the ra government decrees
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The RA Government DecreesTRANSCRIPT
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The RA Government Decrees on the Investment Program on the The RA Government Decrees on the Investment Program on the The RA Government Decrees on the Investment Program on the The RA Government Decrees on the Investment Program on the
Construction and Development of the Yerevan Greenhouse Zone in the Construction and Development of the Yerevan Greenhouse Zone in the Construction and Development of the Yerevan Greenhouse Zone in the Construction and Development of the Yerevan Greenhouse Zone in the
Vicinity of Noragavit district Vicinity of Noragavit district Vicinity of Noragavit district Vicinity of Noragavit district
2012
2012
Երևանի ջերմատնային գոտու ծրագրի ներդրումների կատարման աջակցման մեխանիզմները
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The RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and Development velopment velopment velopment
of the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit district
DRAFT
EXCERPT
FROM THE P R O T O C O L
OF THE RA GOVERNMENT SESSION
17-18
ON THE APPROVAL OF THE INVESTMENT PROGRAM ON GREENHOUSE CONSTRUCTION
AND DEVELOPMENT IN THE VICINITY OF NORAGAVIT DISTRICT OF YEREVAN
To approve the Investment Program on the Construction and Development of Greenhouses
in the Vicinity of Noragavit District of Yerevan submitted by the Armenian Harvest Promotion
Centre CJSC in accordance with the Annex.
3 May, 2012
RA Prime Minister
Tigran Sargyan
Երևանի ջերմատնային գոտու ծրագրի ներդրումների կատարման աջակցման մեխանիզմները
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The RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and Development velopment velopment velopment
of the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit district
Annex
the RA Government Decree
№ 17 of May 3, 2012
INVESTMENT PROGRAM ON GREENHOUSE CONSTRUCTION AND DEVELOPMENT IN INVESTMENT PROGRAM ON GREENHOUSE CONSTRUCTION AND DEVELOPMENT IN INVESTMENT PROGRAM ON GREENHOUSE CONSTRUCTION AND DEVELOPMENT IN INVESTMENT PROGRAM ON GREENHOUSE CONSTRUCTION AND DEVELOPMENT IN
THE VICINITY OF NORAGAVIT DISTRICT OF YEREVANTHE VICINITY OF NORAGAVIT DISTRICT OF YEREVANTHE VICINITY OF NORAGAVIT DISTRICT OF YEREVANTHE VICINITY OF NORAGAVIT DISTRICT OF YEREVAN
� PrefacePrefacePrefacePreface
Over the past 5 years, the average annual volume of vegetable crop production in Armenia
has made up 800 000 tons, which is approximately 250kg per capita. This is quite a good figure.
Nevertheless, crop production in Armenia is highly seasonal in nature, as a result of which, during
different seasons drastic price changes are recorded in the market, and export volumes cover a
meagre per cent of the gross production.
The development and expansion of state-of-the-art greenhouses is an effective measure for
mitigating the seasonal fluctuations of crop production in Armenia, increasing the competitiveness
both in domestic and foreign markets, as well as for reducing the import volumes of crop
production in the country.
The existing greenhouses in Armenia were constructed decades ago and considerably fall
behind the modern ones in technology and productivity. Except for the greenhouses constructed
during the last 1-2 years (approx. 3 ha), the productivity of the rest of existing greenhouses
fluctuates between 15 and 20 kg per square metre, while the modern ones are able to provide 45-
100kg product per square meter depending on the technological solutions applied. At present, the
Armenian producers are still unable to produce the appropriate amount, and varieties of vegetable,
as well as to meet the rhythmicity requirements of the major foreign markets.
Երևանի ջերմատնային գոտու ծրագրի ներդրումների կատարման աջակցման մեխանիզմները
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of the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit district
The investment program on greenhouse construction and development in the vicinity of
Noragavit district of Yerevan has been developed for the purpose of developing and enhancing
state-of-the-art greenhouses.
Within three years the program assumes constructing approximately 50ha greenhouse zone
with engineering and logistic facilities in the vicinity of Noragavit district of Yerevan in
accordance with the most modern technology requirements. The aforementioned selection of the
zone is conditioned by the availability of ground area and opportunity to use the Yerevan TPP
resources for centralized heat supply.
The Greenhouses Development Program complies with the RA Government’s economic
development strategy and objectives, in particular, with the creation of competitive economy,
attracting investments, raising the level of food security and poverty reduction.
In terms of job creation, the effective use of lands, as well as ensuring additional local
budget receipts from property and land tax, the program is of social and ecological significance
also.
The program is developed in accordance with the climate data in the vicinity of Noragavit
district of Yerevan and the study and analysis on communal infrastructure and the Yerevan TPP
resources. While developing the program, the comparative advantages of Armenia, such as the
number of sunny days, the length of daylight, the availability of agricultural lands and water
resources, as well as rather competitive tariffs of electric energy and gas have been taken into
consideration.
Through introducing the most modern technologies for greenhouse construction, the
implementation of the program will enable the large and small enterprises to combine year-round
crop production and ensure the sufficient amount of products for export. This will give the
opportunity to improve the productivity of crop production, ensure the availability of the
products in the domestic market and the comparative stability of prices. On top of that, the
Երևանի ջերմատնային գոտու ծրագրի ներդրումների կատարման աջակցման մեխանիզմները
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The RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and Development velopment velopment velopment
of the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit district
further greenhouse development will significantly mitigate the existing agricultural risks
associated with weather changes.
� Program DescriptionProgram DescriptionProgram DescriptionProgram Description
The Armenian Harvest Promotion Centre CJSC (hereinafter referred to as Program
Manager) is authorized to manage the implementation of the investment program on Greenhouse
Construction and Development in the Vicinity of Noragavit District of Yerevan. For the project
implementation, the Program Manager will organize the investors’ selection, conclusion of
contracts with the investors and contract management processes, the construction of the
centralized system infrastructure for thermal and electric energy, water, gas supply and water
discharge, as well as will provide the investors with land plots with their points to connect to the
infrastructures and will bear the responsibility for the program implementation.
Under the investment program it is assumed to construct glass greenhouses with their
supporting operation and- maintenance facilities /cold storage, processing, sorting, packaging
facilities, etc./in the land area adjacent to Noragavit District of Yerevan, which will meet the
modern technology requirements.
State-of-the-art greenhouses are at least 4 m high glass or polycarbonate steel frame
structures with their heating, screening, blacking out, assimilation lighting (or without this), drip
irrigation, modern automatic electric and computer climate control systems, as well as with their
operation and maintenance supporting (cool storage, sorting, packaging, etc.) facilities for
hydroponic and soil-based crop production.
Under the investment program, during three years 50 ha of greenhouses will be
constructed in the 70ha of land area adjacent to the Yerevan TPP.
Երևանի ջերմատնային գոտու ծրագրի ներդրումների կատարման աջակցման մեխանիզմները
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of the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit district
On the assumption of the international experience in the area of greenhouse construction,
the minimal economically optimal size of the greenhouses is 4 ha together with the area for
maintenance and supporting facility. In case of availability of the required amount of
investments, the construction of two greenhouses with one maintenance and supporting facility in
10-12 ha land plot is more efficient. It will give the opportunity to cut back on the required
investment volumes, reduce the product cost price and to raise its competitiveness.
Taking into account the aforementioned preconditions, the positions of the existing
greenhouses maintenance facilities as well as those to be constructed, we anticipate dividing the
land area into 9 separate land plots each with 5-11 ha of land plots. The investors will have the
opportunity to obtain one or more land plots.
Planning the layout of the greenhouse is carried out in a way which will allow secluding
plots from the main greenhouse area in order to construct a greenhouse for specialized bulb
production in case if the need arises. Moreover, open field agricultural farms can also use the bulbs
to be produced in the greenhouses.
The Program Manager will conduct the investor selection process for the program
implementation, the main preconditions for which will be the timing for greenhouse construction
and plot price payment, as well as the number of obtained land plots. The respective land plots
will be alienated to the selected investors through direct sales.
Taking into consideration that the construction of greenhouses of the estimated dimensions
requires milliards drams of investment, the provision of favorable conditions for local and foreign
investors such as alienation of land plots to the investors through installment sale, providing them
with centralized system infrastructures for thermal and electric energy, water, gas supply and
water discharge, can be the key to the program success.
Investors will have the opportunity to obtain the land areas through installment sale for a
term of one year.
Երևանի ջերմատնային գոտու ծրագրի ներդրումների կատարման աջակցման մեխանիզմները
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The RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and Development velopment velopment velopment
of the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit district
After terminating the pledge of the land area(s) obtained under the present program and
after land leveling for the greenhouses construction by the investor, in order to attract financial
resources needed for the implementation of the program, (taking into account the opportunity to
use the centralized system of the infrastructures) it would be expedient to provide an investor up
to 80 % government guarantee of the land area(s)’s market value.
We are also planning to construct a centralized system of thermal and electric energy,
water, gas supply and drainage infrastructure for the greenhouses. We are planning to use the
Yerevan TPP resources for the greenhouses heating. The investors will be able to connect to the
infrastructures of the centralized system directly from the special points of their land plots.
The availability of the centralized system of the main infrastructures will enable the
investors to avoid rather sophisticated, time and resource consuming solutions for electric power,
water and gas supply, as well as for water discharge. As to the heat supply, the construction of the
main supply infrastructure for the greenhouse zone will allow the investors to compensate the
most part of the thermal energy generation cost. Meanwhile, the use of the TPP's thermal energy
will promote the stability of the TPP's product consumption, on the one hand, and the investors
will benefit from more affordable supply, on the other. Consequently, the product cost price will
decrease; and the level of profitability and the product competitiveness will increase. The
aforementioned factors will positively influence on the price of the investments’ payback period
also.
The estimated investment volume of the program will be about 35-40 billion Armenian
drams, and the annual gross product of the greenhouses to be constructed will make at least 30
000-40 000 tons.
Approximately 1500-2000 new workplaces will be created for the whole value chain,
ranging from the production to realization of the product; only 800-1000 of the employees will be
employed at the greenhouses (15-20 workplaces per 1 ha of greenhouse).
Երևանի ջերմատնային գոտու ծրագրի ներդրումների կատարման աջակցման մեխանիզմները
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The RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and Development velopment velopment velopment
of the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit district
Based on the practical results of the constructed greenhouses and on the availability of the
required resources, we’ll discuss the feasibility and expediency to construct 65 more ha of
greenhouses in the area of approximately 86 ha in the above mentioned zone for the second phase
of the program.
� The Main Program Implementation ArrangementsThe Main Program Implementation ArrangementsThe Main Program Implementation ArrangementsThe Main Program Implementation Arrangements
We anticipate implementing the program during three years. The investment program
timeline is entitled to change based on the investors selection deadline. During the mentioned
period approximately 50ha of greenhouses with their supporting operation and maintenance
facilities will be constructed and operated in accordance with the modern technology solutions.
The following arrangements will be implemented under the program:
1. The Yerevan Municipality will ensure that the actual land users vacate 156 ha land area in
the vicinity of Noragavit district of Yerevan;
2. Organisation of the investors’ selection process for the program implementation by the
Program Manager. Preference will be given to the investors who
a) will obtain more land plots,
b) will offer the shortest payment deadlines for the right to use the centralized system
infrastructures for thermal and electric energy, water, gas supply and water discharge,
as well as for land alienation,
c) will offer the shortest payment deadlines for the construction of state-of-the-art
greenhouses in compliance with the investment program requirements;
3. Alienation of separate land plots to the selected investors through direct installment sale,
based on the cadastral value. The land sections which are overloaded with water mains, are
not entitled to be alienated to investors and for these section free perpetual easement will
be applied in order that the investors could purposefully use the obtained land plots;
Երևանի ջերմատնային գոտու ծրագրի ներդրումների կատարման աջակցման մեխանիզմները
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The RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and Development velopment velopment velopment
of the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit district
4. Imposing liability for a breach of payment in installment and construction prescribed in
the contract on the direct sale of the land plot;
5. Land site leveling, greenhouses construction on minimum 75% of the land (at least 1ha in
the first year) with their operation and maintenance facilities by the investors;
6. Obtaining permission to construct roads and the centralized system infrastructures for the
greenhouses thermal and electric energy, gas, water supply and water discharge;
preparation of the design-calculation documents package for the infrastructures
construction by the Program Manager;
7. Construction of the roads and centralized system infrastructures for thermal and electric
energy, water and gas supply to the greenhouses , water discharge, as well as providing the
investors with land plots with their points to connect to the infrastructures by the Program
Manager;
8. Imposing liability on the Program Manager in case of default on ensuring the
construction of the centralized system infrastructures for thermal and electric energy,
water and gas supply to the greenhouses, water discharge, as well as providing the investors
with their land plots with the points to connect to the infrastructures;
9. Providing the Program Manager with free perpetual easement over the land area
overloaded with the infrastractures for the maintenace of the infrastracuteres ensuring
electric energy, gas, and water supply, as well as water discharge.
10. Managing the execution of the contract terms concluded with the investors.
11. Managing the mainenance of the centralized system infrastructure for thermal and
electric energy, water and gas supply, as well as water discharge by the Program Manager.
Estimated energy requirements for the greenhouses:
Electric capacity: 30 MW/h
Thermal energy consumption: 89 Gcal/h
Gas consumption: 16000 m³/h.
Երևանի ջերմատնային գոտու ծրագրի ներդրումների կատարման աջակցման մեխանիզմները
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The RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and Development velopment velopment velopment
of the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit district
� Anticipated Program OutcomesAnticipated Program OutcomesAnticipated Program OutcomesAnticipated Program Outcomes
1. Attracting large-scale investments in the Armenian agriculture sector (the overall
investment volume under the program will constitute 35-40 billion AMD);
2. Proper use of land areas in the vicinity of Noragavit district of Yerevan;
3. Development of state-of-the-art greenhouses and import of the most modern technologies
and know-hows in Armenia;
4. Promotion of the development of crop production and realization value chain,
Expansion of the Armenian crop production and export volumes, (the annual gross product
of the greenhouses to be constructed will make 30 000-40 000 tons), as well as improvement of
productivity and quality;
5. Mitigation of the seasonal price changes of crop products in the domestic market;
6. Considerably decrease in import volumes along with the increase in crop production
volumes;
7. Creation of new jobs;
8. Ensuring additional community budget receipts from the cost of the land to be alienated
and, later on, from property and land tax;
9. Setting preconditions for the development of similar zones in the other regions of the
Republic.
Երևանի ջերմատնային գոտու ծրագրի ներդրումների կատարման աջակցման մեխանիզմները
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The RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and Development velopment velopment velopment
of the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit district
GOVERNMENT OF THE REPUBLIC OF ARMENIAGOVERNMENT OF THE REPUBLIC OF ARMENIAGOVERNMENT OF THE REPUBLIC OF ARMENIAGOVERNMENT OF THE REPUBLIC OF ARMENIA
DECISIONDECISIONDECISIONDECISION
3 May 2012, № 633 - N
ON THE INVESTMENT PROGRAMON THE INVESTMENT PROGRAMON THE INVESTMENT PROGRAMON THE INVESTMENT PROGRAM
ON GREENHOUSE CONSTRUCTION AND DEVELOPMENT IN THE VICINITY OF ON GREENHOUSE CONSTRUCTION AND DEVELOPMENT IN THE VICINITY OF ON GREENHOUSE CONSTRUCTION AND DEVELOPMENT IN THE VICINITY OF ON GREENHOUSE CONSTRUCTION AND DEVELOPMENT IN THE VICINITY OF
NORAGAVIT DISTRICT OF YEREVAN AND ON HOLDING THE RA DECREE OF NORAGAVIT DISTRICT OF YEREVAN AND ON HOLDING THE RA DECREE OF NORAGAVIT DISTRICT OF YEREVAN AND ON HOLDING THE RA DECREE OF NORAGAVIT DISTRICT OF YEREVAN AND ON HOLDING THE RA DECREE OF N1516N1516N1516N1516----A OF A OF A OF A OF
OCTOBER 27, 2011 OCTOBER 27, 2011 OCTOBER 27, 2011 OCTOBER 27, 2011 TO BE INVALIDTO BE INVALIDTO BE INVALIDTO BE INVALID
Based on the Clause 5 of Part 1 of Article 66 of the RA Land Code and on the Investment
Program on Greenhouse Construction and Development in the vicinity of Noragavit District of
Yerevan submited by the Armenian Harvest Promotion Centre CJSC, the Government of the
Republic of Armenia decides:
1. to approve the proposal on alienating separate lots (hereinafter referred to as Lot)
from 69.83 ha plot of land in the vicinity of Noragavit district of Yerevan owned by the
Yerevan community through direct sale in compliance with the conditions established by
the present decree, in a manner consistent with Annex N 1 in order to construct state-of-
the-art greenhouses;
2. to establish that:
1) the “Armenian Harvest Promotion Centre” Closed Joint Stock Company (hereinafter
referred to as “Program Management Company”) will be responsible for the Invetsment Program
on the construction and development of greenhouses in the vicinity of Noragavit district of
Yerevan (hereinafter referred to as “ Program”);
Երևանի ջերմատնային գոտու ծրագրի ներդրումների կատարման աջակցման մեխանիզմները
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The RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and Development velopment velopment velopment
of the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit district
2) the separate land parcels specified by Section 1 of this Decree will be sold to the
investors selected by the Program Management Company for the purpose of implementing the
entire Investment Program under the terms established by this Decree;
3) during the implementation of the Program the sizes and numbers of the separate land
parcels specified by Section 1 of this Decree may change in the a result of the negotiations with
investors.
Meanwhile, investors may be selected by the Program Management Company by 1
December, 2014. The Program Management Company will prefer the investors who will acquire
a larger number of land parcels and will propose shorter timeframes for the payment of the
amounts and the construction of greenhouses with modern technologies;
4) the parts of the land parcel specified by Section 1 of this Decree which are loaded with
water mains or are foreseen for the development of infrastructure for the centralised system or for
roads for common use will not be for sale;
5) in the event investors are not selected for no less than 40 per cent of the separated land
parcels specified by Section 1 of this Decree by 1 December, 2012 the Program will be deemed as
not established and this Decree shall be repealed; and
6) the restrictions established by the Decree N 498 of the Government of the Republic of
Armenia dated 11 May 2002 for the contruction of production buildings and facilities on
agricultural land shall not extend to the separated land parcels specified by Section 1 of this
Decree which are to be sold to the investors selected under the Invetsment Program.
3. Recommend that the Mayor of Yerevan ensures, in accordance with the established
procedure, the implementation of the change of the purpose of the land specified by Section 1 of
this Decree.
4. Establish the main terms and conditions for the transactions under the Investment
Program, pursuant to Annext 2.
5. Assign the Minister of Territorial Admnistration, the Minister of Energy and Natural
Resources and the Minister of Urban Development of the Republic of Armenia, as well as
Երևանի ջերմատնային գոտու ծրագրի ներդրումների կատարման աջակցման մեխանիզմները
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The RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and Development velopment velopment velopment
of the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit district
recommend the Mayor of Yerevan and the Public Services Regulatory Commission of the
Republic of Armenia to assist with the implementatin of the Program within their powers.
6. The Chairperson of the State Water Committee under the Ministry of Territorial
Admnistration of the Republic of Armenia to discuss with the Water Users Union/Association and
the Program Management Company and ensure the disassebling and transportation of the water
mains on the land area specified by Section 1 of this Decree.
7. Repeal Decree N 1516-A of the Government of the Republic of Armenia dated 27
October 2011 “On Participating in the Pilot Project Based on the Public-Private Partnership for
the Development of the Greenhouses Sector in the Republic of Armenia“.
8. This Decree shall take effect on the day following the official promulgation.
Tigran Sargyan
Երևանի ջերմատնային գոտու ծրագրի ներդրումների կատարման աջակցման մեխանիզմները
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The RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and Development velopment velopment velopment
of the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit district
Annex N 1
the RA Government Decree
№ 633 – N of May 3, 2012
Chief of Staff of the Government
of the Republic of Armenia D.Sargsyan
Երևանի ջերմատնային գոտու ծրագրի ներդրումների կատարման աջակցման մեխանիզմները
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of the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit district
Annex N 2
the RA Government Decree
№ 633 - N of May 3, 2012
TRANSACTIONS TO BETRANSACTIONS TO BETRANSACTIONS TO BETRANSACTIONS TO BE MADE UNDER THE INVESTMENT PROGRAM MADE UNDER THE INVESTMENT PROGRAM MADE UNDER THE INVESTMENT PROGRAM MADE UNDER THE INVESTMENT PROGRAM
ON GREENHOUSE CONSTRUCTION AND DEVELOPMENT IN THE VICINITY OF ON GREENHOUSE CONSTRUCTION AND DEVELOPMENT IN THE VICINITY OF ON GREENHOUSE CONSTRUCTION AND DEVELOPMENT IN THE VICINITY OF ON GREENHOUSE CONSTRUCTION AND DEVELOPMENT IN THE VICINITY OF
NORAGAVIT DISTRICT OF YEREVANNORAGAVIT DISTRICT OF YEREVANNORAGAVIT DISTRICT OF YEREVANNORAGAVIT DISTRICT OF YEREVAN
Transaction 1. Contract to be concluded between Yerevan community and the ProgramTransaction 1. Contract to be concluded between Yerevan community and the ProgramTransaction 1. Contract to be concluded between Yerevan community and the ProgramTransaction 1. Contract to be concluded between Yerevan community and the Program
Management Company Management Company Management Company Management Company
Party - 1 Yerevan Community
Party - 2 Program Management Company
Liabilities of the parties
The Yerevan community is obliged:
1. to carry out proper changes in the lands in the prescribed
manner;
2. to make a decree on the allienation of appropriate land areas
to investors through direct installment sale for a term of one year
and in compliance with the master plan suggested by the
program management company within 10-day period after
receiving information from the program management company
on the selection of each investor;
In order to properly use the land areas, the land sections
which are overloaded with water mains and centralized system
infrastructures, shall be given to the investors in compliance
with free perpetual easement. These sections shall not be
entitled to alienation to investors;
4. after making the decree on the allienation of land area(s)
Երևանի ջերմատնային գոտու ծրագրի ներդրումների կատարման աջակցման մեխանիզմները
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The RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and Development velopment velopment velopment
of the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit district
to each investor within 5 days to conclude a contract with the
investor on direct sale of the respective land area(s) on the
condition of installment payment;
5. to provide the investors with land areas free of the actual
possession and the rights of third parties in accordance with the
contracts on direct allienation of lands;
6. within its jurisdiction to grant all the permits required for
building the greenhouses in the manner prescribed by the RA
legislation;
7. to provide the program management company with lands free
of the actual possession and rights of third parties for thermal
and electric energy, water and gas supply, as well as water
discharge infrastructures;
8. within its jurisdiction to grant all the permits required for
thermal and electric energy, water and gas supply, as well as
water discharge and road building infrastructures in the manner
prescribed by the RA legislation;
9. To provide the program management company with free
perpetual easement in respect of the land areas needed for
thermal and electric energy, water and gas supply, as well as
water discharge, road building and maintenance infrastructures.
The program management company is obliged:
1. To carry out the investors selection process, and, after
selecting investors for at least 40% of the total land area to be
alienated under the program, to inform Yerevan community on
the selection of each investor within five days.
2. to develop and justify the sample forms of contracts on the
Երևանի ջերմատնային գոտու ծրագրի ներդրումների կատարման աջակցման մեխանիզմները
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The RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and Development velopment velopment velopment
of the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit district
rights to use the infrastructures to be concluded between the
program management company and investors, as well as
contracts on direct sale of land areas to be concluded between
the Yerevan community and investors with Yerevan community.
3. to organise the process of signing contracts between Yerevan
community and investors on direct sale of land areas;
4. to conclude a contract with the investor on the right to use
thermal and electric energy, water and gas supply, as well as
water discharge infrastructures while signing contracts between
Yerevan community and each investor on direct sale of land
areas;
5. to build the road, thermal and electric energy, water and gas
supply, as well as water discharge infrastructures within seven
months after the moment of concluding contracts with investors.
The infrastructures shall be the ownership of the Party-2, and
the Party-2 shall ensure their operation and the needed
capacities. Based on the deadline for receiving the permits for
building the infrastructures, the deadline mentioned in the
present Chause may be postponed, but no longer than the
deadline for the permit envisaged by legal acts;
6. to organise the process of concluding respective contracts with
investors on supplying thermal and electric energy, water and
gas;
7. Exercises supervision over the execution of the contractual
obligations included in the contracts signed with the investors,
and let Yerevan community know in case if there are violations;
8.to submit quarterly reports to Yerevan community on the
implementation of the investment program, after signing
Երևանի ջերմատնային գոտու ծրագրի ներդրումների կատարման աջակցման մեխանիզմները
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of the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit district
contracts between Yerevan community and investors on direct
sale of land areas;
Responsibility of the Parties The Parities, pursuant to the legislation of the Republic of
Armenia, shall bear responsibility for non-fulfillment or
improper fulfillment of the contractual obligations.
Transaction 2. ContractsTransaction 2. ContractsTransaction 2. ContractsTransaction 2. Contracts to to to to be concluded between the investors selectedbe concluded between the investors selectedbe concluded between the investors selectedbe concluded between the investors selected for the implementation of for the implementation of for the implementation of for the implementation of
the Investment Program on the Construction and Development of Greenhouses in the vicinity of the Investment Program on the Construction and Development of Greenhouses in the vicinity of the Investment Program on the Construction and Development of Greenhouses in the vicinity of the Investment Program on the Construction and Development of Greenhouses in the vicinity of
Yerevan Yerevan Yerevan Yerevan communitycommunitycommunitycommunity and Noragavit districtand Noragavit districtand Noragavit districtand Noragavit district
Seller Yerevan community
Buyer Investor selected for the implementation of the Invetsment
Program on the construction and development of greenhouses in
the vicinity of Noragavit district
Object Direct sale of land area/areas to the Buyer on the installment plan
for the construction of greenhouses with modern technologies
Timeframe for concluding
the Contract
With five days following the making of the decree of the Seller
to sell the land area/areas
The price and payment
terms of the Contract
The amount to be paid by the Buyer to the Seller constitutes
AMD 4,460 (four thousand four hundred and sixty) per square
meter . The price of the Contract includes the cadastral value of
the land – AMD 2,940 (two thousand and nine hundred forty)
and an additional amount of AMD 1,520 (one thousand five
hundred and twenty).
The amount specified in this section will be paid by the Buyer in
accordance with the schedule proposed by him/her during the
process of selection of investors, within one year of the
conclusion of the Contract, with the first installment payment
Երևանի ջերմատնային գոտու ծրագրի ներդրումների կատարման աջակցման մեխանիզմները
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The RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and Development velopment velopment velopment
of the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit district
(13 per cent) to be made no later than within 10 days after the
conclusion of the Contract, and the second installment payment
(9 per cent) to be made within 90 days following the expiration
of the term for the first installment payment, the third
installment payment (35 per cent) to be made within 120 days
following the expiration of the term for the second installment
payment, and the fourth installment payment (43 per cent) to be
made within 130 days following the expiration of the term for
the third installment payment.
Transfer of the title on land
by Contract
The title on land area/areas will be transfered to the Buyer upon
the state registration of the rights, however the land area/areas
will be deemed as mortgaged in Yerevan community before the
full payment by the Buyer of the Contract price and the payment
for the title esablished by the Contract between the Program
Administrator and the Buyer.
Costs for concluding the
Contract (provision of a
plan, address, notary
certification of the Contract,
etc.)
At the Buyer’s expense
The liabilities of the Parties The Seller is obliged to:
1. Provide the Buyer with a land area/areas free from the rights
and factual possession of third parties.
2. Establish a permanent free easement in respect of the
segments of the land area/areas which are loaded with water
mains and other infrastructure belonging to third parties, th euse
the sold land area/areas for their designated purpose.
Երևանի ջերմատնային գոտու ծրագրի ներդրումների կատարման աջակցման մեխանիզմները
20 | P a g e
The RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and Development velopment velopment velopment
of the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit district
3. Within its powers and according to the procedure established
by the legislation of the Republic of Armenia, provide the Buyer
with all the permissions required for the construction of
greenhouses and supporting facilities for their operation and
maintenance.
The Buyer is obliged to:
1. Pay the Contract price pursuant to the terms and conditions of
the Contract.
2. At the time of conclusion of the Contract, conclude with the
Program Administrator a Contract on making available the right
to join the infrastructures providing supply of thermal energy,
electric energy, water and gas, and sewerage.
3. Carry out the construction of greenhouses in accordance with
the schedule proposed by him/her during the process of selection
of investors. Meanwile, develop no less than 75 per cent of the
land area/areas with greenhouses and supporting facilities for
their operation and maintenance (at least 1 ha during the first
year of development).
4. Use the land area/areas exclusively for the construction and
operation of greenhouses with modern technologies, glass-
covered or Polycarbonate-covered, heated greenhouses at least
4m high, in compliance with the terms and conditions under the
Investment Program on the construction and development of
greenhouses in the vicinity of Noragavit district, and supporting
facilities for their operation and maintenance (refrigeration,
sorting, packaging, etc.).
6. To use the greenhouses built on the land area at least for ten
Երևանի ջերմատնային գոտու ծրագրի ներդրումների կատարման աջակցման մեխանիզմները
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The RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and Development velopment velopment velopment
of the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit district
years exclusively for the production of plant products and/or
seedlings.
7. Create conditions for the implementation of surveillance by
the Program Management Company over the fullfilment of th
eterms of the Contract.
8. In the event of using assimilation lighting, provide the
developed greenhouses with a verticl and horizontal blackout
system, using it in the evening and night hours.
9. To sell the land area/areas acquired by it only with th
eagreemnet of the Seller before the complete performance of the
obligations taken on under the Contract. The land area/areas can
be sold to a new buyer only in th event the new buyer assumes
the obligations established by the Contract concluded with the
Buyer.
The responsibility of the
Parties
The Parities, pursuant to the legislation of the Republic of
Armenia, shall bear responsibility for violating the terms and
conditions of the Contract.
The Buyer shall be responsible for.
a) violating the timeframes of payment of the Contract price, in
which case a fine shall be calculated against the outstanding
amount due, from the maturity date through the date of
fulfillment of the obligation, twice of the RA Central Bank
Settlement rate of bank interest for the respective time periods.
In the event of delaying the regular payment timeframes for
more than 180 days, the Seller shall be entitled to dissolve the
Contract. The amounts paid by the Buyer before the moment of
dissolution of the agreement shall not be returned;
Երևանի ջերմատնային գոտու ծրագրի ներդրումների կատարման աջակցման մեխանիզմները
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The RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and Development velopment velopment velopment
of the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit district
b) violating the development timeframes, in which case a fine
shall be calculated against the Contract price per unit of the land
area not developed, from the maturity date through the date of
fulfillment of the obligation, twice of the RA Central Bank
Settlement rate of bank interest for the respective time periods.
In the event of delaying the development timeframes for more
than 180 days, the Seller shall be entitled to dissolve the Contract
for the land area not developed. The amounts paid by the Buyer
before the moment of dissolution of the agreement shall not be
returned.
Liabilty for violating other terms and conditions of the Contract
will be established by the Contract.
Transaction 3. Contracts to be Concluded Between the Program Management Company and the Transaction 3. Contracts to be Concluded Between the Program Management Company and the Transaction 3. Contracts to be Concluded Between the Program Management Company and the Transaction 3. Contracts to be Concluded Between the Program Management Company and the
Investors selected for the Implementation of the Investment ProgramInvestors selected for the Implementation of the Investment ProgramInvestors selected for the Implementation of the Investment ProgramInvestors selected for the Implementation of the Investment Program
Party – 1 Program Management Company
Party - 2 Investor selected for the implementation of the Invetsment Program
on the Construction and Development of Greenhouses in the vicinity
of Noragavit district of Yerevan (hereinafter referred to as Investor)
Subjec Enabling Party-1 and Party-2 to connect to thermal and electric
energy, water and gas supply, as well as water discharge
infrastructures.
Timeline for concluding
contracts
While concluding contracts on direct sale of land area(s) between
Yerevan Municipality and Party-2
Contract Price and
Timeframe
The price for the right to connect to the thermal and electric energy,
water and gas supply, as well as water discharge infrastructures per 1
Երևանի ջերմատնային գոտու ծրագրի ներդրումների կատարման աջակցման մեխանիզմները
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The RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and Development velopment velopment velopment
of the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit district
sq.m land area constitutes 2540 (two thousand five hundred forty)
Armenian Drams.
The contract price shall be paid by Party-2 during the process of
selecting investors in accordance with the timeframe suggested by
Party-2 within one year after concludong the contracts, but no later
than the first payment (in an amount equal to 45 %) within 10 days
after concluding the contract, the second payment (in an amount
equal to 45 %) withing 90 days after the deadline defined for the first
payment, the third payment (in an amount equal to 5%) within 120
days аfter the deadline defined for the second payment, and the forth
payment (in an amount equal to 5%) withing 130 days after the
deadline defined for the third payment.
Assignent of the rights to
use the infrastructures
under the contract
The right to connect to each of the thermal and electric energy, water
and gas supply, as well as water discharge infrastructures shall be
deemed assigned to Party-2 starting from the moment of connecting
to the respective infrastructures.
Liabilities of the parties Party-1 is obliged
1. to provide the land area(s) acquired from Party-2 with a point/
points to connect to thermal and electric energy, water and gas
supply, as well as water discharge infrastructures within seven
months after concluding a contract with investors. Based on the
deadline for obtaining the infrastructures’ building permits, the
timeframe defined in the present clause may be prolonged;
2. after building the thermal and electric energy, water and gas
supply, as well as water discharge infrastructures to conclude a
contract with Party-2 on using the infrastructues;
3. to provide Party-2 with the required capacites for the thermal and
Երևանի ջերմատնային գոտու ծրագրի ներդրումների կատարման աջակցման մեխանիզմները
24 | P a g e
The RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and Development velopment velopment velopment
of the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit district
electric energy, water and gas supply, as well as water discharge
infrastructures;
4. to organise the process of concluding appropriate contracts on
supplying the investors with thermal and electric energy, water and
gas.
Party-2 is responsible
1. for paying the contract price in complicance with the terms and
conditions of the contract;
2. for concluding a contract with Party-1 on using the infrastructures
for an appropriate fee, after completing the building of the thermal
and electric energy, water and gas supply, as well as water discharge
infrastructures.
Responsibility of the Parties The Parities, pursuant to the legislation of the Republic of Armenia,
shall bear responsibility for violating the terms and conditions of the
Contract.
Party-1 shall be responsible for violating the timeframe for building
the thermal and electric energy, water and gas supply, as well as
water discharge infrastructures, in this case penalty shall be imposed
in respect of the contract price from the maturity date till the date of
fulfillment of the liability, twice of the RA Central Bank Settlement
rate of bank interest for the respective time periods.
Party-2 shall bear responsibility for violating payment deadlines, in
which case fine shall be imposed for the amount subject to payment
but still not paid from the maturity date till the date of fulfillment of
the liability, twice of the RA Central Bank Settlement rate of bank
interest for the respective time periods.
The Contract may be cancelled only in case of cancellation of the
Երևանի ջերմատնային գոտու ծրագրի ներդրումների կատարման աջակցման մեխանիզմները
25 | P a g e
The RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and Development velopment velopment velopment
of the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit district
Contract concluded between Yerevan community and Party-2 on
direct sale of land area(s).
As to violation of other term and conditions of the Contract, liability
shall be imposed under the Contract.
Chief of Staff of the Government
of the Republic of Armenia D.Sargsyan
Երևանի ջերմատնային գոտու ծրագրի ներդրումների կատարման աջակցման մեխանիզմները
26 | P a g e
The RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and DeThe RA Government Decrees on the Investment Program on the Construction and Development velopment velopment velopment
of the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit districtof the Yerevan Greenhouse Zone in the Vicinity of Noragavit district