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City of Sibenik for going to arbitration over disagreement with Orco on Obonjan project

Autor: mses
SIBENIK, Aug 24 (Hina) - Councillors of the Sibenik City Assembly unanimously concluded on Tuesday that the City and the Orco Group, that is its successor -- Suncani Hvar -- in the Obonjan Riviera project, should go to arbitration over differing interpretations of who is the damaged party due to failure to carry out the project aimed at building hotels on the island of Obonjan off the Croatian Adriatic city.

After a three-hour debate, councillors concluded that the process of arbitration should prove that Sibenik suffered losses and they also dismissed a possibility of paying HRK 17 million as compensation to the Orco Group for non-realisation of the project through public-private partnership. The private partner claims this sum from the city.

"We have missed two (tourist) seasons on the island of Obonjan owing to the Obonjan Riviera project, and this has caused direct damage of more than HRK 1 million," Sibenik Deputy Mayor Petar Baranovic said.

He dismissed as unacceptable the group's request that the city authorities should pay the consultants hired by the private partner in the project.

(EUR 1 = HRK 7.2)

(Hina) ms

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