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St. Petersburg authorities request to return advance payment on Zenit Arena guarantees

August 01, 2016, 21:23 UTC+3 ST. PETERSBURG

The Bank of Moscow provided a guarantee for $40.39 mln under the contract to the general contractor for the construction of Zenit Arena stadium

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© Pyotr Kovalev/TASS

ST. PETERSBURG, August 1. /TASS/. The St. Petersburg Construction Committee has prepared a request to VTB for return of advance payments on terminated contracts for construction of Zenit Arena stadium on Krestovsky Island, the committee’s press service told TASS on Monday.

"Yes, we will send the requirement within the next week," the press service said, not specifying the exact volume of bank guarantees.

TASS reported earlier that the Bank of Moscow (through VTB) provided a bank guarantee for 2.7 bln rubles ($40.39 mln) under the contract for 9.1 bln rubles ($136.12 mln) to the general contractor for the construction of Zenit Arena stadium - Inzhtransstroy-SPb - until January 17, 2017.

Earlier the St. Petersburg administration said it had notified the stadium’s general contractor, Inzhtransstroy-SPb about cancelling the contract.

According to Inzhtransstroy-SPb, the decision of the St. Petersburg administration to change the general contractor for Zenit Arena stadium on Krestovsky island means that the arena will not be ready for the 2017 FIFA Confederations Cup.

"The representatives of the general contractor have been under pressure from the customer for several months, although we are fully committed to continuing construction work. However, changing the general contractor at the stage when the commissioned construction works at the stadium are 85% ready, makes it impossible to finish construction in the next 11 months. Such inconsistent decisions of the St. Petersburg Construction Committee, as well as the ever-changing conditions, lack of an agreed project documentation, unresolved issues with the financing only mean that the stadium will not be ready to host the 2017 Confederations Cup," the statement said.

The matches of the 2017 FIFA Confederations Cup will be held in St. Petersburg, Moscow, Kazan and Sochi on June 17 - July 2, 2017. The St. Petersburg stadium, in particular, was expected to host the final match. Construction of the arena began in the western part of Krestovsky island in 2007. The project was adjusted three times - in 2008, 2010 and 2013. Every time the cost of the stadium increased from the originally estimated 6.7 bln rubles ($106.04 mln). TASS reported earlier that the estimated cost of the arena construction increased by 4.3 bln rubles ($68.06 mln) to 39.2 bln rubles ($620.5 mln).

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