At the beginning of this year, the public enterprise for the management of the marine resource will introduce a new price list of initial fees for the use of the marine resource, which will bring about a certain increase in the rental prices of the swimming pool.
This was announced by the director of that state-owned company in an interview for "Vijesti". Mladen Mikijelj.
"The greatest economic activity is generated in the area of the sea property, while the benefit of the state from the transfer of bathing areas and temporary facilities was unacceptably small. The reason why the state collected unacceptably low revenues from this activity lies in the fact that decisions were made in favor of privileged individuals, not the state. The very fact that only eight million euros were realized from the complete transfer of the marine property in the record year 2023, which is at the level of the income of the ferry line Kamenari-Lepetani, shows that when determining the initial prices of the bathing area in the previous period, the interest of the state was not taken into account." Mikijelj pointed out.
According to him, the new rulebook will bring the advantage of former users in the new tender procedure within the limits of reality and Morsko dobro will open the possibility for swimming pools to get new tenants and in this way will enable fair market competition.
"With the existence of a fair market competition, the income of the state from the transfer of the swimming pool will be many times higher, and our opinion is that the income from the lease will be almost doubled", said Mikijelj.
He said that the budget proposal for 2024 projected revenues of 23 million euros, of which around 15 million euros is expected based on the assignment of marine property, while the projected revenue from the ferry line is 7,8 million. euros.
With what financial result will Morsko end business in 2023, and what will that result be compared to the end of 2022?
The previous year was definitely the most financially successful, and bearing in mind the complexity of the process we managed, the most challenging business year in the history of the Public Enterprise for the Management of Marine Assets.
As is known to the public in February 2023, by the decision of the Government of Montenegro, and on our own initiative, we took over the management of the ferry line Kamenari - Lepetane, which represented a special challenge in the business of the company, bearing in mind the importance that this ferry line has for citizens and tourists who they visit Montenegro. When we talk about the financial result in 2023, over eight million euros were generated from the transfer of marine assets, while over six million euros were generated from the ferry line.
I would like to emphasize that we are talking about extraordinary results, the best in the history of this company, bearing in mind that ticket collection on the ferry line only started on May 5, 2023, and that the ticket price is 20% lower in the winter period, while residents of the municipalities of Herceg Novi and Tivat are given a year-round discount in the amount of 40% compared to the previous period.
Also, it is important to remind that Morsko dobro invested 10 million euros in the establishment of ferry traffic and the purchase of eight ferries, almost entirely from its own funds, which best speaks of business success in the previous three years. The difference between the expected current income and expenses during 2023 is about six million euros, of which we have invested close to 3,5 million in the maintenance and improvement of coastal infrastructure in the marine property zone in all six coastal municipalities, while the rest of the money will be used for the realization projects in the next year.
What are the company's projections for 2024 when it comes to revenues, expenses and expected profit? Can you tell us more about the structure of income and expenses?
In the previous period, the company's income was limited by the price list that has been in force since 2019, when five-year lease contracts for marine property were concluded with the users. Precisely because of this, in the previous three years, the only possibility for increasing income was intensive work in the field, during which the use of locations for which contracts were not concluded was noted. By introducing users to legal channels through the conclusion of contracts on the use of marine property, revenues have increased.
In the coming period, new tender procedures will be conducted for the lease of swimming pools and other coastal infrastructure locations, in accordance with the new price list, which is expected to be adopted at the beginning of the year. In this regard, in the budget proposal for 2024, the revenues of the Maritime Property are projected at 23 million euros, of which the amount of about 15 million euros is expected based on the assignment of the use of the maritime property, while the projected income from the ferry line is in the amount of 7,8 million euros.
As far as expenditures are concerned, the company's plan is that this year most of the generated income will be spent on projects for the construction of new promenades along the Montenegrin coast and the improvement of coastal infrastructure.
What are the company's plans when it comes to the price of renting a swimming pool in 2024?
As I mentioned, it is expected that at the beginning of this year, the new "Price list of initial fees for use in the marine property zone" will be in force, which will determine the company's income in the next five-year period. Bearing in mind the global economic trends and inflation in the period from 2019 to today, we expect that the new price list will bring a certain increase in the rental prices of the swimming pool.
The Montenegrin coast is the most valuable resource available to our country. The greatest economic activity is generated in the zone of the maritime domain, while the state's benefit from the transfer of both the bathing area and the temporary facilities was unacceptably small. The reason why the state collected unacceptably low revenues from this activity lies in the fact that decisions were made in favor of privileged individuals, not the state. The very fact that only eight million euros were realized from the complete assignment of the marine property in the record year 2023, which is at the level of the income of the Kamenari-Lepetani ferry line, shows that the interest of the state was not taken into account when determining the initial prices of the bathing area in the previous period. Also, the advantage that was given to the previous tenants compared to possible new participants in the tender was too great.
In order to get a better picture of what I am talking about, I will try to explain with the following example. If the current rules were to apply to the next five-year tender, we would be in a situation where the current tenant who offers, for example, EUR 100.000,00, can lose the right to use the swimming pool only if the new tenant offers an amount not less than EUR 176.000,00. Is the condition of our swimming pools really such that the current tenants should have such an advantage? Or is it about the fact that the previous decisions made by the Government of Montenegro and the Public Enterprise for the Management of Marine Assets clearly showed the intention to make a difference between people who were close to the former regime and other citizens of Montenegro.
When taking office, I promised that we will do everything to ensure that there are no more first-class or second-class citizens in Montenegro. With the new Rulebook, which will bring the advantage of former users in the new tender procedure within realistic limits, we will open the possibility for our swimming pools to get new tenants, that is, in this way we will enable fair market competition. Due to the existence of a fair market competition, the income of the state from the transfer of the swimming pool will be many times higher, and our opinion is that the income from the lease will be almost doubled.
Earlier, you stated that "long-term lease contracts for swimming pools were made to the detriment of citizens and local governments, and that a Commission was formed to examine these contracts and to return state resources from the hands of privileged individuals of the former regime." Has the Commission completed its work and what are its recommendations regarding the contracts it examined?
The effects of the work of the Commission, which was formed with the aim of examining all long-term contracts, are more than visible. Unlike many who after August 30th, through cosmetic business audits, showed modest results and dealt with trivial matters, we decided to start with the audit of those items that were of most interest to the public, and which are within the competence of our company. First of all, I mean the ferry line Kamenari - Lepetane, the Port of Budva, the beaches used by the company "Vektra Boka" in the municipality of Herceg Novi and the contract with the company "Adriatic Properties" for the lease of hotel beaches in Sveti Stefan and Miločer.
The revision of those contracts revealed that, for example, the Port of Budva was handed over to a private company for the price of one mooring in the marina, and that the ferry line was given to the company "Pomorski sabrajc" in such a way that the state's income in the previous 20 years was at the level of how much the state, by retaking the ferry, earned in three months. When we entered into the revision of these contracts, we were aware that we would resent people who, using their privileged position in the previous 20 years, accumulated capital and influence on social flows, but that did not stop us from bringing these very difficult processes and revisions to the end. We will continue at the same pace in the coming period, regardless of all the obstructions, pressures and attacks we were exposed to during 2023.
Who were the privileged individuals of the former regime?
It does not require too much analysis to determine who were the privileged individuals who usurped government property in the previous three decades. I mentioned some of them in the answer to the previous question, but what I can say in general is that their common denominator is a family or godfather connection with the top of the former government, or their great contribution to the Democratic Party of Socialists being in power for 30 years.
Why did Morsko dob decide to block the transfer of the rights of the contract on the use of state property on the banks of the Bojana River to third parties?
After the inspection carried out by the state property inspector, which resulted in a ban, and until the criteria and conditions for the transfer of rights and obligations and the subleasing of locations are defined, user requests will not be processed.
The aim is to have firm guidelines that will indicate when it is possible to transfer rights or lease a site, ensuring that everyone follows the rules and that the conditions of the tenders or auctions that have been carried out are respected. We want to avoid ambiguity and ensure that users know specifically in which cases they can request such changes.
How many tenants of the swimming pool in Ulcinj and the location on Bojana have changed in the last five years, does Morsko dobro have any information about the so-called the sale of beaches and houses on Bojana - the sale of the right to use space with built infrastructure and is it legal?
Almost all contracts concluded after the implementation of the tender in 2019 were valid until December 31, 12. However, it is important to note that in the meantime, due to the violation of contractual obligations or changes in the Atlas of Montenegrin Beaches and Bathing Areas, several contracts were terminated, either by agreement or unilaterally. Regarding the sale of houses on Bojana, I would like to repeat what has been publicly announced several times - temporary buildings are private property, while Morsko dob gives temporary locations, i.e. land, for setting up buildings. Therefore, the sale of objects as such is not within the jurisdiction of the Maritime Dobro, and is not prohibited by law.
When it comes to the transfer of rights and obligations from the contract, there is a partial and full transfer. Some tenants asked for consent to perform activities through third parties, both at swimming pools and in catering facilities. On the other hand, some tenants requested a complete transfer of rights and obligations from the contract. However, for the reasons stated in the answer to the previous question, such transmission has been disabled since July 2023. After the adoption of the Guidelines, which are currently being drafted, and which will regulate the transfer of the right to use locations from one user to another, the transfer of rights to other persons will again be possible under clearly defined conditions and criteria.
Illegal houses on Ada translated into legal flows
How many houses are there on Ada Bojana according to the latest data from the Maritime Dobr, and has that number increased compared to the Program of Temporary Buildings in the Maritime Dobr Zone from January 2019?
On the banks of the Bojana River, according to the previously valid Program of temporary facilities in the zone of marine resources, 650 temporary locations were planned, which did not correspond to the actual situation on the ground. Because of this, we had an absurd situation, that illegal users of locations on Bojana were in a privileged position compared to legal users, who had signed contracts with our company and regularly settled their obligations. This is precisely why, through active work in the field and amendments to the Temporary Facilities Program from April 2023, we added 92 locations intended for the installation of temporary facilities (weekend/fisherman's cottages) and thereby introduced illegal users into legal flows, and thus significantly increased state income on this basis.
We are finalizing conceptual solutions for piers on the Solila-Zelenik line
What innovations have you planned when it comes to ferry passenger transport in 2024? Has the study been done for the Solila-Zelenik ferry line, and if not, when did you plan to do it?
When the Kamenari - Lepetane ferry line was taken over, we promised that in addition to financial benefits for the state, we would also work on improving the service. A fleet was formed that is significantly larger than the capacity of the former user's fleet, and therefore improved the service in a significant segment, but we do not plan to stop there. We have also started activities for the introduction of online ticket purchases, we are also carrying out activities regarding the launch of a new ferry line on the route Zelenika - Tivatska Solila, with the aim of significantly reducing the traffic load in Boka Kotorska. Conceptual solutions for two future piers on this line are also in the final stage, and in 2024, the necessary studies and technical documentation necessary for the execution of the works will be done, so that this ferry line can start operating.
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