The Qatari state investment fund Qatari Diar, which acquired over 270,000 square meters of land in the area of the former Plavi Horizonti hotel in the Pržno Bay in 2010 to build a tourist complex, has invested over 80 million EUR in the project, but there has been no progress.
According to the report of the former Ministry of Economy on the implementation of important tourism projects, published a few days ago on the Government’s website, there has been no progress in the project implementation due to property disputes and lawsuits challenging ownership rights.
As stated in the report, the sales and investment agreement between the HLT Fund and HTP Primorje and QC Hotel and Property Investment Montenegro, representing the Qatari Diar state investment fund, was concluded on January 29th, 2010.
“The privatized property consists of a land complex of about 270,000 m2 at Pržno I and Pržno II locations, where the former Plavi Horizonti hotel was located. The value of the sales agreement was 25 million EUR,” the report states.
The location is intended for the construction of a tourist complex consisting of a luxury five-star hotel with 168 accommodation units, villas, and annexes with 78 accommodation units, a spa center, pools, restaurants, a tennis club with courts, a beach bar, and a coastal promenade. The planned total investment is 270 million EUR.
However, a lease agreement for the use of the maritime property and the corresponding aquatorium between the Public Enterprise for Coastal Zone Management and the company Qatari Diar was concluded in April 2013, leasing the Pržno beach for a period of 30 years. Amendments to the beach lease agreement are signed annually.
“In 2015, the Government gave consent for the implementation of extensive preparatory works for the construction of facilities of general interest within the mixed resort Plavi Horizonti. In the period from April 2018, five building permits were issued for the construction of auxiliary facilities, such as a beach bar, tennis and children’s club, entrance gate, hotel facilities with stars, underground garage, infrastructure, and landscaping of residential villa areas,” the report says.
Considering that the validity period of construction permits is two years from the date of issue, and that the investor has not started construction, the mentioned construction permits have expired.
“In December 2019, the Chief State Architect granted approval for the conceptual design of the facility FF/Beach bar and residential villa RL1, with the mentioned building permits expired,” the report states.
Given that the pace of project implementation is not at the expected level, the former Ministry of Economic Development has attempted to initiate meetings with the investor to obtain more precise information about investments and open issues related to the project’s implementation. However, this was not successful due to the investor’s inability to attend.
“According to information obtained from the investor, 81.1 million EUR has been invested in the project so far, of which 1.3 million was spent by June 30 last year on maintaining the location, company functioning, and interest on loans,” the report states.
