Public-Private Partnership

Protocol Decree No. 15
of the Session of the Government of the Republic of Armenia dated 13 April, 2017


Memorandum of Understanding between the Government of the Republic of Armenia and “Investors Club of Armenia” Closed-End Contractual Nonpublic Investment Fund on Implementation of Strategic Programmes


The Government of the Republic of Armenia (hereinafter referred to as the “Government”) and “Investors Club of Armenia” closed-end contractual nonpublic investment fund (hereinafter referred to as the “Fund”) together hereinafter referred to as the “Parties”,

Bearing in mind that the Government is determined to implement ‘Open Doors’ investment policy aimed at continuous improvement of the investment and business environment of the country; enhancing transparency in regulations; promoting competitive advantages of the country; increasing the volume of foreign direct investments in Armenia, and ensuring sustainable development of market, industrial, scientific and technological infrastructures and human capital;

Emphasizing that one of the Government’s priorities is to promote foreign direct investments and to implement strategic projects directed at increasing competitiveness of the Armenian economy, particularly the competitiveness of the sectors and infrastructures of strategic importance and of those ensuring breakthrough progress, as well as actions that ensure sustainable economic growth through implementation of investment projects with tangible added value and potential for creating new jobs and ensuring increase of the living standards;

Bearing in mind that the Government has committed to promote development of energy infrastructures through forming additional renewable energy sources; to improve the energy security of the country; to mitigate environmental impacts; to contribute to the development of information and communication technologies and to improve the quality of tourist services and infrastructures;

Recognising that the Fund is a contractual investment fund, which applies global standards, systems and procedures to ensure transparent and reliable corporate management and containment of risks, thus creating an opportunity for consolidating large-scale private investments that can be directed towards the development of the sectors that have strategic importance for the economy of the country, such as the energy sector, including generation of renewable energy and energy infrastructures; tourist infrastructures; mining industry and information and communication technologies;

Bearing in mind that the Parties agree on the necessity of more effective use of human and structural resources of the Armenian Diaspora, and on the need to integrate its potential within the international investment platforms more productively, and in promoting investments, attracting transnational corporations and developing human capital;

Taking into due account the premise that effective implementation of projects that have strategic importance for the economy of the country is possible only through public-private partnership, specifically when it aims at introducing financial mechanisms, improving governance systems, expanding production capacities, developing economy’s production potential, and promoting technological progress and foreign investments;

Bearing in mind that the Parties agree on the necessity of engaging inclusive investments, developing and implementing projects, and forming new platforms of cooperation and development through public-private partnership in order to ensure economic growth and development;

Taking due account of the importance of creating a favourable environment for public-private partnership, promoting engagement of the private sector in infrastructures; developing transparent, predictable, reliable and conducive business environment; deepening public-private partnership; and expanding its sectoral and functional scope in the result of cooperation between the Government and the Fund;

The Parties have decided to conclude the following Memorandum of Understanding (hereinafter referred to as the “MoU”):

Article 1. Objectives

1.1. The Parties shall cooperate towards developing and deepening public-private partnership in Armenia further.

1.2. The Parties shall jointly endeavour to attract foreign direct investments for infrastructural and other large-scale projects implemented by the Government; to create favourable environment for public-private partnership; and to select the best formats of public-private partnership for ensuring balanced and sustainable economic development.

Article 2. Key Directions of Cooperation

2.1. The Parties agree to cooperate and join their efforts for implementation of strategic projects that aim at promoting

2.2. The parties agree to

2.2.1. jointly develop and implement public-private partnership projects in the mentioned sectors, to ensure proper implementation of the expected outcomes and to outline the best possible approaches and roadmaps to achieve these outcomes;

2.2.2. contribute to improving energy security and to deepening regional cooperation through using domestic sources of renewable energy and implementing projects aimed at increasing the reliability of energy sector;

2.2.3. contribute to sustainable, equal and environmentally friendly development of communities through implementing solid waste management and recycling projects;

2.2.4. contribute to creating sustainable tourist infrastructures; developing tourism regions; and promoting competitiveness of tourist services in order to ensure continuous tourist flows and regional development;

2.2.5. contribute to development of potential in the mining industry, emphasizing quality assurance in processing of mining products, and creation of infrastructures and relevant pool of skills necessary to provide for the initial points of consumption chain;

2.2.6. contribute to increasing the volume of private sector engagement by implementing projects in export-oriented industries, trade, logistics and infrastructure development, especially when these projects demonstrate export potential, scalability and multiplicative effect of inciting creation of adjacent businesses, all of which can have a transformative impact on the economy;

2.2.7. contribute to improving the investment and business environment; increasing the investment ranking of the country; developing a viable culture of marketing and information access; strengthening the image of the country as attractive for investment; and ensuring a high level of awareness on strategic projects being implemented in targeted sectors and relevant implementation models among foreign investors;

2.2.8. contribute to developing relations and networks among Armenian and foreign companies, experts and investors; enhancing exchange and study of experiences; and promoting education and professional development of relevant specialists;

2.2.9. provide foreign investors with relevant information on investment and business environments in the mentioned sectors, potential advantages and opportunities, as well as legal advice and information on legal, structural and organizational aspects of investments;

2.2.10. consult regarding project development, planning, investment, implementation and monitoring.

Article 3. Implementation of MoU

The Parties agree on the following basic principles:

3.1. The Fund shall be responsible for researching target sectors and attracting investment for implementation of strategic projects.

3.2. The Fund shall be responsible for identifying risks and restrictions regarding investments and for presenting those to the Government for further discussion.

3.3. For implementation of specific projects, the Parties can sign co-funding or grant agreements, which will specify action-related expenses and financing mechanisms.

3.4. For implementation of specific projects, the Parties can discuss the formats and mechanisms of jointly engaging financial and technical support from international financial institutions.

Article 4. Consulting and Exchanging Information

4.1. The Fund and the Government can consult on issues of mutual interest and on progress and outcomes of projects, which, according to the Parties, are critical for effective implementation of the projects.

4.2. Strategic priorities may be redefined in the result of regular consultations, ensuring that the framework of cooperation is in compliance with the development strategy adopted by the Government.

4.3. The Parties agree that in some cases consultancy and exchange of information and documents can be confidential and/or of restricted access. In such cases, the Parties agree to consult and exchange information and documents in a format which will guarantee confidentiality of and restricted access to relevant information and documents.

4.4. The Parties agree to hold meetings and discussions in order to revise the process of implementing actions under this MoU and to plan future actions.

Article 5. Term of MoU, Termination and Amendment  

5.1. This MoU shall remain in force for a period of five years.

5.2. This MoU shall be amended only by mutual written consent of the Parties.

5.3. This MoU can be terminated by either of the Parties on giving a two months’ notice in writing to the other Party.

5.4. Beyond the expiration of the term of this MoU, it can be extended further by written agreement of the Parties.

5.5. Upon termination of this MoU any co-funding or partnership agreements and project documents signed within the framework of the MoU may also be dissolved according to termination provisions of these agreements. In such cases, the Parties shall be obliged to undertake all the necessary actions to ensure that actions under the co-funding and grant agreements, as well as project documents signed within the framework of this MoU, are brought to conclusion adequately.

Article 6. Entry into Effect

6.1. This MOU will come into effect on the date of signature by the Parties.

Article 7. Other Issues

7.1. This MoU is signed in Yerevan on May 2, 2017 in two copies, both in Armenian.

This MoU is non-binding and is not intended to create any legally enforceable rights or obligations in respect of either Party.


For Government of the Republic
of Armenia

For Investors Club of Armenia

Suren Karayan
Minister of Economic Development and Investments

Paruyr Amirjanyan
CEO, “Fora Capital” LLC,
the Managing Company of the “Investors Club of Armenia”
closed-end contractual nonpublic investment fund

info_outline In case of any inconsistencies between the published Armenian, Russian and English information, the Armenian version prevails.
Updated: 10/11/2017 17:42