For the Implementation of Tourist Projects at the adriatic coastline, Republic of Croatia, according to the BOT model

For the purpose of developing tourist establishments and high quality facilities, and enabling year-round tourist, sporting, cultural and other activities, the Governement of Croatia intends to select Private partners to implement the tourist projects at the adriatic coastline and islands according to the BOT (Build-Operate-Transfer) model. The Governement and County is pleased to invite all interested parties to submit Expression of Interest to Develop, Finance, Build and Operate one or more of the following opportunities:

  • LUXURY HOTEL - Luxury hotel up to 400 beds together with business, trade, sport and other facilities with approximate area of 56,000 square meters. The site is located on peninsula and bordering with the future 400-berth marina for megayachts.

  • LOCATION - Peninsula (56.000 m2)

    The Luxury Hotel is located in the area containing the densest island group in Europe and carstic hydrographic phenomena, combining into the most attractive ecological/aesthetic, tourist/recreation area on the Croatian Adriatic. Private partners will be selected via RFQ and RFP procedures, which will be carried out independently for each of the abovementioned opportunities. A bidding procedure for each of the abovementioned opportunities will only be carried out if the existence of satisfactory private partners’ interest is established in this phase. By submitting Expression of Interest, private partners also have influence on the future binding bidding parameters.

    The deadline for submission of the Expression of Interest is November 17th, 2006

    Project realization model

    The Government is planning to select private partners to implement the tourist projects of the County according to the BOT (Build-Operate-Transfer) model. A project implementation agreement will be entered into with a private partner for each of the projects, which will be based on the following postulates:
  • The public sector will assign the private partner the right to construction and/or concession, whereby the private partner will be enabled to make commercial use of the project location owned by the public sector;
  • Based on the granted right to construction and/or concession, the private partner will be responsible for the design (from the conceptual design to the implementation design), financing, construction and operation of the buildings and facilities within the projects;
  • The private partner will use its own funds for the project implementation, with no participation by the public sector;
  • The private partner will achieve its interest by charging for the services it will offer on the market within the project operation;
  • The private partner will pay the public sector a periodical fee (annual or monthly) against the granted right to construction and/or concession;
  • The right to construction is assignable and may be encumbered by mortgage;
  • The right to construction and/or concession will become effective as of the agreement execution date, and the term of the agreement will be up to 50 (fifty) years;
  • The land to be used for the project implementation will remain property of the public sector for the entire term of the agreement. The private partner will remain the owner of the buildings for the entire term of the agreement, and will have the authorities and responsibilities of a beneficiary of usufruct with respect to the land the buildings are to be built on;
  • Upon expiry of the period provided for the use of the right to construction, the private partner will return the land to public sector’s possession and deliver the buildings to public sector’s possession and ownership. The private partner will be a company or a consortium of companies, which will take responsibility for the project implementation under the above-specified principles.

    Benefits of the BOT model for the private partner

    As compared to the customary models for the implementation of tourist projects, based on purchase of the land, the proposed BOT model has the following important benefits with respect to the financing and key risks:
  • There are no initial costs of land purchase, as only the periodical concession and/or construction fee will be paid;
  • The property-law and physical-planning risks will be borne by the public sector;
  • The private partner and the public sector will jointly bear the risk of obtainment of all the necessary licenses. The private partner will responsible for the preparation of the necessary documentation, and the public sector will be required to do everything it is reasonably authorized to do to have the licenses obtained as soon as possible.

    Private partner selection criteria

    The basic criterion for the selection of the private partner to be used during the pre-bidding and/or bidding procedure will be:
  • Conformance with the provided requirements;
  • Private partner’s financial capability;
  • Private partner’s technical capability
  • Experience in the development of capitally intensive projects;
  • Experience in tourist project management;
  • Experience in the implementation of projects according to the BOT model;
  • Proposed project implementation concept;
  • Commercial terms.

    Instructions for Expression of Interest

    Potential private partners are invited to prepare and deliver the EOI for the projects they are interested in according to the content and instructions provided in Table 2. The EOI must contain the sections marked with blue in Table 2 (Contact Person, Company, Basic Project Implementation Concept). The other sections are desirable, but do not represent a condition for the EOI to be taken into consideration. In the event of expression of interest in more than one project, an EOI should be prepared separately for each project.

    Table2: Content and instructions for the preparation of the EOI (the sections marked with blue are mandatory)

    Content Instructions for the preparation of the EOI
    Contact person Specify the name, company, title, address, telephone, fax and e-mail of the contact person.
    Company Specify the basic information about the company (name, registered office, activities).
    Potential partners (optional) Specify the basic information about the potential partners in consortium (name, registered office, activities).
    Proposed project implementation concept Enclose the basic project implementation concept, which should consist of the following parts:
  • A drawing including the arrangement of the buildings and facilities within the project;
  • A summarized textual description of the respective buildings and facilities within the project.
    Additional elements of the proposed project implementation concept (optional) Provide additional elements of the project implementation concept:
  • The basic parameters for the buildings and facilities (e.g. gross developed area, number of stories, number of accommodation units, etc.);
  • The required number and structure of employees necessary for the project operation;
  • A framework investment plan (excluding any infrastructural investments);
  • Technical requirements for the infrastructure (water, electricity, etc.);
  • 3D display of the buildings at the location should be enclosed.
    Answer the general questions (optional) Answers to the following questions should be enclosed:
  • Which project phases (design, construction, operation) would you perform independently, and which ones would include partners?
  • How do you plan to close the financial structure for the project?
  • Which amount of time do you think is sufficient for the term of the BOT Model Project Implementation Agreement for you to achieve your business interest?
  • In the event the existing infrastructure at the project location is insufficient for the project implementation, how much would you be willing to invest in the construction of additional infrastructure?
  • Which specific terms would encourage you to participate in the private partner selection procedure?
  • Which specific terms would discourage you from participating in the private partner selection procedure?

    Framework for the implementation of the Luxury Hotel Project

    Luxury Hotel Project

    Location: Adriatic Coastline – peninsula
    Position: Ex. The Barracks Kuline
    Area: 56.000 m2
    Ownership: City
    Purpose: Tourist-catering, sport & recreation and combined purpose
    Remark: The site is bordering with the future 400- berth marina for megayachts.

    Potential purpose within the project area

    Tourist & Catering zone (30.000 m2) Combined purpose zone (15.000 m2) Sport & recreation zone (11.000 m2)
  • A hotel with no more than 400 beds, at least four stars.
  • Sport and recreation, catering and accompanying buildings and facilities.
  • Buildings and facilities for social, business and retail purposes.
  • A hotel with up to 80 beds.
  • Sport and recreation buildings and facilities.
  • The catering, retail and accompanying buildings (up to 10% of the basic building’s gross area).

    Construction terms

    Tourist & Catering zone (30.000 m2) Combined purpose zone (15.000 m2) Sport & recreation zone (11.000 m2)
  • Constructability coefficient: max. 30%.
  • Utilization coefficient: max. 0,8.
  • No. of stories: max. ground floor + 6.
  • At least 40% of each construction unit’s area should be landscaped as park plantations and natural greenery.
  • Provide 25 PS/1000 m2 of gross developed area
  • The existing buildings may be converted or removed.
  • Maximum site constructability: 40%.
  • No. of stories: max. ground floor + 6.
  • Position the buildings on construction sites of up to 0.5 ha.
  • At least 20% of the site’s area needs to be horticulturally developed land.
  • The existing buildings may be converted or removed.
  • Constructability coefficient: max. 0.5.
  • At least 33% of the zone’s area should be landscaped as a public park.
  • Sport & recreation buildings: the number of stories depends on the requirements for the respective types of sports.
  • Catering and retail buildings: ground floor and attic plus the possibility of developing a basement.
  • Accompanying buildings: single-story.
  • The existing buildings may be converted or removed.

    Investment opportunity Design, finance, build and operate buildings and facilities at the project location in the period of BOT contract duration.



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