Saturday, 3 December 2016
“Together we must create jobs and favorable conditions for working people,” PM discusses Gegharkunik Marz development prospects with community heads
Prime Minister Karen Karapetyan paid today a working visit to Gegharkunik Marz of Armenia.
The Prime Minister first visited the Armenian-Italian “AMA Compressor” enterprise in Gagarin community, which is engaged in the production of oil and gas compressor stations. The Prime Minister toured the factory inspecting the production process and getting acquainted with the development projects.
Operational since 2004, the company only manufactured installations for gas stations in 2010, but afterwards they extended the scope of operations. The output of the company, which employs 43 people, is exported toward Russia, Georgia, Ukraine, Bulgaria, Moldova and Kazakhstan. There are plans to increase production and export volumes.
The Prime Minister told Minister Energy Infrastructures and Natural Resources Ashot Manukian to make a point of AMA Compressor’s development programs, noting that they had come up with quite a logical proposal associated with Iran, which needs providing maximum assistance.
“The second proposal had to do with the Russian market: we will take up the matter in order to open up doors for exports Note that the Iran-related proposal was very promising,” the Premier pointed out, adding that it seemed to be necessary to involve the Ministry of Economic Development and Investment in the proposed activities. Karen Karapetyan said that should the company meet the market and export targets, the Government will have to provide assistance in terms of a credit line.
Then the Prime Minister met with community leaders, farmers and businessmen in the regional administration of Gegharkunik Marz. He said to be looking forward to having a sincere and substantive discussion.
“We are here with quite a representative delegation in order to talk about the development of Gegharkunik Marz, namely what can we do to make life better in the region so that people would be satisfied, realizing that we are moving in the right direction,” the Head of Government said.
Gegharkunik Marz Governor Rafik Grigoryan presented the socio-economic situation, development priorities and the projected activities. The Marz was said to have an agricultural bias, with about 95-96% of arable land being cultivated now. The majority of farmers are engaged in the production of potatoes and cereals, as well as tobacco products.
According to Grigoryan, the amount of potatoes produced in the region accounts for about 55% of the total demand in the country. Steps are being taken to increase sowing areas of buckwheat to 1500-3000 ha next year, taking into account that a processing plant is already operational in Tsovagyugh community.
As to the expansion of cultivated land, the Governor stressed the importance of increasing the coverage of irrigated areas. Steps have been taken to set up cooperatives, resulting in the founding of 42 cooperatives.
Speaking about the development of aquaculture in Lake Sevan, Mr Grigoryan advised that the fish farm and the processing plant have already started poerations. 1 million pieces of spawn have been released into the lake this year. The Governor assured that the ingoing efforts will help increase the fish stocks not only to meet the domestic demand, but also to export part of the output.
In the context of livestock development, noting that progress is seen in this direction, the Governor attached importance to the establishment of slaughterhouses in the Sevan region.
With reference to slaughterhouses, the Prime Minister suggested those responsible submit a proposal, which should specify the amount of required investment, the proposed site and who how many local entrepreneurs are willing to participate in the cooperative.
“There is an agricultural fund operational by the Ministry of Agriculture; another is coming up in support of entrepreneurship. We definitely need a partner on the spot – a man firmly standing on the ground, a logically thinking and caring individual. If ever there is a rationale, and the business shows a good return, we will provide the necessary funding. What matters most today is not finding money, but managing a business to ensure a return on investment, provide added value and jobs. I expect you to present an accurate business project, which should specify the local potential, as well as how far it might go toward boosting economic activity in the field of animal husbandry,” the Prime Minister emphasized.
Speaking about the possibility of expanding the coverage of irrigated areas, Karen Karapetyan noted that the effectiveness of increased irrigated land had been discussed with Ministry of Agriculture.
”There are no clearly formulated indicators in some cases. If you suggest expanding irrigated areas, you need to show the expected result,” Karen Karapetyan said. The Governor said that a relevant package has already been drawn up and will be transferred to the State Water Management Committee.
Back to fish farming, the Premier noted that, despite the recommendation to leave fish farming in the hands of public administration, he was ready to consider the option of cooperation between the State and the private sector. The Prime Minister asked whether there were local entrepreneurs willing to cooperate with the government and carry out proper management.
“Why do you not believe that you can do it? You are a fantastically talented people; you are doing business around the world, so why not do the same on the native land! I wonder what prevents you from having enough courage to shoulder the burden. I want to challenge you, touch you on the raw. Let us draft a proposal,” Karen Karapetyan said and told Minister of Agriculture Ignatius Arakelyan to consider the fishery proposal received from Gegharkunik Marz, as soon as available.
Dwelling on the steps aimed at developing the community, the Mayor of Martuni said that a milk processing plant project has been drafted, which needs a low-interest credit facility. He stressed that there had never been held a similar discussion and welcomed the Prime Minister’s initiative.
“We all believe in you, we see that there is a person in the government interested in entrepreneurship; we see that you are doing everything to make business work. Now we have the necessary amount of motivation, Mr. Prime Minister,” he said.
Karen Karapetyan suggested making out a program, which should feature a rationale and its multiplier effect. “After that, we will talk about what the government and local businessmen can do. As a matter of fact, we are planning to subsidize interest rates for some businesses, but at the same time, we must understand that it will give a return. We would like to think like a businessman and make sure that the money we give will not be wasted. We are talking about those areas capable of generating added value; we are not talking about national security, road construction, school building or welfare,” the Head of Government said and suggested submitting proposals on the resumption of halted or suspended businesses.
In the context of Vardenis Mayor’s proposal to subsidize the agricultural sector, the Prime Minister advised that an agriculture development strategy will be presented in the near future. According to him, it is necessary to reconsider the principles of subsidy, since there are both good and bad examples. In particular, several unpromising projects have been subsidized, which failed to bring about the expected result and the desired multiplier effect.
The head of Chambarak border community noted that every day 20 thousand liters of milk is produced in the community, which is delivered to Ashtarak Kat Ltd and a small part to local manufacturers who want to expand the production capacity in spite of the current deadlock associated with Ashtarak Kat, which was said to have an indebtedness of about 70 million drams to the residents of Chambarak.
Noting that Ashtarak Kat has a new manager who has officially announced that the debt to farmers must be repaid in the first place, Karen Karapetyan assured that the government will monitor the repayment process.
During the meeting, Governor of Gegharkunik Rafik Grigoryan came up with systemic solutions and proposals relevant to education, healthcare and transport, aimed at the optimization of schools, provision of licenses to healthcare institutions, the family doctor system, the organization of inter-municipal transportation routes and issues related to road maintenance.
Speaking about the organization of community transportations, the Prime Minister stressed the importance of effective operations of transport service providers. As he said, it is necessary to meet the transport service companies, discuss the problems and assure them that benefits will be provided to tender winners, should they assume the burden.
Summing up the meeting, Karen Karapetyan underscored as follows: “The goal number one is to work together in order to create new jobs and favorable conditions for working people so that added value has been generated. And if so, we will be able to advance step by step. This does not mean indeed that welfare, education and healthcare will not be the center of our attention. All this is a must.”
