Elections and Water Code Revisions

The government of Armenia is inaugurating a new president on Wednesday, April 9, at 2 in the afternoon. Large crowds are expected in the downtown area in connection with the official events, which will include a military procession through Freedom Square and evening festivities at Republic Square.

It is not expected that much dramatic change will occur in Armenia with the inauguration. However, the Presidential election process, has substantially delayed our efforts to complete the revisions to the water code and place it before the legislative assembly for adoption.

In addition to the process delay, the State Committee has “filibustered” revisions to the water code involving sections of the water code related to dam inspection and safety, the transfer of the water system use permit, and the authorities of the Public Services Regulatory Commission (PSRC) as to the issuance of the water system use permit (WSUP). The WSUP permit is issued in Armenia to those operators who hold management or lease contracts with the State Committee acting through a joint stock company for operations of the water system. In most cases, the joint stock ownership is 51% to the State Committee and 49% to the local government “owning” the water system facilities.

Thus, the State Committee does not want revisions to the Water Code that would make it “beholding” in the sense of WSUP requirements or conditions for system inspections, control of tariff setting (and therefore “income” to the Operator), or other regulatory controls necessary to protect the public that the PSRC would hold if the water code revisions were adopted. If the State Committee continues to “filibuster” these changes, a ministry level committee is in charge of resolving any remaining issues to the revisions. This committee is scheduled to meet April 18th.

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