BELGRADE (Serbia), December 20 (SeeNews) – The authorities of Serbia's central city of Smederevo have informed U.S.-Dutch consortium Comico Oil that they accept the offer for an out-of court settlement with the company over a defaulted lease contract, local media reported on Thursday.
The consortium has proposed to pay 652 million dinars ($7.6 million/5.8 million euro) for the lease of 113 hectares of land for 99 years, Beta (www.beta.rs) reported.
The city accepted the offer noting that the payment should be paid by January 31, 2013 along with a penalty for the overdue period, Beta said.
The city of Smederevo filed a lawsuit earlier this year against Comico Oil over its failure to meet a payment deadline on a lease of a land plot where the company plans to build an oil refinery and create 500 jobs.
The construction of the refinery is expected to begin on March 1, the deputy director general of Comico Oil, Radomir Radivojevic, told Beta.
Smederevo is located on the bank of the river Danube, some 40 kilometres downstream of the capital Belgrade.
(1 euro=113.4251 Serbian dinars)