Orascom will build in Montenegro luxury resort

For privatization of Montenegro, the Council requested the Tender Commission to start negotiations with the developer Orascom Development of long-term lease of a small island Lastavitsa reports Balkans.com . Orascom Development was the only company that has made a timely and correct application. Orascom Development Application contains a business plan, which takes into account the preservation of cultural heritage and respect for the rules on environmental protection. Moreover, the plan assumed construction of the hotel with 23 rooms, banquet service, spa, minimarket, two swimming pools, a water sports club, etc. The project will cost 15 million euros. The resort will create about 200 jobs. The company offered to lease for 49 years property of the island at a price of 1.5 euros per 1 square meter giving 2% of annual income (excluding VAT) for the rental of real estate and 0.9 euros for the lease of sea area. It is expected that for the first 20 years, the Government of Montenegro will receive an income of 7.5 million euros, social contributions in the amount of 2.8 million euros, as well as income from VAT in the amount of about 4.4 million euros. HomesOverseas.com