Orascom Development Holding AG (ODH) announed that it has signed 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 ,said a press release.

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.

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.