Tuesday, July 27 2021 15:32

ArmInfo.Armenian National Interests Fund (ANIF) spoke about the advantages of the amendments to the RA Law "On Public-Private Partnership".

Earlier, on June 30, the legislative package providing for amendments  and additions to the law "On public- private partnership" and other  related laws in the second and final reading was approved by the  parliament.  Acting Minister of Economy of Armenia Vahan Kerobyan  presenting the initiative stated that transactions concluded before  December 31, 2021 will not be subject to the regulation of this bill.  Within the framework of the recommendations of the International  Monetary Fund, the total amount of contingent liabilities is  established, which add 3% of GDP to the liabilities existing at the  moment. The acting minister recalled that the law was adopted two  years ago, but it has never been used, due to its unviability and the  presence of numerous contradictions and restrictive provisions in the  document. Meanwhile, as Kerobyan pointed out, PPP is one of the most  important components of the country's economic development.

According to RA Deputy Minister of Economy Avag Avanesyan, the law  did not regulate the provision on the procedure for selecting a  private partner. In the meantime, the initiative sets flexible  requirements for private initiative that meet international  standards. The company submitting the proposal must have relevant  experience in this area, submit a feasibility study. In the case of a  private initiative, certain advantages are provided, for example, a  refund of the amount spent if the bidder is not declared a winner. A  competition of one or two rounds is envisaged. "We will try to move  in the direction in which tenders are held on a financial basis," the  deputy minister explained.

According to ANIF, the Fund was actively involved in the development  of the legislative act, being confident that the initiative will  significantly expand the opportunities for attracting investments.  Thus, as a result of the amendments, the implementation of  public-private partnership programs is also possible in the future on  the initiative of a "private trader", in the sectors established by  the state.

At the same time, an initiative coming from the private sector must  meet a number of criteria. In particular, a "private trader" must  have experience in entrepreneurial work in this area, in accordance  with PPP procedures. The proposal should also include a  pre-feasibility study or a feasibility study. The proposed program,  in terms of its profitability, must correspond to the size provided  for by the PPP law, and the private owner must take on a commitment  that cannot be withdrawn.

In the opinion of ANIF director David Papazyan, the law became an  important step towards stimulating investments in Armenia.

According to the data of the National Statistical Committee, the  volume of foreign direct investment (FDI) inflow to Armenia in Q1  2021 compared to the same indicator in 2020 increased by 76 317.5  million drams and amounted to 60 927.3 million drams. In the period  from January to March 2021, the total inflow of investments amounted  to 60 927.3 million drams, of which direct foreign investments  amounted to 18 946.1 billion drams (an increase of 28 508.4 million  drams). In 2020, the inflow of foreign investments registered a  negative indicator of minus 15 390.2 million drams, of which direct  investments amounted to minus 9 562.3 million drams.

It should be reminded that in April 2019, the Armenian government  made a decision to establish the Armenian National Interests Fund   CJSC. According to the substantiation, the purpose of creating such a  fund is to support the development of the Armenian economy by  attracting investments, including foreign ones. Through full and  comprehensive consultation and support, the company will contribute  to increasing the flow of investments in the RA, developing the  potential of the Armenian economy and introducing the results of  scientific and technological development in various sectors of the  economy, improving the business environment in Armenia and creating  and improving favorable conditions for the business sector by  offering and implementation of industry programs.