What Did Montenegro Contribute in a Multi-Decade Lease?

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        8. Apr 2025. 20:06
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    <p>Over the past two decades, Montenegro has granted leases for nine locations, with terms ranging from 30 to 90 years, covering a total area of 900 hectares. This initiative reflects the efforts of non-governmental organizations advocating for social justice (ASP).</p>

    <p>The leases include former factories, military barracks, social assets, as well as historical and cultural sites. Collaborations with the United Arab Emirates aim to enhance economic cooperation in tourism, paving the way for leasing beaches in Ulcinj.</p>

    <p>In many previous lease sites, exclusive resorts have been developed. However, some projects faced administrative hurdles, and others were halted by legal battles.</p>

    <p>All these leasing activities were preceded by decisions made in the Montenegrin Parliament and the announcement of international tenders.</p>

    <p>All lease agreements and investments were executed during the regime of the Democratic Party of Socialists led by Mila Đukanović, which lost power in 2020.</p>

    <p>What long-term leases has Montenegro granted, and what have been their outcomes?</p>

    <h2 class="wp-block-heading" id="h-porto-montenegro">Porto Montenegro</h2>

    <figure class="wp-block-image size-large"><figcaption class="wp-element-caption">Photo: Shutterstock</figcaption></figure>

    <p>The first significant investment and long-term lease for a period of 90 years was signed five months after Montenegro regained its independence in 2006. Canadian billionaire Peter Munk secured the Navy Arsenal in Tivat.</p>

    <p>Munk's company, Adriatic Marinas, was the sole participant in the tender announced by the then-government under Mila Đukanović.</p>

    <p>Munk initially paid 3.2 million euros for the shipyard, but due to social programs and site preparation, the total cost rose to 23 million euros. The lease covered approximately 25 hectares of coastline and nearly 70 hectares of aquatic area.</p>

    <p>With investments totaling around 500 million euros, the old shipyard was transformed into Porto Montenegro—a luxurious marina for mega yachts, along with a hotel and residential complex.</p>

    <p>To attract yacht owners and affluent clientele, the Montenegrin Assembly enacted a series of tax incentives, reducing VAT to seven percent on tourism and nautical services, while offering exemptions from customs and taxes on yacht fuel.</p>

    <p>Planning documents and studies were modified to accommodate the needs of Munk's company.</p>

    <p>Ten years later, Peter Munk sold Porto Montenegro to a sovereign wealth fund from Dubai, but the sale price has never been publicly disclosed.</p>

    <h2 class="wp-block-heading" id="h-sveti-stefan">Sveti Stefan</h2>

    <figure class="wp-block-image size-large"><figcaption class="wp-element-caption">Photo: Biljana Matijasevic</figcaption></figure>

    <p>In 2007, the company Adriatic Properties, owned by Petros Statis, acquired a 30-year lease on one of Montenegro's most exclusive summer resorts—comprising Sveti Stefan, Milocer, and Queen's Beach.</p>

    <p>The contract stipulated a 50 million euro investment and an annual rent of 1.6 million euros, with the requirement that hotels remain open for 11 months a year.</p>

    <p>In 2015, the Montenegrin Parliament approved an Annex to the Agreement with the operator Aman Resorts, extending the lease by 12 years while reducing rent to 1.1 million euros.</p>

    <p>Additionally, the lease term for Queen's Beach was extended from 30 to 90 years, allowing for the construction of a condo hotel, meaning apartments for sale alongside hotel operations.</p>

    <p>These contracts were finalized during the tenure of the DPS led by Mila Đukanović.</p>

    <p>After losing power, local authorities in Budva initiated protests in 2021 against the tenant, resulting in the dismantling of protective barriers around the hotel beaches leased to Adriatic Properties.</p>

    <p>This led to the closing of the hotels due to concerns about guest privacy.</p>

    <p>Consequently, the company filed a claim against the Montenegrin government before the Arbitration Court in London, with the state asserting its desire to protect property whose value had declined due to non-use.</p>

    <p>Over the past four years, the beaches have remained open to all tourists.</p>

    <h2 class="wp-block-heading" id="h-lustica-bej-lustica-bay">Luštica Bay</h2>

    <figure class="wp-block-image size-large"><figcaption class="wp-element-caption">Photo: Luštica Bay</figcaption></figure>

    <p>The second major lease project, lasting 90 years, was established in the Tivat Municipality.</p>

    <p>The contract for leasing approximately 700 hectares on the Luštica Peninsula was signed in 2009 between the Montenegrin government and Luštica Development, a venture backed by Swiss-Egyptian investors led by businessman Samih Saviris.</p>

    <p>This agreement entails an investment of 1.1 billion euros, encompassing the construction of eight hotels, around 1,200 residences, a marina, golf course, business facilities, restaurants, and beaches.</p>

    <p>So far, approximately 450 million euros have been invested, resulting in the sale of over 400 apartments to owners from 40 different countries.</p>

    <p>Under the terms of the contract, the annual lease payment amounts to one million euros.</p>

    <p>This has enabled the government to acquire about seven percent of the company's shares thus far.</p>

    <h2 class="wp-block-heading" id="h-monterose">Monterose</h2>

    <p>In the same year, 2009, the Montenegrin Government entered a 10-year lease for 50 acres of land on the Lustica Peninsula near Rose, with the offshore company NorthStar.</p>

    <p>The company was expected to invest around 140 million euros to develop the Monterose tourist resort, which was to include hotels, luxury villas, and additional amenities.</p>

    <p>No construction was initiated, and in 2018, an Annex Agreement was signed, reducing the value of required investments to 80 million euros. Despite this, the project remained unrealized.</p>

    <p>By 2022, NorthStar informed the government of its withdrawal from the project due to unmet state obligations and initiated compensation procedures in London.</p>

    <p>The government has since formed a team to gather documentation for an appropriate response to the lawsuit and ascertain responsibility for any potential oversights—whether on the part of the state or the investor.</p>

    <h2 class="wp-block-heading" id="h-portonovi">Portonovi</h2>

    <figure class="wp-block-image size-large"><figcaption class="wp-element-caption">Photo: Shutterstock</figcaption></figure>

    <p>In 2012, the Azerbaijani oil company Socar was granted a long-term lease for 90 years over land previously occupied by the military barracks "Orjen Battalion" in the Kumbor area of Herceg Novi.</p>

    <p>With committed investments totaling 250 million euros, a fixed rent of one euro per square meter was established, alongside a variable rent of five percent of profits.</p>

    <p>On nearly 25 hectares, the luxurious Luka Kumbor facility was built, managed by the One & Only resort operator, comprising a hotel, business center, and residential area with villas featuring pools.</p>

    <p>The company has reported investments exceeding 800 million euros into this complex to date.</p>

    <h2 class="wp-block-heading" id="h-tvrdava-mamula">Mamula Fortress</h2>

    <figure class="wp-block-image size-large"><figcaption class="wp-element-caption">Photo: Shutterstock</figcaption></figure>

    <p>The island of Mamula, belonging to the municipality of Herceg Novi, was leased for 49 years in 2015.</p>

    <p>Swiss Egyptian company Orascom, under the aegis of Samiha Saviris, was awarded the lease for Mamula Island, which houses a fortress.</p>

    <p>This 19th-century fortress was once used as a prison for local anti-fascists during WWII, making it a significant cultural site in state ownership. The investor is obliged not only to construct a luxury resort but also to restore the fortress.</p>

    <p>The annual lease is set at 1.5 euros per square meter and 90 euro cents per square meter for the aquatic area. The investor committed to an investment of 15 million euros.</p>

    <p>Following the fortress's restoration, the total investment reached over 36 million euros.</p>

    <p>The former prison cells have been transformed into luxury hotel accommodations, and the surrounding area has been refurbished with spa facilities, restaurants, and bars.</p>

    <h2 class="wp-block-heading" id="h-ulcinjska-rivijera">Ulcinjska Riviera</h2>

    <figure class="wp-block-image size-large"><figcaption class="wp-element-caption">Photo: Shutterstock</figcaption></figure>

    <p>In 2017, the Government of Montenegro awarded a 30-year concession for the Ulcinj Riviera to the Karisma Hotels & Resorts Consortium through a public tender.</p>

    <p>The lease encompasses 12 hectares of land, with a commitment from the investor to invest approximately 16 million euros within two years for additional hotels and facilities.</p>

    <p>The annual fixed lease payment is set at 450,000 euros.</p>

    <p>Construction of new tourist facilities is slated to continue until 2027, with total investments projected to reach around 32 million euros.</p>

    <h2 class="wp-block-heading" id="h-mediteran-zabljak">Mediterranean Žabljak</h2>

    <p>The former military complex Mediterranean in Žabljak was leased for 30 years to Baltic International Trading from Estonia and Montenegro in 2018.</p>

    <p>The lease of 1.4 hectares was set at one euro per square meter, plus five percent of annual revenue, with plans to construct five-star resorts worth around 5.5 million euros.</p>

    <p>No construction has commenced, as UNESCO raised concerns, and the World Heritage Center recommended a halt due to the land's location in the heart of Durmitor National Park.</p>

    <p>In 2021, the investor filed a lawsuit against Montenegro, seeking 26 million euros for perceived damages.</p>

    <h2 class="wp-block-heading" id="h-kolasin-1600">Kolašin 1600</h2>

    <p>The Kolašin 1600 ski center was granted a 90-year lease in 2018, covering 27 hectares of land within the ski resort of the same name.</p>

    <p>The contract details a rent of 10 euros per square meter and 0.1 percent of net annual profits, meaning the state earns 27,000 euros in rent and an additional thousand euros for each million in profit made by the tenant.</p>

    <p>The sole bidder in the public tender was a consortium of Albanian businessmen, including Baška Uljaje and Zoran Bećirović, a co-owner of Kolašin 1450 ski resort.</p>

    <p>The ski resorts are connected by 45 kilometers of trails.</p>

    <p>The investor committed to constructing a tourist complex with an initial year investment of nearly 13 million euros, with total projected investments around 77 million euros.</p>

    <p>Three hotels have been completed so far, with one currently operational, while the construction of two more is underway.</p>

    <p>The center is situated 12 kilometers from the town of Kolašin, which is easily accessible via a highway connecting to Podgorica.</p>

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