SOCAR invests over 200M euros in resort construction in Montenegro

Azerbaijan’s state oil company SOCAR has invested over 200 million euros up to now in the construction of a resort on the Adriatic coast in Montenegro, said the Montenegrin President Filip Vujanovic in an interview with the bne IntelliNews agency.

Vujanovic said the Boca Bay area, where the resort is being constructed, is one of the nicest places on Montenegro’s coast. The Boca Bay area used to be a military base during Soviet times, he said.

“SOCAR has already invested more than 200 million euros in the project, and we expect [the resort] to open by the end of 2017,” added Vujanovic.

The project started in 2014, and in accordance with its conditions, SOCAR leases the Orijen Battalion barracks in the town of Kumbor for 90 years period.

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 investment of 258 million euros will be made during the first eight years of the lease period.

The company will pay the rent for the first 45-year period upfront.

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 the financial obligations under the lease.

Source: Trend