March 26 (SeeNews) - Montenegro's transport ministry has signed a 12-year concession agreement for the operation of the port of Kotor with local company Luka Kotor [MNG:LUKO], the ministry said.
"Under the business plan, investments of about 5 million euro ($5.7 million) in infrastructure are envisaged for a period of 12 years," the transport ministry said in a statement on Monday.
The investments will allow the port to handle last generation cruise ships, increase its capacity and improve the quality of its services, the ministry said.
The concession agreement proposed by the Montenegrin government was unanimously approved by the shareholders meeting of Luka Kotor, the company said earlier this month.
Under its terms, Luka Kotor will pay an annual concession fee of 250,000 euro and will invest 5.053 million euro in the development of the harbour over the 12-year period, the government said in a statement in December.
($ = 0.8837 euro)