Armenia`s government to compensate Gillo company for sustained damage  under court order 

ArmInfo. The Armenian government will implement the decision of the court of primary instance on compensation for damages incurred by the Gillo company. 

The decision on this was made at the Cabinet meeting on August 22. As  noted in the justification for the draft decision, on May 31 of this  year, a settlement agreement was concluded between the company and  the Water Committee, which was submitted to the court. The latter  approved this decision. According to the agreement, the Water  Committee will reimburse the amount of additional work performed by  the Gillo production cooperative in the amount of 5878.4 thousand  drams and the amount of the state duty paid in advance. At the same  time, another 2531.7 thousand drams were assigned to the Gillo  companies, including legal and other expenses.

According to the court decision, the Water Committee is obliged to  transfer the money within 2 months after the decision comes into  force. The fact is that the Gillo company built an irrigation canal  with a length of 1954 m and a pipe diameter of 525 mm from Yeghvard  to the end of Halabyan Street in Yerevan. At the same time, the  amount of work performed amounted to 182,113.1 thousand drams, which  exceeds the contract price by 8,608.4 thousand drams.  Meanwhile, the  Water Committee paid only 173,504.7 thousand drams. On June 28, the  Gillo production cooperative filed a lawsuit in the Civil Court of  First Instance of Yerevan against the Water Committee demanding  confiscation of funds, and the court accepted the application for  proceedings. In accordance with the settlement agreement, the  remaining funds of 5878.4 thousand drams will be paid from the state  budget of the country.