US embassy cable - 04YEREVAN2349

UNCLAS SECTION 01 OF 02 YEREVAN 002349 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR EUR/CACEN, PRM 
 
E.O. 12958: N/A 
TAGS: PGOV, PHUM, EAID, AM, PRM 
SUBJECT: GOAM REFUGEE HOUSING PLAN FAILS TO ATTRACT 
DONORS 
 
REF:  YEREVAN 1411 
 
(U) Sensitive but unclassified.  Please protect 
accordingly. 
 
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SUMMARY 
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1. (SBU) The GOAM hopes to announce a solution to its 
refugee housing problem next year, but current plans 
depend on international donations that are unlikely to 
materialize.  Local implementers have concluded the 
government plan is unlikely to be financed because it 
does not address the housing needs of non-refugees. 
International agencies are pursuing alternative housing 
strategies.  By focusing too narrowly on refugee 
housing, the GOAM may miss a chance for international 
assistance.  End Summary. 
 
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GOAM SETS HIGH GOAL FOR REFUGEE SOLUTION 
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2. (SBU) According to the local UN Development Program 
(UNDP) coordinator, President Kocharian wants to 
announce a solution to Armenia's refugee housing 
problem during his speech to the UNGA in 2005.  He 
charged the Prime Minister and the cabinet with 
implementing a solution by that time.  The plan 
developed by the Department of Migration and Refugees 
(DMR) would house the 3,470 of the "most vulnerable" 
refugee families.  On June 1, the president declared 
the GOAM's acceptance of this plan, directed the 
Government to allocate five million dollars over the 
next three years for refugee housing, and authorized 
the Department of Migration and Refugees (DMR) to seek 
an additional thirteen million in funding from 
international donors (reftel).  According to Western 
NGOs, Armenia has approximately 80,000 refugees from 
its war with neighboring Azerbaijan. 
 
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PROPOSAL FALLING FLAT 
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3. (SBU) The international community has not embraced 
the GOAM housing proposal for several reasons.  Because 
of IMF "Midterm Expenditure Framework" restrictions, 
the GOAM has been unable to allocate money for the 
program in the 2005 budget, and international 
implementers are unwilling to wait until 2006 for a 
coordinated strategy.  UN agencies advocated a 
comprehensive approach to house vulnerable families 
regardless of refugee status because they felt a 
comprehensive plan would link with economic development 
goals and more effectively attract World Bank funding. 
The GOAM, however, rejected this proposal in an attempt 
to give Kocharian a purely refugee solution by his 
stated deadline.  (Note:  While the GOAM proposal is 
ostensibly modeled on USAID's successful Earthquake 
Zone Recovery Program, the Armenian proposal lacks a 
strict system of financial accountability.  End Note.) 
DMR Head Gagik Yeghanian stated that he hopes the USG 
will fund a large share of the proposal.  Department 
representatives of the Bureau of Population, Migration, 
and Refugees informed Yeghanian in a meeting September 
23 that the USG could not fund any part of the 
proposal, but Yeghanian insisted he still believed the 
USG can find a way to significantly contribute. 
 
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ALTERNATIVE DIRECTIONS 
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4. (SBU) International organizations will continue 
their housing assistance programs in Armenia but will 
not coordinate them through DMR proposed refugee 
program.  UNDP plans to fund a USD 60,000 study of the 
housing needs in Armenia which it hopes will result in 
a housing program for non-refugee families funded 
through the World Bank.  The UN High Commissioner for 
Refugees will focus its efforts on rural areas, where 
housing costs are significantly less expensive than in 
the larger cities.  This year the agency will partner 
with the governor of the Syunik region who will 
contribute one-third of the housing costs.  Together 
they hope to house the 101 refugee families living in 
"domik" shipping containers or collective centers in 
that region.  And the Norwegian Refugee Council (NRC) 
has begun a program of refurbishing apartments and 
relocating refugees in Yerevan in conjunction with 
local landlords.  Armenian law does not allow landlords 
to evict refugees from privatized buildings unless the 
refugees are provided with alternative housing.  Under 
the NRC program, landlords give NRC between USD 20,000 
and 30,000 per building, NRC renovates another existing 
building for the refugees, they move to the renovated 
location, and every family receives the title to their 
apartment. 
 
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COMMENT 
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5. (SBU) The GOAM refugee housing plan will not die 
easily:  given political pressure, members of the 
Government appear to be unwilling to examine 
alternative solutions even though they might have a 
greater chance of success.  UNDP, with the concurrence 
of UNHCR and the NRC, states that it would still 
welcome GOAM participation in the creation of a broader 
housing strategy which would include refugees, but 
these agencies frankly do not expect such cooperation 
to be forthcoming.  By framing the problem too narrowly 
the GOAM may miss its best near-term chance to improve 
housing for refugees in Armenia. 
EVANS