July 5 (Bloomberg) -- Montenegro has chosen the State Oil Company of Azerbaijan Republic, or Socar, to turn its former military site into a holiday resort for 258 million euros ($319 million).
Socar is expected to invest “at least 52 million euros into the resort’s development during the first four years of the lease, or 258 million euros in total during the first eight-year period of the lease,” Montenegro’s Council for Privatization and Capital Projects said in an e-mail today.
Socar will get a 90-year lease and pay the rent for the first 45-year period upfront, including a fixed 1 euro per square meter and a variable 5 percent of the profit for the new development sprawling over 241,695 square meters of the Orijen Battalion barracks in Kumbor, 116 kilometers (72 miles) southwest of Montenegro’s capital Podgorica, the Council said.
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