Armenia - DHA-13: 1-31.Jul.97

DHAGVA 97/0313

Situation Report from the DHA Coordinator in ARMENIA - No. 13
July 1997


HIGHLIGHTS
- DHA presents the Post Appeal Framework to donors in Geneva

- Government of Japan provides Yen 400,000,000 for agricultural
development

- Attention drawn to poor state of Armenia s water and sewage systems

On 3 July DHA presented the -Post Appeal Framework: Linking Humanitarian
Needs and Development Strategies- (PAF) document to a donor meeting held
in Geneva. The response from the donor community noted the document was
an innovative approach to illustrating humanitarian needs in a
development context. The PAF document highlights the end of the
humanitarian emergency situation in each of the three south Caucasus
countries whilst highlighting the fact that humanitarian needs remain
and continue to need to be addressed by the international community as
the region travels down the path to development. In Armenia DHA will be
working on the consolidation of information related to outstanding
humanitarian needs through the elaboration of a Humanitarian Assistance
Matrix. This is designed to provide donors, operational agencies and the
Government with a country-wide perspective on humanitarian activity in
the country as well as gaps that exist in terms of humanitarian
provision. In the spirit of the PAF it will also highlight
development-related initiatives designed to mitigate humanitarian needs.

The bad weather conditions which have been affecting Armenia and
Azerbaijan continued during July. Further heavy rains in the Goris
region on 3 and 5 July compounded the problems faced by the city after
the heavy rains of 22 June. Contributions from the Government of the
United Kingdom, ECHO, UNHCR, UNICEF, ICU, UMCOR, OXFAM, the Jenishian
Foundation and DHA have provided sufficient funds to meet the emergency
needs related to water, sewage and immediate health issues. The
situation in other regions of the country, with a particular focus on
Syunik, Gerharkyunik, Tavoush and Aragatsotn regions, are in the process
of being assessed by the local authorities and international
organisations. Damage to crops and infrastructure are of particular
concern with an expectation that some food assistance may be required
this winter and replacement seed for spring planting will be needed in
1998. Information gathering is ongoing.

An earthquake in the Noyemberian region on 17 July, registering 6 on the
local scale, caused some infrastructural damage. Assessment reports
received from MSF Belgium indicate that some houses received minor
infrastructural damage. The situation was compounded on 24 and 26 July
by heavy rains. To date no request for assistance has been received from
the Government.

SITUATION OVERVIEW
Economic Performance
A two-day working meeting related to the shadow economy was held at the
Department of Statistics, State Register and Analysis, with the
participation of experts from Italy, the Netherlands, OECD, and several
CIS countries. The shadow economy in Armenia is estimated to be between
the levels of 40 to 53 percent, Edward Aghajanov, Minister of the
Statistics Department said. Currently a survey is being conducted in the
country, and more precise data will be published in a year. The Minister
noted that Armenia is the only country among the CIS member states which
is attending to this problem at the governmental level. The programme is
financed by several international organisations, mainly Eurostat and
UNDP.

Social Life
The number of pensioners registered in 1996 at the Ministry of Social
Welfare (MoSW) decreased by 35,000 as compared with the previous year
(in 1995 - 641,852, in 1996 - 607,111). Similar changes are due to the
pension law adopted in December 1995, under which in 1997 the pension
age was established at 61 for men and 56 for women. As reported by the
Head of the Pension Department at the MoSW, these changes were also
determined by economic conditions, migration flows and unavailability of
people to be registered and receive pensions.

The Armenian Social Investment Fund (ASIF), which is currently the only
such fund of the World Bank s social programmes in CIS (others are in
the process of being established), is to open a regional training-centre
for the countries of Central Europe and Asia. Speaking at a seminar in
Washington, Gagik Khachatrian, Director of ASIF, described the
peculiarities of implementing social programmes in CIS countries
relating to the existence of social infrastructure, which requires only
renovation or reconstruction. Additionally, a high level of education in
the CIS countries allows community members to take an active part in the
Fund s work, as well as planning projects and overseeing their
implementation. Mr. Khachatrian also noted that the developed state of
industry allows implementation of programmes at a relatively high
qualitative standard.

Other Issues
Operations on the reconstruction of the Meghri-Kapan road, which is the
only connecting route between the town and the rest of the country, have
started with provision of funding by the World Bank.

Presentation of a programme -The Role of Public Organisations in the
Process of Democracy and Civil Society Building- took place at the House
of Journalists on 16 July. The programme, which was initiated by several
national NGOs, was aimed at increasing civil and legal knowledge of the
citizens, and establishment and strengthening of community public
organisations.

SECTORAL SUMMARY OF EVENTS

Food Security-Agriculture
DHA attended the WFP-chaired Food Aid Coordination meeting held on 10
July. Fridrikh Badeyan, Head of the Working Group of the Humanitarian
Assistance Commission (HAC) made a presentation on summer camps. During
the summer months some 5,000 children will be accommodated in 12 camps
organised by the Government. Local authorities and several
public-non-governmental organisations are also organising summer camps
throughout the country. In addition to the aforementioned some
35,000-37,000 children will spend their summer holidays in 132 camps.
The food assistance and financial support from the international
community in Armenia were highly appreciated. Mr. Badeyan also touched
upon the topic of floods occurring in almost all the regions of the
country. He appealed the international organisations to render
assistance to the affected populations.

A presentation of the bulletin for 1996 of the Fund for Armenian Relief
(FAR) of the US Eastern Diocese of the Armenian Apostolic Church took
place at the Armenian Office of FAR. USD 25,447,000 was spent on
implementation of all FAR projects in 1996, from which USD 22,676,000
related to the cost of food commodities distributed among some 2,200,000
people in the country. According to Simon Balian, Executive Director,
FAR will continue its current food assistance projects throughout 1997,
and start implementing new ones. He also said that the United States has
cut by one-third its funds to the FAR in 1997, which will considerably
affect the food programme implementation.

Kotayk marz underwent a powerful attack of locusts. Over 10,000 hectares
of natural pastures were destroyed. The problem is being resolved at the
governmental level.

Unusually heavy precipitations continued to affect the economy and
agriculture of the country. The worst affected areas are Siunik, Vayots
Dzor and Gegharkunik regions.

The Irrigation Rehabilitation Project, funded by the World Bank (USD 43
million), IFAD and the Government, has been operating in the country
already for three years. Under the project primary and secondary canals,
pump-stations and reservoirs are being repaired. According to the
project head Adibek Ghazarian, USD 15 million out a of total USD 57
million has already been spent and USD 3 million more is expected to be
spent by the end of this year. An international tender is announced for
carrying out the USD 12 million of construction works.

The US Department of Agriculture (USDA) will donate 6,500 MTs of wheat
under its Food for Progress programme. CARE will sell the wheat to
private sector traders in Armenia through a sealed-bid auction process,
and use the earned money for its project to increase agricultural
production and household income among 5,000 farmers.

The Government of Japan provided a 400 million yen grant for the
development of agriculture of Armenia. Within this project, which is
being implemented by the Japanese Agency for International Development,
agricultural equipment and chemicals will also be provided. The Ministry
of Agriculture (MoA) announced an international tender with
participation of five leading Japanese agricultural companies.

Health and Sanitation
Water supply and sewage systems in the country are in critical state,
said Edward Mesropian, Director of the -Jinge- Engineer-consulting
company, which carried out research works in this area. 57.3 percent of
water pipes, and 60.3 percent of sewers were laid over 20 years ago.
Their now weakened state (due to lack of maintenance as well as normal
wear-and-tear) caused an abrupt growth in the number of accidents, which
require considerable financial inputs. According to the research there
is an increased risk of epidemic outbreaks. This year s budget provides
50 million drams to finance sewage and water supply systems, which,
according to Mr. Mesropian, makes up only 0.2 percent of the sum
required.

The Municipality of Ijevan, the centre of Tavoush marz, has established
a joint project with ASIF (the Armenian Social Investment Fund) to
reconstruct the social infrastructure of the town. ASIF approved the
reconstruction of the drinking water system for four communities worth
USD 38,000. A tender has been announced for carrying out reconstruction
works.

Following the commissioning of a report by UNHCR and DHA on mental
health issues in the Vartenis Psychiatric Hospital and Internat a
meeting was held on 14 July at which the report was presented by the
Young Medics Association. The report recommended that the admission
criteria for psychiatric institutions be reviewed and reformulated to
bring it more into line with current policy and practice in other parts
of the world. On 23 July the report was presented to the Governor of
Gerharkyunik Region who agreed to take follow-up action on those
elements of the report which fell under his jurisdiction. The
participants to the meeting on 14 July made a decision to present the
findings from Vartenis to the Ministers of Health and Social Welfare and
to seek the advice of the Ministries with regard to the need for either,
(I) preparation of the drafting of a law or (ii) initiation of the
establishment of a commission to gather information on the other
psychiatric institutions in Armenia. The lead agency for this activity
is MSF (Belgium and Greece).

Shelter
Hayastan All Armenian Fund is implementing a project of house
construction in Giumri (earthquake zone). The project is financed by the
Jinishian Foundation (USA), and is expected to be completed by the end
of 1997.

Education, Training and Child Care
The Ministry of Education and Science (MoES) presented 31 textbooks and
other educational materials designed for publication in 1997-98-99
academic years. The World Bank earmarked USD 8 million for the
implementation of a three-year educational programme in Armenia. A
tender has been announced, which will be held in three stages. The
quality of publication will be controlled by the World Bank experts, and
the content of textbooks will be approved by the Special Committee of
the MoES. This programme has received additional support from UNICEF,
UNHCR, USAID and NRC.

The Head of the Education Department of the Yerevan Municipality said
that a new regulation related to normal primary and secondary schools
has been ratified. According to the regulation, schools will become
independent financial entities. The Heads of schools are to be elected
by the Board of Trustees, and affirmed by the Mayor or Education
Department of the Municipality for three years.

Community Development and Income Support Activities
UNHCR finalised an agreement with World Vision for the implementation of
income generation activities in Yerevan. This compliments the UNHCR
programme outside the capital which has provided grants for the
establishment of small business activities.

IOM commenced activities related to its Micro-Enterprise Programme. This
18 month programme, funded by the United States and UNDP, aims to
provide refugees with business training and start-up loans for refugees
in Yerevan and Spitak.

Migration
An Armenian delegation, composed of representatives of governmental and
non-governmental organisations, participated in the follow-up meeting to
the CIS Conference on 1 and 2 July 1997.

Energy
The Government of Armenia and the Russian -Gazprom- JSC signed an
agreement in January, under which it is planned to build a gas pipeline
from Russia to Turkey which will run through Armenian territory. During
a recent meeting between the sides, issues related to the implementation
of the agreement were discussed. The sides agreed on Russia s active
participation in restoring gas supplies in Armenia. Russia will
particularly assist in organising works on payments checkup, repairs to
damaged sections of the gas net, realisation of the programme of
supplying gas to Turkey via Armenia, Gagik Martirossian, Minister of
Energy, said at a news conference on 1 July, and added that within the
programme it is planned to run negotiations with the Georgian side as
well.

OTHER ISSUES
DHA met a representative of the Jinishian Foundation to discuss ways of
assistance to be provided to Goris city and surrounding villages by this
organisation. DHA raised the urgent need for reconstruction of the storm
drainage system at the city. After carrying out an assessment in the
region the Jinishian Foundation might consider its involvement in
reconstruction of the drainage system, as well as rehabilitation of
water and sewage pipes.

Accion Contra el Hambre (ACH) visited DHA Office to seek DHA advice on
identification of recipients in the flood-affected areas of Siunik marz
to distribute hygiene kits.

This report is available on the internet through RELIEFWEB:
http://www.reliefweb.int

United Nations Office in Yerevan, Armenia
Mr. Robert Robinson
Tel.: (003742) 56 23 55 - Fax: (003742) 15 17 49
E-Mail: undhaatarminco.com

Inter-Agency Support Branch (IASB) - Geneva
Mr. David Bassiouni - Chief
Mr. Arjun Katoch
Tel.: (41 22) 788.1401 - Fax: (41 22) 788.6386
Registry E-Mail: Rosemary.Addo-Yirenkyi@dha.unicc.org

Complex Emergency Division (CED) - New York
Mr. Kazuhide Kuroda
Tel.: (1 212) 963.5713 - Fax: (1 212) 963.3630
E-Mail: kuroda@un.org

Press to contact (DHA-Geneva)
Ms. Madeleine Moulin-Acevedo
Tel.: (41 22) 917.2856 - Fax: (41 22) 917.0023
Telex: 414242 DHA CH - E-Mail: Moulin-Acevedo@dha.unicc.org



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