Minister Lorencin: Binding bids for Kupari tourism project to be invited in week or two

A public invitation for binding bids for the development of the Kupari tourism project in the Dubrovnik area will be announced in a week or two, Tourism Minister Darko Lorencin said on Thursday after a government session.

He said the government's decision earlier today to invite the bids rounded off a two-year job during which an attractive offer was created for investors.

The framework investment in the Kupari project is estimated at EUR 100 million, covering 13 hectares of land and including 1,600 beds, Lorencin said, adding that the 99-year lease and the fact that all property-rights issues had been dealt with would certainly be interesting to investors.

The potential investor must have experience in similar projects, notably in the development and management of five-star hotels, submit a ten-year business plan and proof of financial capacity, and have a minimum annual turnover of EUR 45 million.

Ninety percent of the decision in selecting the investor will depend on the building lease fee offered, while the lease fee for the hotel Grand and the maritime domain will influence 10% of the decision, Lorencin said.

The investor will be selected by a commission comprising officials from the Tourism Ministry, the State Property Management Office, and Zupa Dubrovacka Municipality.

The project should be executed within four years.

Lorencin recalled that six investors expressed non-binding interest in the project, but stressed that bidders who did not express interest initially could submit binding offers.

The project envisages the construction of four- and five-star hotels with up to 1,500 beds, and 99-year easement, and the demolition of devastated existing hotels and accommodation facilities.

Non-binding bids were invited in the first quarter of 2014 and six investors sent letters of intent: Karisma Hotels Adriatic, a consortium of Croatia's Agrokor retail chain, the TUI tour operator and Mexico's Karisma International chain; Valamar Poslovni Razvoj from Croatia's Valamar tourism group; Turkey's Rixos, which already has a hotel in Dubrovnik; the Mir war veterans' cooperative from Mlin near Dubrovnik; Avenue Group from Moscow; and Titan Real Estate, allegedly backed by Russian capital.

The invitation of binding bids required a parliamentary decision consenting to a maritime domain concession so that a beach could be built for commercial use.

(Hina)

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