Baku and Podgorica have started a joint project to construct a resort on the shores of the Bay of Kotor in Montenegro, the Reuters agency reported on March 6.
Azerbaijan's state energy company SOCAR and "Azmont Investments" company, the developer of the 500 million euros project, are going to build a modern resort and hotel complex on the place of an abandoned navy base.
The complex will include a network of resort "One & Only", known for its orientation towards affluent customers.
Azerbaijan's Economy and Industry Minister Shahin Mustafayev said this project showed the Azerbaijani investors that the government of Montenegro has ensured a comfortable investment climate in the country, and therefore this project will be followed by others, the agency reported.
The Prime Minister of Montenegro Milo Djukanovic believes the project and bilateral relations with Azerbaijan in general are extremely important for his country.
"Good bilateral relations revealed at a time, when most investors took a waiting position, waiting for the retreat of the global economic downturn," he said.
The project is scheduled to be finished by 2016. During the construction period some 6,500 workplaces will be created, and upon completion 1,200 more will be constructed.
According to the conditions of the construction project, SOCAR leases a land of "Orjenski" barrack in Kumbor for 90 years. The lessee has the right to establish a company in Montenegro, which will have all the rights and obligations under the lease. The company will take full responsibility for all obligations.
The lessee is obliged to invest at least 52 million euros in the development of the resorts over the first four years of the lease term, or a total of 258 million euros during the first eight years. Fixed rent will be provided in the form of prepayment for the first 45 years.
The lessee may transfer the contract to a third part, which is able to meet all financial obligations under the contract, upon completion of the first stage of investment in the amount of 52 million euros. On the same terms, SOCAR can be exempted from guarantee commitments of local companies as tenants.
Azerbaijani-Montenegrin cooperation started to develop faster recently. Earlier in January, the Civil Service Commission under the Azerbaijan President and the Montenegro Human Resources Management Authority signed an action plan on cooperation for 2014-2015.
About 1,500 tourists from Azerbaijan visited Montenegro last year. The trade turnover between the two countries amounted to $11,850 in 2013.