Rakcevic and Government Harmonize on Contract for Igalo Institute in September

By , 01 Aug 2019, 23:35 PM Business
Rakcevic and Government Harmonize on Contract for Igalo Institute in September Igalo Spa, copyright Igalo Spa

1 August 2019 - Rakcevic, the owner of Petrovac Villa Oliva, is expecting a second session of negotiations with government representatives in mid-September and agreeing on an agreement for the Dr Simo Milosevic Institute.

Zarko Rakcevic told Vijesti that, regardless of the differences, he believed that an acceptable deal would be reached for both parties.

A consortium of Czech company Philibert and Villa Oliva has offered 10 million euros for 56.48 percent of the state's shares in the Institute and 27.94 million euros in investments over the next five years.

Institute for physical medicine, rehabilitation, and rheumatology „Dr Simo Milosevic“ JSC Igalo, is one of the largest and most famous institutions for a multidisciplinary spa treatment in the Balkans. It is a pioneer of the modern physical and preventive medicine, rehabilitation, thalassotherapy and wellness, and became one of the leading international centers for rehabilitation of children, adults, and seniors.

Beyond initial expectations, negotiations with the Tender Commission were not conducted during July, with a summer break in August.

"The Tender Commission for Privatization has started negotiations with the consortium on the conclusion of the contract of sale, which is underway," Economy Minister Dragica Sekulic, who chairs the Tender Commission, told Vijesti.

At the end of March, the Privatization and Capital Projects Council approved the Tender Commission report on the results of the tender and tasked it with negotiating the contract.

Rakcevic said that the first round of negotiations was held on May 31, when some controversial issues related to land ownership, inherited and future litigation and guarantees were discussed. Regardless of the differences, he sees no reason or impediment to agree on all three topics.

Sekulic said the bidder would also be obliged to accept the Institute's disputes, whose financial outcomes cannot be predicted now.

She recalled that the aim of the tender is to provide, through privatization, an investor who will invest money in the company's core business, that is, in the restoration of health care and the provision of tourist services in health tourism.

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