The Chinese Corporation Hualing responds to accusations of Georgian Association of Developers over the fact that the company had granted unjustified benefits.
According to President of the Association of Developers of Georgia Irakli Rostomashvili, we are talking about repeated cases of almost gratuitous transfer of land to some development companies, in particular the Chinese Hualing.
“It creates great difficulties for the majority of companies that do not have access to such benefits. When some companies have to buy land at market price, and others get the land free of charge by the President’s initiative – there can be no question about competition. We have already appealed to the Ministry of Finance with the requirement to support the initiative of developers over the fact that everyone should have the same conditions for the acquisition of land. All companies should be on an equal footing,”- he notes.
According to President of the Association Irakli Rostomashvili, the Chinese Hualing, which builds an apartment complex on the outskirts of Tbilisi, is among such companies. “They were freed from taxes, the government gave them land and conducted all communications for which other companies pay millions. This question needs to be revised,”- he says.
According to Hualing, the territory where the construction is underway, didn’t represent any interest to anyone, as it was completely devoid of any infrastructure, moreover, it was not attractive for investors from a commercial standpoint.
“Due to large financial capacity of the company, we’ve managed to carry out simultaneously large investments in infrastructure, and government benefits were just due to this fact. The contract signed with the government, involves the construction of the Olympic village meeting the European standards with a total area of 350 000 sq m by 2015 (in a very limited period of time). 3 and 5-star accommodations, a 5-star hotel, spas, a restaurant for 2 000 people, a recreational area, auto parking, shopping center on the area of 110 000 square meters. The company will invest USD 150 million in these projects , in 2015 the facilities will be to be passed the state for 3 months to conduct the Youth Olympics. Roads and communications will be built there,”- ” Hualing” states.
The corporation also denies allegations that infrastructure for the projects was prepared by the State at its own expense. Tbilisi Water Ltd will provide the Olympic village only with communications for its own account, and even only to the territory of the complex, and on the territory of the village this issue is in the responsibility of ” Hualing. “The same can be said about gas, electricity supply, etc. All this will be done at the expense of investors “- the company notes.
The Chinese development company Hualing enjoys tax benefits, in particular, it is exempt from VAT and import tax for 10 years, as well as from tax on property and land- for 5 years. In return for this, the company makes major investments in the construction of a sports complex and the Olympic village where the Youth Olympics will be held in 2015.