Azerbaijan, Montenegro launch resort project

Photo: Azerbaijan, Montenegro launch resort project  / Economy news

Baku, Azerbaijan, March 6

By Aygun Badalova - Trend:

Montenegro and Azerbaijan launched a 500 million euro (686.97 million dollars) resort project, Reuters reported with the reference to Azerbaijan's Economic Development Minister Shahin Mustafayev.

The project envisages the turning of a former naval Kumbor base on the Adriatic coast into a coastal resort. It will be a big investment in Balkan republic.

State Oil Company of Azerbaijan Republic (SOCAR) and developer Azmont Investments want to transform it into a resort with marinas, hotels and villas, according to Mustafayev.

"Thanks to this project, investors in Azerbaijan now know that the Montenegrin government has secured a good investment climate and more projects will follow," Mustafayev told reporters.

The resort project is scheduled to be completed by 2016. It should create 6,500 jobs during its construction and 1,200 after completion.

According to the ter, of the project, an agreement on long-term lease of the Orijen Battalion barracks in Kumbor will be signed with SOCAR for 90 years period. The copmany will pay the rent for the first 45-year period upfront, including a fixed one euro per square meter and a variable 5 percent of the profit realized by the lessee from operations at the site.

According to the statement, the tenant has the right to establish a local company in Montenegro, which will transfer all rights and obligations under the lease agreement.

During the first four years of the lease, SOCAR is expected to invest at least 52 million euros in the resort's development. Total investement of 258 million euros will be made during the first eight years of the lease period. After making the first part of investments worth 52 million euros, the lessee may assign the contract to a third party that is able to meet all financial obligations under the lease.

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