Accelerate the works on Luštica

A team will be formed to solve the problems that accompany the implementation of the project “Ritz Carlton Montenegro”

Location of the future complex, Photo: Slavica Kosić

The Privatization Council supported the proposal to form an inter-ministerial operational team that will accelerate the solution of specific problems and overcome administrative barriers in the realization of the tourist complex “Ritz Carlton Montenegro” on the Herceg Novi peninsula of Lustica.

Yesterday, at its session, this Government body adopted the report on the realization of that project for the period from December 2019 to November 2020.

“Considering the problems in the realization of this significant investment, the Council assessed as unacceptable the delay in the beginning of the realization of this project because the state and municipal authorities in the previous period did not perform the efficient and timely undertaken obligations. On that occasion, the Council supported the proposal to form an inter-ministerial operational team with the task of speeding up the solution of specific problems and overcoming administrative barriers in the realization of this project, “the Government announced after the Council session.

In September 2009, the government signed a long-term lease agreement with a consortium of Northstar and Equest Capital Limited Jersey for about half a million square meters of state land with the obligation to build, develop and manage an exclusive tourist complex.

That agreement became final in August 2013, when a protocol on its validity was signed, but to date, the realization of that investment has not begun. In August 2013, the first annex to the contract was signed, which determined the obligation of investors to invest 141.8 million euros in the first phase of the project in the next five years. The second annex, which was proposed in 2017, reduces the value of the investment of the first phase to 80 million, with a new deadline of five years, and it was stated that “the contracting parties have not fulfilled the obligations from the basic contract.” In the second annex, the Government and the Municipality of Herceg Novi undertook to provide infrastructure (electricity, water and traffic) to the location where the complex will be built.

The investor signed a cooperation agreement with the hotel group “Marriott International” on July 31, 2019, and then the “Montrose” project was renamed “Ritz Carlton Montenegro”.

The Council adopted a Decision appointing a Commission to assess the market value. The task of the Commission is to prepare a draft opinion on the requests submitted to the Council, in connection with the application of Article 419 of the Law on Property Relations.

Breach of contract for the “Mediterranean” complex in Zabljak

The Council stated that there was a violation of the provisions of the Agreement on the long-term lease of the military-tourist complex “Mediterranean” Zabljak, which refer to the deadlines related to the beginning of construction.

The Council will propose to the Government that an additional deadline be set for resolving the problems, and that, if they are not resolved, the procedure for terminating the contract be initiated.
The contract on the long-term lease of the military-tourist complex “Mediterranean” Zabljak was concluded on November 21, 2018, between the Government and the consortium “CG SKI”, which consists of the companies CG Ski and Baltic International Trading LTD Estonia.

The subject of the lease is a land area of ​​13,951 square meters owned by Montenegro, for a period of 30 years. The investment obligation of the lessee amounts to five million euros, and the deadline for the completion of works is 20 months, ie no later than 27 months from the start of works.

The owner of the company CG SKI is the Tivat company “CG Investmet”, whose founders, according to the data from the Central Register of Business Entities, are Igor Bidilo and Ivan Pekovic.