Armenia Earthquake Zone Alliance
Fact Sheet
U.S. Agency for International Development
Washington, DC
April 15, 2004
Purpose of Initiative
In 1988, northwestern Armenia was devastated by an earthquake, leaving tens of thousands of families homeless and infrastructure severely damaged, especially in the city of Gyumri (the capital and largest city of the Shirak province, and the second-largest city in the country). More than 25,000 people died, and over 500,000 lost their homes. A decade later, thousands of families were still living in temporary shelters (called domics), and redevelopment was haphazard at best. In response, the U.S. Government joined forces with a group of foundations and organizations in the Armenia Earthquake Zone Alliance.
The alliance's goal is regional recovery through collaboration that directly addresses housing needs and stimulates development of markets and democratic reforms. As part of a comprehensive redevelopment of Gyumri and the surrounding region, the program aims to remove the domics, restore public spaces and encourage private investment. The alliance stimulates local Armenian housing market development by issuing housing certificates to eligible families still living in domics, enabling them to buy residences and move into permanent housing. Just as important, the alliance supports development of civil society through assistance to non-governmental organizations and implementation of a participatory process for planning future redevelopment.
The certificate program is an innovative mechanism that meets an urgent humanitarian need while also advancing important social and economic goals. Beyond assistance with housing, the certificate program stimulates development of markets, and is incorporated into a participatory redevelopment effort that strengthens civil society. The amount of a family's certificate is based on market prices for the housing lost in the earthquake. The program allows freedom of choice, with recipients able to buy houses anywhere in Armenia. They can add their own money to the value of the certificate to purchase a more expensive home, or negotiate a lower price and retain the difference. Once the beneficiary acquires a house or apartment, the family vacates their domic, which is then removed by the local government and the area readied for redevelopment.
Partners
Governments: Armenia, the United States of America (USAID/Armenia).
International Organizations: UNHCR, UNDP, World Food Program, The Norwegian Refugee Council.
Civil Society: The All Armenia Fund, The Jinishian Memorial Foundation, The Huntsman Foundation, The Lincy Foundation.
Partnership Targets
U.S. efforts on this partnership are focused on two goals:
- Issue Housing Certificates for relocation of citizens in the Earthquake Recovery Zone; and
- Remove domic temporary structures in the earthquake recovery zone to prepare the land for redevelopment.
Progress Towards Targets
Housing certificates: From FY 2002 to date in FY 2004, 6,819 housing certificates have been issued, exceeding USAID's original target of 6,200. The redemption of these housing certificates by local citizens is voluntary. From FY 2002 through FY 2004, the USAID target for the number of certificates redeemed is 5,710. To date, citizens have redeemed 4,560 certificates. The alliance is making adjustments to this market-based program to help increase the number of certificates redeemed (including increasing both the number of certificates issued and certificate values).
Domic removal: From FY 2002 to date in FY 2004, 2,943 domics have been removed. USAID's target by the end of FY 2004 is to have a total of 3,500 domics removed. USAID is working with Armenian government partners to continue the domic removal process on schedule. Other partners in the EQZ Alliance set their own targets within the broader shared goal of EQZ recovery.
Next Steps
The success of these collaborations is visible every day to people in Gyumri, and private investment in the region is expected to continue and grow. Although the USAID contribution will terminate in FY 2004, we hope that the Gyumritses who have participated in this alliance will continue their efforts.
Resources
USAID Armenia contributed over $31 million to this effort through the Freedom for Russia and Emerging Eurasian Democracies and Open Markets Support Act (FSA). The FSA is the principal funding mechanism to provide assistance to the former Soviet Union. The Government of Armenia provided $210,000 for housing certificates. The UNHCR contributed $66,000 in funding for housing certificates for 25 refugee families that would otherwise have been ineligible. The UNDP contributed $9,200, which funded the purchase of water pipes and fittings to allow restoration of water to villages, thereby facilitating housing redevelopment. WFP provided $14,000 in food for workers to install the water pipes. The Norwegian Refugee Council contributed $350,000 for the construction of 34 houses, participates in site planning, and determines the status of families on site. The All Armenia Fund contributed $520,000 in cash. This private foundation funded the construction of an NGO community center and school in coordination with USAID. The Jinishian Memorial Foundation contributed $30,000 to install a modern heating system in a 48-unit apartment block, whose residents receive technical assistance and training through USAID. The Huntsman Foundation contributed $2,100,000 to build 64 housing units, and convert an unfinished building into a school. The Lincy Foundation contributed about $45 million to construct 925 new apartments and to rehabilitate 2,746 apartments (total: 3,671 units).
U.S. Government Primary Points of Contact
U.S. Agency for International Development/Armenia: (Phone: (374 1) 56-96-56; E-mail: ArmeniaContact@usaid.gov )
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