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Saturday, August 11, 2007

Another Step To Olimpic Plaza's End

The Kiev City Administration is initiating an audit and appraisal of Yudzhyn (SPV for Olimpic Plaza) company’s expenses related to the construction of that shopping center.

First Deputy Chairman Anatolii Holubchenko announced the initiative at a meeting of the city special committee for the preparation to Euro-2012. He said the city Administration sent a letter to the President Yuschenko's Secretariat.

In this letter, the city administration suggests creating a government commission that will submit, after the audit, proposals on the need to compensate the construction costs of demolishing of the object. After that, authorities will select a contractor and schedule for this works.

Holubchenko stressed that the dismantling task was set by the Cabinet of Ministers.«If we were told to demolish it, we have to demolish it,» he said. But Yudzhyn is confident that they able to proceed a construction further.

Basically, many experts agreed that life of this complex in city center is ended and owner should seek the way to negotiate a terms and conditions for closing a project.

Buy in this situation their position is pretty weak, 'cause now they can rely just on covering a construction cost and I'm sure that no one will cover hidden, unofficial expenses, which could be a pretty significant in such big project.