Privatisation and Capital Projects: Žabljak's "Mediteran" and Ulcinj's "Ulcinjska rivijera"

The tender for the tourist valorisation of the site was announced on 5 December 2013 and deadlines for submitting bids and the purchase of documents was extended several times. A consortium consisting of SKI doo Žabljak and Tallinn-based Baltic International Trading had submitted a bid in the new tender published on 13 September 2017. The offer was assessed as formally correct and the negotiations with the bidder started. The important elements of the proposed contract include 30-year lease of the complex of 13.951 m² with a pre-paid fixed rental price of 1.01 Euro per square metre annually and an advance payment of the rent for the first five years; a variable 5% lease from revenues generated in the financial year, and an investment programme including the construction of a 5.4 million worth, 5-star category asset within 27 months.

The Council reviewed the Report on executed control of completed works and the level of investments invested in line with the investment programme of the project "Portonovi" - Kumbor, Herceg Novi for the period from 8 February 2013 to 31 December 2016, which was submitted by the Ministry of Sustainable Development and Tourism.

The report reads, among other things, that the total investment since the beginning of the project’s implementation until 31 December 2016 amounts to 183,724,250 EUR, which is 3.53 times more than the amount of the required mandatory investment of 52 million EUR for the same period, as well as that the State of Montenegro, on the basis of taxes, contributions, and duties, generated 24,826,136 EUR, of which the municipality of Herceg Novi, on the basis of the fee for utility equipment, generated 5,640,683 EUR, while the Regional Water Supply Company of the Montenegrin Coast generated 1,261,098 EUR for the construction of a regional water supply system.

The session also considered the Factual Status Report in relation to the pre-arranged procedures conducted in connection with the request of the State of Montenegro referred to in the Leasing Contract of HTP "Ulcinjska rivijera", which was submitted by the Ministry of Sustainable Development and Tourism. The Government was proposed to adopt the Report, which states, that the company Karisma Hotels Adriatic Montenegro invested 15,819,549 EUR in the first phase; that the realised investment increased by 54.5% compared to the amount set out in the lease agreement (10.240.000 Euros); that the Hotel Bellevue was adapted and that the existing capacities of 257 accommodation units were upgraded to a 4-star category; and that 1,692,000 EUR was invested in the arrangement of the Hotel Holiday Villages Montenegro and in the adaptation of a part of the Hotel Olympic.

The Privatisation and Capital Projects Council reviewed the Information on the fulfillment of the conditions for the return of the first bank guarantee to the Global Ports Holding, submitted by the Ministry of Transport and Maritime Affairs, and proposed to the Government to conclude that this company invested 474,073.90 EUR in the rehabilitation and reinforcement of the construction of the southern coast of Gata 1, thus enabling the return of the first bank guarantee.

The Council discussed the status of realisation of the investment agreement for the purchase of 74.9749% of the share capital of "Jadran" AD Perast, submitted by the Ministry of Sustainable Development and Tourism. It was proposed to the Government to declare that the investor had fully fulfilled the obligations defined by the contract for the purchase of 74.9749% of the share capital, thus obtaining the conditions for deleting the mortgage on the pledged property.

The Privatisation and Capital Projects Council was informed about the status of the privatisation contract for the General Hospital "Meljine", which was prepared in accordance with the Council’s conclusion adopted at the 12th session, at the request of the Council’s member Srđa Keković.