MOSCOW, September 17 - RAPSI. The Ninth Commercial Court of Appeals upheld the decision to recover 129.8 million rubles ($4.25 million) from the Moscow Government in favor of the Inteco construction company in compensation for the construction of a kindergarten, the court spokesperson told RAPSI Monday.

On May 28, the Moscow Commercial Court ordered the Moscow Government to pay the Inteco construction company $4.25 million in compensation for the costs incurred for the construction of a kindergarten.

Inteco sought to recover its expenses for the kindergarten design and turnkey construction near the Arco di Sole residential area. The property was built in accordance with an investment contract between Inteco and the Moscow Government. The project involved the development of a multipurpose complex, including non-residential premises and underground parking.

The government lodged a counter claim for roughly $800,000, but the court dismissed it. The Moscow authorities argued that the total area of the facilities constructed by Inteco exceeded the space set out in the contract and the government sought compensation for the expenses required by the extra infrastructural load.

Inteco maintains that it performed its obligations in full as the latest version of the contract stipulated the construction of over 80,000 square meters - not 60,000.

Moscow holds that the claims were premature as the final project completion report has yet to be executed.

Inteco is a diversified construction company and a market leader in development in Russia. It works in residential and non-residential construction, the development of facade finishing techniques, cement production, architectural design and real estate.