693 Million Drams Allocated from Reserve Fund for New Public Television Studio Construction

The government has decided to amend the 2023 budget law and allocate funds to the Council of the Public Broadcaster at its meeting today, July 20.

The justification for the decision states that an agreement was signed on June 2, 2023, in Yerevan between the Government of the Republic of Armenia, represented by the Ministry of High-Tech Industry, the Public Television Company of Armenia, and the Ministry of Commerce of China for the implementation of the project to construct the company’s new 8th studio (television studio), whereby the obligation of the Chinese side is estimated at 191 million renminbi (RMB).

According to the agreement, the Armenian side, represented by the Public Television Company, is responsible for providing construction-related infrastructure, preparation, and construction work, as well as the necessary permits and security measures.

In 2023, the total amount necessary for the implementation of construction work is estimated at about 663 million AMD, including VAT, while for 2024, the amount is projected at 189 million AMD, also including VAT.

The estimated cost of security equipment acquisition needed for 2023 is about 30 million AMD, including VAT. Thus, in 2023, the Company will require 693 million AMD from the government’s reserve fund, which will not be subject to VAT as this capital grant does not imply the provision of services.

As for the 189 million AMD needed for construction work in 2024, this amount has been included in the Company’s medium-term expenditure program for 2024-2026.

As a result of the approval of the draft decision, an expenditure of 693,000.0 thousand drams will be carried out from the reserve fund of the state budget of the Republic of Armenia for 2023.