Armenian Economic News

In a recent speech circlulated earlier, President Aliev of
Azerbaijan included the following:

All social programs are realized in time, there is no delay in their
implementation, we are working to a schedule. Average wages make
nearly 400 dollars in Azerbaijan, it is increasing year by year. The
first half of 2010 has also seen a growth in average wages. Average
pensions make around 130 dollars, and there is an increase here as
well."

Recent articles allow the comparison of the above figures to those
relating to Armenia

AVERAGE SALARY IN ARMENIA TOTALS AMD 101 704
IN JANUARY 2010
(= US$ 280)

Average salary in Armenia totalled AMD 101 704 in January 2010, thus
increasing by 8,8% against the last year’s index. In January 2010, the
salary in government-financed organizations increased by 12.3%
compared with 2009 data, to comprise AMD 86 499 per month. In private
enterprises, the salary grew by 5.2%, totalling AMD 123 966 (=US$ 341).

According to the National Statistical Service, monthly salary index
registered a 22,3% decrease in January 2010 compared with last
year’s results. At the same time, 1,7% consumer price increase is
registered in January 2010, compared with 2009 data.

ARMENIAN GOVERNMENT APPROVES PENSION INCREASE
31 August

Vazgen Khachikian, the director of the Armenian state pension fund,
announced on August 30 that the Armenian government approved a
60 percent increase surge in pensions, according to RFE/RL's Armenian
Service. The increase, to become effective on January 1, will raise the
monthly pension payments for hundreds of thousands of elderly citizens to
an average of about 20,000 drams ($60) per month. The move was widely
expected after its inclusion in the five-year government program that was
approved by parliament in June. Khachikian also said that the increase
was part of a longer-term effort to bolster the country's weak social safety
net, noting that the government plans to gradually


The Messenger, Georgia
July 16 2010
Armenia's economy emerging from crisis


By Messenger Staff Thursday, July 15
Deputy Finance Minister of Armenia Vardan Aramian has stated that by
the end of 2010 Armenia's economy will grow by 4.8%. He added that
2009 was quite a difficult year for Armenia's economy but the
Government took all necessary measures to improve, stabilise and
stimulate it. GDP fell by around 19% in 2009.

Aramian also added that the country's Government is supporting the
most important segments of the country's economy, in particular
metallurgy, allotting USD 44 million for this field. The Government is
also stimulating the development of the construction business as well.




CONSTRUCTION OF IRAN-ARMENIA OIL PIPELINE TO KICK OFF IN FALL
PanARMENIAN.Net
July 14, 2010 - 14:01 AMT 09:01 GMT

Armenian Minister of Energy and Natural Resources Armen Movsisyan
said that the construction of Iran-Armenia oil pipeline will kick of
in fall.

The oil pipeline's cost is estimated to total $160-180mln, with the
countries to finance 50% each, Movsisyan told journalists on July 14.

"There is an agreement with Iran that it will invest in the project
implementation, while Armenia will be paying its part upon receipt
of dividends," noted Movsisyan.

Petrol and diesel fuel will be piped to Armenia. The pipeline
construction will allow solving several problems: first, fuel will
be purchased by prices of the Persian Gulf that are $15-20 lower as
compared with other prices; second, transportation costs will be 3-4
times lower, what is an advantage of this transit as compared with
other transportation means (vehicle, railway, etc.)


RFE/RL Report
World Bank To Finance More Rural Roadwork In Armenia
16.07.2010
Ruben Meloyan

The World Bank announced on Friday the release of a fresh $40 million
loan designed to finance the reconstruction and repair of some 430
kilometers of rural roads across Armenia.


The allocation raised to more than $100 million the total amount of
funding approved by the bank for that purpose since February 2009. The
first two installments of the Lifeline Road Improvement Project (LRIP)
were disbursed last year. More than 150 kilometers of roads have been
rebuilt since then.

The third LRIP tranche approved by the bank's Board of Directors late
on Thursday will cover 190 kilometers of so-called `lifeline roads'
connecting rural communities in nine Armenian provinces to major
highways. The projected is slated for completion by the end of 2013.

`Rehabilitation of additional lifeline roads would create temporary
jobs in rural areas, which have been hit by the [global economic]
crisis, and improve access to basic social services," Asad Alam, the
World Bank's regional director for the South Caucasus, said in a
statement. `While this immediate impact is critical, the project will
also improve market connectivity for rural areas and build upon the
ongoing efforts to strengthen the basis for growth and
competitiveness.'

The statement estimated that rural communities lacking adequate roads
lose at least 40 percent of their farmers' harvest. Upgraded roads
will thus allow them to bring their produce to market `more easily and
at a lower cost,' it says.

Ani Balabanian, an official at the World Bank's Yerevan office
overseeing the project, told journalists that the bank and the
Armenian government selected roads that are `particularly impassable.'
She confirmed that some of those roads were due to be repaired by the
U.S. Millennium Challenger Corporation (MCC).

The MCC had set aside $67 million for that project in 2006. The
U.S. government agency cancelled the promised assistance last year,
citing the Armenian government's poor human rights record and its 2008
post-election crackdown on the opposition.

ARMENIA TO LAUNCH SEVERAL ENERGY PROJECTS THIS YEAR
PanARMENIAN.Net
July 14, 2010 - 15:24 AMT 10:24 GMT

Armenian Minister of Energy and Natural Resources Armen Movsisyansaid
that Armenia will launch implementation of several energy projects this
year, including construction of Meghrihydropower plant andhigh-voltage
linefrom Iran to Armenia.

Meghrihydropower plant'sconstruction will be launched soon, with its
cost estimated $350mln, Movsisyan told journalists on July 14. The
hydropower plant's capacity will make 140MW, while the annual
electricity production will reach 800-850mln ofkW/hour.

The plant will be constructed by Farat-Sepasat consortium of Iranian
companies.

According to Movsisyan, Armenia willbe paying by the produced
electricity,as per agreement reached with the Iranian side.

Besides, construction works on a new power transmission line will be
launched by Iranian Sanir company in a month. The power transmission
line'scostis estimated to total100mln euros, while its voltage will
be 400kW.


Armenpress
Fourteen medicine producing companies are operating in Armenia
16 July 2010

YEREVAN, JULY 16, ARMENPRESS: Fourteen medicine producing companies
are operating in Armenia and about 300 medicines of local production
have been registered. Still in 2008 only 28 medicines of local
production were registered in Armenia.

CEO of the Armenia's Medicine Producing and Importing Union Samvel
Zakaryan said today at a news conference followed after signing
Memorandum on Cooperation with the Union of Armenian Employers that
producing medicine in the country is of strategic significance. It is
especially important during wars, natural disasters when medicine
producing company manages to ensure crucially necessary medicine.

Zakaryan said medicine producing companies export more than 50% of
their products and the rest consume in the local market. The medicine
produced in Armenia is being exported to Russia, Uzbekistan, Georgia,
Belarus, Moldova, Turkmenistan, Ukraine, Tajikistan, Kyrgyzstan.

`There are European countries which demand certificate that the
produced medicine corresponds to specially set standards - starting
with the air cleanness to high-level specialists. Armenian medicine is
produced in accordance with those standards, they just do not have
certificates. For acquiring them certain steps are being implemented,'
Zakaryan said.

The union is also carrying out `Get to Know Medicine Producer' action
as part of which a number of events will be carried out: the goal is
to make the public recognize the local medicine.


YEREVAN CONTINUES BEING ILLUMINATED
ARMENPRESS
JULY 14, 2010
YEREVAN

YEREVAN, JULY 14, ARMENPRESS: Capital renovation works are in process
in Yerevan connected with the illumination of Yerevan streets. For
the implementation of works 400 million AMD have been allocated.

Director of the "Yertownlight" company Samvel Gabriyelian told
Armenpress that the works connected with illumination are of
continuative nature connected with the construction of new streets,
restoration works, general development of the town. "One thing is
clear - we want to illuminate our town at its best," he said.

As compared with the same span of the past year, the number of
luminaries was increased by 9 200, all the yards of Yerevan have
been illuminated.

The night illumination of the capital is under the limelight of
the municipality. All the technical issues are being solved with
the involvement of corresponding specialists. All the novelties in
the illumination sphere are being applied in Yerevan. Currently the
streets of the capital are fed by 'econom' light lamps.

Light-bioscientific lights are being tested at present, the usage of
which will be more beneficial.

Referring to the coming programs S. Gabrielyan mentioned the program
of illumination of television tower the drafts of which are being
formed with the order of the municipality.

When dark falls, all the Yerevan streets and yards are illuminated.

The luminaries are switched off at 2 am and 107 streets are illuminated
till the dawn.