Republican Party of Armenia

The RA Prime Minister Karen Karapetyan with Yerevan Mayor Taron Margaryan and with the Municipality leading staff discussed the results of the four-year program of Yerevan development and the further plans. The discussion related to Yerevan development programs, to the city budget anticipation, to tax collection and income creation, to the issues of public transport system reforms, improvement of investment and business environment, tourism development, housing fund modernization, cooperation expansion with the private sector and a number of other issues.
Greeting the head of the government Mayor Taron Margaryan presented the main accomplishments Yerevan had had during the recent years and the main problems which become of high priority for the residents of the capital.
“In fact, 2017 is the final year of the four-year program of Yerevan development based on the principle of proportional development of the capital adopted in 2013, and I'd like to state with delight that there are all preconditions to fulfil it completely. Within this period large-scaled activities were carried out in the direction of road construction, housing fund protection, resettlement of the residents of badly-damaged buildings, improvement of yard areas and playgrounds, expansion of green areas, wastes removal and sanitary cleaning, heating of cultural, educational, sport and medical institutions, repairing, property renovation and other directions. Many fundamental problems are at the stage of settlement, and some of them are being solved in cooperation with international organizations”, said the Mayor outlining that due to the volumes and quality of accomplished work today the priority of problems for Yerevan residents had changed which is revealed by means of regular social surveys.
“Currently, public transport systemic changes, modernization of elevators and their operation in accordance with international standards, renovation and preservation of shabby housing fund including the dwellings becoming shabby and resettlement of their dwellers as well as expansion of green areas are of particular priority. I should also note that in all these direction the Municipality certainly has initiated preparation activities however their full implementation is possible only within the frames of community-state-private sector mutually beneficial cooperation. Besides, taking into account the experience of effective management of waste removal activity by the private company we have worked out packages to attract private operators for the spheres of landscaping, water supply, city lighting. We also discuss with international structures the possibilities of implementation of pilot projects in the mentioned other spheres”, said Taron Margaryan adding that the programs provided for in this directions will be included in the five-year program of Yerevan development to be presented in 2017.
Prime Minister Karen Karapetyan in his turn greeted the policy of Yerevan Municipality aimed at cooperation expansion with the private sector and passing a number of spheres under private sector management. The head of the government offered to discuss the problems together, to estimate the burden, to form the budget and to make decisions on further plans afterwards.
“I understand quite well that your finances are not enough but let's fix what each of us must do and go on in accordance with it. We must have the perspective of 10,15 years, bring money in the long run and to solve fundamental problems”, said Karen Karapetyan.
The the First Deputy Mayor Kamo Areyan presented the activities fulfilled in the spheres of nature protection, communal services, building and improvement, development of urban environment and infrastructures, business environment improvement, proportional development, as well as the legislative initiatives and anticipated steps regarding these spheres. Kamo Areyan outlined that significant success had been achieved in business environment improvement: “One Window” service is working effectively; the duties determined for building permissions have decreased; the time of giving building documentation has been reduced; the system of e-permissions has been put into operation. Progress has been made in the field of external lighting: in 10 streets 2086 new LED lamps were placed, which provides 60% energy saving. As a result of landscaping activities in the recent four years the volumes of green areas have significantly increased. However it's necessary to create a buffer forest zone and negotiations with some companies are being carried out with this aim. It is planned to form the forest area of about 200 hectares the investment of which will make up approximately 10-11 milliard drams.
Referring to the problems of elevator facilities Kamo Areyan informed that the study of best international experience shows that modernization, operation and maintenance of this sphere must be implemented by one operator. Certain activities are being carried out in the direction of elevator facilities improvement. And regarding preservation of housing fund it was noted that prevailing part of blocks of flats needs preservation and every year serious investments are allotted with this aim.
Presenting the dynamics of Yerevan budget incomes Deputy Mayor Vahe Nikoyan noted that in 2013-2016 the city incomes grew by 16.4% or by about 3 milliard AMD. The proportion of Yerevan income in the RA community incomes is 56.7 %, and per capital income is 18.000 AMD. In 2017 the incomes were planned with the same logic. In 2016 capital investments in Yerevan made up 125 milliard AMD, 77% of which were made by private sector, 17.8% by the state budget, and 5.2% by means of community budget and in cooperation between community and private sector. In 2017 the capital investments of about 171 milliard AMD are anticipated. Besides, with the aim of investment environment activation the Municipality publicized 45 investment projects which relate to urban development, city infrastructures, tourism, transport and other spheres: their estimated investment volume is about 600 million USD.
According to Vahe Nikoyan, in the conditions of the existing legal basis the incomes have no possibility to increase anymore, besides there is limited possibility for taking independent solutions and working out long-term projects. Taking into account these problems, to provide the anticipation of Yerevan budget process the draft for legislative changes was prepared and at the end of 2016 submitted to the RA Ministry of Finance. To the question given by the Prime Minister that is if the anticipation of financial flows will make it possible to undertake to burden of implementation of significant improvements in the capital, Vahe Nikoyan answered that for example public transport and elevators facility improvement programs will approximately cost 200 milliard AMD, and as a result of appropriate legislative changes the loan capacity reserve will increase and it will become possible to take this burden.
Deputy Mayor Aram Sukiasyan referred to the spheres of culture and education presenting the current programs and plans. The activities carried out in the capital with the goal of tourism boosting were also presented to Karen Karapetyan.
Karen Karapetyan agreed with the proposal to involve private operators in the programs of infrastructures improvement and development in Yerevan.
“We must calculate the multiplying effect: for example, if we sign a long-term treaty with private sector and if the entity owner can invest his own money, bank money into LED systems and if the LED effect is spread throughout the city then the management will be effective”, said the head of the government.
Attaching importance to construction activation in the capital the Prime Minister said,
“We must try to show possible support to activate construction in the capital and the Municipality team must take part in the process of investors attraction”.
Referring to the issue of making Yerevan more attractive for tourists, the Prime Minister suggested that in addition to international festivals and cultural events they should work out a program which will boost in-going tourism.
“We must pay attention not only to the quantity but also to the content of the presenting events becoming popular with the residents and tourists.