The company "Bećović Management Group" will invest 13 million euros in the next three years in the hotel "Mediteran" and the existing facilities will be upgraded to a service that would be four plus and five stars, Deputy Prime Minister Dritan Abazović announced at today's press conference. on the occasion of signing the agreement.
With that, as he said, Ulcinj would get a prestigious facility that would complete the offer of that municipality.
"It is important that the government sends a message that investors are welcome and that they are not leaving," Abazović said.
The company "Bećović Management Group" bought the hotel "Mediteran" with villas and the associated land from the Ulcinj Riviera on July 25, 2005, for 940 thousand euros.
Abazović also expressed his gratitude to the Ulcinj Riviera, adding that he hopes that today's event is just the beginning of what was the Government's promise to do everything to transform Montenegro and the Ulcinj municipality.
Minister of Economic Development Jakov Milatović explained that it is planned to invest three million euros next year, and five million euros each in 2023 and 2024, as well as to upgrade the hotel to the level of four-star categorization, in order to be ready for the summer tourist season of 2025. years.
Milatović said that, due to different circumstances, the contracting parties decided to start a new process of negotiations regarding the realization of their contractual obligations and the fulfillment of the contract.
The buyer, he adds, sent the Government a letter of intent on September 7, in which he expressed his intention to realize an investment of greater value than the one foreseen in the contract and presented a dynamic plan for future investment.
"With this procedure, the Government of Montenegro shows how investors' trust is restored, on the one hand, and the interests of the local community, as well as state interests, are protected on the other hand. I am really sure that the hotel 'Mediterranean' in its full splendor and four-star classification will be ready to welcome tourists in the summer season of 2025." Milatović pointed out.
The Minister added that in order to adequately control the realization of the customer's investment activities, it is possible for the Government to exercise adequate supervision over the project.
He pointed out that if it happens that the investment is not realized in accordance with the established dynamics, the Government has the right to terminate the Agreement with a unilateral notification, and to be registered as the owner of the real estate upon fulfillment of the conditions for termination of the Agreement.
In case of termination of the contract, the buyer will return the property that is the subject of the contract to the seller, and the buyer will be reimbursed by the seller an amount corresponding to 80 percent of the amount invested in the realization of the investment from article two of the Agreement, which was confirmed by an independent auditor, less the amount of 1.223.000 euros in the name of damages due to the bona fide release of the obligation, explained the minister.
"I think that this Agreement is a strong message for our diaspora as well, that Montenegro must be a good place for investments coming from the diaspora. We want to make Montenegro a good place to live, a good business environment in which investors will be happy to invest," Milatović pointed out.
"Thanks to the excellent cooperation with the Vice President of the Government of Montenegro Abazović and the Ministry Milatović, we managed to overcome all the challenges on the way and be in the current situation, which is the realization of the investment in the Hotel 'Mediterran' in Ulcinj. This is an excellent message for the investor community to come to Montenegro, especially to Ulcinj", emphasized the American investor and executive director of "Becovic Management group Chicago", Isa Bećović.
The executive director of HTP "Ulcinjska riviera" Bojan Đakonović expressed his satisfaction with the signing of the agreement, expressing the hope that the citizens of Ulcinj, who have been waiting for a good city hotel for a long time, will "approve" this investment. Đakonović pointed out that this hotel was bought from their company 16 years ago, and that he is glad that, despite earlier dissatisfaction with the dynamics of the hotel's development, the investor was given a new chance.
"We are here to support the further valorization of this very attractive area where the Hotel Mediteran is located," Đakonović concluded.
Bećović explained that the first contract from 2005 failed because of the Detailed Urban Plan (DUP), that is, they could not build swimming pools and other facilities inside the hotel.
Abazović said that the current government has no obligations towards anyone.
"Whoever does not respect the deadlines, the contracts will be terminated immediately. This applies to everyone. Why the previous Government did not do this is not a question for us. We in the municipality of Ulcinj have a 'slaughterhouse' of hotel capacities. We have a parking lot at the Galeb Hotel location. since 2008. We are only determined to change such a practice."
"Whoever wants to do fair business is welcome. Whoever does not respect the rules of the game, the laws and the Constitution of Montenegro, will have to give up their rights, based on the contract. We trust investor Bećović, we want investments to come from the West, from America." he stated.
Abazović said that they have "huge ambitions" for Ulcinj and that they want to "change the whole of Montenegro" through that municipality.
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