Four Million Euros to be Invested in Mamula this Year

By , 11 Feb 2019, 14:16 PM Business
The fortress Mamula The fortress Mamula divemontenegro

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Preparatory works on the Fortress Mamula, or the Island Lastavica at the entrance of Boka Kotor Bay, will be completed by March, along with a mock-up room at the same time as a presentation of the capacities for the future hotel.

That is, as written by “Dnevne novine” cited in the annual report on the realization of the long-term lease agreement of this site in the Herceg Novi municipality.

It also clarifies that construction works will begin in the second quarter of this year, i.e. after the end of March. According to the information provided by the investor, Orascom Hotels Management Mamula Montenegro, four million euros will be invested during the works.

This year, an adaptation and expansion of the port in Mirište are planned, with the projected investments of 160,000 euros. Works on the power supply will be carried out and the necessary electrical power connections to nearby Arza, for which it will be allocated another half a million euros.

Last year, preparatory works for the tourist complex at Lastavica continued, more precisely for the five-star hotel "Mamula", which received the status of the object of general interest.

When it comes to financial obligations and investments over the same period, the Lessee paid an annual rent of 47,772 euros, and another 869,932 euros were invested. Since the start of the project's activities, 2,103 million euros have been spent, mostly for project documentation, equipment procurement, preparatory works, payrolls for employees and consultants' engagement.

The Orascom Development Holding company, headquartered in Switzerland, signed in February 2015 with the Government a contract for a 49-year lease of 31,848 square meters with the exclusive right to use the sea property to which it belongs.

"The Lessee’s investment obligation amounts to EUR 15 million, and the deadline for the completion of the works is 18 months from the date of commencement of the works. The investment program defines reconstruction of 23 hotel rooms, four catering facilities, a memorial room for visitors, a reception desk, a spa center, a dock, two pools, two cascades with recycled water, a water sports club, a centralized kitchen and infrastructure facilities, tank for drinking water and wastewater, substation with aggregate, as well as other accompanying facilities," as is detailed in the project that will generate 200 jobs.

As mentioned, the project managed by Orascom Hotels Management Mamula Montenegro is required to bring 7.5 million euros of different revenues to the Government, in the first ten years, not counting the rent.

Text by Dnevne novine, on February 11th 2019, read more at CdM

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