The Privatisation and Capital Projects Council of Montenegro is under increasing scrutiny for its decision to withhold a critical report regarding the future of Hotelska grupa Budvanska rivijera, a significant state-owned tourism asset. The report, prepared by the international consultancy Horwath HTL in collaboration with MK Group, a prominent minority shareholder, was delivered to the government after a six-month delay and was reviewed during a Council session chaired by Prime Minister Milojko Spajić on March 10, 2026.
Despite its importance, the report has not been made public or shared with other state institutions or employees of Budvanska rivijera. Reports indicate that the consultancy imposed strict confidentiality conditions, which the Privatisation Council accepted, limiting publication and distribution of the findings.
The report is believed to evaluate restructuring scenarios linked to MK Group’s proposal, which holds approximately 33% ownership in Budvanska rivijera. It reportedly examines two restructuring models that extend beyond operational improvements to include significant asset-level transformations.
One of the most contentious aspects highlighted in media coverage is the potential redevelopment of Slovenska plaža, a major tourism complex along Montenegro’s coast. Proposed scenarios involve demolition and conversion towards real estate development, which could fundamentally change both the asset profile and revenue generation of Budvanska rivijera.
This decision to keep the report confidential has raised concerns about governance and process integrity. The document was commissioned by the government using public funds but remains inaccessible despite its relevance to state-owned assets and long-term tourism strategy.
The responsibility for this lack of transparency extends beyond the consultancy; by agreeing to confidentiality terms, the Privatisation Council has limited public insight into a document that is expected to influence decisions regarding ownership structures, asset redevelopment strategies, and capital allocation within Montenegro’s key coastal tourism sector.
The context surrounding this decision is significant. Budvanska rivijera is a vital part of Montenegro’s tourism infrastructure, with its future hinging on modernization efforts, capital investment needs, and competitive positioning in an evolving market characterized by large-scale resort redevelopment and mixed-use real estate developments.
Official statements from the Council indicate that no final decision has yet been reached. Further technical analyses and consultations with local authorities and stakeholders are anticipated before any restructuring pathway is determined.
The interplay of high-value state assets, private shareholder interests, and restricted access to critical analysis places this situation at the forefront of ongoing discussions about how Montenegro navigates privatisation processes, manages strategic tourism assets, and engages investors under conditions of limited public oversight.
