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RECONSTRUCTION OF HOTEL DVIN TO BE FINALIZED BY 2014
/ARKA/
October 19, 2011
YEREVAN
YEREVAN, October 19. / ARKA /. The reconstruction of Hotel Dvin in
Yerevan will be finalized by 2014, Arman Sahakyan, head of a government
department in charge of state-owned property, said today.
According to Sahakyan, hotel owners had contractual obligations before
the government of Armenia, but the contract specified only the size
of the proposed investment, and did not provide any penalties for
violation of obligations.
"We recently talked to the owners of the hotel. The contract has
been revised, it stipulates now an amount of fines in the event of a
default - 12% per annum of the expected size of the investment," he
said, stressing that the total investment is estimated at $10 million.
In 2003 Hotel Dvin was sold to the Caucasian Communication Group.
Among its owners, as media reports claimed, was a famous Russian pop
singer Iosif Kobzon. The buyers promised to make major investments in
the hotel to rebuild it intro a 5 star hotel. However, no investment
has been made. If the pledged investment is not made before 2014 the
ggovernment reserves the right to confiscate it by taking the case
to court.
/ARKA/
October 19, 2011
YEREVAN
YEREVAN, October 19. / ARKA /. The reconstruction of Hotel Dvin in
Yerevan will be finalized by 2014, Arman Sahakyan, head of a government
department in charge of state-owned property, said today.
According to Sahakyan, hotel owners had contractual obligations before
the government of Armenia, but the contract specified only the size
of the proposed investment, and did not provide any penalties for
violation of obligations.
"We recently talked to the owners of the hotel. The contract has
been revised, it stipulates now an amount of fines in the event of a
default - 12% per annum of the expected size of the investment," he
said, stressing that the total investment is estimated at $10 million.
In 2003 Hotel Dvin was sold to the Caucasian Communication Group.
Among its owners, as media reports claimed, was a famous Russian pop
singer Iosif Kobzon. The buyers promised to make major investments in
the hotel to rebuild it intro a 5 star hotel. However, no investment
has been made. If the pledged investment is not made before 2014 the
ggovernment reserves the right to confiscate it by taking the case
to court.