Armenia Earthquake Zone Alliance

Additional Information: USAID Armenia The Huntsman Foundation All Armenia Fund Jinishian Memorial Foundation UN High Commissioner for Refugees UNDP  Norwegian Refugee Council

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 in 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 cooperated with a group of foundations and organizations in the Armenia Earthquake Zone Alliance. The alliance’s goal is regional recovery through an integrated plan 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. 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 and Resources: The All Armenia Fund, the United Nations High Commissioner for Refugees (UNHCR), the United Nations Development Program (UNDP), the Norwegian Refugee Council, the Jinishian Memorial Foundation, the Huntsman Foundation, the Lincy Foundation, and the U.S. Agency for International Development (USAID) are working together in the Armenia Earthquake Zone Alliance. For every dollar provided through USAID funding, alliance partners contribute cash or resources worth $2.75.

Government: USAID Armenia has contributed almost $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.

Foundations: 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 has contributed $50,000 to install a modern heating system in a 48-unit apartment block, whose residents receive technical assistance and training through USAID. The Huntsman Foundation has contributed $2,100,000 to build 64 housing units, and convert an unfinished building into a school. The Lincy Foundation has contributed about $44 million to construct 925 new apartments and to rehabilitate 2,746 apartments (total: 3,671 units). The Norwegian Refugee Council has contributed $300,000 for the construction of 34 houses, participates in site planning, and determines the status of families on site.

International Organizations: The UNHCR has contributed $33,000 in funding for housing certificates for 11 refugee families that would otherwise have been ineligible. The UNDP has contributed $23,200, which funded the purchase of water pipes and fittings to allow restoration of water to villages, thereby facilitating housing redevelopment.

Partnership Efforts and Alliance Accomplishments to Date: From the program’s inception in 1999 through July 2003, 3,975 housing certificates have been issued, and 2,627 certificate owners have received title and moved into their newly acquired homes. This has included certificates for refugees funded by UNHCR but administered through the alliance.

The Huntsman Foundation has built 64 new units, and converted an unfinished building to a school. The Lincy Foundation is building 925 new apartments and rehabilitating 1,811 apartments. The village of Saramedj did not have a water supply, but through the collaboration of World Food Program/Work for Food program, UNDP, and USAID, water is being supplied and construction of homes is proceeding.

Through this alliance 2,204 domics have been removed from Gyumri and other areas surrounding the earthquake zone --and the domic yards cleared for redevelopment. Unlike the certificates component, the Housing Improvement Grants component enables completion of unfinished houses in rural areas. As a result of this component, 650 rural families were housed as of July 2003.

Through the Armenia Earthquake Zone Alliance, a region devastated by natural disaster and social upheaval has made enormous strides. Thousands of families finally have permanent housing. Just as important, large areas will be cleared of domics and made available for redevelopment, with citizen involvement throughout the procedure.

U.S. Government Primary Point of Contact: Agency for International Development: Regan Whitworth, Armenia Mission Information Officer (+374-1-543841, rwhitworth@usaid.gov).