Abramovich Wins New Holland Tender

16 November 2010

Roman Abramovich’s Millhouse company is to invest at least 12 billion rubles in construction on New Holland island after it won a tender Monday. The committee in charge of the tender to redevelop the island, situated in the center of the city, opened the envelope containing applications for the reconstruction of the island Thursday. Applications were submitted by two companies: Novaya Gollandiya Development (NGD) and Meridian. According to the terms and conditions of the tender, applicants had to propose no less than 300 million rubles ($9.7 million) for the right to sign a contract and no less than $300 million to invest in the construction of a multifunctional complex on the 7.8-hectare island. Construction must be completed within seven years. NGD, which is affiliated to oligarch Abramovich’s Millhouse private investment company, offered to invest more than 12 billion rubles ($388 million), according to Alexei Chichkanov, chairman of the city’s Committee for Investments and Strategic Projects. Millhouse spokesman John Mann confirmed that the companies are connected, but declined to give further comment. Meridian offered to invest $350 million in the reconstruction of New Holland, Chichkanov said. According to Chichkanov, both companies offered the same minimum price to settle a contract, but the volume of investment was the key criterion in the tender. The officials do not know who owns Meridian, he added. According to SPARK Interfax data, the company was established in St. Petersburg in 2008 by Anna Gubar, who could not be contacted. Darya Filina, a lawyer representing Meridian who attended the opening of the applications, declined to comment. A second application was needed to create the illusion of a tender being held, one local consultant alleged. The commission handed over the applications for expert analysis by Knight Frank last week, said Igor Metelsky, deputy governor of St. Petersburg. NGD was announced by the commission to be the winner Monday. The first tender for the reconstruction of New Holland was held in 2006. It was won by the company ST Novaya Gollandiya, belonging to Shalva Chigirinsky and Igor Kesayev. The company was due to spend $320 million, but invested only $70 million before abandoning the project (see related story, this page).