United Nations
OCHA
Armenia - 02
February 1999



I. HIGHLIGHTS
- Ministry of Social Welfare introduce a new system of providing social
  assistance
- ECHO/EC Mission visited Armenia to evaluate the impact of the Russian
  financial and economic crises on Armenia
- Ministry of Agriculture developed a Programme on Measures for the
  Eradication of Natural Disaster Consequences in the Agricultural Sector
- UNHCR 1999 Appeal seeks USD 4,073,667 for programmes in Armenia


II. SITUATION OVERVIEW

Loan Programme of the Government of Armenia for the Development of Small
and Medium Enterprises

As part of the Loan Agreement concluded between The Lincy Foundation and
the Government of Armenia on 15 July 1998, The Lincy Foundation will
provide the Government of Armenia USD 10 million to foster the development
of small and medium enterprises in Armenia. Loans made available to each
business may not be less than USD 100,000 or exceed USD 1 million. Loans
will be provided through commercial banks on the basis of business
projects and business plans submitted by the applicants to the banks.
Interest rates on the loans will not exceed 15 percent per annum. All
resident enterprises and individuals of the country are eligible to apply
for those loans.

The Ministry of Social Welfare (MoSW) has introduced a new system of
providing social assistance

All types of former social allowances and compensations except maternity
grants and allowances to children under two years old, were terminated
from January 1999 and have been replaced by a family allowance system.
230,000 families have been included in the family allowance lists, and
70,000 families in the electricity compensation payment lists. Family
allowances are given those families registered in the PAROS system, whose
degree of vulnerability exceeds 36.0 points. A family allowance depends on
the size of a family and averages 7,500 Drams (USD 15). Each family
included in the family allowance system receives a base sum of 3,500 drams
and another 1,300 drams for each family member. Electricity compensations
(1,450 drams irrespective of the number of family members) are paid to the
families whose degree of vulnerability exceeds 33.70 points. The Ministry
has requested the UN World Food Programme (WFP) to cover those who will
drop from this targeted social assistance. To cushion the negative impact,
WFP will implement a food distribution for 100.000 beneficiaries.

ECHO/European Commission Assessment Mission visited Armenia

As reported earlier, the European Commissions assessment of the impact of
the Russian financial and economic crisis on the CIS countries has
revealed that Armenia, Belarus, Georgia, Kyrgyztan, Moldova, Tajikistan
and Ukraine have been the most severely affected. To help ease the effects
of Russian crisis, the Commission reported that 20 million Euros would be
granted to those countries. With this regard, the Commission has been
carrying out an in-depth evaluation of the urgent requirements of those
countries. The visit of the delegation of the European Commission and the
European Community Humanitarian Office (ECHO) to Armenia in February, was
a part of the Commission evaluation mission. The delegation held
discussions on the matter with the Government officials, and the
international community in the country. Should the evaluation conclude
that additional funds are needed to address humanitarian problems in those
countries that have resulted from the Russian crisis, the Commission will
propose that 20 million Euros be transferred for this purpose from the
European Union Technical Assistance to the CIS countries (TACIS) to ECHO.
In the case that the evaluation identifies needs that cannot be addressed
by ECHO, the Commission will examine the possibility of financing actions
to address such needs within the proposed funds.

The Ministry of Agriculture has developed a Programme on Measures for the
Eradication of Natural Disaster Consequences in the Agricultural Sector

About 33 percent of the population live and work in rural areas and depend
on agriculture activities.  About 2/3 of the food demand is covered by
domestic production, particularly wheat, beef and milk.  The positive
developments in the rural area and the agricultural sector have been
threatened by changing climate conditions since the second half of 1998.
The agricultural sector has suffered from the strongest droughts. This
mostly affected the winter crops, particularly winter wheat, the main food
crop production in the country, as well as fruit orchards. About 100,000
ha were drilled in autumn with winter wheat as main crop. The lack of the
precipitation and the high temperature has caused farmers last autumn to
sow only about 86,600 ha. Due to the climate conditions, a great part of
the wheat is damaged or destroyed, only some 22,400 ha can be considered
as being adequate. The total loss of wheat crop is estimated at 62,600 MTS
worth USD 11,500,000. Perennials and other cash crops were also affected.
The losses are estimated to be USD 2,840,000. The replacement of the
62,600 MTS of winter wheat with imported grain would cost the country
about USD 9,450,000. The total amount required for the implementation of
the measures envisaged by the programme and for the compensation of the
damages is 8,434.75 Drams or USD 15.5 million: USD 4.17 million for the
re-drilling and double drilling of winter wheat areas, USD 2.84 million
for the recovery of losses in the fruit orchards, and USD 8.49 million for
the implementation of construction measures envisaged to reduce the winter
deficit. A part of the funds will be allocated from the state budget
(1,105.5 million Drams or USD 2.26 million). The rehabilitation of
non-operative and construction of new ground water wells will be carried
out through the programme on Rehabilitation of Irrigation System of the
Republic of Armenia implemented by the World Bank loan. 6676.25 million
Drams or USD 12.27 million will still be required for the implementation
of the programme. Those funds are expected to receive from foreign
countries and international organisations as humanitarian aid or credits.
The external funds would be used for the water construction and for the
purchase of required inputs (seed, fertiliser, chemicals, fuel,
lubricants, and spare parts).

The UN High Commissioner for Refugees (UNHCR) 1999 Appeal seeks USD
4,073,667 for its programmes in Armenia

The UNHCR programmes in Armenia focus on the areas of promotion and
assistance in the development of a legal framework, support to
governmental bodies and NGOs in building their capacities to assume the
full responsibility to manage refugee-related matters, provision of
assistance and shelter to refugees with special needs, and assisting
ethnic-Armenian refugees in obtaining citizenship. Promoting the adoption
of relevant legislation in accordance with international standards has
been UNHCRs primary work. With the support of UNHCR, the Government
developed a Refugee Law, which was adopted by the National Assembly at the
first reading in 1998. In the area of naturalisation, UNHCR and the
Government continues the information campaign to help refugees throughout
the country to acquire citizenship. Although the emergency phase is over
in Armenia and UNHCRs activities now focus on achieving long-term
sustainability, there still a need for assistance programmes that help the
most vulnerable groups among the refugees, such as elderly, disabled and
female-headed families. Assistance includes shelter rehabilitation,
education, health care, income generation, micro-credit, husbandry and
agriculture. 43 percent of the 1999 operation budget are towards shelter.
In 1998, UNHCR obtained an agreement with the Government to rehabilitate
abandoned residential buildings for refugee accommodation. Refugees are
also encouraged to maintain their houses with repair kits and self- help
schemes. Special attention is given refugees living in communal centres in
urban areas. UNHCRs assistance programme will gradually be consolidated
with development plans of other international organisations, and national
programmes. To support elderly refugees, UNHCR will design a community
support programme that will be linked to the national welfare system in an
effort to avoid long-term dependency on UNHCR assistance. UNHCR, in close
collaboration with the Ministries of Health and Social Welfare, the UN
Population Fund (UNFPA), the UN Children Fund (UNICEF) and various
non-governmental organisations (NGO), are designing projects that address
refugee womens needs. In remote refugee-populated areas UNHCR through its
NGO partners, has been establishing community-based school management
systems, upgrading teacher training and improving hygienic conditions at
selected primary schools. UNHCR plans to assist up to 20 schools in remote
areas during 1999. Together with WFP, UNHCR will continue community-based
tree planting and irrigation programmes through 1999 in certain locations.

A Delegation from the Bureau of Population, Refugees and Migration, US
State Department, visited Armenia

The objective of the mission was to appraise the current situation of
refugees in the Caucasus. The US Government is one of the main donors for
UNHCR. The delegation met with the Armenian Government officials, UN
Agencies and NGOs. They also visited several refugee sites in the regions
and communal centres to get acquainted with the living conditions of
refugees. 

UNHCR and the UN Development Programme (UNDP) Offices met in Baku,
Azerbaijan to discuss issues related to refugees and internally displaced
peoples (IDP) in the Southern Caucasus

The meeting was held on 3-5 February and focused on possible ways of
joining efforts for managing transition from humanitarian assistance to
development programmes for refugees and IDPs in Armenia, Georgia and
Azerbaijan. The two UN Agencies in respective countries are currently
engaged in exploring ways of coordinating activities, co-sharing projects,
and eventually phasing out humanitarian assistance programmes. In this
respect, as reported earlier, UNDP and UNHCR Armenia signed a Memorandum
of Understanding in February. 


III. SECTORAL SUMMARY OF EVENTS

1. Food Security/Agriculture

Accion contra el Hambre (ACH) has been implementing aid programmes in
Armenia since 1995 taking over the activities of its sister agency, Action
contre la Faim. Initially the programmes provided direct food assistance
to the most vulnerable people through soup kitchens and dry food
distributions. To reduce the dependency on humanitarian aid and promote
self-sustainability, ACH has developed new initiatives in collaboration
with several communities in South Armenia aimed at promoting local food
production. With the financial support of the Dutch Government and the
British Department for International Cooperation, ACH has implemented an
agricultural programme during 1997-1998. 477 families were involved in the
programme of different micro- projects such as cereal, potatoes and
vegetable production, rehabilitation of irrigation systems and bee keeping
and livestock production support. ACH, with the ECHO funds, continues the
implementation of the programme to reinforce the food security of the
refugee and local population in the area of Sissian, South Armenia, as
well as to reinforce managerial capacity of the Sissian Agricultural
Cooperative, an implementing partner of ACH. 


2. Health, Nutrition and Sanitation

The United Armenian Funds 103rd airlift arrived in Yerevan on 8 February
carrying over USD 5.4 million of humanitarian assistance, mainly medicines
and medical supplies, to be distributed to hospitals throughout Armenia by
the Ministry of Health (MoH). 

The MoH, together with the Pharmaceutical Inspection, has elaborated draft
guidelines for medicine imported to Armenia as humanitarian aid. The
proposal aims to ensure a maximum benefit to the recipient, as well as to
enhance an effective coordination and communication between the donor and
recipient. The document has been presented to the international community
operating in the country for their comments and views. 

UNICEF sponsored study on nutrition status of Armenian women and children
conducted in May-June 1998 among the other observations showed a
substantial underweight in women of reproductive age of Vayots Dzor
region. To improve the health and social status of women, a joint project
is being implemented by WFP, the United Methodist Committee of Relief
(UMCOR) and UNICEF. A list of about 1600 women and their families was
developed based on the undertaken screening of women of reproductive age.
The assistance to the identified women will include provision of food
parcels, seeds, training in healthy dietary practices, additional
distribution of clothing, blankets, multivitamins (iron fortified), sewing
kits for women. 

UNICEF signed an agreement to co-sponsor with OXFAM the reprinting of
5,000 copies of the Armenian Family Health Associations book for
adolescents on sexual health. The book is to be used in peer training
programmes for adolescents and other adolescent awareness-raising
projects. 


3.   Education, Training and Child Care

An exhibition of childrens drawings representing national minorities of
Armenia was held at the Information and Book-Publishing Department in
Yerevan organised by the Centre for Assistance to Youth Initiatives (CAYI)
of the Armenian Union of Clubs of UNESCO. According to the organisers, the
goal of the exhibition is to declare that the cultures of different
peoples living in Armenia are our common wealth. Part of the programme
will be devoted to the organisation of a contest of posters under the
motto Give Your Colour to the Rainbow. The contest is open to all painters
and designers of the country. The winners will receive awards, while the
top poster will be sent to all centres of UNESCO. 

In commemoration of the 10th anniversary of the 1988 earthquake, UNICEF
supplied school furniture for 2400 primary grade students in the
earthquake zone. The project will assist in the final stage of the
rehabilitation of the zone. The schools were selected on the basis of an
assessment mission to the area in collaboration with education officials
of the Lori and Shirak regions. In February 600 desks were distributed to
1200 primary grade pupils in 12 schools in the Lori region. 

On 26-28 February, UNICEF sponsored a National Conference on Life Skills
organised by the Ministry of Education and Science (MoES) in Tsakhkadsor.
The objective was to discuss the Life Skills concept paper, share
information, and undertake an inventory of the countries resources and
capacities. Among the 70 participants were representatives of the MoES,
MoH, national NGOs and international agencies, the Ministry of Education
of Georgia as well as UNICEF, Georgia. UNICEF invited a consultant from
the Ontario Institute of Global Education, Canada, who is assisting the
group of the MoES experts to finalise the conference outcomes and create
the core group for Life Skills implementation in the national education
system. 


4.  Shelter

UNHCR and the Norwegian Refugee Council (NRC) are co-sharing funds for
constructing 52 houses for refugees in Stepanavan, Lori region. Those
refugees have been living in deteriorating and sub-standard shelter,
containers for the past ten years. NRC is also funding the construction of
an additional 28 houses for refugees in Nor Artamet settlement. These
projects are being implemented in collaboration with the MoSW and local
municipalities. 

UNHCR and UNDP are jointly providing assistance to the rehabilitation and
refurbishing of 10 schools in the earthquake zone and border line
villages. Both refugee and local communities will be benefiting from the
project. The project aims at physical improvement of schools, as well as
promotion of social integration of refugees into the Armenian society. 


5. Community Development and Income Support Activities

The Armenian Social Investment Fund (ASIF) commenced its activities in
January 1996 aimed at supporting the lower income groups through
improvement of basic social services and creation of employment
opportunities. The World Bank has provided an interest free credit worth
USD 12 million for the project. Apart from this credit and local
contributions, a donation from the Government of Netherlands has been
received in the amount of USD 2,3 million. The ASIFs activities are
focused on the poorest regions within which the recourses are channelled
to poorer communities to address their needs. ASIFs goal is to assist in
rehabilitation of social and economic infrastructure of the country,
formation and development of communities, and solution of their most
urgent social problems. At present ASIF activities cover the entire
country. All the region communities have an opportunity of submitting
their proposals to the ASIF. During the operation period, more than 570
micro-project proposals were received from the communities. ASIF approved
more than 295 of those proposals. Construction works have commenced in 251
micro-projects for total cost about USD 11.6 million. Of those
micro-projects 165 including capital renovation of 51 schools and
construction of 47 potable water pipelines are completed. About 500,000
beneficiaries have got solution to their most urgent social problems.
Expansion of the ASIF activities depends on the funds the ASIF will
receive during next two years. Currently about USD 16.7 million are
available and the ASIF intends to implement 250-300 micro-projects. The
total number of beneficiaries will be about 800,000. 

OXFAM has been operating in Armenia since 1994. The programmes aim to
reduce the human costs of transition for the most vulnerable sections as
well as to build local capacity. OXFAM has already completed its programme
of provision of basic needs as regards shelter, drinking water and
sanitation among refugee communities. This was combined with community
development and health inputs. The programme has been funded mostly by
UNHCR and to a smaller extent, the British Government and ECHO. Shelter
and drinking water projects have been completed last year. Drinking water
projects were implemented in Vayots Dzor and Siunik regions with the funds
of UNHCR and ECHO respectively. Water management groups for use and
maintenance of water systems have been formed in the villages. OXFAM also
implemented reconstruction projects of medical posts in 11 communities in
Siunik region with UNHCR funds, and in 14 communities in Vayots Dzor
region with ECHO funds, as well as in the Karin village in Aragatsotn
region. Furniture, medical equipment and medicines were provided to the
reconstructed medical posts. Training of village nurses in the primary
health care was undertaken together with the MoH and the National
Institute of Health. More than 50 nurses from the two regions participated
in the training courses. Drug Revolving Funds have been formed in targeted
communities. This initiative was introduced in 1995. Since that time, such
funds have been established in 32 villages. Currently, an evaluation of
health programme is underway. OXFAM also continues its micro-credit
programme in Armavir, Siunik regions and the towns of Gavar and Vanadzor.
The credit recipients are socially vulnerable people including refugees,
who are involved in some small-scale businesses. This project has been
funded by UNHCR and NOVIB/OXFAM International. OXFAMs disability programme
aims to promote an exclusive education for disabled children. This is
being implemented in partnership with national NGOs working in the
disability area (Mission Armenia, Bridge of Hope, Strength and Will, New
Spitak, Khariskh, NGO Union in Giumri). The project includes also raising
public awareness and creating better attitudes towards disabled people.
OXFAM will continue the implementation of its health, disability and
micro-credit programmes throughout 1999. 

ON 8-10 February, the Peace Corps organised a Project Design and
Management workshop for Peace Corps volunteers and their local
counterparts. The workshop aimed at helping the participants to
effectively design and manage small scale, participatory community
development projects. More than 40 participants have learned about the
basic and general principles of project design. 


6. Development Related Activities

UNDP regional project, Support to Small and Medium Enterprise Development,
and UNDP Armenia office jointly with the Ministries of Industry and Trade,
Finance and Economy, organised a regional workshop on micro-financing on
4-5 February. The workshop focused on promotion of favourable legal
environment for development of micro-business and on sharing of
experiences between the regional countries and practitioners on
development of micro-enterprises. The participants were representatives of
various Ministries of Armenia and Georgia, national and international
consultants implementing micro-finance projects in the two countries, and
UN experts. Discussions were focused on the issues of laws and regulations
related to the establishment and operation of micro-finance activities in
Armenia and Georgia, and best micro-finance practices in the region. In
order for the sector to gain additional funds, it was suggested that more
data should be developed covering sustainability, impact and outreach. It
was stressed that micro finance projects and donor contributions should
fit into the priorities set for the economic development of the country. 



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

United Nations Department of Humanitarian Affairs - Armenia Field
Coordination Unit Yerevan, Armenia
Ms. Knarik Kamalian
Humanitarian Affairs Officer
Tel./Fax: (003742) 151 749

Complex Emergency Response Branch (CERB) - Geneva
Mr. Ernest Chipman - Chief
Mr. Merete Johansson
Tel.: (41 22) 917.1694
Fax: (41 22) 917.03.68

Emergency Liaison Branch (ELB)-New York
Mr. David McLachlan-Karr
Tel.: (1 212) 963.0226
Fax: (1 212) 963.1314

Information Service
Ms. Therese Gastaut - Director
Tel.: (41 22) 917.2300
Fax: (41 22) 917.0030



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