The government claims that they started the procedure for collecting a guarantee of 2,5 million euros, after the company "Magnum Development" did not finish the construction of the hotel in Kolašin within the planned period, as part of the economic citizenship project.
That company undertook to finish the project by October 30, 2024, which was not done, and they were covered by a guarantee of 2.500.000 euros.
The guarantee is valid until December 1, Sunday, and the executive authorities unofficially claim that the Ministry of Regional Investment Development, through the Embassy of Montenegro in Italy, initiated the collection procedure for that bank guarantee, which was given by the Italian bank Credit Agricole, 10 days ago.
"Since the term in which this guarantee expires is December 1, i.e., Sunday, the investor has the opportunity to submit a new guarantee on Monday, December 2," said the source of "Vijesti" from the top of the government.
One "Vijesti" source claims that the Government will run out of money if the guarantee is not collected by December 1.
In September, the government asked the investor to submit a new business and dynamic plan for approval, as well as a new bank guarantee, bearing in mind that the construction project of the "Magnum" hotel will not be completed in accordance with the business plan according to which it was included in the list of development projects in within the economic citizenship project.
The company "Magnum Development", of which he is the executive director Veselin Bečanović, did not submit the requested documents, but instead informed the Government that they had started negotiations with commercial banks in Montenegro for the purpose of issuing a new bank guarantee that would cover the period of extending the deadline for the completion of the project.
According to data from the Central Register of Business Entities (CRPS), this company, whose sole founder is Bečanović, was founded in 2020 with one employee, and last year it had 7 employees and a loss in business of around 446 thousand euros.
Government information
The question of the construction of this hotel and the collection of the guarantee was discussed at the Government session on December 19, and the information about it was adopted.
"On June 17, 2022, the government included the project of building the hotel "Magnum" according to the condo business model to the list of development projects in the field of tourism. The business plan envisages an investment in the construction of a four-star hotel complex in Kolašin, with 105 accommodation units (201 beds, of different types and sizes). The estimated value of the investment is 13,3 million euros, and the intention of the investor is to enable the employment of 64 people through the implementation of this project. The planned completion date of the facility, according to the business plan submitted at the time, was 31.10.2024/2.500.000/01.12.2024. year. The investor of the hotel construction project is "Magnum Development" from Podgorica. In order to confirm the availability of financial resources for the implementation of projects, the investor submitted an irrevocable bank guarantee issued by the financial institution Credit Agricole from Italy, payable on first call, in the amount of XNUMX euros in favor of the Government with a validity period of XNUMX/XNUMX/XNUMX. year", the information states.
It was further clarified that the Decision on the criteria for obtaining a Montenegrin passport defined that a development project includes the construction of a hotel/mixed complex for which a minimum investment of 15 million euros is necessary in the coastal region or the capital Podgorica or a minimum investment of 5 million euros in the northern or central region, except for the capital Podgorica. In addition, the need to submit an irrevocable bank guarantee, payable on first call, in the amount of 50% of the minimum investment, which guarantees the realization of the development project in accordance with the dynamics and purpose established in the business plan and the revised main project, is defined.
It was clarified that this Decision was amended on June 23, 2022, and that it was then specified that for each new project for candidacy for the list of development projects, the need to submit an irrevocable bank guarantee, payable on first call, in the amount of one million euros, which guarantees the realization of the development of the project, in accordance with the dynamics and purpose established in the business plan and the revised main project, and that the investor has a deadline of 30 days from the date of entry into force of this decision to submit a guarantee otherwise, the state administration body responsible for tourism affairs deletes the project from the list of development projects.
The government's information states that the then Ministry of Economic Development and Tourism informed the investor of the "Magnum" hotel about the possibility of submitting an annex to the existing bank guarantee, which changes the amount from 2,5 million to one million, and that he did not take advantage of the opportunity within the deadline stipulated by the decision changes to the bank guarantee in accordance with the aforementioned Decision, nor did he respond to the letter.
"The investor had the obligation to hire an independent controller with the prior approval of the Ministry who will monitor the implementation of the development project in accordance with the business plan and report to the Government on the status of its implementation on a semi-annual basis." In this regard, the investor, with the prior consent of the then Ministry of Economic Development and Tourism, appointed the audit company "Certitudo" as the independent auditor. In the previous period, the Government adopted two half-yearly reports of the independent auditor, which confirmed investments in hotel construction in the total amount of 3,19 million euros. Also, an urgent request for the submission of the III report of the independent controller for the period from October 15.10.2023, 15.04.2024 was also sent. until April XNUMX, XNUMX. year", the information states.
Franchise Agreement
On June 06, 2023, "Magnum Development" and "IHG", a prestigious hotel group, signed a franchise agreement, so that the new hotel in Kolašin should operate under the name "Crowne Plaza Kolašin" and will be focused on the area of health tourism, which will represent unique offer in Montenegro.
"On September 16, 2024, the Ministry of Economic Development sent a letter to the investor demanding that a new business and dynamic plan be submitted for approval, as well as a new bank guarantee for the same amount as the current valid bank guarantee, bearing in mind that the construction project of the "Magnum" hotel will not be completed in accordance with the business plan according to which it was included in the list of development projects. "Magnum" 7.11.2024. sent a letter to the Ministry of Regional Investment Development in which, among other things, it states that the investor made investments from his own funds and sales over six million euros, as well as that he provided financial resources for the eventual needs of further financing the project from the Investment and Development Fund of Montenegro Gore in the amount of five million euros. It is stated that 90% of the rough construction work has been completed and the roof structure is expected to be installed by 20.12.2024/31.12.2025/1. year, and that the deadline for the completion of the works is December 16.09.2024, XNUMX. year. The investor states that they have started negotiations with commercial banks in Montenegro for the purpose of issuing a new bank guarantee that would cover the period of extension of the project completion deadline to the amount of XNUMX million euros, as it was foreseen in the last Decision and in the same request consent to provide a guarantee for the specified amount. The investor, despite the emergency from XNUMX. did not submit a new business plan and a dynamic plan for approval", the information reads.
Protector: The investor did not take advantage of the possibility of replacing the guarantee
On November 11, 2024, the Ministry of Regional-Investment Development turned to the Protector of Property and Legal Interests of Montenegro for an opinion regarding the aforementioned subject. In the answer of the protector dated 18.11.2024. it is stated that the investor did not take advantage of the possibility of exchanging the bank guarantee for a smaller amount than originally determined, and the deadline for the completion of the project has just expired, for which the bank guarantee of 2,5 million is also attached.
"The defender also states that the investor did not comply with the business plan and investment dynamics, for which he had just guaranteed with the submitted bank guarantee, and accordingly the Ministry is obliged to determine in advance whether there are justified reasons on the part of the investor for breaking the deadline for the completion of the investment, and in the case of the fact that the controller's last report is more than a year old, and is determined accordingly. Also, it is stated that if the Ministry is in agreement with regard to the changes to the business plan and investment dynamics in accordance with them, it will determine the amount that is sufficient to guarantee that the project will be completed in the additional term and in the end. Previously, due to the fact that the construction deadline for the project in question expired on October 30.10.2024, XNUMX. year, to which maturity, among other things, the existing bank guarantee was attached", writes the Information.
As stated, taking into account that the investor, despite the urgency of 16.09.2024. did not submit a new business plan and a dynamic plan for approval, the Ministry needs an urgent response from the Government, given that the deadline for activating the bank guarantee is December 01, 2024.
Offer on the concept of mountain health tourism
In a paid PR text from June last year, the company "Magnum Development"
has informed the public that it has signed a franchise agreement with the "IHG" group, so that the new hotel in Kolašin will operate under the name "Crowne Plaza Kolašin".
"The contract was signed by the executive director of "Magnum Development" Veselin Bečanović and the vice president for development of "IHG" for Southeast Europe Hilko Verstig. "IHG" is one of the most important hotel groups in Europe and the world, which has over 6.000 hotels and over 900.000 rooms in its portfolio," the text states.
The hotel will focus on the area of health tourism, which will represent a unique offer not only in Kolašin, but in general in the northern part of Montenegro.
"The offer conceived in this way, based on the concept of mountain health tourism, will ensure extremely good attendance at the hotel throughout the year.
Also, the hotel "Crowne Plaza Kolašin" will represent a unique energy-efficient tourism project in Montenegro. The construction of the hotel is planned to be completed by the end of 2024," the text stated.
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