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The Government of Armenia has initiated the creation of free economic zone in Sothern Syunik region in the area bordering Iran. The business plan of the project was presented on Thursday at the Ministry of Economic Development and Investments, followed by Deputy Minister Hovhannes Azizyan’s press conference, highlighting the project expected output.

Aram Vardanyan, Head of the Investment Policy Department at the ministry estimated the total project cost at around $28 mln. with expected output at $52 mln. for the organizing company during the next 10 years.

According to estimates, over 10 years the free economic zone may attract some 100-120 companies with average annual exports at $80-100 mln. Target export destinations are considered Iran, Eurasian Economic Union, Middle East (UAE, Kuwait, Qatar, Oman, Iraq, Lebanon), Turkmenistan, etc.

“Some $350-400 mln. of investments are expected during the project period,” Vardanyan has noted.

Azizyan on his part stressed that the main goal of the free economic zone is to contribute to the export volume growth and creation of new workplaces, as well as ensure sustainable economic development through integrating foreign direct investments and introducing advanced technologies.

Cooperation opportunities with Iranian “Aras” Free Economic Zone, possible signing of Free Trade Agreement (temporary) of Eurasian Economic Union (EAEU) with Iran, the factor of the Armenian diaspora, Armenia’s favorable investment and businesses climate, North South Road Corridor connecting the southern border of the country with its northern point diverse trade regimes of Armenia: FTA with EAEU, CIS, GSP and GSP+ regimes with EU, Canada, Switzerland, Japan are listed as some of the privileges of the project.

The government of Armenia thus invites for cooperation potential organizers of free economic zone in Syunik marz, as well as express readiness to consider preliminary applications of potential operators. The relevant announcement and the detailed business plan are posted on the official website of the ministry.