Since Montenegro’s Public-Private Partnership (PPP) Law came into effect in 2020, the ambitious renovation of the “Lokanda” hotel in Cetinje stands as its flagship project.
This iconic hotel, the first of its kind in Montenegro, is being restored not only as a symbol of the country’s rich cultural heritage but also to boost the region’s tourism industry.
The project plans for a 30-room hotel, complete with a 130-space underground garage and the redevelopment of the central Artist’s Square, which will further enhance the local infrastructure and aesthetic appeal.
Although the Lokanda project is currently the only major PPP to have moved forward, its success could pave the way for more private investments in Montenegro.
Economic analyst Mirza Mulešković points out the potential of PPPs to revitalize key sectors but highlights that bureaucratic red tape and a lack of investor confidence have held back broader implementation.
The Montenegrin government is working to streamline processes and promote future projects, with plans for further partnerships in areas like transport, energy, and waste management.
With continued refinement and strategic promotion, PPPs could become the cornerstone of Montenegro’s economic future.
