GOVERNMENT OF THE REPUBLIC OF ARMENIA

DECISION

No 1612-L of 14 November 2019

ON APPROVING THE PROGRAMME FOR SUPPORTING THE INTRODUCTION OF SMALL AND MEDIUM-SIZED GREENHOUSE FACILITIES

(title amended by No 1165-L of 28 July 2022)

Based on Article 146 of the Constitution of the Republic of Armenia and point 2 of the Annex approved by Decision of the Government of the Republic of Armenia No 667-L of 8 June 2018, the Government of the Republic of Armenia hereby decides:

To approve the Programme for supporting the introduction of small and medium-sized greenhouse facilities, according to the Annex.

(Decision amended by No 1165-L of 28 July 2022)

Prime Minister of the Republic of Armenia	N. Pashinyan
18 November 2019 Yerevan

Annex to Decision of the Government of the Republic of Armenia No 1612-L of 14 November 2019

PROGRAMME

FOR SUPPORTING THE INTRODUCTION OF SMALL AND MEDIUM-SIZED GREENHOUSE FACILITIES

(title amended by No 1165-L of 28 July 2022)

TABLE OF CONTENT

INTRODUCTION.............................................................................................................................................3

1. DESCRIPTION OF THE CURRENT SITUATION AND GENERAL INFORMATION ON SMALL AND MEDIUM-SIZED GREENHOUSE FACILITIES IN THE REPUBLIC OF ARMENIA.................................................................... 4

2. NEED FOR IMPLEMENTATION OF THE PROGRAMME.............................................................................. 7

3. MAIN GOAL AND OBJECTIVES OF THE PROGRAMME.............................................................................. 9

4. PROGRAMME DESCRIPTION....................................................................................................................10

5. PROGRAMME MONITORING....................................................................................................................18

6. PROGRAMME RISKS................................................................................................................................ 18

7. FINANCIAL EVALUATION OF THE PROGRAMME.................................................................................... 19

8. OUTCOMES EXPECTED FROM IMPLEMENTATION OF THE PROGRAMME............................................. 20

INTRODUCTION

1. Agriculture is the sector ensuring food security and safety in every country and one of the key sectors of economy in the Republic of Armenia. In recent years it has accounted for about 15 % of the GDP of the country, with branch of crop production contributing to about half, i.e. 50% of the gross agriculture product of the Republic.

2. One of the key directions of the state policy in agrarian field is creating conditions for more effective use of existing resource potential. With this regard, the development of hothouse and greenhouse economy is considered to be justified given the subsistence agriculture conditions in our Republic, which was reflected in benchmark programme documents of the sector.

3. The Programme for supporting the introduction of small and medium-sized greenhouse facilities (hereinafter referred to as the "Programme") is aimed at promoting the construction of small and medium-sized greenhouses with modern standards, which will provide the opportunity to raise the level of competitiveness of greenhouse facility product, will contribute to increasing incomes of the economic entities operating in the sector of agriculture. To achieve this goal, the economic entities will be provided assistance through partial compensation of expenses.

(point 3 amended by No 1165-L of 28 July 2022)

4. The Programme envisages constructing greenhouse facilities with modern standards with the total area of about 35.0 ha and increasing the greenhouse production volume by 3600 tonnes per year during the upcoming three years.

1. DESCRIPTION OF THE CURRENT SITUATION AND GENERAL INFORMATION ON SMALL AND MEDIUM-SIZED GREENHOUSE FACILITIES IN THE REPUBLIC OF ARMENIA

5. Hothouses and greenhouses are used for all-year round supply of fresh and high quality vegetables to the market. These are artificial systems constructed for cultivation of plants, which protect the plants from drastic changes of climate conditions, plant diseases and pests, ensuring high yield.

6. According to the data from the Statistical Committee of the Republic of Armenia (hereafter referred to as the "Committee") the gross harvest of vegetable crops in 2018 made up 628.2 thousand tonnes, which includes 68.2 thousand tonnes of vegetables crop harvest collected from hothouses and greenhouses spanning an area of 926 ha.

7. According to the collected updated information from 2019, there are greenhouses covering an area of 1300 ha in operation in the Republic of Armenia, of which the area of greenhouses cultivated with new technologies makes up about 177.0 ha. Currently, greenhouses with new technologies with a total area of 26.0 are in the process of construction.

8. The price of vegetables produced in hothouse and greenhouse facilities is impacted by the production of small farms sold in the domestic market, the cost price whereof is comparatively high, and if there is a demand, the prices rise significantly towards the end of the year. Promotion of development of greenhouse facilities will contribute to reduction of vegetable prices and stability, conditioned by seasonal factor. Fluctuations in prices for certain vegetables are presented in Chart 1.

Tomato cucumber pepper eggplant

Chart 1. Monthly changes in average retail prices for certain types of vegetables for 2018

9. The local experience shows that the crop yield per square meter of greenhouses applying traditional technologies fluctuates within the range of 8-20 kg, depending on the crop, and when modern technologies are applied, the crop yield reaches 40-60 kg.

10. Establishing greenhouse facilities with higher levels of effectiveness, requires financial investments, access to developed infrastructures, the application of modern technologies, sector-specific knowledge.

11. A number of state support programmes are currently being implemented in the sector of agriculture, which offer opportunities for economic entities operating in agriculture to benefit from establishing and technologically equipping greenhouse facilities, in particular:

(1) to enhance access to loans for economic entities in agriculture, a programme for subsidisation of interest rates of loans extended to the sector of agriculture is implemented, under which economic entities are extended loans of AMD 3-15 million with a repayment period of 5 years (taking into consideration the investment trends) with subsidised annual interest rate of 0 or 5 percent (instead of the effective interest rate of 12 percent).

(2) Under the Program on “State assistance for leasing financial lending of agri-food equipment in the Republic of Armenia”, economic entities operating in the field of agri-food, including those acquiring equipment for greenhouses are provided with leasing of up to AMD 450.0 million, provided they make a down payment in the amount of 20 percent, with a repayment period of 8 years, annual interest rate of 0 or 4 percent (instead of the effective interest rate of 11 percent).

12. Certain privileges are stipulated by laws of the Republic of Armenia contributing to establishment and development of greenhouse facilities, in particular:

(1) according to Article 64 of the Tax Code of the Republic of Armenia, alienation of means used in greenhouse facilities (CN FEA 0106 41 000, 0106 90 00 90, 5305 00 000 0) and hothouses classified under CN FEA 9406 00 310 0 CN FEA are exempt from value added tax (hereinafter referred to as "VAT");

(2) according to the Law of the Republic of Armenia "On approving the list of goods imported by organisations and individual entrepreneurs, not subject to taxation under excise tax, and the import whereof is exempt from value added tax", the import of means used in greenhouse facilities (CN FEA0106 41 000, 0106 90 00 90, 5305 00 000 0) and hothouses classified under CN FEA 9406 00 310 0 CN FEA is exempt from VAT;

2. NEED FOR IMPLEMENTATION OF THE PROGRAMME

13. The main issues related to hothouse and greenhouse facilities are the mitigation of effects of the seasonal nature of production of vegetables (production of vegetables during the months of the year, when field cultivation is not practice), contributing to growth of heat loving vegetables both in northern and mountainous regions, ensuring growing of seedlings for field cultivation.

14. Greenhouse facilities provide the economic entities with the opportunity to receive stable and guaranteed high harvest from a unit area all-year-round with minimal risk associated with nature and climate-related factors. Establishment and development of greenhouse facilities with modern technologies are considered as best practices.

15. In the international practice, the countries having developed greenhouse facilities include: China, Netherlands, Japan, Turkey, Spain. Let us consider the experience of several countries that Armenia is interested in from the perspective of international practice:

(1) Netherlands is a country with a small territory, where the climate is oceanic, the winds and rains are frequent. Here the structure of the greenhouses has been gradually modernised. Currently the most popular greenhouses are built with galvanized metal, glass, which guarantees 90 percent of light transmission. The greenhouses have a height of 5 meters and more, depending on the crop, they have systems of heating, cooling, irrigation, fertilisation, lighting that employ modern solutions, new methods of crop cultivation;

(2) Israel is considered as a country exporting agricultural products worldwide, despite the fact that the necessary conditions are not favourable. In particular, the climate is dry, most part of the territory is desert, only 20 percent of the soil types are of agriculture significance, there are issues related to water resources. The construction of greenhouses was a solution; currently the area of operational greenhouses exceeds 3 thousand hectares. In Israel, farmers receive an average harvest of 200-300 tonnes per hectare from greenhouse facilities, which is four times higher than the harvest received from field cultivation.

(3) The Ministry of Agriculture of the Russian Federation is implementing state support programmes aimed at cultivation of vegetable crops in hothouse and greenhouse facilities. As a result of implementation of the Programme it is expected that the area of greenhouse facilities will increase in 2020, reaching from 1.89 thousand ha to 3.4 thousand ha. For comparison it should be noted that China has an area of hothouse and greenhouse facilities making up about 82 thousand ha, Spain an area making up 52 thousand ha, Japan - 44 thousand ha, Turkey - 40 thousand ha, the Netherlands - 10 thousand ha.

16. Due to implementation of targeted programmes and consistent work, the greenhouse facilities may become one of the key directions of the agriculture of the country, ensuring high added value, having significant share in local and foreign commodity turnover.

17. Currently, there are all the prerequisites for expanding and developing greenhouses in the Republic:

(1) Favourable nature and climate conditions with an abundance of 300 and more sunny days per year, which provides an opportunity for organising year-round production of fruits and vegetables without using expensive lighting systems;

(2) availability of saline and untreated soil types;

(3) comparatively mild winter climate (except for northern regions), resulting in reduced heating expenses;

(4) availability of wide export markets, including EAEU countries, Middle East, Georgia, etc. Moreover, export to EAEU countries is exempt from customs duties and the export process itself follows a more simplified procedure;

(5) positive local experience proving the efficiency of organising production in greenhouse conditions.

18. The introduction of proposed small and medium-sized greenhouse facilities will trigger the farms to shift from low-value to high-value agriculture, suggesting that it will meet modern technological requirements.

3. MAIN GOAL AND OBJECTIVES OF THE PROGRAMME

19. The main goal of the Programme is to expand the area of greenhouse facilities and the volume of production of products, enhance the level of competitiveness of the production of products, promoting increased incomes for economic entities operating in agriculture, through state support to construction of small and medium-sized greenhouse facilities and technological support thereto.

20. To achieve the said goal, the following issues should be resolved:

(1) proposing standards for small and medium-sized greenhouse facilities with modern technological solutions;

(2) proposing affordable options for small and medium-sized greenhouse facilities and technological support thereto;

(3) availability of investments necessary for construction of greenhouse facilities and proposing a mechanism for compensation of construction expenses;

(4) assessing potential risks of implementation of the Programme and developing actions aimed at mitigation thereof.

4. PROGRAMME DESCRIPTION

21. For introduction of small and medium-sized greenhouse facilities, the construction of filmed tunnel greenhouse facilities with production area of 300-600 square meters with enriched soil mass or hydroponic methods and single span (single roof) or multi span (multi roof) greenhouse facilities with a production area of 800-3000 square meters are encouraged to be constructed. For this, 3 models of construction of greenhouse facilities and technological support thereof are recommended, the technical specifications whereof are given in Tables No 2 and 3, and the indicative cost estimates were calculated in order to formulate the budget in average prices (enlarged calculations of the necessary financial investments are given in Table 4).

(1) 1st model: a single-layer or double-layer polyethylene film tunnel greenhouse with a production area of 300-600 square meters, with enriched soil mass, costs for the construction and technological support whereof are estimated at AMD 11850 per square meter.

(2) 2nd model: a polyethylene film single span or multi span greenhouse with production area of 800-3000 square meters, enriched soil mass, costs for the construction and technological support whereof are estimated at AMD 24550 per square meter.

(3) 3rd model: a polyethylene film single span or multi span greenhouse with production area of 800-3000 square meters cultivated with hydroponic method, costs for the construction and technological support whereof are estimated at AMD 30000 per square meter.

(point 21 supplemented by No 23-L of 14 January 2021)

22. Participants of the Programme are the economic entities operating in the sector of agriculture (natural and legal persons, individual entrepreneurs) higher and vocational education institutions of agrarian field and organisations holding a licence to carry out construction (hereinafter referred to as the "Contractor"), meeting the requirements established by the Programme.

23. Compensation shall be provided for construction of greenhouse facilities and technological support thereof, as outlined in point 21 of the Programme, in the following amounts:

(1) AMD 4 000 per 1 square meter - for the model set forth in sub-point 1 of point 21, and AMD 6000 per 1 square meter - for the citizens having become disabled as a result of combat duty or operations during the performance of military service duties, for economic entities in bordering settlements receiving social assistance, agricultural cooperatives, young people engaged in economic activities in the sector of agriculture (aged 18-35), higher and secondary vocational education institutions, and scientific and production organisations approved by Decision of the Government of the Republic of Armenia No 1444-N of 18 December 2014;

(2) AMD 8 000 per 1 square meter - for the model set forth in sub-point 2 of point 21, and AMD 12 000 per 1 square meter - for the citizens having become disabled as a result of combat duty or operations during the performance of military service duties, for economic entities in bordering settlements receiving social assistance, agricultural cooperatives, young people engaged in economic activities in the sector of agriculture (aged 18-35), higher and secondary vocational education institutions and scientific and production organisations approved by Decision of the Government of the Republic of Armenia No 1444-N of 18 December 2014;

(3) AMD 10 000 per 1 square meter - for the model set forth in sub-point 3 of point 21, and AMD 15 000 per 1 square meter - for the citizens having become disabled as a result of combat duty or operations during the performance of military service duties, for economic entities in bordering settlements receiving social assistance, agricultural cooperatives, young people engaged in economic activities in the sector of agriculture (aged 18-35), higher and secondary vocational education institutions and scientific and production organisations approved by Decision of the Government of the Republic of Armenia No 1444-N of 18 December 2014.

24. Within the Programme:

(1) in the case of construction by an economic entity of a greenhouse facility with the maximum area referred to in sub-point 1 of point 21 of this Programme, it is considered acceptable to have a deviation (excess) of up to ten percent from the maximum area set, depending on the peculiarities of the greenhouse facility structures;

(2) construction of a greenhouse facility by the economic entity with a production area exceeding the maximum area set in sub-points 2 and 3 of point 21 of this Programme shall be acceptable;

(3) expenses necessary for construction and technological support of an area exceeding the maximum area of models referred to in sub-points 1 and 2 of this point, as well as for acquiring means for enrichment of soil mass, substrates, planting materials, fertilizers, plant protection means, incurred by an economic entity, cultivation and other necessary expenses are not included in the calculation and are not subject to compensation.

(point 24 edited by No 23-L of 14 January 2021, No 1176-L of 22 July 2021)

25. The Programme beneficiaries may also qualify as beneficiaries for other state support programmes being implemented in the sector of agriculture. Within the framework of the Programme, each beneficiary shall be provided support for construction of one greenhouse consistent with the dimensions of models indicated in point 21, except for the model referred to in sub-point 1 of point 21, where the economic entity may construct not more than two greenhouses, with a total area not exceeding 800 square meters, on the same land plot, within the dimensions established for the model. Each economic entity may participate in the Programme only once, except for the case of construction of two greenhouses not exceeding a total area of 800 square meters, on the same land plot prescribed by this point, whereby the economic entity may apply for the Programme once or twice (the economic entity may apply for construction of each greenhouse separately, or construct two greenhouses applying for the Programme once).

(point 25 edited by No 23-L of 14 January 2021)

26. Construction of greenhouses with the total area of 300-1000 square meters may be carried out either through a Contractor or without a Contractor. Construction of greenhouses with a total area exceeding 1000 square meters shall be carried out through a Contractor having a construction licence. In case of co-operation with a Contractor, the maximum amount to be compensated shall not be changed. Construction shall be carried out in compliance with the requirements of the legislation of the Republic of Armenia regulating the field.

27. The contractors participating in the Programme must have a construction licence and be compliant with the conditions outlined below, which shall be established by the Contract concluded between the economic entity and the Contractor:

(1) committing the obligation to construct greenhouses according to the standards established by the Programme;

(2) providing free-of-charge professional consulting and conducting warranty and post-warranty maintenance at least within a year following the construction of the greenhouses.

(point 27 amended by No 1165-L of 28 July 2022)

28. The procedure for participation in the Programme shall be the following:

(1) the economic entity shall submit the following documents to the Ministry of Economy of the Republic of Armenia ( hereinafter referred to as the "Ministry"):

a. application (Form No 1)

b. carbon copy of the personal identification document;

c. carbon copy of the certificate of state registration of the right of ownership or development of immovable property. In case of a common ownership (joint ownership or shared ownership) of immovable property, notary certified consent of all participants of the common ownership for construction of the greenhouse shall be submitted.

(2) The representative of the Ministry shall, within a time period of 15 days following the receipt of the application, conduct a site inspection aimed at analysing the information indicated in the application, drawing up a site inspection protocol;

(3) the applicant shall, within 5 working days following the conduct of the site inspection referred to in sub-point 2 of point 28 of this Programme, be informed in writing on conclusion of the contract or rejection to conclude the contract;

(4) the conclusion of the contract shall be rejected where any of the documents referred to in sub-point 1 of point 28 is missing or based on negative conclusion of the site inspection protocol;

(5) where the conclusion of the contract is rejected, the site inspection protocol shall be provided to the applicant;

(6) the economic entity shall, no later than within a time period of one year following the receipt of the offer to conclude a contract, submit the following documents to the Ministry:

a. a design complying with standards of the models presented in the Programme, including model or reusable design;

b. construction permit;

c. letter of recommendation of the person responsible for issuing the design on compliance of the design with the Programme standards;

d. Certificate of Participation in courses on management of greenhouse facilities granted to the latter by the "International Centre for Agribusiness Research and Education" (ICARE) Foundation for participation in training courses organised jointly with the Centre and the Foundation of the National Agrarian University of Armenia. The course programme and the fee amount shall be established by the contract concluded with the Ministry;

e. Contract concluded with the Contractor (where the greenhouse is constructed through a Contractor);

f. statement of information on the bank account of the applicant;

(7) a contract on participation in the Programme and provision of support shall, within 10 working days following the submission of documents, be concluded between the participant and the Ministry, which shall contain provisions on commissioning the greenhouse into operation within a time period of maximum of one year from the date of conclusion of the contract, i.e. completion of works provided for by the design submitted in accordance with paragraph "a" of sub-point 6 of this point (where martial law or state of emergency is declared during the indicated time period, the time period set for commissioning the greenhouse may, upon the consent of the Ministry, be extended for up to three month, and in case of failure to put the greenhouse into operation within the indicated time period, and submitting the application on completion of construction of the greenhouse provided for by sub-point 10 of this point later than the established time period, the compensation of expenses according to the procedure provided for by sub-points 10-14 of this point may be carried out prior to the completion of project duration indicated in point 33 of this Annex given the effective status of this Decision) on non-alienation during the term of the contract and organisation of targeted production as a crop used for food or in food production or on organisation of flower production for at least five years, as well as on submitting a report to the Ministry within five years and returning to the State Budget of the Republic of Armenia, the compensation amounts provided under the program where the provisions of the contract are violated;

(8) the report provided for by sub-point 7 of point 28 of the Programme shall be submitted to the Ministry in the year following the year when the greenhouse was commissioned and during the next four years, before 1 July of the given year;

(9) the report shall contain information on:

a. types of the greenhouse crops;

b. yield indicators;

c. sales volumes and markets;

(10) compensation of costs shall be carried out by the Ministry based on the application of the economic entity on completion of construction of the greenhouse and the results of monitoring conducted by the Ministry;

(11) the following shall be attached to the application:

- construction completion certificate;

- letter of recommendation on the quality of construction issued by the Contractor (in case of construction of the greenhouse through a Contractor);

- technical specifications and/or certificate of origin of structures, materials, devices and equipment acquired and installed for construction of greenhouses, which will prove the compliance thereof to the standards referred to in Tables No 2 and 3;

(12) the structures, devices and equipment necessary for construction of the greenhouse shall not be pre-owned and the carrying structures shall be produced by the same manufacturer. (sentence removed by No 23-L of 14 January 2021)

(13) (sub-point repealed by No 23-L of 14 January 2021)

(14) compensation amount shall be transferred by the Ministry to the bank account of the applicant. Compensation shall be carried out based on the monitoring protocol within the time period of 10 days following the positive opinion of the latter;

(15) no compensation shall be paid based on the negative opinion of the monitoring protocol, and the Ministry shall inform the applicant about this within a time period of 3 days following the issue of the negative monitoring opinion.

(point 28 edited, supplemented and amended by No. 23-L of 14 January 2021, edited by No 1165-L of 28 July 2022)

5. PROGRAMME MONITORING

29. Monitoring of the Programme shall be conducted by the Ministry.

30. Monitoring shall be carried out based on the visits to the greenhouse facilities and the review of documents attached to the application referred to in sub-point 11 of point 28 no later than within a time period of 20 days following the time of submission of the application.

6. PROGRAMME RISKS

31. The potential risks of the Programme shall be the following:

(1) delays in development works and damage to the greenhouse due to nature and climate conditions;

(2) insufficient number of Programme beneficiaries;

(3) improper organisation of cultivation of plants by the economic entities;

(4) not full operation of the facility by the economic entities.

32. Risk mitigation measures shall include:

(1) appropriate selection of the location and place of the greenhouse;

(2) ensuring access to information on the Programme and raising the level of awareness;

(3) developing professional capacities of the economic entities participating in the Programme through training courses.

7. FINANCIAL EVALUATION OF THE PROGRAMME

33. The Programme is scheduled to run from 2020 to 2022.

34. The Programme is envisaged to be implemented with the funds allocated to the Ministry from the State Budget of the Republic of Armenia.

35. Within the framework of the Programme, it is expected to construct a greenhouse with an area of about 35.0 ha.

36. The estimated dimensions and quantities of the greenhouses are included in Table No 5, and the financial and non-financial indicators of the Programme by years are presented in Table No 1. The calculations are tentatively made for 45 tunnel greenhouses with enriched soil mass, a production area of 300-600 square meters (an optimal size of 600 square meters), 27 single span or multi span greenhouses with enriched soil mass, a production area of 800-3000 square meters (an optimal size of 2000 square meters), and 18 single span or multi span greenhouses with hydroponic method with a production area of 800-3000 square meters (an optimal size of 2000 square meters).

Table No 1

Financial and non-financial indicators of the Programme

(point 36 supplemented by No 23-L of 14 January 2021)

8. OUTCOMES EXPECTED FROM IMPLEMENTATION OF THE PROGRAMME

37. Outcomes expected from Programme implementation are presented in Table No 5, moreover, the calculations are made for vegetables, specifically for tomato, cucumber, pepper, eggplant (indicators are presented progressively by years). Average price per 1 kg is calculated at AMD 550 (the pricing was based on the average ratio of sale prices for tomato, cucumber, pepper, eggplant per month in 2018). The calculations included 45 greenhouses with a production area of 600 square meters, with an average crop yield of 20 kg (Model 1), 27 greenhouses with a production area of 2000 square meters, with an average crop yield of 30 kg (Model 2) and 18 greenhouses with a production area of 2000 square meters, with an average crop yield of 40 kg (Model 3).

(point 37 supplemented by No 23-L of 14 January 2021)

38. The following outcomes are expected from the implementation of the Programme:

(1) constructing greenhouses with modern standards with a total area of about 35.0 ha during three years of Programme implementation;

(2) raising the crop yield and increasing the greenhouse production volumes by about 3600 tonnes per year;

(3) reducing the cost price at the expense of increasing production efficiency;

(4) increasing the income of economic entities, enhancing the level of competitiveness;

(5) building the professional capacities of economic entities;

(6) the established greenhouse facilities may be a good example for a wide range of economic entities in terms of familiarising with modern approaches, as well as they may become a training base for students.

39. Analysis of expenses for operation of a tomato greenhouse with a production area of 600 square meters shows that the investment expenses made for construction of a greenhouse and technological support thereof are fully recovered in about 3 years.

(point 39 supplemented by No 23-L of 14 January 2021)

40. According to the conducted assessments, within the framework of the Programme about 90 workplaces with a monthly salary of AMD 100-150 thousand will be created, about AMD 30.0 million per year will be paid to the State Budget of the Republic of Armenia with respect to income tax, and AMD 50.0 million - with respect to import duties for greenhouse structures and materials. 80-120 economic entities per year will participate in trainings on managing greenhouse facilities and develop their professional capacities.

Table No 2

The main standards for single-layer or double-layer polyethylene filmed tunnel greenhouse with enriched soil mass

(table amended and supplemented by No 23-L of 14 January 2021, amended by No 1176-L of 22 July 2021)

Table No 3

The main standards for construction of a filmed single span (single roof) or multi span (multiroof) greenhouse with enriched soil mass or with hydroponic method

(table amended, supplemented and edited by No 23-L of 14 January 2021, amended by No 1176-L of 22 July 2021)

Table No 4

Average calculation of expenses for construction of tunnel and a single span (single roof) or multi span (multiroof) greenhouse

AMD

A/N	Name	Tunnel greenhouse with enriched soil mass method	Single span or multi span greenhouse with enriched soil mass method	Single span or multi span greenhouse with hydroponic method
1.	Greenhouse structure and polyethylene	8000	12500	12500
2.	Heating system	—	4500	4500
3.	Ventilation	550	1000	1000
4.	Lighting, electricity	250	1800	1800
5.	Climate control system	—
6.	Irrigation system	800	800	1750
7.	Soil preparation, greenhouse construction and equipment installation	2000	3700	4000
8.	Plant hangers and clips	250	250	250
9.	Water drainage system and installation	—	—	4200
	Total costs	11850	24550	30000

Table No 5

Programme deliverables

CHIEF OF STAFF TO THE PRIME MINISTER OF THE REPUBLIC OF ARMENIA

E. AGHAJANYAN

Form No 1

To: Minister of Economy of the Republic of Armenia

From ________________________________________________

(name, surname, address/location, phone numbers of the natural and/or legal person)

FOR PARTICIPATION IN SUPPORT PROGRAMME FOR INTRODUCTION OF SMALL AND MEDIUM-SIZED GREENHOUSE FACILITIES

(title amended by No 1165-L of 28 July 2022)

I, ____________________________________________________________________________

                                               (name of natural and/or legal person)

would like to participate in the Programme for introduction of small and medium-sized greenhouse facilities and construct a greenhouse in the settlement ______ of _____ community of ______ marz of the Republic of Armenia (specify) meeting the following standards:

(1) 1st model: a single-layer or double-layer polyethylene filmed tunnel greenhouse with a production area of 300-600 square meters, with enriched soil mass (please underline: one greenhouse with an area of 300-600 square meters, two greenhouses with an area not exceeding 800 square meters, of which, according to this application, I will construct the 1st greenhouse, the 2nd greenhouse, 2 greenhouses).

(2) 2nd model: a polyethylene filmed single span or multi span greenhouse with production area of 800-3000 square meters, enriched soil mass.

(3) 3rd model: a polyethylene filmed single span or multi span greenhouse of 800-3000 square meters production area cultivated with hydroponic method.

- I agree that the program implementation agreement stipulates that the greenhouse shall be used for the targeted purposes for at least 5 years and be commissioned within one year following the conclusion of the agreement.

- Works on construction of a greenhouse and procurement of equipment are expected to be performed (please indicate):

□ without a contractor company

□ through a contractor company

The following documents prescribed by the Programme are attached:

Applicant ________________________________________________________________|

                        (name, surname of the applicant or the authorised person)

|________________________________________________________________________|

                                   (signature)

____ ________________ 20_

(form amended, supplemented by No 23-L of 14 January 2021, amended by No 1165-L of 28 July 2022)

(Annex supplemented, edited and amended by No. 23-L of 14 January 2021, edited and amended by No 1176-L of 22 July 2021, No 1165-L of 28 July 2022)

Published on a joint site 06.06.2024