Contracts with Contractors Terminated, Says Temporary Manager of HEC

"More than three dozen specialized technical transportation vehicles (drilling machines, manipulators, auto trucks) belonging to HEC will be redistributed to over 20 regional subdivisions of HEC, through which employees and duty teams will carry out emergency recovery work on-site more quickly and efficiently," announced the temporary manager of HEC LLC, Romanos Petrosyan, on his social media page.

He elaborated: "This is part of around sixty technical transport vehicles that HEC had leased years ago to four contracting companies affiliated with the 'Tashir' group, which were conducting works planned under HEC's investment programs for HEC itself, while leaving the current maintenance and repair costs on HEC (as per the stipulated contract)." Moreover, since the signing of the rental agreements, the contractors had not made any payments to HEC until the appointment of the temporary manager.

As a result of our investigations and mutual clarifications regarding the legal relations, it became clear that the accounts receivable owed to HEC by the contracting companies for the rental of over 60 units of equipment amounted to more than 180 million AMD. Those contracts were terminated by our initiative weeks ago in accordance with the law, and the mentioned technical transport vehicles were fully returned to HEC (with a significant portion being broken and in poor condition). Meanwhile, HEC has presented invoices to these entities to settle the accrued obligations.

Currently, about 60 million AMD of that amount has been settled. I should also mention that there are more than 600 vehicles and specialized equipment in HEC's central fleet and branch garages, of which about 200 are unsuitable for further operation and are in a state of complete wear and tear, effectively non-functional; they are subject to further disposal and accounting write-off. HEC must serve our people."