In the framework of its correspondence meeting the Government of the Republic of Slovenia adopted a decision to amend the Government Decision, adopted on 10 November 2011, to read as follows: “The Government of the Republic of Slovenia shall grant a financial incentive to Revoz, d.d. for the investment “Production of the new Twingo and the four-seat Smart (Edison) in Revoz, d.d., Novo mesto” in the amount of 22,484,493.00 euros. The project 2111-11-0912 “Production of the new Twingo and the four-seat Smart (Edison) in Revoz, d.d., Novo mesto” is included in the plan of development programmes 2013-2016, in accordance with the enclosed form 3”.
The Ministry of Economy received the application of the foreign investor on 14 March 2011 on the basis of Article 7.b of the Promotion of Foreign Direct Investment and Internationalisation of Enterprises Act (hereinafter Act). The intention to grant the financial incentive to the company Revoz was notified to the European Commission (hereinafter EC) on 7 October 2011. On the basis of the Ministry of Economy proposal the Government of the Republic of Slovenia adopted on 10 November 2011 Decision No. 44000-13/2011/3 for awarding the financial incentive to the company Revoz for the project “Production of the new Twingo and the four-seat Smart (Edison) in Revoz, d.d., Novo mesto” in the amount of 45.5 million euros under the condition that the EC approves the notified aid.
On 2 July 2013 the EC adopted a decision to begin with the formal procedure of investigating the foreseen financial incentive for the investment project Edison. As the procedure of the formal investigation can last additional 18 months and due to the fact that the company Revoz, d.d. has already invested over 150 million euros for the aforementioned project (on the basis of a specific certificate, issued by the Ministry of Economy, confirming that the mentioned project fulfils the eligibility criteria to be awarded the financial incentive, the company was able to begin with the project works already in March 2011), the companies Renault and Revoz adopted a decision on 18 July 2013 to withdraw the notification to the EC. Despite the withdrawal of the notification the company can apply for the award of state aid in the maximum amount as defined in Article 11.a of the Decree on financial incentives for foreign direct investments (Decree), i.e. 22.5 million euros, which can be awarded, namely in accordance with the applicable provisions, for the investment with the eligible costs amounting to 100 million euros on the basis of the scheme notified to the EC. Therefore, on 20 August 2013 and 25 September 2013 the Ministry of Economic Development and Technology submitted the amendment of the application dated on 11 March 2011.
The value of the project remains at 450 million euros while the eligible costs were reduced from 326 million euros to 99.9 million euros. As a result of the reduced eligible costs, foreseen to be co-financed, the foreseen rate of co-financing is at 22.507 % of the value of the eligible costs. The new amount of the incentive for Revoz is, therefore, 22,484,493.00 euros.
In light of the current difficult economic and financial situation in the market and the fact that the financial incentive for the company is reduced for over one half compared to the originally planned financial incentive, there is a change in the number of jobs which the company will – by signing the subsidy contract – undertake to create over a two-year period from the date of completion of the project, i.e. by 30 September 2016, namely this number is reduced from 162 new jobs initially planned to 51 new jobs. This represents at least 51 new employees given that the factory operates in one shift or 102 new employees in the event of operating in two shifts.
The project is foreseen to be closed in September 2014, while series production is foreseen to be closed in the second half of 2014.
The financial incentive for Revoz d.d. will bring multiple rewards for the country, namely through paying contributions and personal income tax the company will in the next five years contribute over 80.6 million euros. If we add to this amount the effects of net salaries, cost of services paid in the Republic of Slovenia and the purchases with the Slovenian suppliers, the amount is 371.2 million euros. The investment will amount to 450,000,000.00 euros, of which the budget contribution amounts to 22,484,493.00 euros and the remaining funding will come from the project company equity capital. For 2013 the financial incentives will amount to 3,000,000.00 euros, for 2014 it will amount to 4,888,893.00 euros, for 2015 to 7,664,902.00 euros and in 2016 the financial incentive will amount to the remaining 6,930,698.00 euros.