Agreements with negligent investors might be terminated in Penza region
Penza, 25 October 2017. PenzaNews. It was suggested that the possibility of an early termination of an investment agreement on a unilateral basis should be considered in the Penza region in case the company with which the agreement was concluded fails to comply with the obligations it assumed.
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The bill that makes amends to the regional law "On investments and public-private partnership in the Penza region" will be considered at the second session of the Legislative Assembly on Friday, October 27.
It prescribes several grounds on which previous agreements with an organization may be terminated.
One of them is failure to comply with obligations of an investment agreement unless it was caused by force majeure circumstances.
In addition, they also include failure to use provided tax remissions effectively as well as inability to create a real budget, economic or social effect.
An agreement can also be terminated if it becomes known that the investor provided false information.
The proposed procedure provides that the decision to terminate provision of state support will be made by the government of the Penza region within a month of the date a relevant proposal from an authorised body has been received.
In addition, the bill prescribes how to calculate the amount of money the investor will be obliged to pay to the regional budget due to early termination of the agreement.