The public-private partnership (PPP) agreement for the construction of the "Lokanda" hotel, signed at the end of March between the Royal Capital and the "Talija company", has not yet entered into force, "Vijesti" has learned.
The Royal Capital and the private individual have until December 5th to remove all obstacles in this deal, because then the guarantee of the offer of the company "Talija" worth 250.000 euros will expire, after which the money will be transferred to the Royal Capital, and the cooperation will legally cease.
The first PPP contract in Montenegro was signed on March 28, and the Royal Capital and "Talija" agreed on a deal worth 13.783.531 euros to build the "Lokanda" hotel, a parking garage and the ground-level landscaping of Artists' Square.
A statement was published on the website of the Royal Capital on March 28, stating that the contract had been signed and that the deadline for preparing the project documentation was six months, or by the end of September, although the project had not yet begun to be "drawn".
"The contract defines that the investment implementation period is 30 months and includes the preparation of project and technical documentation, no longer than six months from the date of conclusion of the contract, and the execution of works, no longer than 24 months from the date of preparation of project and technical documentation. The operational period begins on the day of receiving the written consent of the public partner and lasts 30 years," the website states.
From the Royal Capital, headed by Nikola Đurašković, officially tell "Vijesti" that the preparation of documentation will begin "in the coming days", that they have completed all procedures and obtained the necessary approvals, that they are the owners of the land on which it is being built and the future hotel itself, while "Talija company" will manage it through a special purpose vehicle (SPV).
"Considering that this is the first public-private partnership project in Montenegro under the 2019 PPP Law, it was necessary to remove certain barriers and make additional adjustments with the relevant state institutions, primarily the Ministry of Finance, to ensure that the capital budget enables the payment of the obligations of the Royal Capital of Cetinje. We are in the final phase of these adjustments, and we expect the start of the development of project documentation in these days and the start of construction works in the spring of 2026. The completion deadline for the development of project documentation is six months, while the deadline for the completion of construction works is 24 months," the Royal Capital said.
Founded a project management company
The Royal Capital also claims that "Talija Company" was contractually responsible for establishing the DPN and paying 30 percent of the work (4,13 million), while they pay 70 percent of the costs (9,64 million), because most of the work relates to the underground garage and the arrangement of the square, i.e. public infrastructure.
The "Talija company", which is behind the "Casa del Mare" hotel group, explained that they established DPN this year after the completion of the tender in which the Royal Capital was selecting a partner for this job, which was their obligation.
"The PPP contract has not yet been formally and legally signed, which is a prerequisite for the realization of numerous obligations arising from it." "We believe that the competent institutions will react quickly and we look forward to signing the contract as soon as possible, in order to implement further obligations prescribed by it. The obligation of DPN 'Casa Heritage Lokanda' is that, after the signed PPP contract, it will begin construction and then manage the 'Lokanda' hotel. These steps follow the signing of the Public-Private Partnership Agreement," the company emphasized, without specifying which obligations of the competent institutions are in question.
“Talija Company” was registered in 2008 in Herceg Novi, and the company is engaged in trade and services. Among the data in the Central Register of Business Entities, it is written that its founder and executive director is Nikola Milić, and the authorized person Vukic Milic.
"We chose 'Lokanda' with our hearts. 'Lokanda' represents an honor and an obligation for us. To Cetinje, to its people, to past generations who loved 'Lokanda', but also to those who have yet to discover and love it. We are aware of this responsibility, because it has been the guiding thread in everything we have done so far. By renovating 'Lokanda', we are sending an important message that Montenegro looks forward, that it respects its history, but does not stand still. That this is a country where the past is remembered and appreciated, but where, with equal zeal, the future is built and created," said Nikola Milić in March when the contract was signed.
The “Lokanda” hotel was built in the mid-1860s in Cetinje at the end of Njegoševa Street and Trg umjetnika, and was demolished after the 1979 earthquake. “Lokanda” has the status of immovable cultural property based on a decision from 1960, it belonged to the cultural and historical entity “Historical Core of Cetinje” which has the same status, so work on buildings in this entity is subject to the provisions of the Law on the Protection of Cultural Property.
Through this project, the royal capital, in addition to its cultural and historical significance, wants to improve the city's tourist and accommodation capacity and create conditions for the creation of new jobs. As part of the project, a 48-bed hotel and an underground parking lot with 130 spaces are planned on an area of 2,16 square meters.
The tender in which the Royal Capital was looking for a partner for the renovation of the "Lokanda" hotel was announced on October 30 last year and lasted until December 16, while its estimated value was 13,78 million euros. Only "Talija Company" was interested in this job, and it eventually won it.
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