Trnavainvest, a company which will buy up land for the construction of PSA Peugeot Citroen assembly plant in Trnava, should be granted an exception from Slovak legislation that limits compensation per one square meter of land bought for purposes in public interest. To avoid disputes with current landowners, Trnavainvest should be able to increase its price offer up to SKK 130 per one square meter. Trnava town council will be the exclusive owner of Trnavainvest. This stems from draft materials based on an investment cooperation agreement between Slovakia, the town of Trnava and French carmaker PSA Peugeot Citroen. The Slovak Economy Minister Robert Nemcsics has submitted the documents to parties involved for comments.

The submitted papers also set preliminary terms until which time the future plant’s premises should be connected to the infrastructure network. They include water and sewage pipes, mains, telecommunications lines, gas pipes and roads and railway.

PSA Peugeot Citroen is planning to start building the assembly plan in Trnava in September. Basic expenditures are set at EUR 710 million. Slovakia’s costs to meet obligations towards the French carmaker are estimated at SKK 6.5 billion while these should be returned during the first six months of the plant’s operation. The first car should leave the Trnava plant in early 2006.