Podgorica, (MINA-BUSINESS) – At a Cabinet meeting scheduled for today, the Government will review the Proposal for Settlement Terms in the arbitration proceedings before the international court in London between Montenegro and Adriatic Properties, marking the final step toward reopening the Sveti Stefan resort.

“In this way, the Government, led by Prime Minister Milojko Spajic, eliminates the risk of paying potential damages exceeding €100 million, while the new proposed solution increases the amount of revenue, i.e. lease payments, received by the companies HTP Milocer and Sveti Stefan Hotels,” the Government said in a press release.

According to the press release, the difference of €500,000 in the calculated lease amount for Sveti Stefan Hotels will be paid immediately to the company. 

A new and very important element for all citizens of Montenegro is that, under the proposed solution, the state will receive an annual share of profits amounting to ten percent.

The plan is to extend the lease by five years, the period during which the complex was closed, while Adriatic Properties will be obliged to reopen the hotel no later than June this year.

“It has also been determined that there will be no additional construction in Milocer Park beyond what is defined by the building permit and within the existing parameters,” the press release concludes.