Is call for lease of Ulcinjska rivijera underway?

Illustration (Photo: anshar/shutterstock.com)

At the meeting of the Council held on Monday (June 19, 2017) satisfaction was expressed for the fact that there is interest of well-known companies for quality evaluation of this state-owned resource and strategic partnerships.

The Government of Montenegro planned within the Privatization Plan for 2017 privatization of HTC Ulcinj Riviera through an international tender, sale of shares, capital increase or long-term lease.

Minimum average annual lease cost for buildings and land at HTC Ulcinjska Riviera, for lease of 30 years is 3.5% of total projected annual revenue of tender items where an average annual amount of rent, calculated on that basis cannot be lower than EUR 450,000.

The condition is, as stated, that the investment program must anticipate improvement of quality and performance of existing facilities of this tourist complex to the level of four international stars and construction of new facilities, so that after fulfillment of the Investment program complex has capacity of a minimum 600 rooms with a quality of four international stars.

It is also a condition that value of the Investment program must anticipate minimum investment of bidders in reconstruction and adaptation of the existing tourist facilities, construction of new ones and their management in line with the highest internationally accepted quality standards, in the amount of no less than EUR 10 m in the first five years of lease.

All facilities, including the ones which will be built, after expiry of lease remain property of the state of Montenegro, it was concluded at the meeting of the Council for Privatization, chaired by Prime Minister Dusko Markovic.