program describtion

1

2

Investment Program on Greenhouse Construction and Development Investment Program on Greenhouse Construction and Development Investment Program on Greenhouse Construction and Development Investment Program on Greenhouse Construction and Development

in the Vicinity of Noragavit District of Yerevanin the Vicinity of Noragavit District of Yerevanin the Vicinity of Noragavit District of Yerevanin the Vicinity of Noragavit District of Yerevan





2012

2012

Երևանի ջերմատնային գոտու ծրագրի



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

different seasons drastic price changes are recorded in the market, and export volumes cover a

meagre per cent of the gross prod

The development and expansion of state

mitigating the seasonal fluctuations of crop production in Armenia, increasing the competitiveness

both in domestic and foreign markets, as well as for reduci

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. A

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.

The investment program on greenhouse construction and developm

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.

PreficePreficePreficePrefice

ծրագրի ներդրումների կատարման աջակցմանInvestment Program on Greenhouse Construction and Development Investment Program on Greenhouse Construction and Development Investment Program on Greenhouse Construction and Development Investment Program on Greenhouse Construction and Development




, crop production in Armenia is highly seasonal in nature, as a result of which, during


meagre per cent of the gross production.

The development and expansion of state-of-the-art greenhouses is an effective measure for


domestic and foreign markets, as well as for reducing the import volumes of crop



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. A



The investment program on greenhouse construction and developm



ogistic facilities in the vicinity of Noragavit district of Yerevan in

accordance with the most modern technology requirements.

աջակցման մեխանիզմները

2 | P a g e




nature, as a result of which, during


art greenhouses is an effective measure for


ng the import volumes of crop



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



The investment program on greenhouse construction and development in the vicinity of



ogistic facilities in the vicinity of Noragavit district of Yerevan in




The aforementioned selection of the zone is conditioned by the availability of ground area

and opportunity to use the Yerevan T

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 leve

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

implementation of the program will enable the large and small enterprises to combine year

crop production and ensure the sufficient amount of products for export.

opportunity to improve the product

products in the domestic market and the comparative stability of prices. On top of that, the

further greenhouse development will significantly mitigate the existing agricultural risks

associated with weather changes.




and opportunity to use the Yerevan TPP resources for centralized heat supply.



attracting investments, raising the level of food security and poverty reduction.



oped in accordance with the climate data in the vicinity of Noragavit


While developing the program, the comparative advantages of Armenia, such as the



Through introducing the most modern technologies for greenhouse construction, the

implementation of the program will enable the large and small enterprises to combine year

crop production and ensure the sufficient amount of products for export.

opportunity to improve the productivity of crop production, ensure the availability of the



weather changes.


3 | P a g e



PP resources for centralized heat supply.



l of food security and poverty reduction.



oped in accordance with the climate data in the vicinity of Noragavit


While developing the program, the comparative advantages of Armenia, such as the



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

ivity of crop production, ensure the availability of the






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

implementation, the Program Manager will

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,

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

constructed in the 70ha of land area adjacent to the Yerevan TPP.

On the assumption of the international experience in the area of greenhouse construction,

the minimal economically optimal size of the greenhouses i

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

Program DescriptionProgram DescriptionProgram DescriptionProgram Description





Construction and Development in the Vicinity of Noragavit District of Yerevan.

implementation, the Program Manager will organize the investors’ selection, conclusion of


infrastructure for thermal and electric energy, water, gas supply and water


infrastructures and will bear the responsibility for the program implementation


maintenance facilities /cold storage, processing, sorting, packaging

facilities, etc./in the land area adjacent to Noragavit District of Yerevan,

modern technology requirements.

art greenhouses are at least 4 m high glass or polycarbonate steel frame


dern automatic electric and computer climate control systems, as well as with their


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.


the minimal economically optimal size of the greenhouses is 4 ha together with the area for




4 | P a g e




Vicinity of Noragavit District of Yerevan. For the project

the investors’ selection, conclusion of


infrastructure for thermal and electric energy, water, gas supply and water


infrastructures and will bear the responsibility for the program implementation.


maintenance facilities /cold storage, processing, sorting, packaging

facilities, etc./in the land area adjacent to Noragavit District of Yerevan, which will meet the

art greenhouses are at least 4 m high glass or polycarbonate steel frame


dern automatic electric and computer climate control systems, as well as with their


three years 50 ha of greenhouses will be


s 4 ha together with the area for






10-12 ha land plot is more efficient.

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

opportunity to obtain one or more land plots.

Planning the layout of the greenhouse is car

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.

Program Manager, recruited on the basis of competition, which the Yerevan Municipality

will organize, will manage the implementation of the investment program on Greenhouse

Construction and Development in the Vicinity of Noragavit Distric

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 plo

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 throu

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

term of one year.



12 ha land plot is more efficient. It will give the opportunity to cut back on the required



ties 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



the greenhouses.



Construction and Development in the Vicinity of Noragavit District of Yerevan.



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.



investors such as alienation of land plots to the investors through installment sale, providing them


water discharge, can be the key to the program success.

Investors will have the opportunity to obtain the land areas through


5 | P a g e


It will give the opportunity to cut back on the required



ties as well as those to be constructed, we anticipate dividing the

11 ha of land plots. The investors will have the

ried out in a way which will allow secluding





t of Yerevan.



ts. The respective land plots



gh installment sale, providing them


Investors will have the opportunity to obtain the land areas through installment sale for a




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 solu

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

most part of the thermal energy gen

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.

decrease; and the level of profitability and the product competitiveness will increase.

aforementioned factors will positively influence on the price of the investments’ payback period

also.

The estimated investment volume of the program will be about 3

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 realizati

employed at the greenhouses (15-





mplementation of the program, (taking into account the opportunity to


to 80 % government guarantee of the land area(s)’s market value.

to construct a centralized system of thermal and electric energy,





investors to avoid rather sophisticated, time and resource consuming solutions for electric power,


main supply infrastructure for the greenhouse zone will allow the investors to

most part of the thermal energy generation cost. Meanwhile, the use of the TPP's thermal energy


will benefit from more affordable supply, on the other. Consequently, the product cost price will

profitability and the product competitiveness will increase.


The estimated investment volume of the program will be about 35


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

-20 workplaces per 1 ha of greenhouse).


6 | P a g e




mplementation of the program, (taking into account the opportunity to


to construct a centralized system of thermal and electric energy,





tions for electric power,


main supply infrastructure for the greenhouse zone will allow the investors to compensate the

Meanwhile, the use of the TPP's thermal energy


Consequently, the product cost price will

profitability and the product competitiveness will increase. The


5-40 billion Armenian


2000 new workplaces will be created for the whole value chain,

1000 of the employees will be




Based on the practical results of the constructed greenhouses and on the availability of the

required resources, we’ll discuss

greenhouses in the area of approximately 86 ha in the above mentioned zone for the second phase

of the program.

We anticipate implementing the

timeline is entitled to change based on the investors selection deadline

period approximately 50ha of greenhouses

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 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 payme

greenhouses in compliance with the investment program requirements;

3. Alienation of separate land plots to the selected investors through direct installment sal

based on the cadastral value.

not entitled to be alienated

be applied in order that the investors could

The Main Program Implementation ArrangementsThe Main Program Implementation ArrangementsThe Main Program Implementation ArrangementsThe Main Program Implementation Arrangements




required resources, we’ll discuss the feasibility and expediency to construct 65 more ha of


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

of greenhouses with their supporting operation and maintenance



The Yerevan Municipality will ensure that the actual land users vacate 15

the vicinity of Noragavit district of Yerevan;

Organisation of the investors’ selection process for the program implementation by the

Program Manager. Preference will be given to the investors who

in more land plots,

will offer the shortest payment deadlines for the right to use the centralized system


as well as for land alienation,

will offer the shortest payment deadlines for the construction of state


Alienation of separate land plots to the selected investors through direct installment sal

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

in order that the investors could purposefully use the obtained land plots;

The Main Program Implementation ArrangementsThe Main Program Implementation ArrangementsThe Main Program Implementation ArrangementsThe Main Program Implementation Arrangements


7 | P a g e



the feasibility and expediency to construct 65 more ha of


The investment program

During the mentioned

with their supporting operation and maintenance



the actual land users vacate 156 ha land area in

Organisation of the investors’ selection process for the program implementation by the

will offer the shortest payment deadlines for the right to use the centralized system


nt deadlines for the construction of state-of-the-art


Alienation of separate land plots to the selected investors through direct installment sale,

ections which are overloaded with water mains, are

perpetual easement will

purposefully use the obtained land plots;




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

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

preparation of the design

construction by the Program Manager;

7. Construction of the roads and centralized system infrastructures

energy, water and gas supply

investors with land plots with their points to connect

Manager;

8. Imposing liability on the Program Manager in case of default on ensuring the construction

of the centralized system infrastructures

supply to the greenhouses

land plots with the points to connect

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

Electric capacity:

Thermal energy consumption: 89 Gcal/h

Gas consumption:



Imposing liability for a breach of payment in installment and construction prescribed in

on the direct sale of the land plot;

Land site leveling, greenhouses construction on minimum 75% of the land (at


Obtaining permission to construct roads and the centralized system infrastructures for the

greenhouses thermal and electric energy, gas, water supply and water

preparation of the design-calculation documents package for the infrastructures

construction by the Program Manager;

roads and centralized system infrastructures for thermal and electric

gas supply to the greenhouses , water discharge, as well as providing the

investors with land plots with their points to connect to the infrastructures

Imposing liability on the Program Manager in case of default on ensuring the construction

ntralized system infrastructures for thermal and electric energy

greenhouses, water discharge, as well as providing the investors with

land plots with the points to connect to the infrastructures;

Providing the Program Manager with free perpetual easement over the land area


electric energy, gas, and water supply, as well as water discharge.

on of the contract terms concluded with the investors.

Managing the mainenance of the centralized system infrastructure for thermal and electric


Estimated energy requirements for the greenhouses:

30 MW/h

Thermal energy consumption: 89 Gcal/h

Gas consumption: 16000 m³/h.


8 | P a g e


Imposing liability for a breach of payment in installment and construction prescribed in

Land site leveling, greenhouses construction on minimum 75% of the land (at least 1ha in


Obtaining permission to construct roads and the centralized system infrastructures for the

greenhouses thermal and electric energy, gas, water supply and water discharge;

calculation documents package for the infrastructures

for thermal and electric

as well as providing the

the infrastructures by the Program

Imposing liability on the Program Manager in case of default on ensuring the construction

for thermal and electric energy, water and gas

as well as providing the investors with their

Providing the Program Manager with free perpetual easement over the land area


on of the contract terms concluded with the investors.

Managing the mainenance of the centralized system infrastructure for thermal and electric





1. Attracting large-scale investments in the Armenian

investment volume under the program will constitute 35

2. Proper use of land areas in the vicinity of Noragavit district of Yerevan;

3. Development of state-of-the

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

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.

Anticipated Program OutcomesAnticipated Program OutcomesAnticipated Program OutcomesAnticipated Program Outcomes



scale investments in the Armenian agriculture sector (the overall

investment volume under the program will constitute 35-40 billion AMD);

Proper use of land areas in the vicinity of Noragavit district of Yerevan;

the-art greenhouses and import of the most modern t

hows in Armenia;

Promotion of the development of crop production and realization value chain,


of the greenhouses to be constructed will make 30 000-40 000 tons), as well as improvement of

Mitigation of the seasonal price changes of crop products in the domestic market;

Considerably decrease in import volumes along with the increase in crop production

Ensuring additional community budget receipts from the cost of the land to be alienated

and, later on, from property and land tax;

Setting preconditions for the development of similar zones in the other regions of the


9 | P a g e


agriculture sector (the overall

40 billion AMD);

Proper use of land areas in the vicinity of Noragavit district of Yerevan;

art greenhouses and import of the most modern technologies

Promotion of the development of crop production and realization value chain,


40 000 tons), as well as improvement of

Mitigation of the seasonal price changes of crop products in the domestic market;

Considerably decrease in import volumes along with the increase in crop production

Ensuring additional community budget receipts from the cost of the land to be alienated

Setting preconditions for the development of similar zones in the other regions of the




1




10 | P a g e


program describtion

Documents