Montenegro’s Parliamentary Privatisation Monitoring Commission has requested information from several state institutions regarding the disposal of assets owned by Vektra Boka, with particular focus on Hotel Igalo.
The commission has sought documentation from the Special State Prosecutor’s Office, the Privatisation Council, the Ministry of Spatial Planning and the state property-rights protector. The commission has also asked the property-rights protector to consider requesting a temporary prohibition on further disposal or encumbrance of company assets. Such a measure has not been issued as a court order and remains a request by the commission.
Privatisation obligations under review
The commission’s claims regarding creditor payments and alleged violations of the original privatisation agreement have not been confirmed through a final court decision. In 2007, Vektra Montenegro acquired 59 per cent of HTP Boka for €22.2 million. As part of the agreement, the company committed to investing at least €50 million into the Herceg Novi tourism portfolio. The planned redevelopment was followed by the accumulation of debt, asset disposals and deterioration of several hotel facilities.
Hotel Igalo transaction faces additional scrutiny
Hotel Igalo was sold to Herc Gradnja for €11.225 million in February 2025. The sale price was approximately 40 per cent lower than the €18.85 million initial value set for the first auction. The parliamentary review does not automatically annul the transaction, but it introduces additional legal and timing considerations for the hotel’s future redevelopment and for other remaining assets linked to Vektra Boka.
Investors monitor ownership and legal certainty
The case highlights issues related to unresolved privatisation commitments, restitution matters and creditor priorities affecting coastal property assets. While locations such as those held by Vektra Boka retain development potential, investment decisions depend on clarity regarding ownership status, payment priorities and the potential role of state institutions in future proceedings.
