The Republic of Serbia will give land worth EUR 6.25 million to the German investor MTU for the construction of a facility in Nova Pazova for the maintenance and repair of aircraft engines and the accompanying services, Nova Ekonomija learns.
This will be realized through a contract on the alienation of building land between the Property Directorate of the Republic of Serbia, the company MTU Maintenance, registered in Serbia, and its parent company, MTU Aero Engines from Germany.
As said in the Commission's decision, the total value of the land donated is EUR 6,250,683, according to an estimate by the Tax Administration. The total surface of the two cadaster parcels is 25 hectares, 68 ares and 72 square meters.
Under the draft agreement, MTU obliges to build the facility at its own expense, that is, to make the initial investment in capital assets of no less than EUR 100,900,000 by the end of 2025 and to permanently employ at least 440 workers in the period between 2021 and 2027.
MTU Maintenance also obliges to secure the participation of at least 25% of the justifiable costs from its own funds or other funds not entailing state aid, whereby justifiable investment costs are only investments in new equipment.
The business plan entails the construction of capacities for MRO (maintenance, repair and operations) of around 22,000 square meters.
The investment project entails an investment of EUR 4.8 million in the infrastructural equipping of land, EUR 45.9 million is reserved for the design and construction of production capacities, and EUR 50.2 million is the value of the planned investment in new equipment.
In case MTU fails to meet the obligations under the contract, the state can ask to be repaid in the countervalue of the amount of EUR 6.25 million, which is the market value of the parcels being alienated.
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