Government adopted Concession Act on implementation of Kotor – Lovćen cable car project

Podgorica, Montenegro (5 December 2019) -- At today’s session the Montenegrin Cabinet adopted the Concession Act on the implementation of the Kotor – Lovćen cable car project, which was prepared by the Ministry of Sustainable Development and Tourism.

The Concession for the implementation of the cable car project foresees designing, financing, constructing, maintaining and transferring of the cable car system from the Dub site in Kotor Municipality to the Kuk site in Lovćen on the territory of the Capital of Cetinje in Montenegro, based on the principles of "project, build, finance, govern, transfer".

The anticipated completion of the cable car concession is 30 years after the works began, i.e. the date when all preconditions, foreseen in the Draft Concession Agreement, are fulfilled. The concession period includes the time required to build the cable car, which is estimated to be one year, as well as the operating period of the remaining 29 years.

Also, based on the economic feasibility analysis of the Project, scenarios with different rates of growth have been developed, based on which the foreseen number of cable car users to be between 170, 300 and 222, 600 annually, for first year of operation with the revenues of EUR 3,2 to 4, 2 million.

This project will achieve other measurable benefits, in addition to having the direct impact on the state budget through the payment of concession fees, such as additional revenues for Cetinje, Lovćen National Park and the local businesses and business people. The biggest benefit, coming from the implementation of the project will exactly be the improvement of the Montenegrin tourist offer and the contribution to a better redistribution of revenues in tourism sector.

The concessionaire is expected to suggest an investment program that will put into operation the cable car from the Dub site to Kuk site in the first year after the Concession Agreement enters into force and all supporting facilities to fully build and put into operation no later than three years from the date Concession Agreement enters into force.

The minimum investment in cable car and supporting content amounts to EUR 18 million. After the expiry of the concession period, all facilities and equipment will become the property of the grantor.

The concession for the project will be allocated through an international, transparent and competitive open procedure, in the line with Law on Concessions and the Regulation on the closer method of conducting a public tender procedure in an open and two – step concession procedure.

 
PUBLIC RELATIONS SERVICE OF THE GOVERNMENT OF MONTENEGRO