Agreement on lease of land owned by Montepranzo Bokaprodukt terminated

Podgorica, Montenegro (3 July 2014) -- Agreement on lease of land owned by Montepranzo Bokaprodukt AD Tivat, signed on 25 October 2012 with LPGD DOO Podgorica, that is, its legal successor Boka Golf Development LLC Kotor, with a view to building a golf complex in the municipality of Tivat, was terminated on 28 June 2014.

Government of Montenegro, as a guarantor in the contractual relationship, and Montepranzo Bokaprodukt AD Tivat, as a lessor, have made efforts to meet the investor’s requirements and preserve the partnership by signing Annex 1, 2 and 3 of the lease agreement.

Government of Montenegro and Montepranzo Bokaprodukt have not accepted new requests of the investor. Furthermore, the investor has not accepted the Draft Annex 4, proposed by the Tender Commission, and approved by the Privatisation Council and the Government of Montenegro, which resulted, in line with the contractual provisions, in the termination of the land lease agreement for the construction of golf courses in Tivat.

Ministry of Sustainable Development and Tourism of Montenegro