Regarding the text "Will the Government be left without 2,5 million euros?" published on the "Vijesti" portal, the company "Magnum Development" announced.
We are transmitting their announcement in full:
"From the moment when Mr. Veselin Bečanović took over the management of the company in June 2022, and later the control over the project, the Magnum development company is very committed to the finalization of the construction of the condo hotel, worth 13,4 million euros, and has provided all the prerequisites for this, including and financial, and there is no fear that anyone's interest could be jeopardized in this project.
The work on the construction of the Crowne Plaza hotel in Kolašin is in a very dynamic phase, the completion of the roof is expected in December 2024, so with 90 percent of the rough work completed, conditions will be created for intensive work on the interior design of the building, in order to meet high standards. that we have set for this hotel. Complete completion of the works is expected in December 2025.
We remind you that the luxury hotel construction project, in accordance with the Conclusion of the Government of Montenegro dated June 23, 2022, was placed on the list of development projects in the field of tourism, and the investor Magnum Development fulfilled all obligations on that basis, including providing a guarantee of 2,5 XNUMX million euros and the appointment of independent controllers who will monitor the dynamics of the project's development, and who received the consent of the Ministry of Economic Development and Tourism at the time.
We would like to point out that throughout the project implementation process, Magnum development had open, transparent and continuous communication with the competent authorities, informing them about the development of the project. The reports of independent auditors and controllers who testified about the development of the project were continuously delivered to the relevant ministries. The last auditor's findings showed that a little over 7 million euros were invested in the project, after which another 2 million euros were invested, so that at this moment over 9 million euros have been invested in the construction of this prestigious hotel in Kolašin.
In addition, Magnum development provided financial resources for the eventual needs of further financing of the project from the Investment and Development Fund of Montenegro in the amount of 5 million euros. So, in this way, the entire financial construction for the project whose value is, as we stated, 13,4 million euros, is rounded off.
In accordance with the amendments to the Decision on the criteria, method and procedure for selecting persons who can acquire Montenegrin citizenship by admission for the purpose of implementing a special investment program of special importance for the economic and economic interest of Montenegro, which provides the possibility to issue a guarantee in the amount of 1 million euros, Magnum development is in the process of issuing that guarantee with local banks, and we expect that this activity will be completed as soon as possible.
It is also true that the planned dynamics of the works changed over time, but due to a series of unforeseen circumstances that the investor could not influence. Those circumstances, which have been notified to the relevant ministry, refer, among other things, to the need to revise and supplement technical documentation in order to ensure additional safety during the execution of works, as well as mismatched geotechnical data with the real state of the terrain. Insufficiently efficient customs procedures, along with waiting for the completion of new project documentation, also contributed to the postponement of the originally defined deadlines, which was also contributed by the collapse of the terrain and unfavorable weather conditions in sensitive phases such as the protection of the foundation pit and the construction of the reinforced concrete structure.
All of the above caused a shift in the dynamics of the works and the development of a new business plan, which is due on November 20.11.2024, XNUMX. submitted to the competent Ministry of Regional Investment Development and Cooperation with Non-Governmental Organizations.
At Magnum development, the quality and safety of work on and around the building is the highest priority, with which no compromises are made.
We believe that the competent state authorities will show an understanding of the challenges that investors face during the implementation of such complex projects and create an environment that will enable the efficient implementation of development investments. The support of institutions and the creation of a favorable business climate are key to the achievement of a common goal - improving the economic development of Montenegro and creating new values for all its citizens.
Allow us to remind you that the credibility of Magnum development was also recognized by the IHG group, with which a franchise agreement was signed on June 6, 2023, according to which the hotel will operate under the name Crowne Plaza Kolašin. "IHG" is one of the most important hotel groups in Europe and the world, which has in its portfolio over 6.000 hotels and over 900.000 rooms, recognizable by its high standards and outstanding quality of service.
With the opening of this hotel, with 105 accommodation units, Montenegro gets a new unique offer in the north, because the focus of activity is in the field of health tourism. In addition to the diversification of the offer in the country, the offer conceived in this way, which combines luxury and new value, will ensure the attendance of tourists throughout the year, which contributes to solving the problem of seasonality faced by Montenegrin tourism", says the announcement of the company "Magnum Development".
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