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| Orco Property signs agreement on project in Croatia Nedjeljka Klaric, mayor of the City of Sibenik, and Dragan Lazukic, regional Orco Property Group director for SE Europe, signed an agreement regarding the "Obonjan Riviera" project. The agreement, which is based on the BOT (Build-Operate-Transfer) model and is to have a fifty-years duration, obliges Orco, through its subsidiary Suncani Hvar Hotels, to finance the architectural design and building of new tourist facilities on the island. It will manage the facilities until the expiration of the agreement, after which the City of Sibenik will assume ownership with no compensation. The company plans to develop 65,000 sqm in hotels, apartments and villas as well as sport, beach and relaxation facilities. Furthermore, there will be also 100 berths available in the harbour. The beginning of construction is scheduled for early 2010, which is the deadline for obtaining all the necessary permits. The first guests are expected at Obonjan as early as 2012. Obonjan is the only island in Croatia fully dedicated for construction of new resort, and as such has unique potential. The island is 54 Ha big and surrounded by 3 national parks. The island is 5 miles away from Sibenik, which Old city is under UNESCO protection, and 80 km from two international airports in Split and Zadar. Upon signing the agreement, Suncani Hvar is to make a single HRK 5-million (EUR 0,7 million) payment to the City of Sibenik, and take on the repayment of EUR 3-million loans to Jadranska Banka. The agreement also stipulates that Orco is to pay a yearly construction-rights fee of EUR 500,000 to the City of Sibenik starting 2017, as well as 3.5-5 percent of the revenues made by the tourist resort starting 2013. write your comments about the article :: © 2008 Construction News :: home page |