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Economy Minister Zdravko Počivalšek says the contract, to be signed with Magna, protects the interests of the state. Photo BoBo

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Magna project becomes increasingly certain

13. October 2017 ob 10:18
Ljubljana - MMC RTV SLO

The government has approved the contract with investor Magna Steyr and its signing is to happen on Tuesday in the Municipality of Hoče – Slivnica, at a ceremony which will also see the laying of the foundation stone for the start of construction work on the new factory.

According to the contract the investor has made a commitment to invest at least 100 million euros in the next 10 years, and create at least one thousands new jobs.

Economy Minister Zdravko Počivalšek says the contract, to be signed with Magna, protects the interests of the state. It poses no burden to the state budget and binds the investor to fulfill all of the contract's goals. If it fails to do so the government can seek liquidated damages.

On the other hand the state has no responsibilities in carrying out the investment. The investor is not entitled to any damages in case it suffers losses. The investor has to regularly report on the progress of the investment. Apart from the main contract, on Tuesday the state and Magna Steyr will also sign a contract on the financial incentives for the first phase of the project.

Unofficially, the head of the Slovene E-forum, Gorazd Marinček, will file an appeal today at the environment ministry against the project's environmental approval. Minister Počivalšek does not seem worried. Also unofficially, the Administrative Court has received a lawsuit filed against the Slovenian Water Agency and the Slovenian Environment Agency (ARSO) for issuing the project water and environmental consent.

Urška Jereb Brankovič, Radio Slovenija; translated by K. J.