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Press release from Privatisation and Capital Projects Council's session

Press release from Privatisation and Capital Projects Council
Published date 20.09.2017 16:26 | Author PR Service

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Podgorica, Montenegro (20 September 2010) – Sixth session of the Privatisation and Capital Projects Council, chaired by the President of the Council, Prime Minister Duško Marković, took place in Podgorica earlier today.

The session considered the Report on the outcome of negotiations based on the international public tender for the long-term lease of the land owned by the State of Montenegro and the facilities in the ownership of HTP "Ulcinjska rivijera" AD, Ulcinj. The Council suggested to the Government to approve the report and accept the contract.

Proposed decision, in the long-term lease, for 30 years, gives Karisma Hotels & Resorts consortium the land in the municipality of Ulcinj with a total area of 122,214 m², owned by the State of Montenegro, whose user is HTP "Ulcinjska rivijera" AD, Ulcinj. The consortium applied as the only bidder to the public tender published on 21 June.

Minimum lease for the period of lease of 30 years amounts to EUR 450,000 per year, and the investment programme envisages, in the period from 2017 to 2019, investments in the amount of EUR 16,24 million, improvement of the quality and operation of the existing facilities of the complex up to the level of four international stars, as well as the construction of new facilities, so that after the fulfillment of the main programme projected to the total amount of EUR 31.84 million, the tourist complex will have capacity of at least 600 rooms of the category of four international stars by 2027.

Discussion on this matter emphasised that the renowned tourist company, as a strategic investor in the Montenegrin tourism, brings higher quality of service and is the basis for creating new value, and that it is a high-quality arrangement.

Council considered the request of the "Budvanska rivijera" AD Budva for the approval of the Annex no. 1 of the Joint Investment Agreement (joint construction) signed with the company "Euromix trade" Budva. The Council agreed with the Annex that foresees a "Euromix trade" EUR 4-million loan at the Investment and Development Fund and the extension of the deadline for the completion of works at the Crystal Riviera Hotel in Petrovac until the beginning of the 2018 season.