THE TOWN of Senica has lost its chance to draw Sk213 million (€6.21 million) from EU structural funds and Slovakia's state budget for the construction of utilities at a local industrial park.
The Slovak Investment and Trade Development Agency (SARIO) has withdrawn from a money allocation contract supporting the arrival of other investors to Senica because the town violated its terms.
SARIO has cited the sale of some of the parcels in the industrial park as the reason for its withdrawal.
The town sold off four hectares that had former military barracks located on them. The barracks belonged to entrepreneurs, who were using them for their businesses' production centres. The town of Senica obtained these premises from the Defence Ministry as surplus.
"Our contract with SARIO was for the construction of utilities in the industrial park," Senica Mayor Ľubomír Parízek told the TASR news wire. "But these have already been built in the barracks. Our opinion is that it is all a misunderstanding."
Senica has already returned Sk6 million (€175,050) to SARIO. But it has invested much more into the project from its own pockets. Parízek calculated the towns investments at Sk219 million (€6.39 million). Senica also has to settle a Sk66 million (€7.93 million) bill for construction work at the park. It planned to pay it with money from SARIO. Now it has to cover it from its own budget.
18. Jun 2007 at 0:00 | From press reports