The royal capital of Cetinje is anticipating approval from the Ministry of Finance for a payment of €9.64 million within days, aimed at facilitating the development of project and technical documentation for renovating the Lokanda Hotel. This will mark the official commencement of this project in the heart of the city.

This information was officially conveyed to “Vijesti” by representatives from the Royal Capital.

The hotel will be developed under a public-private partnership (PPP) with “Talija Company” from Herceg Novi, which will have a six-month period to prepare the necessary documentation, followed by two years for the construction of the revamped Lokanda. The contract, valued at €13,783,531, was signed at the end of March between the Royal Capital and the private entity, and encompasses the construction of a hotel, a parking garage, and the ground floor of the Artists’ Square.

The Royal Capital will cover 70% of the costs (€9.64 million), while the remainder will be financed by “Talija.” According to the draft contract, “Talija” will operate the hotel for the next 30 years to recuperate the funds invested. In the interim, they will pay fees to the Royal Capital, which will gain full ownership of the hotel after three decades.

“The Royal Capital, alongside the private partner and the Ministry of Finance, is diligently working to create conditions that will enable the initiation of this significant project. Given that this is the first project in Montenegro following the PPP law enacted in 2019, it was essential for the Ministry of Finance to establish conditions that would allow for the transfer of funds and the fulfillment of obligations imposed by the contract (70% of the total investment amount). We anticipate that all necessary conditions will be fulfilled shortly, paving the way for the development of project and technical documentation and, consequently, the project’s implementation. The operational phase commencement relies on receiving written consent from the public partner within ten working days of the submission of the private partner’s request,” stated the Royal Capital.

They also noted that, in addition to this request, “Talija Company” is required to provide a report from a qualified supervisory body regarding the work completed on the Lokanda hotel construction, the building of the underground garage, and the landscaping of the Artists’ Square. They must also submit a financial report detailing the payments made throughout the project, a hotel operation permit, and a usage permit for the underground garage.

The original Lokanda Hotel was established in the mid-1860s in Cetinje, situated at the intersection of Njegoševa Street and Trg umjetnika, and was demolished following the 1979 earthquake. The Lokanda holds the status of immovable cultural property, a designation assigned in 1960. It was part of the cultural and historical entity known as the “Historical Core of Cetinje,” which holds the same status. Therefore, any construction activities within this area are governed by the provisions of the Law on the Protection of Cultural Property.

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