Tigran Avinyan's Described Scenarios Are Inadequate, Risks Are Broader: Aghajanyan

During today’s government session, a decision was made to auction state-owned properties located at 23 Orbelyan Street in Arabkir, which consists of buildings with a total area of 9905.21 square meters and land parcels of 3.302955 hectares and 0.004359 hectares, managed by the State Property Management Committee of the Ministry of Territorial Administration and Infrastructure.

Surene Papikyan, Minister of Territorial Administration and Infrastructure of the Republic of Armenia, noted that this is the building of a military hospital. “A decision has been made to present it for auction, with the aim of constructing a hotel complex there. Investors will submit proposals, and a competition will be held. Currently, the property is estimated at approximately 7.716 billion drams, plus 83 million drams for the cadastral value of the land. The possibility of constructing a hotel complex on Orbelyan Street is being created,” said Papikyan.

Prime Minister Nikol Pashinyan jokingly responded, “It’s not exactly in the center, but you could say so.” Vice Prime Minister Mher Grigoryan stated that it is incorrect to sell the property while retaining it as collateral, as this diminishes investment attractiveness. According to him, it should be described what will happen if the investor fails to meet their obligations.

The Prime Minister responded, “It’s illogical; a person comes to acquire property, and we say, 'We won’t give it to you.' That cannot happen. The person must have the opportunity to use it as collateral, bring in funds to make their investments.”

Eduard Aghajanyan, Chief of Staff of the Prime Minister, mentioned that he discussed the issue with the head of the State Property Management Committee, Narek Babayan. Vice Prime Minister Tigran Avinyan remarked that this situation presents a strange practice. “I wasn’t aware of it, because we can ensure compliance with conditions through other mechanisms,” he said and added that if such practices exist for investors, it would complicate the process and should be reconsidered.

Aghajanyan stated that Avinyan's described scenarios are inadequate and the risks are broader. Nevertheless, he emphasized that their position is clear: the buyer should have the opportunity to use the property as collateral, and he added that Narek Babayan would present proposals.

The Prime Minister mentioned that properties are currently being put up for auction, and they should listen to the market response. Surene Papikyan suggested removing the question from the agenda and voting on it at the next meeting; however, the Prime Minister noted that this is unnecessary, as procedural issues will be resolved. The project was approved.