In order to promote private investments in the Republic of Armenia, the RA government's decision N 1343 of August 24 on the provision of "Infrastructures for Investments" assistance was developed.
According to the assistance event, in order to promote private investments, the Government of the Republic of Armenia (hereinafter referred to as the Government) provides support to the organization implementing the investment project (hereinafter referred to as the beneficiary) by providing the area with the necessary infrastructure for the implementation of the investment project (hereinafter referred to as the support). Roads, water supply (including for irrigation), drainage, gas supply, electricity supply and telecommunication systems are considered infrastructures in the sense of this measure. The assistance provided by the government is the construction of infrastructure. Moreover, the right of ownership, management and possession of the infrastructure belongs to the government.
Requirements for the implementation of the assistance event
- The investment project by the beneficiary must be implemented in the area outside the first and second cadastral zone of the city of Yerevan.
- The investment project must be aimed at the organization of agriculture (group A of the "Types of Economic Activity Classifier" approved by Order No. 874-N of the Minister of Economy of the Republic of Armenia dated September 19, 2013), processing production (group C of the "Types of Economic Activity Classifier") or service provision (groups H 52, I, J, K, L, M 73, P, Q, R of the "Types of Economic Activity Classifier").
- The beneficiary must have a registered right of ownership or construction or lease of the area for the implementation of the investment project,
- In order to receive assistance, as of the moment of submission of the application, the beneficiary should not have initiated administrative proceedings regarding collection of unfulfilled tax obligations.
- The Beneficiary shall provide an appropriate bank guarantee (hereinafter referred to as the guarantee) in the amount of the total value of the planned infrastructure. Legal relations related to the guarantee are regulated by Chapter 24, Section 5 of the Civil Code of the Republic of Armenia
The cost of infrastructure built by the government cannot exceed:
- 10 percent of the total investment value of the investment project for the implementation of an investment project of up to 500 million drams;
- 20 percent of the total investment value of the investment project for the implementation of an investment project of AMD 500 million or more;
- 40 percent of the total investment cost of the investment project in the case of investment projects implemented in the communities included in the list approved by the decision of the Government of the Republic of Armenia No. 30-N of January 15, 2015.
The total volume of investments is calculated from the moment of submission of the application, the investments made before are not calculated.
- In order to receive assistance, it is necessary to submit the application and necessary documents to the Ministry of Economy of the Republic of Armenia.
- The Ministry of Economy studies the application within 5 working days after receiving it and, in the absence of defects, develops a relevant draft of the government's decision and submits it to the interested bodies for opinion, and in case of defects in the application, it is returned to the beneficiary.
- After receiving the opinions, the Ministry of Economy summarizes them and submits the project to the government for consideration in the prescribed manner.
- The ministry informs the beneficiary about the results of the project discussion within three days.
- Within ten days after the decision enters into force, the beneficiary submits a bank guarantee for the amount of the infrastructure to the responsible body.
- Twenty days after submitting the bank guarantee, the responsible body signs an agreement with the beneficiary on the implementation of the project and the provision of support.
- In case of not implementing the investment project, the beneficiary compensates the expenses incurred by the government for the construction of the infrastructure and the losses caused by the construction of the infrastructure from the submitted bank guarantee. As a result of the compensation, there is no change of ownership regarding the infrastructure.
- Application: form No. 1.,
- Summary of the investment project according to form N 2,
- Detailed description of the infrastructure expected for the purpose of receiving assistance, in particular, an outline of the infrastructure, including on a map, a list of plots of land, including cadastral codes and information on owners, an estimate of the costs necessary for construction, including the costs of acquiring and designing the necessary land,
- Information on rights to land/territory with certifying documents,
- WGS-84 (ARMREF 02) location of the investment project and infrastructure projects on the national geodetic coordinate system map.
In order to get more detailed information about the project (including the procedure and conditions for providing assistance, the format of the application), go to the following link. For additional information, call +374 011 597 119.