OREANDA-NEWS. Orascom Development Holding AG (ODH) and Montenegro's Minister of Sustainable Development and Tourism, Mr. Branimir Gvozdenovi?, signed in Podgorica, Montenegro, a preliminary contract for the long-term lease of the "Lastavica Island" with the "Mamula Fortress" which is located in the Bay of Kotor, Montenegro (the "Mamula Project").

The preliminary contract which is currently pending approval from the Parliament of Montenegro, as well as the final confirmation from the Government, provides for a 49-year lease period.  The investment in the Mamula Project is planned to take place via a joint venture company for which financing has been fully secured between Mr. Samih O. Sawiris and ODH.

The Mamula Project's location at the entrance of the Bay of Kotor is very strategic to ODH's Lustica Bay Project in Montenegro, ultimately creating several synergies between the two destinations. It will be the first and only island "hotel/spa/leisure" destination in Montenegro and as a flagship destination it will highly contribute to ODH's Lustica Bay Project. Furthermore, it will also provide as an exclusive beach get-away resort to Lustica Bay's residents and guests.

Once the Parliament of Montenegro approves the long-term lease contract, the project should be implemented within 18 months after the construction permit is obtained. The project will definitely add to the economic benefits of Montenegro as it is expected to create around 200 new jobs and bring EUR 7.5 million of revenue for the Montenegrin state over a 15-year period.

About Orascom Development Holding AG

Orascom Development is a leading developer of fully integrated destinations that include hotels, private villas and apartments, leisure facilities such as golf courses, marinas and supporting infrastructure. Orascom Development's diversified portfolio of destinations is spread over eight jurisdictions (Egypt, UAE, Jordan, Oman, Switzerland, Morocco, Montenegro and United Kingdom), with primary focus on touristic destinations. The Group currently operates seven destinations; three in Egypt El Gouna, Taba Heights, and Makadi, The Cove in United Arab Emirates , Jebel Sifah and Salalah Beach in Oman and Andermatt in Switzerland. Orascom Development has a dual listing, with a primary listing on the SIX Swiss Exchange and a secondary listing on the EGX Egyptian Exchange.