RA Ministry of Economy in cooperation with Tourism Committee and Territorial Development Fund of Armenia continues the implemention of the Public-Private Investment (PIP) component of “Local Economy and Infrastructure Development Program (LEID)”. It is supported by the World Bank and co-financed by the Government of the Republic of Armenia. The overall objective is promote tourism, one of the most affected areas by the pandemic and create a favorable environment for its development.
The Ministry informs that by improving the quality of public infrastructures, supporting tourism, as well as the development of agribusiness, the program aims to create a favorable environment to involve the private sector more actively, promote economic growth and employment in nine regions of Armenia: Aragatsotn, Ararat, Gegharkunik, Kotayk, Lori, Shirak, Syunik, Tavush and Vayots Dzor.
Under this component of the LEID program, the support will be given to the selected private sector in the project area, by providing public infrastructure to promote investment viability (for example, public buildings near investment sub-projects, roads/sidewalks, water/drainage, communications, etc.).
Investments can be made only in the tourism and agribusiness sectors.
PIP model excludes direct business financing or capital investment opportunities. It plans construction of public infrastructures (road, water, sewerage, electricity supply, etc.) financing only outside of the investor’s activity area.
Ratio of Private Investments and LEID Program Financing must be at least 4:1, and the minimum of private investments must be- 200 million AMD. All offered investments should contribute to the improvement of the socio-economic situation of the inhabitants from the adjacent territories.
It is remarkable that the program prohibits investments in specially protected areas, in protected cultural heritage sites, monuments and green areas: forests, nearby alpine/subalpine meadows to exclude the negative impact on the environment.
The program terms and the application are available on the website of the RA Ministry of Economy.
