Thursday, 19 January 2017
70-75% of Marz-submitted projects considered favorably - PM discusses Marz development prospects with community heads in Lori Marz
Prime Minister Karen Karapetyan paid a working visit to Lori Marz. The Prime Minister first inspected progress in the first stage of reconstruction of the Vanadzor-Alaverdi-Georgian border interstate (M. 6) 38.5-km-long road section, which started in September 2016. Work was reported proceeding in tune with the established timetable and due to be complete in March, 2018.
Asphalting work is expected to complete this autumn. There has already been announced a tender for construction of the second part of the 58 km-long road section. As a result of the reconstruction the security level and capacity will increase on the road. The project will also help repair bridges and tunnels. AMD 15.5 billion has been invested in the reconstruction of the road section, which involved the European Investment Bank and the Asian Development Bank.
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During his visit, the Prime Minister met with the Vanadzor chemical plant workers who had gathered in front of the Vanadzor technological center. They thanked the Head of Government for finding a solution to their wage-related problem. AMD166 million has been paid as the full amount of salaries and similar payments on the debt as of December 31, 2016.
Speaking about the plant’s further operations and the successful experience during the Soviet era, Karen Karapetyan said, “It has been a great part of the country, when there was no problem of supply and consumption. In this case, the company operated in a normal mode. After independence, we faced other problems, many attempts have been made so that investors could come to organize a business, and it goes without saying that they should be able to sell the output. This investor proved a failure due to both objective and subjective reasons. Now the factory is in the bankruptcy process, which does not stop the process of attracting investors. If an investor comes and submits a proposal and we understand that this investment makes sense, we will not have the usual risks, we will discuss the future plans,” Karen Karapetyan said urging the factory workers and professionals to submit proposals.
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The Prime Minister also visited the Vanadzor technological center, where he got acquainted with the activities of engineering, programming and start-up companies and academic laboratories. He was informed that one-year training courses had been held for IT professionals in the center, involving some two hundred specialists. Some of them have been hired by well-known companies, including the Vanadzor branches. Training courses are being organized for other target groups, particularly for schoolchildren (10-14 years old). In addition, computer engineering courses are being provided.
Prime Minister Karapetyan attached importance to the activities of the technological center, urging the start-up companies located there to submit effective programs, which the government is ready to render necessary assistance.
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Prime Minister Karen Karapetyan also met with businessmen and community leaders in Lori Marz to discuss the problems and development opportunities. The Prime Minister said that the visit aims to discuss development projects in the region, outline the next steps and added that there is a methodology already developed, based on which community leaders shall present the five-year development strategy.
“Over the next week, the supervisors of individual sectors will be submitting reports on what investments will be made in every single field that may lead to jobs. Similar reports will be submitted by each province. Last week, the results of three visits to Marzes were summarized: 70-75% of Marz-submitted projects considered favorably and, at this point of time, those initiatives talked about in the regions have received specific funding,” the Prime Minister said.
He stressed that the Ministry of Territorial Administration and Development will work out passports for each province, which must characterize the province, present the comparative development trends, and diagnose the problems along with performance indicators for governors and his team.
Referring to the development initiatives and programs designed for Lori Marz, the Prime Minister stressed: “I wish that by the end of today’s meeting, we could leave the premises with a sense of confidence that we can build our country, our Marz, our Vanadzor and live better, because I am more than confident in it. We just need to assess our strengths, abilities and advantages correctly in order to move forward step by step,”
Lori Governor Artur Nalbandyan presented the socio-economic situation in the region, the projects, achievements, problems and future plans. The governor noted that the region is mostly industrial and agricultural, macroeconomic annual volume amounts to AMD356 billion, 95 billion of industrial output, which provides 76 percent of three big mining companies. Artur Nalbandyan said that due continued development of the agricultural sector in recent years, 74 percent of 42 thousand hectares of arable land is being used currently as compared to 48% in 2012. The community leaders have been set the task to increase revenues in the current year. A five-year strategy is currently under development.
Referring to the regional center of Vanadzor, Artur Nalbandyan said about USD20 million will be invested for the development of the town in projects involving the private sector. The projects will be realized in cooperation with the newly established Center for Strategic Initiatives. Mr. Nalbandyan stressed that they pinned great hopes on the development of information technologies and Lori Marz shall be declared a SMART region.
In addition to the already operational information center, the construction of the Vanadzor Tumo Center will start early this spring. In process is the establishment of the new SMART Center. According to the Governor, Lori is also developing its tourism sector, with 18-20% growth stated in the past three years.
Prime Minister Karapetyan attached importance to the continued increase in the community budget and noted that the government will stand by those communities, which have a clear development plan and define what is needed for participation in the government itself which should be taken and how much will their burden. Speaking about the development of tourism, Karen Karapetyan noted that a specific program has been developed, using the ideas formulated by the specialists of the industrial park in Gyumri. The Prime Minister stressed that the government is ready to develop a similar program for Vanadzor having baseline information for the organization of future activities.
Referring to the current situation in the health sector, the Prime Minister called for the private sector to attract managers, which will support the expansion of health boosting business and reduce corruption risks. “Healthcare is managed by the private sector worldwide: they cannot steal of themselves, and you will be supervising. Be sure to try to involve the private sector. Health expenditure is 6.4% of our budget or 2 percent of GDP. We know that there is a large shadow sector, with artificial prices that create the risk of corruption. The entire field must be clean, healthcare must become a business, business must pay taxes, we need to provide modern and dignified services to the vulnerable,” the Premier emphasized, urging them to carry out optimization projects and submit recommendations to the government.
Karen Karapetyan asked the agriculture supervisor whether there were successful farmers in the region and added that the government wanted to support them. The Premier stressed the importance of training for those engaged in agriculture, which should be most practical and simple.
“The Agricultural University has been set a clear plan, namely to organize similar workshops in all of the regions. We need to help farmers to develop. We want to have a smart agriculture. Hotly debated is the question of drip water supply system, which can provide great economic benefits, reduce the money spent on basic infrastructure,” the Prime Minister added, informing that as part of the effort aimed at localizing the Marz development programs, a platform will be created to provide business courses for entrepreneurs and implement educational programs.
“We are going to explain how to compile a business plan so that the business community could “wake up” and the unused ideas could be brought to life. Quality education is sure to bring about a change,” Karen Karapetyan said.
Commenting on the education sector in the province, the officer in charge said that the number of teachers exceeds the demand, but either in this case there is a need for 198 specialists in different educational institutions, because redistribution is difficult to implement. The Prime Minister stressed the importance of paying teachers more through reduced optimization costs, in order to encourage teaching in schools of neighboring communities.
“We should understand where we have a surplus in spending; these costs have to be cut; teachers need to get bonuses so that a math or language teacher could go to work in the the province. I am sure that with a systemic approach to the question, you can solve a lot of problems for yourself. We need to show special attention to the teacher. If we are to have a prosperous country tomorrow, a smart and safe country, we must have educated citizens, but we will only have literate citizens if we are able to provide a good education,” Karen Karapetyan noted, attached importance to ensuring the quality of education in rural areas. “All of our champions, the best people of the nation originate from small communities. If we fail to provide a good education to children from small rural communities, we will undermine our bright future.”
The Prime Minister stressed that Lori used to have a strong industrial, scientific potential and noted the need to submit proposals on development opportunities, formulate the long-cherished dream of the province. The Prime Minister stressed the need to take into account the fact that the Marz is situated near the Georgian border and, in this context, specific programs need to be developed for would-be investors.
“We have to convince investors that money can be put to work and bring profit in Lori Marz. Each sector must have a vision and a dream, which will help us follow its implementation step by step,” Karen Karapetyan pointed out. When asked about the simplification of tax and customs regulations, the Premier said that the reform will be in the spotlight of the Center for Strategic Initiatives.
“We are keen to have a clear field for doing business. Moreover, the Tax Administration and banks have agreed that the SRC would rate the law-abiding taxpayers, which will lead to the banking system to treat such taxpayers as legitimate business entities and provide them low-interest loans,” the Head of Government said.
During the meeting, the community leaders and private sector representatives in attendance from various sectors - industry, tourism, agricultural product processing – came up with a number of small and medium-size business development investment projects and recommendations that will be discussed in the government in the form of program packages.
