Karen Demirchyan Complex to be Signed off to Armenia’s State Property Agency

Prime Minister Hovik Abrahamyan. (Source: Artsakhpress)
Prime Minister Hovik Abrahamyan. (Source: Artsakhpress)

Prime Minister Hovik Abrahamyan. (Source: Artsakhpress)

YEREVAN (Arka) — The Karen Demirchyan Sport and Concert Complex will be signed off to Armenia’s state property agency, Prime Minister Hovik Abrahamyan said Thursday at a regular Cabinet meeting.

The complex is now in the jurisdiction of the defense ministry, and the premier finds it reasonable to sign off the stocks of the complex to the state property agency.

“I think this decision will be more productive,” he said. “The draft decision will be presented at the government’s next session.”

Armenian government decided Thursday to terminate the deal approved on August 13, 2015 it to sell the Karen Demirchyan Sport and Concert Complex, which is in the competence of the defense ministry, to NTA INVESTMENT GROUP CJSC for $30 million.

Deputy Defense Minister Ara Nazaryan said today that the government has announced the sale-purchase deal invalid and ceased the process of alienation of the property of the complex because the new owner has failed to pay for the bought property.

The contract did not come into force, since it was specified in it that it will become valid only after payment of the entire sum of the deal. However, NTA INVESTMENT GROUP failed to do it.

Under the contract, the new owner had to invest $100 million within four years in the building.

It was planned to build a hotel, an aqua park, concert halls, restaurants and even a casino on the territory of 8.5 hectares.

The sport and concert complex was built in 1983 in Yerevan. The building is considered as one of the architectural masterpieces of the late Soviet epoch. Its total area is 46,300 square meters.

On October 9, 2005, the complex was sold for $5.7 million to Russia’s BAMO construction holding, which assumed an obligation to reconstruct the building. The reconstruction cost about $42 million and lasted three years, but the government entered into possession of the complex again in August 2014 because of the accumulated debts. It is known that the complex owes $25.5 million to the government.

The decision to sell the building sparked public outcry and experts’ criticism, and the intention to build a casino on this territory was taken as immoral.

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