March 14 (SeeNews) - Montenegrin company Luka Kotor [MNG:LUKO] has approved the signing of a 12-year concession agreement for the operation of the port of Kotor, it said.
The agreement, proposed by the Montenegrin government, was unanimously approved by the shareholders meeting of Luka Kotor, the company said in a statement on Wednesday.
Under the terms of the agreement, Luka Kotor will pay an annual concession fee of 250,000 euro ($283,300) and will invest 5.053 million euro in the development of the harbour over the 12-year period, the government said in a statement in December.
The company will also pay to the government an additional fee, equal to 5% of its annual earnings before interest, taxes, depreciation and amortisation (EBITDA).
Luka Kotor has been operating the port of Kotor without a concession agreement thus far, Montenegrin media quoted the company's director Snezana Jonica as saying in December.
($ = 0.882616 euro)