies in charge of such activities. I hereby suggest launching the next stage of PIU optimization.

I instruct Deputy Prime Minister, Minister for International Economic Integration and Reform Vache Gabrielyan to negotiate with foreign creditors and international organizations over the possibility of reducing the number and maintenance costs of project implementation offices involving the government officials responsible for per-sector activities.

I do believe that the number of project implementation offices should be halved at least, while their maintenance costs should be reduced by one third. We have estimated that 5 PIU should be left out of a total of 11. All the affiliated structures, departments, divisions shall be removed from the ministries, while the relevant CJSC units will have to be optimized,” the Premier said. Given that the negotiation process is time consuming, the Prime Minister suggested submitting a timetable within two weeks.

Whereas the circulation of counterfeit or imitated drugs may have a negative impact on the development of the pharmaceutical industry and market relations in Armenia, Karen Karapetyan gave the Minister of Healthcare two weeks to carry a drugs market research, legal regulations analysis and report back the findings, attaching a timetable for implementation of the recommended steps.

To build up confidence in doctor-patient relationship, create an atmosphere of respect and care, as well as raise awareness, the Prime Minister instructed the Minister of Healthcare: “Firstly, you should develop and submit within twenty days a package of legislative amendments, which would streamline the relations associated with the establishment of medical ethics, and accountability for the application of these norms. Secondly, you should submit a proposal to the government within three months concerning the introduction of a system of individual assessment of staff qualifications in medical institutions, considering the possibility of providing incentives based on the results of the evaluation.”

The Prime Minister also gave instructions regarding the qualification test. “The relevant public authorities are checking the qualifications of professionals in businesses to provide certain types of licenses. Some non-governmental organizations engaged in anticorruption activities are warning of the need to revise the regulations governing the process. The qualification test should be carried out under transparent and clear procedures. Based on this, I am hereby giving the licensing authorities two weeks to submit to the Government Staff proposals on simplification of qualification assessment procedures,” the Head of Government said.

The Prime Minister also suggested that inspections should be carried out only through the use of technical means in order to enhance the objectivity and submit a recommendation within a month’s time. With a view to achieving increased transparency and accountability in the management and use of extra-budgetary funds in public institutions, Karen Karapetyan instructed the Minister of Justice to submit to the Government by December 9, 2016 a draft government resolution on materials incentives and system development regarding the Judicial Acts Compulsory Enforcement Service.

In conclusion, the Prime Minister made the following statement: “I call the Prosecutor General’s attention to the question raised by the parents of those soldiers who died in peace conditions. The best way of complying with the parents’ request would be to arrange a reception by the Prosecutor General. The above approach is justified by the fact that the issues raised by the parents relate to specific criminal cases for which control is exercised by the Prosecutor’s Office. We will forward to you the lists of the parents concerned.”

The meeting approved a proposal to sign a protocol on amendments to the December 2, 2013 agreement between the Government of the Republic of Armenia and the Government of the Russian Federation on the order of formation of prices for natural gas delivered to the Republic of Armenia. Accordingly, in the period from January 1, 2017 through December 31, 2017 the natural gas price for Armenia is set at 150 US dollars for 1 thousand cubic meters. The signing of the Protocol will contribute to mutually beneficial cooperation between the two countries, creating favorable conditions for economic development and ensuring increased business activity.

The Government adopted a decision on granting permissions to sign a purchase contract, which was developed based on proposals made during the November 2, 2016 consultation held presidential office. The decision authorizes the Mayor of Yerevan, based on a mutual agreement, to completely dissolve the April 4, 2013 contract signed between the Town Hall, on the one hand, and Parking City Service and Locator CJSC Consortium, on the other hand. The decision allows the Town Hall to sign negotiated contracts for a 10-year period without prior publication of the procurement arrangements. As a result of the aforementioned transactions, the assets involved in paid parking facilities will become community property.

The Executive approved a set of amendment to the 2017 budget bill indicators and the final document with conclusions and proposals submitted to the Government by the RA NA Standing Committees, factions and individual deputies of the review of the draft budget in the plenary of the National Assembly of Armenia. The amended draft budget will be submitted to the Government Staff, then, in the prescribed manner, to the National Assembly for approval.

Minister of Finance Vardan Aramyan advised that the Government of Armenia had received 339 proposals and recommendations from the National Assembly standing committees and MPs following the 2017 State budget bill deliberations held at the National Assembly.

As he said, taking into account the proposals containing specific amounts, it had been decided to increase the amounts of additional budget revenue and expenditure by 97 and 84.3 billion drams respectively.

As a result of the above changes, the summary indicators of budget receipts, expenditures and deficit will be as follows respectively: revenue - AMD1.210 billion (revenue / GDP - 22.4%), of which tax revenue and fees – AMD 1.135 billion drams or taxes / GDP - 21%; expenditure – AMD 1.360 billion or spending / GDP - 25.2%, deficit - AMD150.1 billion or deficit / GDP - 2.8%.