The LSG company, an investor in the construction of the “Liko Soho” hotel in Bar, has announced plans to reactivate the construction site within the next two months following the resolution of financial issues at the beginning of this year.

An inspection by the Ministry of Economic Development in April of the previous year revealed that work on the tourist complex, which was added to the list of economic citizenship projects in October 2021, had come to a standstill.

The Ministry of Regional Development and Cooperation with Non-Governmental Organizations informed “Vijesti” that the deadline for completing the construction of the “Liko Soho” hotel is set for the second half of 2026. Additionally, the validity of the bank guarantee submitted by the investor to the Government to secure the planned investment extends until December 20, 2026.

“In light of the established deadlines and the current status of the project, the Ministry will continue to oversee the execution of investment activities and will evaluate the project’s future status on the List of Development Projects in tourism according to work progress dynamics. Any alterations in the project’s status on this list will be determined by the relevant institutions based on objective indicators and assessments of further implementation,” the Ministry stated in response to inquiries about whether the hotel might be removed from the economic citizenship projects list.

Records from the Central Register of Business Entities (CRPS) indicate that the majority owner of LSG is Ukrainian Igor Lisov, who holds 50 percent, while the founders include Rade Vujacic (40 percent) and Ruslan Lisov (10 percent).

The war in Ukraine delayed the project

According to the LSG company, their project faced numerous bureaucratic hurdles and administrative challenges that resulted in delays and financial setbacks.

“Only in October 2022 were we able to commence work, starting our investment obligation as per the contract signed with the Government. Despite the obstacles, we successfully initiated construction and signed a contract with one of the largest hotel operators globally, Accor Group, selecting their luxury Pullman brand. This agreement emphasizes the project’s prestige on the international market. As publicly available data shows, the majority owner of LSG doo Bar is a Ukrainian citizen. The unexpected war in Ukraine, which has disrupted all of Europe, was not foreseen in our risk assessment. We managed to navigate the initial phase and continued with project construction; however, financing became unviable from April 2024. This required a thorough reorganization of our budget and ongoing activities, which are nearing completion,” the company explained.

They noted that at the beginning of 2025, they finally secured continued financing and are now actively preparing to resume work.

“We anticipate that construction will recommence within the next two months, dedicating ourselves to meeting all obligations to the state and the timelines established with the Pullman brand. It is crucial to highlight that the deadlines in the contract with the Government are counted from the date of obtaining the building permit. Thus, with a 5+2 year deadline, we are confident that the project will be completed punctually, by the maximum contract deadline of October 2029,” the company stated, adding that there have been no apartment sales to date.

To date, over 15 million euros have been invested in the project, and the current estimated value by the international firm CRBE stands at approximately 24 million euros. This, according to the investor, is a strong indication of how our activities have elevated the property’s value.

Agreed timelines will be adhered to.

The investor emphasized their exclusive right to choose the business model, as defined by law, and noted that the Government was duly informed of any changes to this model.

“By transitioning from a condo model to a mixed-use business model, which is more beneficial for the state in numerous ways, we will generate additional facilities-related revenues estimated at around five million euros, an obligation absent in the condo model. The company ‘Liko Soho Group’ plans to reduce the number of saleable apartments from 410 to 244, offering the market a 5-star hotel with 166 rooms that cannot be sold under law, which will operate year-round under the company’s ownership. This scenario is unachievable with the condo model, which allows for all apartments to be sold, a situation that is impractical for both the Municipality of Bar and Montenegro as a whole,” the company stated.

They clarified that although they initially included the condo model in their business plan when applying for the economic citizenship program, they are now in the process of officially registering the mixed-use model per the Law on Tourism and Hospitality in the near term.

The company asserted, “Considering the various business challenges faced throughout this process, along with the impact of the war in Ukraine and the unanticipated halting of work, I can confidently affirm that we will meet the timelines agreed upon with the Government and the Pullman brand.”

The Ministry of Regional and Investment Development informed “Vijesti” that the Government was notified in October about the delay concerning the “Liko Soho” hotel construction project, which was found to be at a standstill.

“During a site visit on April 18, 2024, officials from the Ministry of Economic Development confirmed that construction work on the ‘Liko Soho’ hotel has not commenced. Investor representatives relayed to the Ministry the challenges they have faced. The urban planning and technical conditions based on which the main project was developed were consistent with the valid planning document but conflicted with the Law on Spatial Planning and Construction of Facilities. This administrative hurdle led to delays in project initiation and less volume of investment than initially planned,” the Ministry reported, reiterating its commitment to ensuring a transparent and legal investment environment while supporting initiatives that advance the tourism sector in accordance with applicable regulations and state strategic priorities.

“The Ministry of Regional and Investment Development, within its purview, will continue to monitor the project’s progress and coordinate actions to ensure adherence to contractual obligations,” the ministry added.

In October of the previous year, the government reviewed reports from an independent controller, covering the period from October 14, 2021, to April 14, 2023, and concluded, as stated by the Ministry, that total investor investments reached 2,473,785 euros (excluding VAT), with the cumulative investments from project inception until April 14, 2023, including land purchases, totaling 4 million euros (excluding VAT).

Bar Municipality concerned about project delays

The local government of Bar is supportive of all investments that aid in the economic development and enhancement of the city’s tourism offering. The “Liko Soho” tourist complex is regarded as one of the most significant investments in tourism within the city, being a high-category luxury establishment.

“As the public can attest, the implementation of this project has faced significant delays, the reasons for which remain unknown to local administration. The Municipality of Bar expresses its concern regarding the sluggish progress on this vital tourism initiative, as completing the ‘Liko Soho’ complex would mark a substantial advancement in the city’s tourism infrastructure and economic growth. We recognize that such investments not only enhance tourism capacity but also create new jobs, improve the local economy, and promote Bar as an attractive destination for both foreign and domestic investors,” the Municipality stated.

The Municipality hopes that the difficulties regarding this project’s execution will be resolved swiftly, allowing the complex to soon join the tourist offerings of Bar.

News