PM says Kupari concessionaire to be selected by spring's end

DUBROVNIK, 3.3.2014.

Croatian Prime Minister Zoran Milanovic on Monday visited a tourism complex in Kupari near Dubrovnik which used to be a seaside resort for the army, saying afterwards that by the end of this spring the government would select the best bidder who would be given a 99-year-long concession to renovate and operate the tourist complex and who would be expected to invest several hundred million euros in this project and create 300 jobs.

In mid-January the government decided to issue a public call for expression of interest in construction and renovation work on this tourism complex. The call was non-binding, while binding offers are to be invited after the updating of the land register. An investor is expected to be selected in the first quarter of the year.

The plan is to rebuild the existing complex of five hotels devastated during the 1991-1995 war and build new ones with a concession to be granted for 99 years. The hotels would have a total accommodation capacity of not more than 1,500 beds, and the project is estimated at 200 million euros.

Projects such as the Kupari complex are important and they should contribute to the rebounding of the country's GDP, Milanovic said admitting that the economic and financial situation in the country was not simple and that "GDP keeps stagnating".

Milanovic, who was accompanied by Tourism Minister Darko Lorencin, said that his cabinet was also working on some other projects in tourism, such as the privatisation of the "Hotelsko Turisticko Poduzece" on the island of Korcula.

"The government can remove barriers to investments," he added.