You're reading: Cabinet permits TM construction investment company to finish Olympiysky Sports Complex

National Olympiysky Sports Complex state-run company and TM construction investment company Ltd. will sign a cooperation agreement on the continuation of construction of a building at the territory of the Olympiysky Sports Complex. The Ukrainian government had permitted to sign the agreement.

According to cabinet resolution No. 547 of May 30, 2011 published last week the agreement will include a requirement that a land plot, where the building is being built, will be in permanent use of the state-run company.

Another requirement is the purchase of Olympiysky Sports Complex’s ownership rights to the building at the price set in a report on the assessment of its value drawn up by the State Property Fund of Ukraine.

National Olympiysky Sports Complex, as a customer, in July 2004 signed an investment agreement to develop the complex’s infrastructure, foreseeing reconstruction of a sports pavilion on a land plot of 16.9 hectares. It was expected that Olympiysky Sports Complex will obtain around 40% of gross building area and the investor – around 60%. The investment agreement was agreed with Vice Premier and Head of the supervisory board of National Olympiysky Sports Complex, Dmytro Tabachnyk (now Education and Science Minister).

In 2006 the sides approved the expansion of the building’s space to 20,800 square meters in an annex to the agreement. The space was distributed in the following way: 30% to the customer and 70% to the investor (6,640 square meters and 14,160 square meters respectively).

Finally in June 2010 the sides signed another annex to the agreement and canceled a second stage of construction, agreeing to transfer the building to joint ownership with 17% of the investor’s share and 29% of the customer’s share. The document also foresaw the commissioning of the building by July 2011. The agreement was approved by the Family, Youth and Sports Ministry and the head of the National Agency for Preparations for Euro 2012.

Deputy Prosecutor General in the interests of the Ukrainian cabinet signed a claim to Kyiv Economic Court, demanding to declare the investment agreement illegal. In September 2008 the court upheld the claim, although in November the court of appeals canceled the ruling, and Higher Economic Court in December 2009 sent the case to a new hearing to Kyiv Economic Court.

According to information from the single register of court rulings, the latest ruling was a ruling of Kyiv Court of Appeals of February 17, 2011, which upheld a ruling of Kyiv Economic Court of November 16, 2010 that did not satisfy the claim of Prosecutor General’s Office.