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.
