Arnenia's legislation offers 'no sufficient guarantees' to address economic demands – opposition MP

Armenia's effective legislation does not offer sufficient guarantees to address the country's economic concerns, estpecially when it comes to the demand for developing economic relations, an opposition MP from the Prosperous Armenia party said today.  

At a parliamentary hearing devoted to the problems in state procurement procedures, Sergey Bagratyan questioned the ratinale behind certain regulations not meeting the domestic needs. ″Certain clauses are probably recognized also internationally, as they have only a conventional character, but the philosophy behind the procurements is not absolutely guaranteed,″ he said at the debate was organized by the National Assembly's Standing Committee on Financial-Credit and Budgetary Affairs.

Bagratyan agreed that the former government envisaged a procurement process tailored to its needs, organizing bids under terms and conditions to ensure only selected people’s success. ″This procedure of competitions led our economy to this sitution, supermonopolizing all the commodity markets,″ he said, noting that an estimated 20,000 product items were monopolized under the declared procedure.

The lawmaker also highlighted the absence of steps intended to encourage domestic manufacturers. ″We have a small market. So if, under conditions of a free competition, we do permit the domestic manufacturers' non-protection, we will immediately lose the manufacturer. So their primary stimulus is to have their product purchased under conditions of a competition. In no country will you see [such policies] not encourging the domestic manufacturuers; Armenia doesn't,″ he said.  

Bagratyan noted that many winning organizations are often selected through fraudulent procedures, as contracts are later signed with an entity ″other than the  named winners″, making the former ″captive to an intermediary organization″.  

He also considered ridiculous the practice of giving preference to companies offering a low price. ″If one company has invested $1 and anpther $10, with the average price being $5, the one who proposes a closer [rate] must be the winner,″ he added.

The lawmaker also addressed Armenia's chances to join international bids on the level of the Eurasian Economic Union (EAEU). ″Armenia seems to be isolated from these competitions. Armenian companies avoid taking part in competitions announced by EAEU member states as are not, in any way, enjoying any protection,″ he said.