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Privatisation and Capital Investment Council: Sidro Hotel in Bar and Piva Hotel in Plužine will be sold

Privatisation and Capital Investment Council: Sidro Hotel in Bar and Piva Hotel in Plužine will be sold
Published date 13.06.2019 12:15 | Author PR Service

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Podgorica, Montenegro (13 June 2019) – At its 17th session, the Privatisation and Capital Investment Council, chaired by the President of the Council, Prime Minister Duško Marković adopted the Request of the Port of Bar AD - Bar for the sale of 100% of shares in Sidro Hotel and accepted the Request of the Hotel Group Budvanska rivijera AD - Budva for giving consent to the Decision on modification of the Decision on sale by public auction regarding the sale of Piva Hotel in Plužine. The Auction Commission should conduct a procedure for the sale of part of the property of the Hotel Group Budvanska rivijera AD - Budva - Piva Hotel in Plužine in accordance with the Decree on sale of shares and assets through public auction in accordance with this conclusion.

As of 31 March 2019, the fixed assets of Sidro Hotel amounted to EUR 1,172,118, while receivables amounted to EUR 56,377, capital EUR 575,929, accumulated loss EUR 5,944,443, long-term liabilities and provisions EUR 37,051, deferred tax liabilities EUR 103,904, and short-term liabilities amounted to EUR 543,859.

The discussion pointed out that Sidro Hotel did not operate positively since the opening in 2010 and that the management of the Port of Bar intends to use the money from the sale of Sidro Hotel for the rehabilitation of Volujica quay construction in the length of 554 m and for the construction of a 6,000 m² prefabricated storage facility. The session emphasised that 34 employees at Sidro Hotel were protected by a high-quality collective agreement in the five-year period after the privatisation, and the Council recommended to the Port of Bar to make the final decision on the sale of Sidro Hotel, adding that an integral part of the decision is a social programme that should be implemented by a potential buyer. 

The initial price of Sidro Hotel is set at EUR 1,704,480.02.

By accepting the Request of the Hotel Group Budvanska rivijera AD – Budva, the Council agreed that the new Decision on sale by public bidding would indicate the price of EUR 152,000, since the book value of the Hotel amounts to EUR 150,966.98. The Council instructed the Auction Commission to conduct the sale procedure for the part of Piva Hotel in Plužine in accordance with the Decree on sale of shares and assets through public auction.

The Privatisation and Capital Investment Council reviewed the Information on the fulfillment of conditions for the issuance of the fourth bank guarantee to Global Ports Holding and proposed to the Government to adopt the Information, which states that this company invested the amount of EUR 2,027,879, 05 in the rehabilitation and reinforcement of the construction of the southern coast of Gata 1, which created the conditions for the issuance of the appropriate bank guarantee.

The Council passed the Proposal of Decision on amendments to the Decision on the privatisation plan for 2019, which envisages the sale of the remaining part of 1.45 percent of state-owned shares in the New Tobacco Plant AD Podgorica, after the current majority owner expressed his interest in the purchase of the remaining state-owned shares.

PUBLIC RELATIONS SERVICE OF THE GOVERNMENT OF MONTENEGRO