Government of Montenegro has adopted new Concession Enactment for Kotor-Lovćen cable car, stating that implementation of this project, worth €18 million, is economically justified.
“Novi Volvox”, “Zetagradnja” and famous “Leitner” company from Italy, have expressed interest in the construction of the cable car but one of them sent bids.
Adoption of the Concession enactment means that Government is set to call new tender for the construction of the cable car.
Government has cited “experience in construction and equipment of cable car system” as mandatory and eliminatory prerequisite.
Experience in management of cable cars through concession/public and private partnership over the past five calendar years is required as supplementary prerequisite.
Government pins hopes on cruiser tourists to be passengers of this panoramic cable car, as document states that 462 cruisers carrying 615.215 passengers entered the port in Kotor last year. Total number of yachts was 3.961 whereas a total of 22.586 passengers were registered on yachts.
MINIMUM PROFIT – €3,2 MILLION
Authors of the Concession enactment predict that number of users of the cable car will amount to 170.300 – 222.600 in the first year of operation, with €3,2-4,2 million of profit.
If minimum investment in cable car amounts to €18 million, and minimum annual profit is €3,2 million, then the project would pay off in less than five years.
In accordance with the estimates of the World Council for Travel and Tourism, average daily spending of passengers on transoceanic ships is expected to increase by 40% if they use cable car.
Concession takes 30 years.
Tourists will have the choice between a circular trip from Dub station, over Kuk station in Lovćen NP or going along the road for a full trip to Cetinje.
“They would be given the possibility of choosing recreational activities and/or buying goods or services in three different areas: at the coast, in Lovćen NP or in Cetinje”, document reads.
The layout starts from Dub, in the periphery of Kotor and leads to Kuk in Lovćen mountain.
There will be a total of 19 pillar places.
This starting section (3,6 km) is a concession are in the context of Concession enactment. From Kuk, layout goes to Ivanova korita and finally goes down to the Old Royal Capital.
