Armenia`s government to be entitled to approve new vehicle purchase support programmes

ArmInfo.  In order to develop passenger and freight transportation by certain types of transport,  the Armenian government will have the right to approve programs to support individuals and legal entities in acquiring new vehicles, as well as in increasing the volume of passenger and freight transportation.

The National Assembly of the Republic of Armenia is discussing amendments to the law "On Transport" in the first reading at an extraordinary session on July 1.

Presenting the legislative initiative of the government, Deputy  Minister of Territorial Administration and Infrastructure of the RA  Armen Simonyan noted that the draft law is aimed at solving transport problems in the country's communities. The program of activities of the RA government for 2021-2026 defines the implementation of reforms in the field of regular passenger transportation, within the framework of which it is planned to introduce a single route network in the country. The reforms implemented to improve the quality of interregional and intraregional regular passenger transportation are  aimed at forming a network of transport route operators through competitive procedures. It is planned to solve this problem by moving from the previous principle of 1 route - 1 service operator to the principle of routes of one region or region - 1 service operator. Thus, it is envisaged to form a single route network throughout the territory of the Republic of Armenia. To implement a single route network, it is necessary to make large investments in order to purchase vehicles to service all routes or update the fleet. Tenders announced in some regions for the introduction of a single route network did not take place due to the lack of applications, which is  associated with the business risks of large investments. In some cases, only one bid is submitted to participate in tenders, which excludes healthy competition. The bill was developed to complete the process of creating the network, as well as to implement measures aimed at developing the transport system with the support of the Government.

According to the justification of the draft law, in order to develop  passenger and freight transportation by other modes of transport, increase electric mobility in the republic, and reduce air pollution in urban communities, it is necessary to implement programs to support the development of electric transport and the metro. The development of the metro in Yerevan and the construction of new metro stations are an important prerequisite for unloading transport, reducing traffic jams and reducing air pollution.

Support programs in the field of air and rail transport can be used to develop infrastructure, increase the volume of passenger and freight transportation.