Updated at 14:58,21-10-2016

Oman refused to invest into Belarus property

26-07-2012, 14:41
Oman refused to invest into Belarus property

The State Reserve Fund of Oman refused to implement an investment project in the center of Minsk. The city authorities are ready to consider offers from other investors. This information coming from TUT.BY has been confirmed by the Committee of Construction and Investment of Minsk city Executive Committee.

"They notified us that they are refusing from the project. The procedure of termination of the investment agreement and other agreements has been started. This is not a quick procedure", said a representative of the Committee of Construction and Investment of Minsk city Executive Committee. According to him, "potential investors can submit their proposals to the Economy Committee of Minsk City Executive Committee. But we can arrange this agreement only after the contract with the Omani company will be terminated".

State General Reserve Fund of Oman (in the face of created in Belarus "Eagle Propetiz four") received in 2010 a land in Minsk of 2.6 ha within the boundaries of streets Kupala - Maxim Bogdanovich - Svisloch river for 10 million dollars, without holding an auction, for the construction of a multifunctional complex. In particular, it was planned to build a residential complex, a business center and a five star hotel on the construction site. The total investment was estimated at 150 million dollars. The project supposed to be completed in 2016.

Along with the ownership of the land, "Eagle Propetiz four" supposed to receive the "National Exhibition Center "BelExpo", 2nd City Hospital and the building of a specialized energetics (TP-159) belonging to the "Minskenergo". However, the demolition of these objects the investor should do by their own or borrowed funds. Since that time the 2nd Clinical Hospital of Minsk has fully moved into a new building at Engels str., 25.

The company "Eagle Propetiz four" declined to give official comments on this project and advised to address to the Minsk city Executive Committee. "Everything what they say will be true", said in the company.

It should be noted that at the end of last year, Omani investors have complained that the "currency and economic crisis in Belarus, whose consequences are still being felt, disrupted the start time of the investment project". In February, the State Reserve Fund of the Sultanate of Oman has asked to postpone the project for six months. Apparently, the elapsed time did not add optimism to the foreign investors. A representative of the Minsk city Executive Committee confirmed that the "investors have found this project unprofitable". "There were one economic conditions before the crisis, now they are different", he said.