State to invest €6.8 million in hotel in Belgrade! Here's who's funding the project

Photo:Telegraf.rs

The state continues to encourage investments in the hotel sector and the renovation of attractive buildings in central areas of Belgrade by providing financial support to projects of importance for tourism and the economy.

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The most recent example is a contract to award subsidies for the reconstruction and conversion of a Belgrade landmark, which sets clear deadlines, investment obligations and implementation of control mechanisms.

The Ministry of Economy has signed a contract with the company Libra Development d.o.o., allocating 6.8 million euros for the investment project in Belgrade to reconstruct a hotel located at Kralja Petra Street 19, in the building of the former Jugobanka, opposite the building of the National Bank of Serbia.

The investor has committed to invest at least 34 million euros in the project over two years, while at least 25 percent of the funds must come from its own sources. The incentive funds will be paid in two tranches: around 2.42 million euros in 2026, and 4.38 million euros in 2027, if the investor fulfills all contractual obligations and submits the necessary documentation.

According to the contract, Libra Development must implement the project within the stipulated time, maintain the investment and activity for at least five years after the completion of construction works, and maintain the value of the property and the category of the hotel.

The Ministry will monitor the implementation of the project and has the right to perform checks, and in case the obligations are not met, the state can terminate the contract, demand the return of funds with interest, and activate bank guarantees, reports eKapija.

(Telegraf Biznis)