Government of Montenegro rents land at Luštica peninsula – minimum fee for 30-year lease of land is 100m EUR

The Government of Montenegro invited international investors today (December 2nd, 2008) to submit bids for long-term lease of land at Luštica peninsula in the Bay of Kotor.

The land will be rented on 30 years and the renter will be obliged to have an exclusive tourist complex built at that land. He will also be able to extend the period of lease.

The Government’s plan was to have “a multifunctional high-class tourist complex that offers series of activities for resting and recreation” built at Luštica.

Therefore, the Government is seeking the renter who has both financial capacities and experience with planning, development, marketing and management of exclusive, environmental and profitable tourist complexes.

If the bidder offers investment larger than 200m EUR, it is possible that the lease will be extended to maximum 90 years.

Every bid on the tender must be worth, at least, 100m EUR, while the lowest annual rental fee can not be smaller than 0.7 EUR per square meter.

The bidders must have long-term contract on cooperation with some international hotel company that is known as a successful operator with minimum two hotel complexes of international standards with four or five stars in two or more countries.

According to the public invitation, the bidder must have minimum 10 years of experience with similar projects.

The bidder must also prove that his annual turnovers in the last three years amounted to, minimum, 100m EUR, and that he owns capital of, at least, the same value.

Deadline for submission of bids is February 15, 2009.