Defendants can also bid for beaches: New call for coastal lease by the end of the week, expecting around 15 million euros in revenue

The Coastal Zone Management Board has changed its decision and allowed those against whom legal proceedings are being conducted to participate in the public auction.

The Ulcinj Beach Tenants Association reacted sharply, stating that this "opens the way for people from the criminal milieu to take over our businesses."

The government expects to generate around 15 million euros in revenue from this business, double the amount from last year.

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The old tenants are again requesting the annexation of the contract this year, as are the Chamber of Commerce and the Union of Municipalities, due to fears that the work will not be completed by the start of the season, Photo: Sami Adrović
The old tenants are again requesting the annexation of the contract this year, as are the Chamber of Commerce and the Union of Municipalities, due to fears that the work will not be completed by the start of the season, Photo: Sami Adrović
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

The plan is to announce a new tender for the lease of the beaches by the end of this week, while the state is expected to earn around 15 million euros from this deal, which is almost double compared to last year when around seven million euros were earned," Vijesti learned from a source in the executive branch.

Minister of Spatial Planning, Urbanism and State Property Slaven Radunović today will talk about the new lease of parts of the Montenegrin coast for which the necessary documentation was adopted yesterday at an electronic session - an amended price list of initial fees for the use/lease of the maritime domain, which includes amendments to the existing price list, a proposal for a decision on the lease/use of parts of the maritime domain, as well as amendments to the Program of Temporary Facilities in the Maritime Domain Zone for the period 2024-2028.

The State Audit Institution (SAI) warned the Government in 2023 that revenue from the lease of the waterfront was being lost because contracts with previous lessees with the same prices and conditions from 2019 were annexed, and that the criteria for selecting the most favorable lease offer were defined in a way that reduced the opportunity for all interested parties to apply. The SAI recommended that these irregularities be eliminated.

A new tender was supposed to be announced last year, but that did not happen because the Ministry of Spatial Planning, headed by the Minister Janko Odović There was a delay in adopting the documentation, so the contracts with the old tenants were re-annexed.

The old tenants are again demanding the annexation of the contract this year, as are the Chamber of Commerce and the Municipal Association. Their position is that the tender is delayed and that everything will not be ready by the start of the summer season.

Disagreement in the Government

Another source for "Vijesti" from the executive branch also states that the documentation that was approved by the Government yesterday passed without a session of the Commission for Economic Affairs (KEP).

"Vijesti" learns that the Deputy Prime Minister and the Minister of Economic Development voted against the decision to go to tender for the lease. Nick Djelosaj and Minister of Public Administration Marash Dukaj, while ministers from the ranks of the Democrats and the Minister for Human and Minority Rights Fatmir Đeka did not participate in the vote, and the rest were "in favor".

On February 10, the Board of Directors of the Public Company for Coastal Zone Management amended the decision on leasing parts of the coastal zone, which allows those against whom legal proceedings are being conducted to participate in the public auction for beach leases, which was not foreseen in the decision before the amendment. "Vijesti" has access to this document.

"Amendments to the draft Decision on the lease of parts of the coastal zone from 12 December 12 are hereby adopted. The revised text of the draft decision shall be submitted to the relevant Ministry of Spatial Planning and Urbanism and State Property in order to obtain the consent of the Government," the decision states, among other things, which at the end states that the decision is final and enters into force on the day of obtaining consent.

According to "Vijesti", the criteria for selecting the best bidder in tender procedures are for beaches - 75 points for the offered amount of annual rent/fee for the use of the coastal zone and 25 points for references, of which 12,5 points refer to the previous lease of the beach, and 12,5 points to the possession of a blue flag in the past five-year period at the beach.

For temporary locations for catering facilities, weekend houses on the banks of the Bojana River and all other temporary locations for the installation of temporary facilities as well as locations for coastal infrastructure - 75 points for the offered amount of annual rent/fee for the use of the coastal zone and 25 points for reference, i.e., previous lease of the location.

DRI: Risk of lost profits

In its audit of the Coastal Zone's operations published in 2023, the State Audit Institution (SRI) determined that most of the concluded contracts for the use of the coastal zone from 2019, with the same tenants, were annexed for the next four years, under the same conditions and rental prices, and the risk of lost profits was recognized, given inflation and the jump in prices at which tenants issue and charge for beach furniture.

"Also, the Decision on the leasing/use of parts of the marine property according to the program of temporary facilities in the marine property zone and the Atlas of Montenegrin Beaches and Bathing Areas defined the criteria and sub-criteria for the selection of the most favorable bidder in such a way as to reduce the possibility for other interested legal/physical persons to are taking part in the call", stated the DRI.

If they lose locations they will not remove objects

The Ulcinj Beach Tenants Association reacted strongly yesterday to the decision that allows those against whom legal proceedings are being conducted to participate in the public auction for beach leases.

"This paves the way for convicted persons and persons against whom proceedings are being conducted to participate in the tender. Our advantage has become insignificant. This decision paves the way for people from the criminal milieu to take over our businesses," the Association told "Vijesti".

Due to the tender conditions, the tenants are also considering blocking the Kamenari - Lepetani ferry traffic and the border crossing at Sukobin.

They also say that if they lose their locations, they will not remove their facilities and that someone will have to take responsibility if all of this jeopardizes the season.

"The tenants were deceived because at a meeting at the Chamber of Commerce in April last year, the ministry promised to form a working group to prepare a tender and that it would be announced in November at the latest. Of course, that did not happen," the tenants said.

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