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[Zeus]

digital wire

news from AP and other sources
North Korea Resumes Construction of Luxury Hotel
May 19, 2008
Yonhap news agency, Seoul, in English 0816 19 May 08


Text of report in English by South Korean news agency Yonhap

Shenyang, China, May 19 (Yonhap) - North Korea resumed the construction of a highrise hotel building in Pyongyang last month, which was suspended for nearly 20 years due to funding problems, informed sources here said Monday.

The construction of the luxury Ryugyong Hotel began in 1987 with French capital and technology for completion in 1992. The 105-story building has long been left uncompleted since early 1990s amid North Korea's chronic economic problems.

"North Korean authorities restarted the construction of Ryugyong Hotel in April," the sources said, quoting those who recently returned from trips to Pyongyang.

Orascom Telecom Holding of Egypt is North Korea's partner for the construction, the sources said. "If completed, the hotel will be used as an accommodation for foreign investors and visitors, a business centre and an international convention centre among others," a source said.

The 330-metre hotel is expected to be the world's tallest when completed.


(C) 2008 BBC Monitoring Asia Pacific. via ProQuest Information and Learning Company; All Rights Reserved

[Zeus]

[Zeus]

ORASCOM and DPRK to complete Ryugyong Hotel Construction
Institute for Far Eastern Studies
NK Brief No. 08-5-20-1
5/20/2008

Sources recently returning to China from Pyongyang have reported that North Korea has resumed efforts to complete the 105-story Ryugyong Hotel. With only 20 buildings in the world taller than the 330-meter structure, it would be by far the largest building in all of North Korea.

Baekdu Mountain Architects and Engineers began building the highrise in 1987 but halted construction in 1992 amid economic hardships and rumors of structural deficiencies. The North has been seeking foreign investment of up to 300 million USD to complete the structure.

Traders in Shenyang, China with ties to Pyongyang say the North has now found that funding, partnering with Egypt�s Orascom Group. Orascom has publicized significant investment plans for North Korea in the last twelve months. Orascom Telecom Holding announced on January 30 of this year that it had been granted the first-ever commercial license to provide WCDMA 3G technology-based cellular service to North Korea, and put forth plans to invest 400 million USD to create a nationwide infrastructure.

This deal followed on the heals of Orascom�s first venture into DPRK investment, announced in mid July, 2007, when Orascom Construction Industries purchased a 50 percent stake in the North�s Sangwon Cement Factory near Pyongyang. This venture involved the injection of 115 million USD, which is being used to modernize the facility and increase production capacity from 2.5 million tons to 3 million tons per year.

In addition to Orascom Telecom Holding and Orascom Construction Industries, the Orascom Group also includes Orascom Hotels and Development and Orascom Technology Solutions.

Read the full article here:
N. Korea resumes construction of luxury hotel
Yonhap
5/19/2008

ORIGINAL POST:
Orascom Completes 3G Test Call in North Korea
Cellular News
5/19/2008

Orascom Telecom has announced the successful completion of the first call on the CHEO network in North Korea. Orascom says that the success of this trial network using WCDMA technology represents the first step in providing coverage throughout the country.

CHEO, a subsidiary of Orascom Telecom, is looking to launch its full commercial mobile services within the second half of 2008.

Earlier this year, the company said that it expects to sign up an initial 100,000 subscribers when it launches its new GSM network in North Korea. Speaking on a conference call, CEO Naguib Sawiris said that the service would start in three main cities in the country and the company will then pause to assess the impact.

The company aims to spend an initial US$200 million on the network over the next twelve months, with US$100 per year for the two years after that.

Orascom�s license was granted to the company�s subsidiary CHEO Technology JV Company (�CHEO�) which is controlled by Orascom Telecom with an ownership of 75% while the remaining 25% is owned by the state owned Korea Post and Telecommunications Corporation. The terms of the license allows CHEO to offer services to its customer throughout the country, the duration of the license is 25 years with an exclusivity period of four years.

Regulators in the country met with their counterparts in China in March to discuss controlling mobile radio frequencies along the border between the two countries.

Plans by South Korean companies to build a CDMA network in the capital city in 2002 were cancelled following diplomatic pressure by the USA.

Posted in Cell phones, Communications, Construction, Economic reform, Foreign direct investment, Hoteling, Institute for Far Eastern Studies, Joint Ventures, Orascom Telecom Holding | No Comments �

[samd]

Very interesting.

I wonder how much damage has been done in 20 years of exposure.

[Zaria32]

I've read in several different accounts that the concrete was of such poor qualitie, and the "pours" so inexpertly done, that the structure is actually falling apart.

[Zeus]

[Kafkaesque]

It's weird ya know...but them thar goldang commies just can't mix concrete right or "pour" it properly. It must be a dark capitalist lackey art. A dreadfully arcane and complex process.

When I was living in Leipzig and Berlin and then in Dresden in the early 90's, the pucka gen was that all the socialist concrete houses fom the Elbe to the Vistula were on the verge of collapse and all the poor inhabitants would suffer an ignominious fate.

Sigh........