December 28 (SeeNews) - Montenegro's government has approved a 12-year concession agreement for the operation of the port of Kotor with local company Luka Kotor [MNG:LUKO].
Luka Kotor will pay an annual concession fee of 250,000 euro ($286,000) and will invest 5.053 million euro in the development of the harbour over the 12-year period, the government said in a statement on Thursday.
The company will also pay to the government an additional fee, equal to 5% of its annual earnings before interest, taxes, depreciation and amortisation (EBITDA).
Luka Kotor has been operating the port of Kotor without a concession agreement so far, Montenegrin media quoted the company's director Snezana Jonica as saying.
The company completed a 2.3 million euro capital hike on reserves in June. After the completion of the transaction, the capital of Luka Kotor totals 3.312 million euro distributed in 1,378,259 shares of 2.4033 euro in par value each.
($ = 0.874158 euro)