Chairman of the Board of "Orascom" Nagib S. Saviris for "Vijesti": Every euro left in Montenegro, we will invest up to a billion more

Chairman of the Board of Directors of the company "Orascom Development Holding" S. Saviris slope He said that due to the unpredictability of permitting and financing, it is difficult to accurately announce what will be completed in the Luštica Bay settlement in the next three years, but that the development of the destination is certain.

In an interview with "Vijesti", he said that "Orascom" has not taken "a single euro" out of Montenegro in 13 years of business, but that everything earned here has been reinvested, and that the master plan foresees at least another 800 million to a billion euros in investments.

Saviris also said that delays and complex procedures in the areas of planning, permitting and cadastre have begun to affect the dynamics of the project and the company's finances, while the project, he claims, is larger than local banks can handle. He praised the cooperation with the Prime Minister Milojko Spajić and its commitment to joining the European Union.

Speaking about the engagement of the former Minister of Tourism Predrag Nenezić at "Luštica Development", Saviris said that in his case, too, the criterion was quality, not political affiliation.

He also rejected any business ties with the Serbian president. Aleksandar Vučić or his relatives, while for the former strategic director Dejan Ljevnaić said that the cooperation was terminated solely based on business criteria.

Since you took responsibility for the project, what have you changed from the original concept and what specifically will be completed by the end of 2027, 2028 and 2029? Can you name at least one major facility, infrastructure project or content for each of those three years?

The essence has not changed. Luštica Bay should be a leading destination on the Adriatic - a destination that respects the coast and the architectural heritage of the bay. What I have done is to further sharpen that concept. As a group, we have decided to focus on a smaller number of destinations, and I demand from myself and the entire team to realize each of them at the highest level. Luštica Bay is one of those destinations. Building a new city takes 40 or 50 years, not three. Our master plan is divided into approximately 70 projects - from hotels and golf courses, to sports facilities, and each year we adjust the dynamics to what the market really needs. That is why I will not announce in advance what exactly will be completed in 2027, 2028 and 2029. Our teams on the ground will communicate that information when the time comes. What I can tell you is what our priority is: to make Luštica Bay attractive throughout the year, including winter. And we have momentum. This year we have completed nine holes of golf courses, we look forward to completing all 18, and we are planning another five-star facility, based on the concept of longevity and wellness, precisely with the aim of extending the season beyond the summer. However, allow me a friendly remark, with a smile - it is difficult to make firm three-year commitments when there is no predictability in terms of licensing and financing. As for the destination itself, it is a question of when, not if.

According to government data, by mid-2025, around 637 million euros had been invested in the project, with approximately 11 percent of the planned construction area completed. Is this pace in line with the original plan and contractual obligations? What is included in the reported 637 million euros of investment? How much of that amount is Orascom's direct capital, and how much is loans, money from property sales, customer advances, infrastructure investments and other items? How much of Orascom's own money did it invest that was not generated from loans or project revenues?

The government checks all this against clearly defined indicators, and I accept the official data as authoritative. However, there is one difference that is important for your readers. Some investments create the destination itself: infrastructure, marina, hotels, a golf course in which more than 60 million euros have been invested. The second is investments with a shorter cycle, in residential units that we build and sell. This first type of investment comes first, carries the risk and makes everything else possible. Our master plan foresees at least another 800 million to a billion euros of such investments. And here is a fact that I am proud of - in 13 years, we have not taken a single euro out of Montenegro. Everything that has been earned here has been reinvested here.

Luštica Development generated approximately 293 million euros in revenue by mid-2024, while the calculated operating rent of two percent amounted to approximately 5,3 million euros. How much has the state received in total since the beginning of the project through rent, taxes, lease, fees, land, shares and dividends? How much, by year and on what basis, was paid to the state, and how much to the Municipality of Tivat?

I repeat, the state is checking this data and, when it does, I would encourage it to publish it. We are fully complying with the Land Development Agreement. I would just warn that a cross-section of the situation at this stage of the project can paint a misleading picture. In the next three to four years, more property owners will join us than in the previous ten, and there is also a time gap between the moment we sell something, when we record the income and when the payment obligations are due. But something else is more important. The real benefit to the state is not reflected in direct payments. Likewise, the fact that not a single euro has left Montenegro in 13 years shows that our model is not based on extracting money. The real benefits are indirect. How many more tourists are coming to Montenegro because of this project? How many ships sailing between Croatia and Greece are now stopping at Mamula or the Luštica Bay marina? How many contractors, small business owners and suppliers have jobs that they simply would not have otherwise - and how much do they all pay in taxes and fees? That is the real balance. By any measure, we are among the three largest investors in this country. When the report is published, call me back and we will go through it together. Just keep in mind that we are thinking in decades. We are still at the very beginning and we are proud of that. The same goes for Andermatt in Switzerland and El Gouna in Egypt, which are much older than Lustica Bay.

The contract allows for the transfer of rights to leased state land to property buyers. How much land has been transferred so far, how much has the company charged the buyers, and how much has the state received? In your opinion, are the fees of four, 15, and 80 euros per square meter, agreed more than 15 years ago, still fair in relation to today's market value?

This question goes to the heart of the partnership, so I want to be precise. These amounts are land use fees, not the value of the land itself, and they are the base fees from 2009. They increase every year according to a formula agreed in the contract. When we signed the contract, Luštica Bay was as beautiful as it is today, but completely undeveloped. There was no infrastructure, no international hotels, the destination had no established name, and the connectivity was poor. The marina, hotel, and golf course barely cover their running costs; they never recover the capital invested in them. The economic calculation only works if the land gains value and if the housing units are sold thanks to that increase in value. To change the price of the land retroactively, after the risk has already been taken and the money has been spent, would mean destroying the logic of the entire investment. It would also destroy the credibility of any government that would do so. A partnership like this survives or fails depending on the stability of the rules.

There are 18 affiliated companies operating within the group that generate income from various activities. Is the two percent operating rent calculated on the consolidated income of the entire group or only on the income of Luštica Development AD? In other words, does the reported 293,3 million euros include the turnover of all 18 companies?

As I understand it, the reported amount includes the group, excluding hotels, which is in line with the way we report on all our operations worldwide. We manage each destination through separate companies. This ensures a clear demarcation of responsibilities and simplifies partnerships and financing. We are a Swiss-based company. Each of these companies is subject to annual audits by domestic and international auditors, and our compliance standards are set accordingly. We are very insistent on transparency. That's how we operate everywhere.

The contract was signed in 2009 by Milo Đukanović and Samih Sawiris. Predrag Nenezić and Nebojša Popović, who previously held important government positions related to the project, later moved to Luštica Development. How do you explain these transfers and did relations with the then government influence the conditions the company received? Did Nenezić or Popović, while in government service, participate in negotiations or decisions related to Orascom or the Luštica Bay project?

We apply the same criteria to every hiring, including them: we select people based on their qualities. As an international developer, we apply compliance standards that often go well beyond local legal requirements. But I will be open about the context. Montenegro is a small country, with a limited number of people with the experience to hold top management positions, and politics permeates everywhere. Everyone knows everyone, accusations are quick to surface, and ordinary business decisions about hiring or engaging contractors are interpreted through a political prism. We are strictly politically neutral and I want this to be noted in the run-up to both the elections and the negotiations on accession to the European Union. Our sole focus is on the success of Luštica Bay - for the benefit of all citizens of Montenegro

You often praise the cooperation with the Government of Milojko Spajić. What specifically did you ask of it, what was granted to you, and what demands are still being negotiated? Are you asking for changes to contracts, planning documents, deadlines, or the company's financial obligations?

First, credit should be given where it is due. Leading the EU accession process is not easy, especially when you are also leading a coalition government, and I have seen the Prime Minister's commitment to the process. According to all public opinion polls, this is the will of the citizens. As far as we are concerned, the contract is valid until 2104, and the state is also a shareholder and has two seats on the Board of Directors, so a constant dialogue with the Government is simply part of the nature of this project. Prime Minister Spajić and his team maintain an open channel of communication. Two main problems are already known to the public. The first is permits: delays and complexity of procedures in the areas of planning, permitting and cadastre have accumulated to the point of affecting both the dynamics of the project and our finances. The second is financing: the project is larger than local banks can handle, both in terms of the volume and maturity of the loans required, so we are sometimes forced to take on the role of the bank ourselves and lend to future property owners. In addition, among the strategic topics we discuss are air connectivity, joint marketing of the destination in the European markets from which our guests come, and creating real reasons for tourists to come outside the summer season.

The government has annulled the decision approving the mortgage for the loan with Alta Bank. What explanation did you receive from the government for withdrawing the approval for the mortgage?

Our local team has previously exhausted the options with Montenegrin banks, given the size and stage of development of the project. We have previously received approvals for arrangements involving regional banks, and we have already cooperated with this particular bank. Our position is simple. We respect the sovereign decisions of the Government, provided that they remain within the framework of our contract, that there is a clear and documented justification for them, and that decisions are made in a timely manner and are not subsequently reversed. In addition, we are apolitical and focused on the construction of Luštica Bay.

Why are rights attached to state assets used as collateral instead of shares or other assets of a private investor? Is the goal to free up Orascom's shares for other financial arrangements? What happens if the company is unable to repay the loan? Do these rights become the property of the bank?

This is standard practice in real estate development, it is applied everywhere, and in Montenegro there is also a well-established case law on this. To be precise: we are pledging the right to use the land - the usufruct, not the property itself, and the contract expressly allows this. And understand why we are doing this. Not to pay dividends; over the course of 13 years, everything has been reinvested. We are doing this because the financing allows the developer to build faster. You cannot pledge infrastructure or a golf course. The value they create is reflected in the value of the land rights, and the release of that value finances the next construction cycle.

Although this has been denied several times, opposition media and politicians in Serbia have linked the bank to Serbian President Aleksandar Vučić. Apart from the loan from Alta Bank, are you connected to the Vučić brothers through other business arrangements?

To be absolutely clear, so that there is no doubt: we have no business arrangements with the President of Serbia or his relatives. As for the rest, you probably know more about the allegations regarding that bank than I do. We are a company based in Switzerland, focused exclusively on business, strictly apolitical and with no agenda other than the economic development of Montenegro. If the state wants to ban certain companies from doing business in the country, that is a decision that should be made by the Government, not us.

You have been doing business in Montenegro for years and you occasionally stay here. How do you see Montenegro today as a country and society and what do you consider its biggest challenges?

I will use this question to make an appeal. The citizens of Montenegro should hold their politicians accountable for one thing above all else: a better quality of life. Health. Education. Economic development. I have two ideas on how to achieve this. First - you are more alike than different. I see too many politicians who put their party before their country, and a big part of that comes down to mistrust between different groups. I have seen both sides of it - between Christians and Muslims in Egypt, and between French, German and Italian speakers in Switzerland. Where things work, they work because people cooperate despite these divisions. Because they are Egyptians first. Swiss first. Successful countries are those where people work in the interest of the whole society, not individual groups. Second - abundance instead of scarcity. In Luštica, we do not see ourselves as competing with Porto Montenegro or the resorts in Budva. Our job is to make the whole pie bigger, not to fight over who gets the biggest piece of a pie whose size remains the same. When we succeed, everyone else progresses with us. That is not to anyone's detriment. If more people here ask how to increase the economic "pie", Montenegro will surprise the world. For that, it is necessary to put Montenegro first. We have been doing this for 13 years. And we do not intend to stop.

Up to 1.500 employees

How many Montenegrin citizens are permanently employed on the project, what is their average salary, how many local people occupy management positions, and what is the value of the jobs that local companies get? Which beaches, parts of the coast, and promenades will remain freely accessible to citizens permanently?

The numbers change from month to month, depending on the season, and you have to count both the employees in the company itself and all those working in jobs related to Luštica Bay. Roughly: we have 525 permanent employees directly, plus 180 to 190 seasonal workers. Another 300 to 400 jobs exist in partner companies operating in Luštica Bay, while in total we are talking about approximately 1.400 to 1.500 jobs when you include the wider economic activity we generate in the Tivat Bay area. We hire and promote people based on their abilities and results, without discrimination based on nationality, gender, ethnicity or political affiliation. We only hire employees from abroad where a specific position requires in-depth knowledge of the Group's way of working. Of the eight members of our current top management team, not counting the CEO, five hold a Montenegrin passport. We also buy locally wherever quality allows. As far as access is concerned, Luštica Bay is open. We do not believe in closed enclaves and we welcome day visitors from all over Montenegro. Yes, there are times during the peak season when it is very crowded. Some property owners have expressed concerns and we will address this pragmatically, including by giving owners a greater voice in decisions that affect them.

He claims he has no knowledge of Ljevnaić's connection to the arrival of persons of security interest in Tivat.

Strategic Director Dejan Ljevnaić was recently dismissed. His name was in the spotlight of the regional public after former RTRS journalist Nataša Miljanović Zubac's publications about alleged corrupt dealings at the Jahorina Olympic Center, which led the local prosecutor's office to file a case and open an investigation. He then made headlines again due to the arrival of 87 security-sensitive persons from Serbia at the Tivat airport, ahead of the opening of the 2026 EU-Western Balkans Summit in Tivat. He allegedly provided them with accommodation in a complex managed by your company. Who recommended Ljevnaić to you for the position from which he was recently dismissed? Was he dismissed because of his connection to bringing security-sensitive persons from Serbia, the investigation in Republika Srpska, or for some other reason?

I have no knowledge of Mr. Ljevnaić's possible role in the arrival of this group and I will not comment on the allegations that relate to the period before his engagement with us, nor on the proceedings that are still ongoing. We are not the judiciary and we know our limits. What I can say is the following - he was engaged based on his qualities and what he could contribute to Luštica Bay, and we ended the cooperation solely on the basis of business criteria. As the Chairman of the Board of Directors, I will not allow any party to use this company for their own purposes. In addition, I sincerely sympathize with him. He is an experienced manager in the tourism industry who moved to Montenegro to apply his knowledge and experience here, and to this day a lot of dust has been raised around him, while, as far as I know, he has not been charged. Instead of spending his time improving Luštica and Montenegro, he has to spend it defending himself. That is a loss for everyone.