The opening of Sveti Stefan, a partial settlement between the state and the tenant, and a temporary suspension of the arbitration proceedings, is part of the agreement initialed by the company "Adriatic Properties" of Greek businessman Petros Statis.
Several sources confirmed to "Vijesti" that Statisova and partner companies signed the agreement, which is marked as a confidential document, and sent it to the Government, but also that the most successful tennis player in the history of white sports, Novak Djokovic, intends to invest money in the companies that have leased the Montenegrin pearl for three decades.
The office of Prime Minister Milojko Spajić and the Ministry of Economic Development did not respond to "Vijesti"'s questions about whether the agreement had been given the green light, if not - what the "problem" was, or whether they could reveal the details.
As "Vijesti" has learned from several sources, it is stipulated that, if the document is signed, within one day, the government companies and the Ministry, and Statisov and his partner companies are obliged to jointly submit a request to the tribunal in London to suspend the arbitration proceedings for at least six months. At the same time, the agreement allegedly stipulates that during that time the two parties reach an agreement on a final settlement.
According to "Vijesti", Statis' company has committed not to transfer the lease of the resort to another company without the consent of the Government.
The tenant of the hotel complex "Sveti Stefan - Miločer" is Adriatic Properties, and its partner companies "Aidway Investments Limited" and "Amanresorts".
Sveti Stefan has been closed since 2021, and the Government has initiated arbitration proceedings before an international tribunal in London against the three companies in question.
It is reportedly expected that the agreement will receive the green light from the Government and that it will order the majority state-owned companies "Sveti Stefan Hotels", HTP "Miločer" and HG "Budvanska Rivijera", as well as the Ministry of Economic Development, to formally sign it.
According to "Vijesti", the agreement is scheduled to be signed by both the Municipality of Budva and the Public Company for Coastal Zone Management, while the consent of the local community is allegedly not required.
Must be open for at least eight months
The signing of the agreement would remove the lock on Svec after four years, but the two sides could find themselves in a bind because the main hearing before the London tribunal is scheduled for mid-May. Reportedly, legal advisors on both sides are already seeking clarification. “Vijesti” was unofficially told that the costs of the hearing, which include fees for judges, legal representatives, and the use of the courtroom, must be paid in the next few days.
By signing the agreement, Statis' company has allegedly committed to keeping the Sveti Stefan city hotel and the Miločer villa open for at least eight months a year. The exception is this year, when they are reportedly scheduled to be open for five months.
"Vijesti" was also told that the agreement stipulates that the Villa "Miločer", the SPA center "Aman" in Miločer Park and the restaurant "Olive" opposite the city-hotel must be opened no later than 45 days from the signing of the document.
The document allegedly specifies that within 75 days, the eastern and western beaches of Sveti Stefan, as well as the Great Miločer Beach (King's Beach) in front of the Villa "Miločer", will be operational. The city-hotel "Sveti Stefan" should be opened no later than 105 days after the signing of the agreement.
The gate on Kraljičina, but also on the path to the Saint
The use of what many consider to be the most beautiful Montenegrin beach - Queen's Beach, has not been finally resolved by agreement, according to "Vijesti".
A dispute over the use of that beach was the reason for the closure of Svec, after locals broke down the gate in the summer of 2021, demanding that the beach be accessible to everyone.
A temporary solution is reportedly being planned, which, similar to the summer before last, would be in effect until a final agreement is reached. The global hotel operator "Aman" has insisted that only guests of the complex can use the Queen's Beach and part of Milocer Park, as this is allegedly crucial in order to guarantee discretion to the clientele.
The agreement will reportedly allow Adriatic Properties and Aman to erect fences at both ends of the pedestrian path, so that Queen's Beach, as well as the path along it, will be reserved only for guests of the complex. These benefits for guests would allegedly be valid every day from 8 a.m. to 21 p.m., and outside of that time, anyone interested would be able to use the space.
The agreement reportedly allows Statis' company to install a gate on the pedestrian bridge leading to the city-hotel, or rather the island of Sveti Stefan, so that it is reserved only for guests. Organized tourist tours would be able to visit Sveti Stefan twice a day.
The agreement allegedly also allows the local population to perform religious ceremonies in the churches on Sveti Stefan.
The temporary use regime is apparently a key part of the agreement, and all parties are reportedly committed to strictly respecting it. Kraljeva and the eastern and western Sveti Stefan beaches retain the hotel bathing regime, as in all previous years. The use of beach furniture is mandatory, which in previous years was at astronomical prices.
Djokovic invests
Novak Djokovic tried to help remove the padlock from the Sveti Stefan city hotel in early February. After talking with Prime Minister Spajić, Djokovic told Vijesti that this was the main reason he was in Montenegro, stressing that he would use his name and influence to solve the problem. The global ambassador of the Aman company explained that they had had “initial conversations” and were informed “about everything”, emphasizing that he was trying to work for the “general interest” of Montenegro and that he hoped that a solution to the problem would soon be “on the horizon”.
That Djokovic is interested in entering the structures of companies that have leased Sveti Stefan - Miločer for three decades with capital was also presented at a meeting recently organized by Spajić with representatives of all parties, except the lessee, and was confirmed to "Vijesti" by several sources.
Apparently, Djokovic is ready to invest capital in some more projects in Montenegro.
The Adriatic Properties company has been keeping the Sveti Stefan city-hotel and the Miločer villa closed for the fourth summer, and has suspended construction of the new Kraljičina plaža hotel after the arbitration proceedings began. Without an agreement on the functioning of Kraljičina plaža and the path between that beach and the spa center in Miločer park, the hotel operator Aman did not want to open Sveca.
Saint celebrates 65th birthday
The popular "Saint" is celebrating its 65th birthday this summer, since the small fishing village of Paštrov, a medieval fortress that resisted invaders for centuries, was transformed into a fashionable summer resort by the decision of the then communist authorities.
Last season, the locals' dissatisfaction with the fact that the Sveti Stefan city-hotel was closed for the fourth summer culminated, and they then announced radical moves, such as blocking the roundabout on the bay at the entrance to Budva, but they gave up after receiving assurances from the Government that the city-hotel would be open, which did not come true.
It was the use of Queen's Beach, which had been closed to the public for decades and reserved exclusively for hotel guests and the political elite, that led to the closure of Svec. The city-hotel was closed in 2021 after locals broke the fence on Queen's Beach, and the Public Company for Coastal Zone Management ordered its removal, freeing up the paths in Miločer Park for use.
After the incident in the summer of 2021, Adriatic Properties sought guarantees from the state that it would not happen again, but they did not receive them. The state then initiated arbitration proceedings in a London court, arguing that the contract had been breached, and Adriatic Properties then retaliated by demanding one hundred million euros in damages.
Budva against "private interests"
There is also speculation that there are private interests in the lease of the city-hotel “Sveti Stefan” and the Villa “Miločer”. Allegedly, the lessee has been forced to make arrangements with local companies for years in order to satisfy the interests of individuals who are most vocal in the protests.
The first to speak out about these private interests was the mayor of Budva Municipality, Nikola Jovanović, last week at a protest by representatives of the local community "Sveti Stefan" in front of the local government building. He made it clear that the local government is only for the public interest, and against, as he said, certain private interests that have existed in recent years.
Installments are deposited into the accounts of state-owned companies
The agreement also envisages resolving the financial collapse of the majority state-owned companies "Sveti Stefan Hotels" (owner of the city hotel "Sveti Stefan" and Villa "Miločer") and HTP Miločer (owner of the former hotel "Kraljičina plaža" and part of Miločer Park, where, in addition to the new hotel, annexes with 66 apartments for the market are being built).
After initiating arbitration proceedings, Statis' company has not paid its rent for two years - the quarterly installment for HTP "Miločer" amounts to 87 thousand euros, and the quarterly rent for "Sveti Stefan hotels" is 380.000 euros.
Both companies are in debt and in big trouble.
The agreement allegedly stipulates that "Adriatic Properties" will pay six quarterly installments to both companies - four for 2023 and two installments for 2024.
However, "Sveti Stefan Hotels" is allegedly having the amount reduced due to the final judgment. The Commercial Court recognized the decision of the Arbitration Court in London, and ordered the company "Sveti Stefan Hotels" and the Government to pay 522 thousand pounds, or 620 thousand euros, to the company "Adriatic Properties" for the costs of the proceedings before the international Tribunal...
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