Northstar to initiate Montrose project after four years – New tourist complex to be raised near Herceg Novi

Northstar is planning a summary procedure for the realization of the agreement on the Montrose project, says the president of the Municipality of Herceg Novi, Stevan Katic, as reported by Radio Jadran.

– The planning document envisaged the construction of hotel capacities, in addition to apartments and mansion, in the location. This has now been changed to a tourist complex, which automatically means that the tourist complex is exempt from paying building land fees. The investors requires the construction to be completed, which we have obliged to do, but the manner of financing remains to be defined – Katic says.

He reminded that Northstar has so far paid 10% of the long-term lease, and the local self-government has thereby asked the state of Montenegro to use the remaining lease funds to finance the construction of infrastructure for the needs of Northstar and other investors.

Northstar says that negotiation about the infrastructure with local self-government and state institutions are in progress.

The agreement on a long-term lease of Herceg Novi's part of the Lustica peninsula was signed on September 11, 2009. It came into effect on August 26, 2013, with the signing of the protocol of the finality of the agreement, and the annex to the agreement on a long-term lease was practically signed at the same time.

The deadlines for the lessee to meet the contract obligations, including investment obligations, are counted from that date. The agreement and the annex to the agreement oblige the lessee to invest EUR 141.8 million in the first phase of the project over a period of five years.