38th Session of the SME Development Sub-Council Led by RA Minister of Economy Gevorg Papoyan

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Sub-Council

The 38th session of the SME Development Sub-Council was held on February 12 under the chairmanship of RA Minister of Economy Gevorg Papoyan.

At the beginning of the session, Head of the Investment Council of Armenia Hovsep Patvakanyan presented a comprehensive report on the implementation of previously discussed issues, followed by discussions on the agenda items.

The first agenda item concerned facilitating the use of industrial and transport land for energy purposes, including combined renewable energy use, within the framework of the draft law on amendments and supplements to the RA Land Code. The issue particularly relates to cases where solar power plants are installed in production areas for self-consumption, which currently requires changing the designated land purpose of the relevant portions to energy use. If solar panels are installed on rooftops, no change in land designation is required. However, if even a single support structure is installed on the ground, the adjacent land area must be reclassified as land designated for energy, communication, transport, or utility infrastructure facilities.

The draft proposes allowing the construction and maintenance of buildings and structures used for energy purposes on industrial, subsoil-use, and other production lands through a simplified procedure for changing land designation. It also proposes permitting electricity generation from renewable energy sources (wind or solar) on transport lands, provided that such activity does not interfere with their primary designation as transport lands.

During the discussion, positions were expressed by representatives including Hrachya Muradyan from the Union of Builders of Armenia, Aram Khachatryan from the Enterprise Incubator Foundation, and Hayk Malkhasyan, Senior Legal Advisor of the Investment Council of Armenia. No objections were raised. Minister Papoyan summarized the discussion, noting the Council’s positive position and stating that the draft may proceed in accordance with established procedures.

The second agenda item concerned the draft law on amendments and supplements to the RA Labor Code, published on the E-draft platform. The draft proposes the establishment of a labor disputes commission. The issue was presented by Deputy Minister of Labor and Social Affairs Lusine Kocharyan, after which Council members and partners shared their views.

Statements were made by Artur Hovhannisyan, representing the Republican Union of Employers of Armenia, and Vanik Margaryan, Chairman of the Board of the Chamber of Mediators of the Republic of Armenia noted that while they were not opposed to the draft in general, it contains several problematic issues requiring revision. Davit Gharibyan, Director of the "Centre for Legislation Development" Foundation of Ministry of Justice also indicated that the draft contains issues.

In conclusion, Minister Papoyan suggested that the drafters engage once again with all stakeholders to ensure equal opportunities and clarify working mechanisms so that the legislative amendments will have a positive impact.

Funded by the UK Government's Good Governance Fund and supported by the European Bank for Reconstruction and Development.