YEREVAN, October 17. /ARKA/. Armenian Prime Minister Tigran Sargsyan said at today’s Cabinet meeting that the private construction companies which are dragging their feet in building large houses in a clear breach of their contractual obligations must be called to account.
“The Armenian government has no intention to leave private companies that failed to complete the construction of some buildings unpunished,” he said. “There are buildings that remain half-built for more than one decade, and we can’t look at their gradual destruction indifferently.”
The premier said sanction must be imposed on these construction companies. He instructed Urban Planning Minister Samvel Tadevosyan to think over the matter and propose an appropriate solution to this problem.
Sargsyan also instructed him to monitor half-constructed houses which belong to the government.
He said it would be reasonable to include some of them in the program of social housing construction.
Dvin Hotel is in the public eye. In 2003, the hotel was sold to Caucasus Communication Group company, which has promised to invest money in construction of a five-stat hotel and to complete the construction within five years. However, no large investments have been made since no sanctions were specified in the contract for breaching obligations, and there was only the amount of investment in it.
In 2011, Armenian government revised the contract pointing out the size of the fine – annual 12% of the investment amount mentioned in the contract.
Under the revised contract, if the promised investments are not made until 2014, the government has a right to seize the hotel though court. ---0----