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Privatization and Investments Agreement Achieved with SOCAR to Provide Encouragement for the Development of Tourism in Montenegro The Government of Montenegro and the State Oil Company of Azerbaijan (SOCAR) signed an agreement on a long-term lease for the Orijen Battalion barracks in Kumbor. The site will be rebuilt into a tourist resort. The document was signed in Podgorica by Gafar Gurbanov (SOCAR) and by the Minister of Sustainable Development and Tourism, Predrag Sekulic. The Azerbaijani group is committed to invest at least €52 million during the first four years of the lease, or €258 million during the first eight years. It will also pay a fixed rent of €1 per square meter, in advance, for 45 years of the lease, along with a variable rent of 5% of profits.
Turkey's Toscelik to Invest €35 Million in Montenegro's Steel Mill Turkey's Toscelik, part of Tosyali Holding, will invest €35 million in Montenegro's steel mill and will increase its number of workers along with its annual output. At the official takeover on 12 June the Tosyali President, Fuat Tosyali, said that his plan for the steel mill was to turn it into a regional leader in the production of steel and to take advantage of Montenegro's geographical position to start delivering products within the region. Toscelik bought the Niksic-based steel mill after four previous auctions had failed. He paid €15 million which was half of what was originally asked for in January.
EBRD Finances the Construction of a Cable Car from Kotor to Cetinje The European Bank for Reconstruction and Development (EBRD) is ready to support the construction of a cable car from Kotor to Cetinje. It has approved a loan of €150,000 for technical support; to provide an audit and to update the existing feasibility study. The royal capital’s ambition is to launch a bid for tenders by the end of the year in order to start the implementation of the project as soon as possible. The cable car will start in Cetinje and will pass through Lovćen and finish in Kotor. It will be 15 km long with four stops. The first will be in Cetinje, near the summer stage, the second will be at Ivanova Korita, the third will be at Kuk and the fourth will be in Kotor.
Investors from Slovenia Show Interest in Lipska Cave Slovenian investors have shown interest in the famous Lipska Cave (Lipska Pecina) in Cetinje. The investment group says that it is interested in developing the touristic value of the cave, and also nearby Cetinje, through direct investment and marketing activities. Lipska Cave, one of the largest in all of the former Yugoslavia was once a touristic gem of the region. According to the valorization model for Lipska Cave that was proposed to the government, in terms of tourism purposes, it would offer a new product which is always very valuable in the tourism market.
Government to Provide €36 Million for a Plan to Restructure Montenegro Airlines The Montenegrin government is set to pump €36 million into its national carrier in order to carry out a restructuring plan. The government has also ordered the country’s two international airports, Podgorica and Tivat, to write off Montenegro Airlines’ debt which totals €9.7 million. In return, the state owned airports will be given a certain amount of shares in the national carrier. The Montenegrin carrier already receives €400,000 from the state budget on a monthly basis. Montenegro Airlines, which keeps most of its business operations as a closely guarded secret, was forced to suspend flights to Priština and Skopje due to unpaid fees last year. The Montenegrin government has already written off over €3 million of the carrier’s debt and issued state guarantees for a €9.6 million loan in 2011. Recently, the carrier has been lobbying for an open sky policy across the former Yugoslavia; this would allow it to launch flights from Belgrade to other countries.
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