Armenian government has no intention to abandon construction of free economic zone on border with Iran
18.04.2017,
13:56
The Armenian ministry of economy and investment has declined today a report by the local daily ‘Haykakan Zhamanak’ (Armenian Time) claiming that the Armenian side intends to abandon the establishment of free economic zone in the southern Armenian Meghri near the border with Iran.
YEREVAN, April 18. /ARKA/. The Armenian ministry of economy and investment has declined today a report by the local daily ‘Haykakan Zhamanak’ (Armenian Time) claiming that the Armenian side intends to abandon the establishment of free economic zone in the southern Armenian Meghri near the border with Iran.
According to the ‘Haykakan Zhamanak,’ the government can abandon the idea of building a free economic zone on the border with Iran because the projects lacks economic feasibility due to high cost- $30 million approximately, and given the worsening relations between the US and Iran, the prospect of building the free economic zone becomes more vague.
"Armenia does not plan to abandon the project of building the free economic zone in Meghri on the border with Iran, moreover, a memorandum will be signed soon with the company that will operate the free economic zone," a spokesperson for the ministry, Anna Ohanyan said. According to her, the construction work will begin immediately once the agreement is signed.
Earlier economic development and investment minister Suren Karayan stated that Armenia will begin construction of the free economic zone on the border with Iran before the summer. According to him, preparatory work has already begun, and soon a plan of actions will be submitted for approval of the government.
The establishment of the free economic zone in the southern Armenian Meghri, near the border with Iran is estimated to cost $32 million, of which $28 million are capital expenditure. The free economic zone is said to create 2,500 new jobs and increase Armenian exports by 30%.
According to the government, the main purpose of the free economic zone is to help boost trade and economic relations with Iran and other countries of the region, help the development of the southern Armenian province of Syunik, as well as position Armenia as a link between Iran and members of the Eurasian Economic Union (EEU) and Georgia.
About 120 foreign companies will be hosted by the free economic zone, which are expected to invest a total of $350-400 million. This in turn will allow exporting $100 million worth products annually. -0-
According to the ‘Haykakan Zhamanak,’ the government can abandon the idea of building a free economic zone on the border with Iran because the projects lacks economic feasibility due to high cost- $30 million approximately, and given the worsening relations between the US and Iran, the prospect of building the free economic zone becomes more vague.
"Armenia does not plan to abandon the project of building the free economic zone in Meghri on the border with Iran, moreover, a memorandum will be signed soon with the company that will operate the free economic zone," a spokesperson for the ministry, Anna Ohanyan said. According to her, the construction work will begin immediately once the agreement is signed.
Earlier economic development and investment minister Suren Karayan stated that Armenia will begin construction of the free economic zone on the border with Iran before the summer. According to him, preparatory work has already begun, and soon a plan of actions will be submitted for approval of the government.
The establishment of the free economic zone in the southern Armenian Meghri, near the border with Iran is estimated to cost $32 million, of which $28 million are capital expenditure. The free economic zone is said to create 2,500 new jobs and increase Armenian exports by 30%.
According to the government, the main purpose of the free economic zone is to help boost trade and economic relations with Iran and other countries of the region, help the development of the southern Armenian province of Syunik, as well as position Armenia as a link between Iran and members of the Eurasian Economic Union (EEU) and Georgia.
About 120 foreign companies will be hosted by the free economic zone, which are expected to invest a total of $350-400 million. This in turn will allow exporting $100 million worth products annually. -0-
