YEREVAN, February 27. /ARKA/. Armenian government upheld Thursday the decision of setting up a free economic zone in AJA Holding CJSC and recognizing AJA Free Economic Zone CJSC the organizer of the zone.
“Some 150 foreign companies with more than 1,000 jobs are planned to operate here,” Economy Minister Vahram Avanesyan said at today’s Cabinet meeting. “Investments will amount to $10 million. After final approval of the project, the zone will start functioning before 2015.”
Prime Minister Tigran Sargsyan welcomed the project and said that this initiative has come from the private sector.
“We have long been preparing for this, and we have a huge potential,” he said. “The project will allow Armenians from around the world engaged in jewelry business to open their businesses in Armenia. These enterprises will be small, but they will create more than 1,000 new jobs.”
It is stated in the project posted at the Armenian government’s official website that the initiative of creation a free economic area for jewelry, diamond-cutting and watch industries has come from the Armenian Jewelers Association.
It is planned to attract 120 to 150 foreign companies and create up to 2,000 new jobs within three years and to export products worth $200 to 250 million every year.
The free economic zone (32,400 square meters, of which 12,750 will be used for industrial purposes) will be opened in Yerevan in Aviacomplex plant’s territory.
The project will be implemented in three stages. About $10.97 million is needed to acquire areas in 2013 to 2015. Of this amount, $6 million will be obtained in loans and the remaining spending will be borne by the zone organizer.
The organizer company is planning to sign an agreement with the Armenian government for 20 (+10 years) and to submit a new business plan upon expiration of the first decade.
The first free economic zone in Armenia started functioning on August 1, 2013 on the territory of RAO Mars CJSC and Yerevan Scientific Research Institute of Mathematical Machines. The zone run by Sitronix company occupies 100,000 square meters. It is intended for high technologies and new technologies. One of the necessary conditions for creating a new economic zone is orientation to export. -0---