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Arbitration Won’t Stop Chigirinsky
In a move of no precedent, Moscow City Hall refused to execute the award of Supreme Arbitration. Vice Mayor Joseph Ordzhonikidze said ST Development of Shalva Chigirinsky will proceed with reconstruction of Rossia (Russia) Hotel, and no tender will be convened to find a substitute.
The scandalous victory of ST Development at the tender for Rossia’s rebuilding dates back to the end of 2004. Then, the company offered just $830 million to be acknowledged a successful bidder, though Monab (a firm of Eurofinance Mosnarbank) was ready to invest $1.45 billion, while the tandem of Austrian Strabag and Dubai Investments came up with $2 billion.
Regardless, Moscow authorities entered into the investment agreement exactly with ST Development, and the latter has demolished about a half of the hotel already. But Monab went to law to challenge the tender results and was upheld by the Supreme Arbitration Presidium on October 24.
The invalidating award of Presidium was promulgated past week. It says that the tender arrangers violated the Land Code and the rights of the owners of basement premises of the hotel. The matter at stake was special services, it became clear during the trial.
Moscow will have no other tender, Vice Mayor Joseph Ordzhonikidze made clear yesterday. “The award of Supreme Arbitration Presidium cancels the ruling of Moscow government in part of the tender results, but it doesn’t specify what to do in the next move,” Shalva Chigirinsky said. “I have an investment contract. I am working under it with no intention to stop the project even for a second.”
www.kommersant.com
All the Article in Russian as of Dec. 08, 2006
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