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State agrees to higher price for KIA land

THE SLOVAK cabinet yesterday agreed to buy the rest of the land for the future KIA car plant near Žilina for Sk350 (€9) per square metre, accepting the owners' original demand. The decision comes after months of uncertainty as the failure to agree on the sale had been threatening to slow down the whole investment, the Pravda daily reported.

The landowners were refusing to sell their plots for the state offered Sk140 per square metre. The mayor of the village of Nedeza, Dušan Vajda, said that the landowners who sold their plots for the lower price are now feeling cheated and they may demand payment of the difference.

The cabinet decided that the outstanding 50 hectares of land would be bought by the national Slovak Land Fund. This body will then rent the land to the Govinvest I and Govinvest II companies for 99 years. The two companies will lease the land to KIA.

The state will need Sk180 million (€4.5 million) to buy the remaining plots.

Compiled by Martina Jurinová from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

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