Lease and Construction Agreement between the Government of Montenegro, Municipality of Tivat, and “Luštica Development” AD – LUŠTICA BAY – Tivat

The Lease and Construction Agreement concerning Luštica Development in the Municipality of Tivat was signed on October 23, 2009, between the Government of Montenegro, the Municipality of Tivat, and “Luštica Development” AD Podgorica (“Project Company”). 10. December 10, 2013, marks the effective date of the Agreement, from which the deadlines for fulfilling contractual obligations began. The total area of the leased land is 6,923,260 square meters.

The Agreement defines an Investment Program estimated at approximately 1.1 billion euros, which includes the construction of: eight hotels (3,310 hotel rooms, 60% of capacity with 5 or more stars), 1,250 residential units (including villas and apartments), a Thalasso center, two marinas with berths and accompanying facilities, an 18-hole golf course open year-round, a conference center, and facilities for daily needs open year-round, including shops, restaurants, a primary school, and healthcare facilities. According to data provided by the investor, more than 450 million euros have been invested in the “Luštica Bay” project since its inception.

In August 2018, The Chedi hotel, a 5-star establishment with 111 accommodation units, and a marina with a current capacity of 115 berths were officially opened. The 275-meter beach has been operational since July 2018. In the “Marina Village” settlement, 7 villas, 6 row houses with 13 residential units, 32 residential buildings with 219 apartments, and 5 mixed-use buildings with 34 apartments and 18 commercial spaces have been constructed. Ongoing construction in “Marina Village” includes 11 residential buildings with 89 apartments, 3 villas, and groundwork for 6 residential buildings with 60 apartments.

In the “Centrale” settlement, 9 buildings with 131 apartments, and two mixed-use buildings with 16 apartments and 5 commercial spaces on the main square Piazza Centrale, along with roads and complete underground and above-ground infrastructure totaling about 1,400 meters in length, have been built. A clinic with a gross area of 239 square meters has also been equipped and put into operation in “Centrale.” Construction is underway on 6 residential buildings with 66 apartments, 2 mixed-use buildings with 19 apartments and 10 commercial spaces, and a 5-star Boutique hotel with 31 hotel units. Additionally, project documentation is being prepared for the construction of 15 residential buildings with 207 apartments, one mixed-use building with 20 apartments, and 5 commercial spaces.

Regarding the Marina, Phase II has been completed, including the infrastructure for marina users, and in the summer of 2021, a coastal promenade was built between the Marina – the large breakwater, and Oblatno Beach. A temporary facility with service amenities for marina management – office space and client and user areas – has been constructed and put into operation.

In addition, Phase I and Phase II of the water transport system for irrigation of the golf course, which includes two pumping stations and a transformer station with an installed capacity of 630 kVA for transporting treated water from the Tivat/Kotor WWTP, have been completed. In the Golf Zone, the construction of the first phase of 7 golf villas has begun, and project preparations are underway for 6 row houses with 12 units and 4 residential buildings with 39 apartments in the first phase, and 16 villas, 5 buildings with 44 apartments, and a golf club in the second phase.

The Project Company has invested over 2.2 million euros to financially support various projects, organizations, institutions, and programs in Tivat since the project’s inception. The project management companies employ 583 people, of whom 467 are locals and 116 are foreign nationals. During construction, the Project Company employs an additional 350 to 400 workers on average.