The old one expired, they gave a new guarantee: ALK Nekretnin claims that they responded to the government’s warning

Three more floors were added: former “President” hotel, now “Radisson collection”, Photo: Vuk Lajović

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The Government of Montenegro made a decision to exclude the project of the construction of the “President” hotel on the Budva promenade, which is being implemented by the company ALK Nekretnine, from the list of development projects in the field of tourism, and to activate the bank guarantee of one million euros, which was provided by that company. ALK Nekretnine says that a new guarantee has been submitted to the Government, thereby avoiding the activation of the old one.

ALK Nekretnine is a construction company, a daughter company of the Serbian corporation of the same name, which is recognized for its construction business, and behind which stands the Bajramović family.

As stated in the Government’s conclusion, which “Vijesti” had access to, an urgent request was sent to the investor to submit a new Dynamic Plan with a new deadline for the completion of the hotel’s construction.

It was requested, as stated, the submission of a new bank guarantee for the same amount as the valid guarantee, in such a way that its validity period is extended by at least 30 days longer than the deadline for the performance of all obligations provided for in the new Business Plan and the Dynamic Plan for the implementation of the project.

“Therefore, taking into account that despite the urgency of the Ministry of Regional Investment Development and Cooperation with Non-Governmental Organizations, the investor did not submit a new bank guarantee to the Ministry for approval, an urgent reaction of the Government was necessary, given that the deadline for activating the bank guarantee, issued on August 30, 2022, expired on June 1, 2026,” the Government’s conclusion states.

ALK Nekretnin points out that a new guarantee has been submitted to the Government, thereby avoiding the activation of the old one.

“Given that the bank guarantee, which is stated in the conclusion of the Government of Montenegro, expired in the event that we do not provide a new bank guarantee, they (the Government – ed. author) decided to protect themselves and activate the then valid guarantee. This is a completely legitimate and correct action by the Government of Montenegro, which aims to prevent the mandatory bank guarantee from being uncollectible at any time. Of course, before the old one expired, we submitted a new bank guarantee for a longer period of time, so that it will not to activate the bank guarantee and exclude ALK Nekretnine from the program”, the company stated to “Vijesta”.

As they added, even though they did not sell a single accommodation unit through that program, and therefore do not have any benefit from the program, but only huge costs, as a responsible company they respect and will respect all obligations towards the state of Montenegro.

In the information, adopted by the Government of Montenegro, on the implementation of activities on the project of building the “Prezident” hotel in Budva, based on a mixed business model, it is recalled that at the session of October 27, 2022, at the proposal of the then Ministry of Economic Development and Tourism, the Government included the project of building the “Prezident” hotel on the list of development projects in the field of tourism.

“It has been established that this is a planned investment in the construction of the five-star hotel “Prezident” in Budva with 154 accommodation units, i.e. 384 beds. The total value of the investment is EUR 51,375,976.00 million, and the intention of the investor is to enable the employment of 123 people through the implementation of this project. The former Ministry of Sustainable Development and Tourism is in the published supplement to the Public Call for expressions of interest for qualifying projects on the List of Development Projects in the area of tourism, in accordance with Article 11 of the Decision on the criteria, method and procedure of selection of persons who can acquire Montenegrin citizenship by admission for the implementation of a special investment program of special importance for the economic and economic interest of Montenegro, defined the obligation of the investor of the development project to “with the prior consent of the Ministry, after publication on the List of development projects in the field of tourism, engage an independent controller who will monitor the implementation of the development project in accordance with the Business Plan and report to the Ministry, i.e. the Government of Montenegro on the status of its implementation, on a semi-annual basis”, according to the Government Information.

As a reminder, “Vijesti” recently announced that the future five-star hotel with apartments for the market, which is now managed under the name “Radisson collection” and which has already been roughly built by the company “ALK Nekretnine” on the promenade in Budva, will have three more floors than the original conceptual solution.

That is the decision of the Acting Chief State Architect Mirjana Đurišićwhich gave its consent to the amended conceptual solution, and the solution was also approved by the Minister of Spatial Planning and Urbanism Slaven Radunović.

“Namely, the aspiration was to concentrate all the accommodation capacities in one zone – the front minivan parallel to the pedestrian promenade was raised by two floors and one set back floor, so that instead of the main project defined 2Po+P+Mz+9+Ps, the newly proposed storey is 2Po+P+Mz+11+2Ps. In contrast, the annex with the main entrance to the hotel in the new solution has two floors less, instead of 2floor+floor+floor+3, with access to the roof and the use of the roof terrace. This solution significantly simplifies the function of the hotel itself. Also, the annex is freed from the accommodation capacity, and the congress center gets its own extension in the form of a roof terrace, which was not realized in the previous solution,” writes the solution published by “Vijesti”.

At the time, ALK Nekretnine told “Vijesta” that in the amended solution, which was approved by the government department in accordance with the recommendations and agreement with partners and consultants within the Radisson group, for the purpose of market sustainability and commercial usability, we did additional restructuring and fragmentation of accommodation units, so now we have a total of 226 accommodation units. Of these, 160 hotel rooms and hotel suite apartments, and 66 apartments intended for sale.