ALK Group: Bank guarantee has been provided, delays occurred due to different interpretations of legal services

The necessary bank guarantee has been provided, although it is true that due to different interpretations of the legal services of the contracting parties, there was a delay in the implementation of the bank guarantee, it was announced tonight by the ALK Group, which includes the companies ALK Montenegro from Podgorica and Sofir from Tivat.

The ALK Group reacted to the fact that the Government of Montenegro adopted the Information on the implementation of activities on the project to build a hotel and apartment complex in Tivat using the condo model, which, among other things, requests its urgent reaction due to the expiration of the bank guarantee.

"The property that served as collateral for obtaining a bank guarantee by authorized appraisers was estimated at over 16,7 million euros, and the necessary bank guarantee is in the amount of one million euros. The value of the property of companies operating within the ALK GROUP in Montenegro and the region is over 70 million euros, and as of today, apart from this and another bank guarantee for our project in Budva of also one million euros for the purposes of the same economic citizenship program, we have no other credit burdens, which is a rarity in these global, but also domestic economic circumstances, especially considering the fact that during our decade-long business to date, we have built over 20 million square meters. Therefore, as we write this letter, the problems you wrote about today have been overcome to mutual satisfaction," reads the ALK Group statement signed by Tarik Telaćević, CEO of ALK Montenegro.

The statement states that the ALK Group thanks the management of Adriatic Bank "for their constructive and professional approach, which has helped us to overcome the problem to a great extent."

The Ministry of Regional Investment Development and Cooperation with Non-Governmental Organizations sent an urgent request to the consortium, consisting of Podgorica's ALK Montenegro and Tivat's Sofir, to submit a new dynamic plan with a new deadline for the hotel's completion.

The Ministry also requested a new bank guarantee, the validity of which would be extended by at least 30 days from the fulfillment of obligations stipulated in the new business and dynamic plan.

"Given that the investor, despite the urgency, has not submitted a new bank guarantee, an urgent reaction from the Government is needed, given that the current one is valid until Friday," the Government Information states.

The document explains that it concerns the construction of a five-star hotel in Tivat with annexes A and B, according to the condo model, with 77 accommodation units, with an estimated value of 22,77 million euros.

According to the business plan, 46 accommodation units should be offered to the market, at a minimum price of 5,29 thousand euros per square meter.

"In order to secure the investment, a bank guarantee was submitted, which was issued by Adriatic Bank at the end of August 2022 in the amount of one million euros and valid until May 1 of this year," the Information explained.

Therefore, the Ministry sent an urgent request at the beginning of April, requesting a new guarantee from the investor.