Herceg Novi gets the Ritz Carlton hotel
Herceg Novi will get the hotel of the prestigious brand Ritz-Carlton. Investors will invest €80m instead of €141m, as it was foreseen in the basic agreement.
This is stipulated by the Annex 2 of the agreement of the consortium consisting of the Podgorica-based Northstar company and UK Equest Capital Limited. Montenegrin government discussed the agreement at today’s cabinet meeting.
The Privatisation Council says that the Annex does not change the initial conditions established by the tender, but it changes the investing dynamics.
“Thus, in the first phase which lasts five years, €80m will be invested instead of €141m as the initial agreement stipulated. However, the total amount and all other conditions prescribed by the tender remain as the investor’s obligation,” the government said.
According to the agreement, the investor is obliged first to build a hotel within the resort.
“Bearing in mind that the contracting parties have not fulfilled the obligations from the basic contract, in order to realize the investment, the procedure for concluding Annex 2 of the agreement has been initiated,” the government announced.
Source: CDM
