Press release: Successfully completed arbitration procedure regarding the termination of contract on the sale of shares of JSC Marina Bar

The Ministry of Transport and Maritime Affairs informs the public that the arbitration procedure, initiated because of the unilateral termination of the  contract on the sale of shares of JSC Marina Bar, has been finalized in favor of the Montenegrin Government by the final Decision of the arbitrator from 29 January 2018.

The Ministry of Transport and Maritime Affairs would like to take this opportunity to remind the public that the major stakeholders of JSD Marina Bar (sellers) shares have unilaterally terminated the contract on the sale of shares which was concluded with the Consortium from Latvia due to the failure of the buyer to fulfill a contractual obligation regarding the implementation of the Investment Program, among other things. The major stakeholders of the AD Marina Bar shares are the Government of Montenegro, Investment-Development Fund, Montenegrin Pension and Disability Insurance Fund and the Montenegrin Employment Agency.   Upon receipt of the unilateral termination notice, one of Consortium members with which the contract was concluded and which became a major stakeholder - SIA Multikapitals - initiated an arbitration procedure against the state of Montenegro, the Investment-Development Fund, Montenegrin Pension and Disability Insurance Fund and the Montenegrin Employment Agency.

Effort invested in the period after the launch of the arbitration and successful disputing of the arguments of the prosecutor resulted in the finalization of this litigation in favor of the state of Montenegro. Moreover, the arbitrator dismissed the prosecutor’s claims which means that the prosecutor, as a party which lost the dispute, must bear in full the costs of the arbitration procedure, including the costs related to legal representation, the  the advance payment and all of the other expenses incurred by the prosecutor.

Through a unilateral termination of the contract with the investor which did not fulfill his  obligations outlined in the contract on the sale of shares, and subsequently through the successful completion of the arbitration procedure in favor of the state, Montenegro has shown a responsible attitude towards the property where it functions as a major stakeholder and created the basis needed to valorize the potentials of Marina Bar through new investments in the future.

PR Service of the Ministry of Transport and Maritime Affairs