Evaluation of investment program for Dvin Hotel to be presented in March
YEREVAN, January 30. /ARKA/. The evaluation of the investment program
on reconstruction of Dvin Hotel in Yerevan will be presented in March,
head of Armenia’s state property management department Arman Sahakyan
told reporters on Friday.
The contract with the owner has been improved after the negotiations, he said.
According to the new terms, the owner is obliged to come up with an
investment program for the reconstruction by mid February. After that,
the state property agency will evaluate it and give a conclusion
within a month, Sahakyan said.
Sahakyan refrained from giving the new owner’s name and said it is a
commercial secret.
In 2003 Dvin Hotel was sold to the Caucasian Communications Group. The
owner promised to invest heavily into Dvin within 5 years to rebuild
it into a five-star hotel. However, no significant investments were
made because the contract had no provision for penalties if the amount
was not invested.
In 2011 the government revised the contract and defined an annual fine
of 12% of the estimated investment amount if company failed to fulfill
its contractual obligations. The contract also said the government
will seize the hotel if the investments were not made by 2014.
Yet, in April 2013, the government approved a new program for
reconstruction of Dvin Hotel, with total investments of $13.6 million
($850,000 in 2013, $3.97mln in 2014 and $8.78mln in 2015). The
investor would have to pay a penalty equal to 6% of the amount not
invested per year. -0–
From: Emil Lazarian | Ararat NewsPress
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Direct link to this article: https://www.armenianclub.com/2015/01/30/the-contract-with-the-owner-has-been-improved-after-the-negotiations/
