Rebuilding the Earthquake Zone is a big honor and a big responsibility

by Armen Hakobyan

Published: Monday December 07, 2009

One of the apartment buildings in the Moush 2 complex in Gyumri, Armenia. The apartments will house families left homeless by the earthquake of December 7, 1988. Glendale Hills cjsc

Yerevan - Note: For extended coverage of the earthquake of December 7, 2008, see the stories collected here a year ago: Earthquake 20 Years On

Intensive construction has been going on this year in Armenia's Earthquake Zone, in the provinces of Shirak and Lori, financed by the government of Armenia. The focus is on apartment buildings and residential homes.

The government expects that, notwithstanding the financial crisis, the full two-year program will be implemented, allowing the realization of President Serge Sargsyan's pre-election pledge to complete housing for all residents of the two provinces who were left homeless by the earthquake of December 7, 1988. There's hope that the issue of homelessness in the wake of the 1988 quake will be resolved once and for all.

In Gyumri, and in a few rural parts of Shirak and Gyumri provinces, a few thousand people will celebrate the New Year in new homes. Glendale Hills is the firm that won the bidding for the construction projects. In an interview with the Armenian Reporter, general director Vahe Almoyan said no delays are expected, with construction going on schedule.

Armenian Reporter: What are the expectations regarding the construction project in the Earthquake Zone? How far have you gotten?

Vahe Almoyan: First, let me note that there was not one tender, but several for the three components of the Earthquake Zone reconstruction project. These were construction in the "Ani" and "Moush 2" complexes of Gyumri, construction in the rural areas of Lori and Shirak provinces, and construction in Spitak.

Glendale Hills won the tenders with the lowest qualifying bids. The number of bidders on the projects varied; we were the sole bidder in one case. In any case, one of the key provisions of the tender was that the bidding firm have experience in large-scale construction.

As for the specific terms, over the course of two years, 2009 and 2010, our firm must build the "Ani" and "Moush" complexes in Gyumri. The complex must encompass 210,500 sq m, [on multiple stories] of which 204,185 sq m are to be residential, and 6,315 sq m are to be allocated to services. The complexes are to have a total of 3,030 apartments and service objects; of those, 250 are to be in "Ani" and 2,780 in "Moush."

Intensive construction has been underway for a year now, and at the end of this year - I can already say, "in a matter of days" - in the "Moush" neighborhood of Gyumri, we will hand over 22 residential buildings with 1,056 apartments.

In addition, in Lori and Shirak provinces - and specifically in the city of Spitak and in 36 rural communities - we are to build 536 apartments and service objects, as well as 2,047 residential houses. Of those, in Shirak we're looking at 182 apartments and 226 houses, and in Lori, 354 apartments and 1,821 houses. This year, we will hand over 520 houses.

There's a separate program for the city of Spitak, where we are building 220 residential houses.

3-bedroom apartments pushed ahead

AR: For the program in Gyumri, the original announcement was that 1,320 apartments would be handed over, but you mentioned only 1,056. Could you explain the discrepancy?

VA: Yes, the original plan was to hand over 1,320 apartments in Gyumri this year. The plan was focused on one- and two-bedroom apartments. But it was later decided to include more three-bedroom apartments. So the number of buildings and the area that's being built has not changed. It's just the number of separate apartments covering that square footage that's changed.

Why? When the client further studied the list of people in line for apartments, it became clear that the number of large families [early in line] is greater than they had realized. The client - i.e., the government of Armenia - modified the work order. That is the sole reason for the change. But, I repeat, this year we will hand over the same 22 buildings; it's just that they will have more three-bedroom apartments than originally anticipated.

Moreover, the total number of apartments over two years will remain at 3,030. That is an obligation, a contract signed with the government procurement office; we receive specific sums to build to specific dimensions. There can be no deviation.

Some 1,500 jobs

AR: What is the size of the workforce working on the programs in the Earthquake Zone?

VA: The construction, which is being carried out by the construction firm EMH, is going forward very quickly. The number of people involved has varied with the nature of the work, but we figure there are around 1,500 positions. For example, at this moment, there are many, many specialized builders at work because we are at the end stage of the 22 apartment buildings and multiple houses we have been discussing.

AR: In what condition are the buildings and houses handed over?

VA: The apartments are handed over fully finished, in what is called a "turnkey" state. I should note that in our commercial projects, too, Glendale Hills does the same. We don't sell unfinished apartments. We hand them over such that people can walk in, furnish their apartment, and live there. We also set up central heating in advance, such that the client can install central heating without ripping up the apartment.

AR: How much is the government spending on these projects in the Earthquake Zone?

VA: The total allocated for this year's work is 24 billion drams (over $60 million at today's exchange rate). Of this, 17 billion is for the Gyumri project and 7 billion for the rural project. For next year, another 24 billion is allocated. In other words, the funds are divided evenly over the two years to make financing easier for government and contractor alike, since large-scale financing is difficult in today's conditions.