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FM AMEMBASSY YEREVAN
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INFO RUCNCIS/CIS COLLECTIVE

UNCLAS SECTION 01 OF 06 YEREVAN 001300 
 
SIPDIS 
 
SIPDIS 
 
FOR EB/CIP/BA NICHOLAS FETCHKO 
 
E.O.12958:N/A 
TAGS: EAID ECPS EINT PHUM AM
SUBJECT:  USG INTERNET FREEDOM INITIATIVES IN ARMENIA 
 
REF: STATE 142147 
 
¶1.  Per reftel request, Embassy Yerevan presents its comprehensive 
review of usaid internet freedom programs in Armenia: 
 
------------------------ 
Economic Growth Programs 
------------------------ 
 
¶A. Project Name:  Competitive Armenia Private Sector (CAPS) Program 
Recipient:  IT companies, IT Council, IT associations, and 
educational institutions in Armenia 
Project Description:  The goal of the Competitive Armenian Private 
Sector (CAPS) Program is to promote competitive growth and increase 
the competitiveness of small and medium sized enterprises (SMEs), 
thus increasing employment.  The program will implement several 
components directed towards helping business to achieve their growth 
objectives.  To date two clusters - Information Technologies and 
Tourism have been selected and approved by USAID to be the focus of 
the project. 
IT Component: For the last two years the major activities targeted 
at increased competitiveness of IT industry included (i) development 
of IT strategy; (ii) development of IT marketing plan; (iii) IT 
workforce assessment and development; and (iv) capacity building for 
industry representatives. 
FY 05 Funding:  U.S. $500,000 (IT portion: $250,000) 
FY 06 Funding:  U.S. $2,500,000 (IT portion: $1,250,000) 
 
¶B.  Project Name:  Commercial Law and Economic Regulation Project 
(CLERP) 
Recipient: Public Sector Regulatory Commission of Armenia 
Project Description: The overall purpose of CLERP is to facilitate 
reform of Armenia's commercial legal, regulatory, and administrative 
entities to remove or reduce barriers to private sector development, 
attract FDI, and integrate Armenia into the global trading system. 
CLERP provides technical assistance, training and some commodities 
to selected counterparts.  The activity consists of three components 
and two sub-components: 1) Commercial Law; 2) WTO Compliance and 
Post-Accession Support; and 3) Developing the Institutional Capacity 
of the State Commission for the Protection of Economic Competition 
and Public Services Regulatory Commission (PSRC), focused upon 
Telecommunications Regulation and Overall PSRC Capacity 
Development. 
IT Component:  CLERP provided extensive assistance to the Ministry 
of Justice in coordination with PSRC to draft the Law Electronic 
Communication. Provided equipment, expanded public access through 
websites of PSRC and SCPAC, and provided staff training to project 
counterparts. The Project put in place a local area network (LAN) 
and PBX inside PSRC. In addition, the project provided support to 
the State Procurement Agency in e-procurement strategy, and 
assistance to PSRC in telecom regulatory reform. 
FY 05 Funding:  U.S. $2,500,000 (IT portion: $130,000) 
FY 06 Funding:  U.S. $2,500,000 (IT portion: $20,000) 
 
 
¶C.  Project Name:  Tax Improvement Project (TIP) 
Recipient: State Tax Service of Armenia 
Project Description: The Project seeks to bring about managerial and 
administrative reforms in the tax system while increasing tax 
revenue collection. 
IT Component:  Provision of equipment and staff training 
FY 05 Funding:  U.S. $0 
FY 06 Funding:  U.S. $3,800,000 (IT portion: $400,000) 
 
 
¶D.  Project Name:  Information and Communications Technology 
Support 
Recipient:  State Committee for Real Property Cadastre of Armenia, 
three Armenian State University students, IT companies in Armenia 
Project Description:  This activity includes three sub-activities - 
the University Consortium (UC) project, Centralized Real Property 
Database System for the State Committee of Real Property Cadastre, 
and Sourcio. 
IT Component: The UC project is an effort to organize three state 
universities to support and enhance the existing IT infrastructure 
and capacity in Armenia through preparation of graduate students who 
are more effective and responsive to current market conditions.  The 
program's objective is to prepare students with a new Masters of 
Science in Information Systems (MSIS) degree, which combines the 
study of business and technology.  Based upon New York University's 
(NYU) MSIS model, the program was approved by the Armenian 
government as a formal educational specialization in the summer of 
¶2004.  The first MSIS students were matriculated in September 2004 
and completed the first program cycle with graduation in June 2006. 
 
The State Committee for Real Property Cadastre requested assistance 
from USAID/Armenia to implement an online system of real property 
registration and information provision.  Creation of the Centralized 
Real Property Database System (CDS) lays the foundation for an 
online information system for SCRPC.  This sub-activity was 
initiated in May 2004.  The CDS will provide online access to those 
 
YEREVAN 00001300  002 OF 006 
 
 
regional cadastre offices with direct communication lines and data 
transfer from the remaining regional cadastre offices.   This system 
will set the stage for the next steps of implementation, will 
provide flexibility to add applications customized for different 
user groups' needs, and will ensure sustainability, scalability, and 
continuity of system implementation. 
 
The overall goal of Sourcio project is to become an internationally 
recognized IT consulting company providing a variety of services and 
products based on open source software. The company has set up its 
main objective to compete with international consulting companies 
for large and high-value projects. It is also the company's goal to 
increase the number of IT jobs in Armenia and to contribute to the 
development of the Armenian IT sector. 
Sourcio offers government agencies, NGOs, SMEs, and individuals 
products and services based on open source software and be focused 
on system integration, custom software development, IT consulting, 
and open source application hosting. Sourcio concentrates on 
offering complete horizontal and vertical solutions for the 
government and private companies. The solutions include, in addition 
to the software products or systems, also consulting, 
implementation, maintenance, training, as well as other relevant 
services. 
USAID Armenia provides $300,000 of funding to Sourcio. The following 
parties also contribute to establishment of this enterprise: Lycos 
Armenia and Enterprise Incubator Foundation (EIF), contributing each 
$500,000. 
 
FY 05 Funding:  U.S. $2,400,000 (all can be attributed to IT) 
FY 06 Funding:  U.S. $0 
 
------------------------- 
Energy and Water Programs 
------------------------- 
 
¶E.  Project Name: Armenia Water Metering and Billing Improvement 
Project (Urban Institute) 
Recipient: Armenian Water Supply and Sewerage Company 
Project Description: To strengthen the institutional and financial 
sustainability and operational efficiency of the Armenian Water 
Supply and Sewerage Company with the long-term objective of making 
water companies more efficient and financially self-sustainable. 
The Project focuses on supporting on-going water sector 
restructuring and enhancing management effectiveness; improving the 
ability of selected water sector entities to gather, analyze and use 
water flow and customer information to improve their efficiency; and 
promoting transparency in financial controls. 
IT Component: The implementer completed installation of accounting 
software and data libraries at four local branches and the Head 
Office of the Armenian Water Supply and Sewerage Company; provided 
training on new accounting system; procured and installed new 
computers. 
FY 05 Funding:  U.S. $586,009 (IT portion: $15,000) 
FY 06 Funding:  U.S. $0 
 
¶F.  Project Name:  Institutional and Regulatory Strengthening of 
Water Management in Armenia (PA Consulting) 
Recipient:  State Hygiene and Anti-Epidemic Inspectorate of Armenia, 
Environmental Impact Monitoring Center of Armenia, Water Resources 
Management Agency of Armenia, Republican Geological Fund of Armenia, 
Hydro Geological Monitoring Center of Armenia, State Environmental 
Inspectorate of Armenia, State Committee on Water Resources in 
Armenia, Public Services Regulatory Commission of Armenia, Basin 
Management Organization- in Akhuryan, Armenia, ArmStateHydromet of 
Armenia 
Project Description:  To extend reforms and improve performance of 
water sector management and regulatory institutions. The Project 
focuses on strengthening the legislative and regulatory framework to 
ensure water resource protection, integrated basin management and 
sustainable commercial use of water resources. 
IT Component:  The implementer designs and develops the State Water 
Cadastre Information System. This system addresses issues related to 
institutional cooperation and data exchange among seven Government 
of Armenia agencies with responsibilities in the key water 
management functions of water resources monitoring, water use 
permitting, and regulatory compliance. The implementer also procured 
computer hardware and conducted trainings in computer basics and GPS 
use. 
FY 05 Funding:  U.S. $0 
FY 06 Funding:  U.S. $2,550,000 (IT portion: $63,448) 
 
¶G.  Project Name:  Municipal Network for Energy Efficiency (MUNEE) 
(Alliance to Save Energy) 
Recipient:  Municipalities and home-owner associations in Armenia 
Project Description:  To develop a network of officials, who will 
work throughout Armenia to promote and raise energy efficiency 
awareness among municipalities, local NGOs, and energy service 
companies. 
IT Component:  The implementer conducted BEEP training of 
municipalities and home-owner associations in use of computer-based 
program development and business planning software for energy 
 
YEREVAN 00001300  003 OF 006 
 
 
efficiency project design. 
FY 05 Funding:  U.S. $350,000 (IT portion: $7,000) 
FY 06 Funding:  U.S. $0 
 
¶H.  Project Name:  Program to Strengthen Reforms and Enhance Energy 
Security in Armenia (PA Consulting) 
Recipient:  Settlement Center CJSC of Armenia 
Project Description:  To improve performance of key institutions for 
sustainable energy management. The objectives are to improve 
transparency and commercial motivation in governance in order to 
reduce the opportunities for corruption and to improve the quality 
of service delivered to customers. The project also focuses on 
increased energy security through the improvement in the management 
and use of Armenia's scarce energy resources with greater efficiency 
and in an environmentally sustainable way. 
IT Component:  The implementer upgraded existing equipment for Data 
Acquisition System at Settlement Center CJSC. It also procured HP 
ML570T03 US Tower Server S/N USE536N12N and HP L1740 Monitor S/N 
CNK5360PQH. 
FY 05 Funding:  U.S. $0 
FY 06 Funding:  U.S. $1,047,685 (IT portion: $22,772) 
 
--------------------------------- 
Democracy and Governance Programs 
--------------------------------- 
 
¶I.  Project Name:  Armenia Legislative Strengthening Program (ALSP) 
Recipient: National Assembly of the Republic of Armenia 
Project Description: This project provides technical assistance to 
the NA of Armenia in increasing transparency of and citizen 
participation in the legislative processes.  It is addressing the 
following tasks: 1) facilitating and institutionalizing the 
involvement of Armenia's legislative community to advocate, lobby 
and advise the NA on policy and legislative issues; 2) improving the 
functioning of key committees and departments of the NA by having 
them work closer with the legislative community in jointly analyzing 
researching, commenting on and drafting legislation; 3) Improving 
the ability of select units and individuals within the NA to be more 
transparent, representative and responsive to citizen priorities, 
interests and concerns; and 4) developing the NA's ability to 
improve oversight of the executive branch through existing 
mechanisms, and to the extent possible, through assisting in the 
creation of new mechanisms via constitutional and legislative 
amendments. 
IT Components:   NA's Citizen Letters Division used a new Public 
Inquiry Tracking System (PITS) that collects data on citizen appeals 
and tracking the history of how each inquiry is being addressed. 
The database was introduced to the Standing Committee on Science, 
Education, Culture, Youth Sports and Tourism Affairs on a pilot 
basis.  The Project also assisted the NA to create and maintain a 
website, recognized as one of the best in Armenia. 
FY 05 Funding:  U.S. $845,000 (IT portion: $150,000) 
FY 06 Funding:  U.S. $479,000 (IT portion: $50,000) 
 
¶J.  Project Name:  Core Media Support Program 
Recipient:  Private Media Outlets, Banks in Armenia 
Project Description:  The goal of the program is to develop 
self-sustainable media outlets that utilize professional business 
practices, decrease dependence on political sponsorship and 
individual business interests, and provide news and information 
relevant to the public's interest.  To achieve this IREX will offer 
loans to qualified media outlets and will provide training and 
technical assistance to develop the capacity of media outlets to 
qualify and repay loans.  IREX provides training and TA to improve 
the professional quality of the media outlets' product and to 
consolidate the market through the formation and support of 
networks. 
IT Component:   IREX has partnered with AGB Nielson to develop a 
television ratings system using peoplemeters and advance viewer 
analysis software. 
FY 05 Funding:  U.S. $0 
FY 06 Funding:  U.S. $1,500,000 (IT portion: $78,000) 
 
¶K.  Project Name:  Armenia Local Government Program 
Recipient: Local municipalities of Vanadzor, Jermuk, Kapan, Sisian, 
Ijevan, Alaverdi, Sevan, Aparan, Artik, Abovian, Ararat, and 
Echmiadzin and other cities in Armenia. 
Project Description:  Provide technical assistance in: a) policy 
reform and legislative initiatives affecting local government, b) 
increasing local government fiscal management, c) improving local 
government public services through performance management and 
customer service training and technical assistance, d) developing 
local government associations, and e) strengthening local 
governments, so that they are more effective, accountable and 
accessible to citizens. 
IT Component: An IT needs assessment was carried out for all program 
cities.  Based on the assessment LGP3 is providing computers and 
other IT related equipment to municipalities. 
FY 05 Funding:  U.S. $2,700,000 (IT portion: $135,000) 
FY 06 Funding:  U.S. $0 
 
 
YEREVAN 00001300  004 OF 006 
 
 
¶L.  Project Name:  Rule of Law Development Program 
Recipient: Lawyers, judges, law students and the general population 
of Armenia. 
Project Description:  Provide technical assistance and training to 
a) strengthen the lawyers' and judges' associations in Armenia, 
making them more responsive to their members; b) strengthen the 
ability of the Armenian bar and judiciary to act as an independent 
and impartial participant in and commentator on the legal reform 
process in Armenia; and c) educate future legal professionals 
through legal education reform. 
IT Component:  Computers were provided to selected advocates. 
FY 05 Funding:  U.S. $699,624 (IT portion: $43,000) 
FY 06 Funding:  U.S. $1,963,000 
 
¶M.  Project Name:  Youth and Community Involvement Program (YCAP) 
Recipient: Village communities in Armenia. 
Project Description: YCAP works with youth in village communities to 
form, activate and develop informal Youth Action Clubs (YACs) to 
increase the level and impact of civic activism among young men and 
women.  Similarly, YCAP works with other partner communities to 
increase community awareness of and involvement in addressing public 
issues by supporting Community Advisory and Action Commissions 
(CAACs) formed by adult residents of villages.  YCAP does not 
provide funds or grants to YACs and CAACs, but does support Action 
Centers (ACs) affiliated with the YACs and CAACs by providing a 
limited amount of equipment.  YCAP is also supposed to support 
PTAs. 
IT Component:  Computers and other IT equipment are included among 
the equipment that YCAP provides to Action Centers. 
FY 05 Funding:  U.S. $1,000,000 (IT portion: $10,000) 
FY 06 Funding:  U.S. $540,000 (IT portion: $20,000) 
 
¶N.  Project Name:  Access to Information for Community Involvement 
Recipient:  Freedom of Information Center of Armenia (FOICA) 
Project Description:  USAID supports the Center to organize 
trainings and talk-shows in the RA regions on how to use the RA law 
on "Freedom of information". The regional advocates of the center 
provide free legal consulting in all the regions of Armenia on the 
RA law on "Freedom of Information", as well as on the judicial 
defense of the right to be informed. 
IT Component:  Assistance has been provided in e-government 
services. 
FY 05 Funding:  U.S. $147,000 (IT portion: $11,000) 
FY 06 Funding:  U.S. $0 
 
¶O.  Project Name:  Armenia: Support to the 2005-2008 Local and 
National Elections. 
Recipient:  Political Parties and Central Election Commission of 
Armenia. 
Project Description:  Under this program, the International 
Foundation for Election Systems (IFES), the National Democratic 
Institute (NDI), and the International Republican Institute (IRI) 
provide technical assistance in developing national voter registry, 
election administration; voter education; strengthening political 
culture; political party building; women's involvement in the 
political process; and polling. 
IT Component:  As part of IFES's assistance to improve the national 
voter registry, IFES will provide IT and other related equipment 
need to update and maintain the voter registry. 
FY05 Funding:  U.S. $1,763,188 (IT portion: $100,000) 
FY06 Funding:  U.S. $1,585,529 (IT portion: $100,000) 
 
 
--------------- 
Health Programs 
--------------- 
 
¶P.  Project Name:  Primary Healthcare Reform (PHCR) Project 
Recipient:  Armenian Targeted Primary Healthcare Reform Facilities, 
Ministry of Health of Armenia, and State Health Agency of Armenia 
Project Description:  PHCR focuses on reforming health care systems, 
policies, and procedures to extend primary healthcare (PHC) reforms 
nation-wide.  It builds clinical skills in family medicine through 
continuous medical education for family doctors and nurses and seeks 
to improve overall quality of care in PHC.  The Project works to 
increase equitable and efficient distribution of health resources 
through healthcare financing reform and by introducing an open 
enrollment process that allows patients to choose their provider. 
All of the Project's activities are supported by a Public Education 
component that will educate the public on major health reforms as 
well as improve health-seeking behavior through health promotion 
activities. 
IT Component:  The Project will provide targeted health facilities 
with computers and printers for financial management and open 
enrollment functionality.  Estimated number of computers is 390. 
The Project will provide corresponding training to health facility 
staff. 
 
PHCR will also provide a server to the National Institute of Health 
(NIH) and the State Health Agency (SHA) to support the Open 
Enrollment System.  Each server will contain the Open Enrollment 
 
YEREVAN 00001300  005 OF 006 
 
 
database.  The NIH will utilize the data for collecting nation-wide 
statistics and will serve as the final clearer of data before the 
information is transferred to the SHA for payment to the facilities. 
 PHCR is developing tailor-made software for the open enrollment 
system (building on the predecessor project, Armenia Social 
Transition Project (ASTP). 
 
Finally, the Project will create a Licensing Database for the 
Ministry of Health.  The Project will develop or procure software 
(depending on the availability of off-the-shelf solutions), provide 
the server, and a minimal number of workstations for the system. 
This activity is just beginning the IT needs are currently being 
assessed. 
FY 05 Funding:  U.S. $0 
FY 06 Funding:  U.S. $1,047,685 (IT portion $22,772) 
 
---------------------- 
Cross-Cutting Programs 
---------------------- 
 
¶Q.  Project Name:  Human and Institutional Capacity Development 
(HICD) Project 
Recipient:  Armenian IT companies, IT associations, State Tax 
Service of Armenia, Public Services Regulatory Commission of 
Armenia, National Assembly of Armenia, Government Agencies of 
Armenia 
Project Description:  The goal of HICD is to help the Partner 
organization improve its performance in critical areas leading to 
measurable results in achieving the organization's goals and 
objectives. 
IT Component:  A number of capacity building programs were conducted 
to help to: 
-- Identify the role of IT in development strategy of Armenian 
companies; 
-- Identify innovative ICT solutions in different business areas 
-- To provide networking opportunities to exchange ideas and 
concerns on enabling environment for ICT development 
-- To improve strategic planning and management skills of IT sector 
business associations 
-- To promote the use of ICT-based products, networks, services and 
applications; 
-- To enhance partnerships among the Government, public and private 
sectors, regional and international institutions in developing 
Information Society. 
FY 05 Funding:  U.S. $2,000,000 (IT portion: $67,000) 
FY 06 Funding:  U.S. $2,000,000 (IT portion: $50,000) 
 
 
¶R. Project Name:  Eurasia Foundation Grant Program 
Recipient:  Armenian NGOs, local governments, other civil society 
representatives. 
Project Description:  The purposes of the activity are to facilitate 
the development and growth of the private sector; promote good 
governance and strengthen civil society; enhance media and 
communications capacity; strengthen regional cooperation and promote 
social science research. 
IT Component:  (i) Inter Municipal Networking & Cooperation Program 
-the grants focused on the creation of intercommunity networks in 
support of more effective use of community resources and development 
of inter-community partnership and collaboration; and (ii) Purchase 
of computers for grantee organizations. 
FY 05 Funding:  U.S. $2,000,000 (IT portion: $120,000) 
FY 06 Funding:  U.S. $2,400,000 (IT portion: $50,000) 
 
¶S. Project Name: Export Control and Related Border Security 
Recipient:  Government of Armenia, Commission on Export Control 
Project Description: A web-page to advertise and enlighten potential 
exporters as to the regulations and procedures to control and 
license munitions, dual-use goods and other items regulated by the 
Armenian Export Control Law. 
IT Component: Armenian Government web page. 
FY 06 Funding: $5,000. 
 
------------------------ 
Law Enforcement Programs 
------------------------ 
 
¶T.  Project Name: Regional Computer Network for Armenian Police 
Recipient: Police of the Republic of Armenia 
Project Description: Intranet interconnectivity of all police 
precincts in Armenia to access the central police databases. 
IT Component: Purchase of hardware (computers, printers, scanners, 
servers) and software, as well as provide training to police 
personnel. 
FY 05 funding: $453,000 
FY 06 funding: $70,000 
 
¶U.  Project Name: Expansion of Border Management Information System 
Recipient: National Security Service, Government of Armenia 
Project Description: Intranet interconnectivity of all ports of 
entry in Armenia to access the Border Management Information System, 
 
YEREVAN 00001300  006 OF 006 
 
 
a program for immigration control 
IT Component: Purchase of passport readers, hub to link all 
computers, switches, UPS, servers, etc., to enable ports of entry to 
access the immigration database. 
FY 05 funding: $52,994 
FY 06 funding: $517,000 
 
¶V.  Project Name: Border Guard Training Center 
Recipient: National Security Service, Government of Armenia 
Project Description: Purchase of computer equipment and office 
furniture for the Border Guard Training Center in Yerevan. 
IT Component: Purchase of computers, printers, scanners, digital 
cameras, etc. to help train candidates of the National Security 
Service to Border Guard positions. 
FY 05 funding: $25,000 
FY 06 funding: N/A 
 
¶W.  Project Name: Training for Armenian Border Guards 
Recipient: National Security Service, Government of Armenia 
Project Description: English and computer training for Border Guard 
officers and candidates 
IT Component: Computer training 
FY 05: $99,593 
FY 06: N/A 
 
¶X.  Project Name: Training Program at Police Induction Center 
Recipient: Police of Republic of Armenia 
Project Description: Establishment of classrooms and curriculum 
development for new police candidates at the Police Induction 
Center. 
IT Component: Purchase of computer equipment and development of 
curriculum to provide computer training. 
FY 05: $145,200 
FY 06: unknown at this time 
 
¶Y.  Project Name: Vanodzor Customs House Renovation 
Recipient: State Customs Service, Government of Armenia 
Project Description: Creation and establishment of training 
facility, including a computer classroom, for the customs service. 
IT Component: Construction of computer classroom and purchase of 
computers, server, hub, switch, cabling, workstations, etc. to train 
customs officers. 
FY 05 funding: $49,850 
FY 06 funding: N/A 
 
¶Z.  Project Name: Renovation of the Forensics Laboratory of the 
National Bureau of Expertise 
Recipient: National Academy of Sciences, Government of Armenia 
Project Description: Renovation of the Forensics Laboratory, 
including internet access 
IT Component: Purchase of server and IT equipment to establish 
wireless Internet interconnetivity 
FY 05 funding: $12,000 (est.) 
FY 06 Funding: N/A 
 
GODFREY