Podgorica, Montenegro (16 October 2015) – At yesterday’s session, the Montenegrin Cabinet adopted the Third semi-annual report on the overall activities in the process of Montenegro’s EU integration for the period January – June 2015. Pursuant to the Resolution on the method, quality and dynamics of the integration process, the report will be submitted to the Parliament for consideration.
The Government also adopted a contract on the long-term lease of the “Lastavica Island” with the “Mamula Fortress,” which will be submitted to the Parliament. The contract provides for a 49-year lease period, during which the lessee cannot acquire the ownership right. The contract also defines the investment obligations of the lessee amounting to EUR 15 million, construction of a tourist resort in line with the project documentation approved by the lessor, the way of doing business, as well as the return of the land and resort to the lessor upon the expiry of the lease. The aim is to restore the “Mamula Fortress,” at the same time preserving its cultural heritage and promoting the island’s historic character, which would create a prestigious tourist destination, the first and only island/hotel/museum destination in Montenegro, under direct control of the Orascom Development Holding.
The Government also endorsed a decision on accepting the Annex No.1 to the Agreement on the Lease of the Hotel Queen’s Beach in Budva, by which the lease period was extended from previous 30 to 42 years, and guaranteed annuity for the hotel reduced from EUR 500,000 to EUR 350,000. Furthermore, the Cabinet adopted the proposal for the acquisition of the ownership right on a maximum of 66 apartments and a 90-year lease of the land on which the apartments had been constructed. By accepting the proposal of the partners, the Government has taken into account the high-quality investment in facilities and equipment of the hotels “Sveti Stefan” and “Miločer.” It is undeniable that the lessee (the Adriatic Properties), during the mandate period of the investment programme, made a significantly greater investment than it had been contracted. It is also evident that the additional investment in the Queen’s Beach Hotel will amount to EUR 54 million (of which EUR 27 million will be provided through a loan arrangement with the EBRD). These facts clearly indicate that significantly longer period than it was originally planned is needed to ensure adequate time for return on the investment, the Cabinet concluded.
At yesterday’s session, the Cabinet appointed Vera Joličić-Kuliš as foreign policy adviser to the Prime Minister of Montenegro.
Source: Government of Montenegro