Prime Minister Karen Karapetyan paid a working visit to Kotayk Marz of Armenia. The Head of Government discussed problems and development prospects with Governor of Kotayk Marz Karapet Guloyan, community heads and local businessmen in Tsaghkadzor.
Kotayk Marz Governor Karapet Guloyan presented the main economic indicators, including the measures to stimulate economic activity, as well as a number of planned projects in the province. The Governor noted that active efforts are being made to develop greenhouses and drip irrigation methods.
Referring 2017 priority issues, he said that there is a plan to optimize the education and health sectors. In particular, 90 teaching and administrative staff will be subject to cutback, resulting in 60 million dram savings. Within the framework of the optimization of healthcare facilities it is expected to release 50 staff members that may lead to AMD 44 million in additional savings. The Governor also presented upcoming programs in several communities, establishing new stations for solar energy production and greenhouse facilities, intensive orchards planting new technologies, development of tourism infrastructure and other projects.
Prime Minister Karen Karapetyan proposed to focus on per-sector activities, five-year community development programs, as well as the development of business environment and investment attraction.
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Those responsible for agriculture, healthcare, education, entrepreneurship promotion gave statistics and introduced development programs in the respective areas. In particular, the officer responsible for agriculture touched upon the targeted use of arable land, indicating that it has a low level, the data farms, the farmers, the number of cooperatives.
The Prime Minister suggested formulating a comprehensive action plan for the development of agriculture in Kotayk Marz, which should include smart agriculture, increase the cultivated areas, featuring specific steps in the field of mechanization.
The Prime Minister wanted to know whether there was an estimate of the total number and cost of mechanization services. He was told that it amounts to approximately 300 million drams. Speaking of the machinery sector, the Prime Minister proposed to develop a clear plan for agricultural leasing acquisition, which may increase the efficiency of the services sector. Karen Karapetyan noted that with the logic of that program, the Government is ready to provide assistance. The Prime Minister stressed that projects in the agricultural sector will be supported if they tend to reduce costs, increase profitability.
“Agriculture is a business. Deeply rooted is the idea that if agriculture is not subsidized, it will not develop. We definitely need to help the agricultural sector, but help prospective projects, for example, the sowing areas of wheat keep growing from year to year, but neither the farmers are satisfied nor the State, and the amount of subsidy is constantly increasing, while the quality remains the same. Where shall we get, if we continue like this? Once we feel our ultimate goal which is where we can invest money and bring it back, which should directly subsidize expecting multiplier effect, we will move forward step by step. Let us try to change the quality, understand what is right, educate and orientate the farmer,” Karen Karapetyan pointed out.
The Premier asked the healthcare officer about the operations and management efficiency in medical institutions. Noting that a new development concept is being drafted, the Head of Government stated, “We must do so that as a patient I choose the clinic where to get treatment, rather than the ambulance staff.” He stressed the need to get private managers involved in medical institutions.
“If the private sector comes, they will make it better; they will spend money and introduce a more efficient management system. If you think that the private sector will not offer a better condition, you need not hand it over to the private sector, but make sure to provide a competitive environment. It is obvious that competition is just what can help us develop the healthcare sector in Armenia. We have a lot of shade in here, so we need to bring it into the legal field,” Karen Karapetyan said urging the officer in charge of healthcare to dramatically increase the share of paid services in 2017.
The Prime Minister next touched upon the reform of the educational system, emphasizing the importance of optimization in the management of both human resources and buildings. “We have communities where the schools are empty, while there is a huge amount of fixed costs. By merging and consolidating these schools we can bring down the level of fixed costs and find money to provide bonuses to such teachers as may be willing to work in “difficult” areas. We should funnel part of the resources so economized toward this goal,” the Prime Minister said. The Prime Minister was also presented a summary of the business environment in general, the number of enterprises, sectors, the level of employment, as well as current and planned activities.
The urban and rural community heads submitted proposals related to development. The mayor of Abovyan singled out the projects that seek to make of Abovyan a smart town and a free IT zone. The projects are currently being developed and will be submitted to the Government after all the necessary procedures are complete.
Welcoming the idea, the Prime Minister stressed the need to introduce electronic governance and digitization in Abovyan, as well as involve the private sector in the management of city infrastructure.
The Mayor of Tsakhkadzor introduced the town’s development program, aimed at boosting tourism and hotel business. He said that the Asian Development Bank is expected to invest USD 10 million, which will help set up an entertainment center in Tsakhkadzor.
The Prime Minister also presented a number of proposals for investment projects relating to the creation of greenhouses and solar power plants, infrastructure development, the establishment of the production of leather goods, intensive drip irrigation system in the garden, the expansion of existing businesses and more. Karen Karapetyan welcomed the ideas voiced and suggested formulating them in tune with business logic and submit to the Government.
