Percentages hinder agreement on management of the Salt Mine

The Government and the Municipality of Ulcinj are still negotiating the formation of a joint venture for the protected area.

The Ministry of Ecology says that it is unrealistic to expect that in the initial period the Government will agree to allow anyone other than itself to have a majority management stake, considering the fact that it is prepared to make very significant investments with the aim of protecting and revitalizing the area.

"It is true that it is disputed who will have a majority stake in the company. Negotiations are ongoing, which does not mean that an agreement will be reached," said Genci Nimanbegu.

12324 views 4 comment(s)
Dispute over majority stake in company: Solana in Ulcinj (illustration), Photo: Savo Prelević
Dispute over majority stake in company: Solana in Ulcinj (illustration), Photo: Savo Prelević
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

In the midst of negotiations between the Government and the Municipality of Ulcinj regarding the formation of a company that will manage the assets of the bankrupt Bajo Sekulić Saltworks, the National Parks are preparing the ground for a new six-month lease of the oldest Ulcinj company, since their current one expires on August 7, Vijesti has learned.

The Government and the Municipality have been negotiating unsuccessfully for a long time about forming a new company in which they would be co-owners, among other things, arguing about the majority stake in it. Mayor of Ulcinj Municipality Genzi Nimanbeg He confirmed that negotiations are intense.

"It is true that it is disputed who will have the majority stake in the company. Negotiations are ongoing, which does not mean that an agreement will be reached," Nimanbegu told "Vijesti".

The Ministry of Ecology, Sustainable Development and Northern Development also told "Vijesti" that negotiations are ongoing and will be concluded in the next few days, regardless of the outcome. They also state that it is unrealistic to expect that in the initial period the Government will agree to anyone other than itself having a majority management stake, given the fact that it is ready to make very significant investments with the aim of protecting and revitalizing the area.

"A draft Agreement on the establishment of a company that will manage this protected area has been formed. The meetings are also attended by the highest diplomatic representatives of the EU Delegation and the Federal Republic of Germany. Therefore, it can be said that the support of international partners is very present and positive, but in order for us to have an agreement, each party must show an adequate level of maturity and good intentions in this regard," they said in this government department headed by the Minister Damjan Ćulafić.

They remind that the Ministry, together with the Municipality of Ulcinj and other key institutions, has been actively working for a year, and previous ministries with the same or similar competences even before that, on establishing a sustainable management structure for the Ulcinj Saltworks, which will enable its long-term development and preservation.

"In this process, the Ministry has a very important role in coordinating all activities and ensuring efficient management, thus ensuring that the Salt Pan is protected and revitalized in a sustainable manner. The Ministry therefore formed a working group in 2022 that includes all relevant institutions, non-governmental organizations, and is coordinated by an integrated GIZ expert. This working group is tasked with monitoring the implementation of activities related to the management of the Ulcinj Salt Pan, defined by the Chapter 27 Action Plan, but also to provide support in the management of the Salt Pan," the Ministry of Ecology said.

They further explained that they had taken on the role of mediator between interested parties, so that the Government and the Municipality of Ulcinj could form a joint manager for the protected area.

"These negotiations are still ongoing, and it can be said that they are in the absolutely final phase, regardless of the outcome of the negotiations, because the deadlines are running out, the obligations from Chapter 27 directly related to the Saltworks are numerous (almost 30% of the total number of obligations from the final benchmark related to nature protection directly concern the Ulcinj Saltworks), and specific responsibility for the success or failure in resolving this important national challenge, on which our integration into the EU also depends, simply must be defined," the Ministry of Ecology claims.

They point out that on June 24, 6, the Municipality of Ulcinj declared the Ulcinj Salt Pan area the "Ulcinj Salt Pan" Nature Park, thus fulfilling the legally prescribed assumption that this part of the territory is treated as a protected area.

They state that the Decision on Proclamation, among other things, defined that the Nature Park would be managed by the Public Company for National Parks of Montenegro until August 2020, after which the Municipality of Ulcinj was obliged to form a company that would manage it.

"The Ministry has always expressed its absolute willingness to be a partner to everyone, and especially to the Municipality of Ulcinj, in forming a joint, high-quality manager, with adequate capacities (administrative, professional, financial and other). However, it is not realistic to expect that in the initial period the Government will agree to have a majority management share for anyone other than itself, especially due to the fact that it is ready to make very significant investments with the aim of protecting and revitalizing this area. It goes without saying that the Government also understands the needs of the local community, and especially that the local self-government should be consulted on issues that directly concern the local population during its full mandate. And this is precisely where our need lies to find a balance in a reasonable dialogue process, to mutual satisfaction, or to an equal degree of mutual dissatisfaction, but with the same goal: to form a liquid, functional and potent business company, which will manage this area in an adequate and sustainable manner," the Ministry points out.

They explain that after the text of the Agreement on the Formation of a Business Company and the procedures for determining it are harmonized at the sessions of the Government and the Municipality, the conditions will be met for signing that document and forming a management structure.

"At this moment, the main points of the Agreement are being jointly finalized through meetings attended by the Mayor of Ulcinj Municipality Genci Nimanbegu, Minister of the Ministry of Finance Novica Vuković, and Minister of the Ministry of Ecology, Sustainable Development and Northern Development Damjan Ćulafić. We believe in the agreement," the Ministry of Ecology says.

Lease extension agreement ready

The Ministry of Ecology says that the issue of land ownership is not directly related to this contract, but is being resolved through the bankruptcy proceedings of the Solana "Bajo Sekulić" company, which is still ongoing and is under the jurisdiction of other institutions.

"Certainly, whoever owns this area will have to align their activities with the fact that it has been declared a Nature Park, as well as being listed on the Ramsar List of Wetlands of International Importance," the Ministry said, stating that they have prepared a Proposal for the Government's consent to extend the Lease Agreement of the Saltworks to the National Parks.

They point out that in 2015, in accordance with the conclusions of the Government, the Public Company for National Parks signed a Lease Agreement for the Ulcinj Saltworks with the bankruptcy trustee for the purpose of implementing activities to preserve the values that make the area significant for biodiversity.

"The contract has been periodically extended, which will continue to be the case. The proposal for approval for the extension of the Lease Agreement has been submitted to the relevant institution for opinion, and after adoption by the Government, the lease of the Ulcinj Saltworks will be extended for the next six months, during which period the management structure is expected to be formed," the Ministry says.

See more: