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The Government is embarking on the implementation of larger-scale projects. the Prime Minister and the President met the representatives of construction organizations

23.08.2023

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Prime Minister Nikol Pashinyan and President Vahagn Khachaturyan had a meeting with representatives of companies operating in the construction sector. Deputy Prime Minister Tigran Khachatryan, Minister of Territorial Administration and Infrastructure Gnel Sanosyan, Chairman of the Urban Development Committee Armen Ghularyan and representatives of other state bodies also participated in the meeting.

The Prime Minister noted that the purpose of the meeting is to discuss the existing problems and concerns in the sector, to listen to the views and suggestions of the representatives of the companies. Nikol Pashinyan emphasized that large-scale state construction is currently being carried out in the country, and while visiting the construction sites, he notes that there are violations of the planned dates, sometimes quality-related problems.

"Moreover, this is in the conditions when, to be honest, the construction norms in force in our country do not always meet all modern standards. We thought from the beginning and we think that we should go the way of raising standards, but on the other hand we understand that we cannot do it in one day, because if we try to do it like that, everything will stop.

This is the first part of the concern, but not the whole. We have planned and are embarking on more large-scale projects today. You are aware that we are implementing the program of 300 schools, 500 kindergartens, the construction of the North-South road section is entering the practical stage in at least two sections, which, of course, is carried out through international tenders, but on the other hand, it is understandable that the winning companies will also cooperate with local subcontractors.

We are also coming to the construction project of Academic City, which is also a huge project. Every year, the construction of 500 km of roads is on our agenda, subsidy programs are implemented, the lion's share of which goes to the construction sector. In the near future, we are planning to implement the construction of the metro station "Ajapnyak", also several important tunnels will be built in the country, in addition to the tunnels and bridges of the North-South highway.

Today, we have embarked on the repair of bridges, the modernization of existing tunnels, in particular, the Tsovagyugh, Spitak, Stepanavan tunnels. The construction project of 50 medical centers and other capital projects are in progress," said the Prime Minister.

According to Nikol Pashinyan, the idea of having Justice and Governance Districts in Armenia is currently under discussion. "When I look at our strategic plans, I see that we are implementing large-scale projects in the state capital investment sector. There is a need for huge investments in the water sector and we are planning to make those investments. But when we discuss these issues in the Government, we first focus on what we should do, how we should realize them, so that they are submitted to tenders and companies participate. But as we approach the end of this phase, a concern emerges, which is whether the existing construction potential in Armenia at the moment, the companies will be able to properly participate in all tenders, and then implement these projects in proper terms and with proper quality.

Of course, this is not only a matter of political responsibility, we want these projects to be implemented at least on time, with proper quality, so that capital investments made by the state are more effective," said the Prime Minister, adding that he wants to discuss these issues in a working environment.

Nikol Pashinyan noted that at least since 2020, the Government has also taken certain steps so that companies, including construction companies, solve the issues of technical equipment within the framework of the Economic Modernization Program. According to Nikol Pashinyan, the Government also hoped that the construction companies would acquire new equipment and it is noticeable that this process exists. "On the streets of the country, we see trucks, construction equipment of such a kind that we have not seen before in the Republic of Armenia."

According to the Prime Minister, housing construction is also being carried out in the country in huge volumes "We see that already many companies are working at the maximum of their capabilities. The state has an indirect participation in that process in the form of income tax refunds, zoning policies, and also emphasizes housing construction because the housing stock needs transformation. We also consider the changes taking place in the field of housing construction to be a program of state importance. Last year, we returned 35 billion AMD to citizens in the sidelines of income tax refund program. But it is also a thought out approach, because the housing fund must be renewed, there is no alternative. According to our calculations, we need to renew the entire housing stock within 15-20 years, so that we don't have a housing stock that is not only in emergency condition, but also in wear and tear. In that regard, we will start the large-scale program to replace emergency buildings with new ones from Yerevan, which will start in the near future," said Nikol Pashinyan.

The Prime Minister emphasized that it is necessary to make construction in Armenia an industry where many procedures and qualities will be at a completely different level.

"Within the framework of the 300 school construction project, we create packages and put them into action. The estimated cost of the last big package that we have created for 180 schools was 380 billion AMD, that is, we are talking about 1 billion USD, which is planned in the Medium-Term Expenditure Plan, financial resources are already allocated for this expenditure," said the Prime Minister, adding that the process of creating sports centers in regions will also start, and that’s about large-scale construction projects.

In his turn, President Khachaturyan noted. "The large-scale works that the Government has initiated in its 5-year plan imply that our construction companies must specialize. You yourself, getting acquainted with these programs and directions, should decide, choose where and what you can do. The state has the resources, it is also ready to apply various economic mechanisms with your suggestions and create an opportunity for the construction industry to be finally accomplished in Armenia. Our task, the tasks set by the Government are clear: punctuality and quality in order to be able to complete the implementation of such large volumes of construction."

Next, an exchange of ideas about the construction works currently being carried out, their volumes, the problems faced by the companies and the possibilities of their solution took place. Government representatives answered various questions and provided clarifications. It was agreed to make such meetings regular.

 


 

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