Council for Privatisation and Capital Projects holds its 5th session

The Council for Privatisation and Capital Projects held on Monday, 19 June 2017, the fifth session chaired by the President of the Council, Prime Minister Duško Marković.

The Council discussed the Information on activities in order to announce the public call for long-term lease of state-owned land and part of the facilities owned by HTP Ulcinj Riviera, AD Ulcinj, which has submitted Tender Commission for Valorisation of Tourism Locations.

The Council has unanimously adopted the Information and tasked the Tender Commission for Valorisation of Tourism Locations to announce the public call for long-term lease of state-owned land and part of the facilities owned by HTP Ulcinj Riviera, AD Ulcinj as soon as possible.

Several members of the Council expressed satisfaction with the fact that world renowned companies are interested in quality valorisation of the state resources and strategic partnerships.

The President of the Council said that creating conditions, as fast as possible, for the successful completion of the process of tourist valorisation is very important.

The Government of Montenegro predicted by the Privatisation Plan for 2017 to privatise HTP Ulcinj Riviera AD, Ulcinj through an international tender, by shares sale, recapitalisation or long-term lease.

Minimum average annual price of lease of facilities and land complex of HTP Ulcinj Riviera AD, for the duration of the lease of 30 years, represents 3.5 percent of the total projected annual revenues of tender item, where the average annual amount of lease calculated on that basis cannot be lower than EUR 450,000. The condition is that the investment programme must provide for the improvement of quality and business of the existing complex facilities up to 4 international star and the construction of new facilities so that after the fulfillment of the Investment programme complex capacity is minimum of 600 4-star rooms. Also, the Investment Programme must provide a minimum investment of the Bidder in the reconstruction and/or adaptation of existing tourist facilities, construction of the new ones and their management in accordance with the highest internationally accepted quality standards, in the amount of no less than EUR ten million in the first 5 years of lease. All objects, including those that will be built, after the expiry of the lease remain the property of the state of Montenegro.

The Council for Privatisation and Capital Projects has considered and adopted the Report on the results of negotiations on the basis of international public call for valorisation of "Buljarica" location, by municipalities of Bar and Budva, through sale and a long-term lease with the Decision that tender was unsuccessful, which has submitted the Tender Commission for valoridation of tourism locations.

Chairman of the Tender Commission Pavle Radulović informed the Council that at the public call for participation in the international tender for valorosation of this location, published on 12 May 2016, and amended two days later, arrived one offer by the company "CDC International Corporation," based in Cayman Islands and the offer included a purchase price of EUR 108,761,000, which was required and the rent in the amount of EUR 2.06 per square meter of land annually and EUR 1.77 per square meter of maritime zone annually. Therefore, Tender Commission assessed the offer formally correct.

Given that, during negotiations, the Bidder did not give up on conceptual master plan that does not comply with the planning parameters and guidelines stated in the Draft spatial plan for the coastal area, the Tender Commission has decided to declare the tender unsuccessful and the Council for Privatisation and Capital Projects adopted the decision.
The Council for Privatisation and Capital Projects is familiar with Information of the Hotel group Budva Riviera on the need for a new assessment of the company for the purpose of its segmentation.

The Council for Privatisation and Capital Projects adopted the Draft decision amending the Decision on Privatisation Plan for 2017 by removing Lake Šas complex from the list of sites for tourist valorisation since the special Commission for the valorisation of agricultural land owned by the state has been formed.

PUBLIC RELATIONS SERVICE OF THE GOVERNMENT OF MONTENEGRO