LINCY FOUNDATION SUPPORTS ARMENIA

[MosJan]

LINCY FOUNDATION SUPPORTS ARMENIA

Kirk Kerkorian, a US billionaire of Armenian origin sent tens of millions of US dollars to Armenia as humanitarian aid from 1988 earthquake until 1998. He was one of the first to respond to 1988 destructive Spitak earthquake that claimed about 25,000 lives. But the highlight of his aid was in 1998 when he pledged $100 million in low-interest loans to the Armenian businessmen, funding infrastructure projects and offering credit guarantees for foreign investors who are taking interest in Armenian economy.

 

 

In 1998 Kerkorian made and unexpected visit to Armenia, following which the sum rose to $165 million, virtually as much as half of Armenia’s annual budget. The supervision over how the provided loans are utilized is carried out by the chief of president Kocharian’s staff Artashes Toumanian.

 

 

Speaking to a Tuesday news conference Artashes Toumanian said a three–year plan of cooperation between the Armenian government and Kerkorian’s Lincy Foundation is being successfully implemented.

 

 

The $165 million sum is divided into two major components, $45million worth loans and $90 million worth grants. Mr. Toumanian said $21 million of $45 million have already been borrowed by local businessmen. He then focused on the second component. A considerable part of Lincy grant-$38 million will go for improvement of roads across Armenia, $15 million will go for construction of new apartments in the earthquake zone. Yet another $10 million is earmarked for restoration of culture objects, $7 million is projected for improvement of roads in the capital and $20 million for development of tourism infrastructure.

 

 

The scheme supposes improvement of 300-km long roads of republican importance and completion of a mountain pass tunnel, connecting Sevan with the resort town of Dilijan. This program is supposed to be over in 2003 November. Some 5,000 people will be hired to do the work.

 

 

The earthquake zone restoration scheme will give new apartments to about 1,900 homeless families. The culture scheme will involve several theatre buildings and museums in the capital. The tourism plan has not yet been ratified. The entire program is expected to create around 9,000 new jobs.

 

 

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