Waiting for water and sewage

While some hotels in Kolašin from the List of Tourism Development Projects under the Economic Citizenship Program are almost completed, the state is still issuing tenders for the construction of part of the key infrastructure - water and sewage networks, access roads, and electrical infrastructure - without which they cannot receive their first guests.

The Ministry of Public Works has announced tenders for the construction of an artificial snowmaking system at the “Kolašin 1600” Ski Center, the main sewage collector for the Kolašin 1450 Mountain Center, and sewage and atmospheric sewage in the Kolašin 1600 Mountain Center, with a total estimated value of more than 8,5 million euros, excluding VAT. The tenders were announced on July 10, and bids are due by August 14...

Since tenders have only just been announced, followed by the selection of contractors, the development of main designs and the execution of works, it is difficult to expect that key infrastructure will be completed by the end of the year, although some investors claim that the hotels could open within a few months after they receive the necessary utility connections.

Some investors told "Vijesti" that they are ready to start work and that they have invested additional efforts in cooperation with institutions, but that the delay in public infrastructure threatens not only their projects, but also the broader development of Kolašin, new jobs and the economic potential of northern Montenegro.

The Municipality of Kolašin confirms that the lack of infrastructure is affecting the dynamics of hotel opening, but emphasizes that this is not the only cause of the delay. Deputy Mayor of the Municipality Vasilije Ivanovic He tells "Vijesti" that projects have also been slowed down by problems with project documentation and property-legal relations, which have been largely resolved or are in the process of being resolved. He also states that several infrastructure projects are currently in the implementation or preparation phase.

Nine luxury hotels are being built in the Municipality of Kolašin as part of the economic citizenship project.

Radisson Blu hotel opening postponed several times

Deadline for opening “Radisson Blu Hotel & Resort” Kolašin at Kolašin 1450, according to the investor Blagota Radović, (“Zetagradnja”), depends solely on whether and when the competent institutions will provide all the necessary communal infrastructure. This, he explains, would enable the hotel to be smoothly connected to the city's water and sewage networks, the electricity grid, as well as the completion of the access road leading to the facility.

"Work on the facility itself is in its final stages, although significantly slowed down and in some parts completely blocked, due to the fact that to date we do not have the technical capabilities to connect to the city network in order to test and put into operation the installed systems in the hotel. Therefore, the final opening date depends on the dynamics with which the competent institutions, primarily the local self-government and the Government of Montenegro, will complete their part of the obligations related to the communal equipment of the location," Radović explains to "Vijesti".

According to him, the investor needs a maximum of 90 days for technical testing, synchronization and commissioning of systems and installations, in order to guarantee the complete safety and functionality of the facility, i.e. to begin the technical acceptance procedure. Due to the lack of functional utility infrastructure and uncertainty about when the authorities will provide it, the investor says that he is currently unable to specify the opening date.

Radović claims that he has completed 90 percent of the work on the hotel, and that the opening deadline has been extended several times due to factors beyond their control. He recalls that representatives of “Zetagradnja”, on their own initiative, had “countless meetings in the Municipality, Ministries and the Government, unfortunately without concrete success”.

"At the location in question, UP 4 within the PPPN 'Bjelasica and Komovi', DRL 'Kolašin 1450', where our hotel is located, as well as a total of six additional tourist facilities, which began to be developed in 2020, none of the utility connections are secured and functional. It is clear that the development of Bjelasica must be viewed as a unique system and a development opportunity for the entire northern region. However, without a completed public infrastructure, it is not possible to realize the full potential of the investments that have already been made, nor to valorize the potential of the destination itself," says Radović.

For the optimal functioning of the tourist zone, it is necessary, he reminds, to provide electricity, because the hotels were completed two years ago without electricity, to complete the water supply system, sewage network and wastewater treatment plant, artificial snowmaking system, as well as access road infrastructure.

According to Radović, he was informed by the authorities that the state has provided financial resources for some of the projects.

"Unfortunately, despite this, the implementation is proceeding very slowly or has been completely halted. I would especially like to remind you that the water supply and artificial snowmaking system project had already begun. The work was suspended due to protests by some locals and unresolved property and legal relations, i.e. the expropriation process. According to the information we have, these reasons no longer exist today," he says.

Infrastructure is the foundation of Kolašin's development

The dynamics of the implementation of the "Montis by Splendid" hotel, as stated by the company implementing the project, are being coordinated with the construction of key public infrastructure, necessary for its smooth functioning.

They claim that the works are ongoing, and the final phases of construction are planned in accordance with the implementation of the road, water supply and sewage network through the Breza settlement.

"Our goal is for the hotel to open when all infrastructural and operational conditions and standards are met, guaranteeing a quality experience for future guests and an efficient and smooth start of operations. Throughout the entire project, various options and models were considered that would enable optimal dynamics of development and commissioning of the hotel. However, in the long term, it is much more important than individual temporary solutions to implement key city infrastructure projects that will serve not only our hotel, but all existing and future investments, as well as the local population," said the investors of the hotel being built in the Breza neighborhood.

They claim that the transport infrastructure, water and sewage network, wastewater treatment system, snowmaking projects on Bjelasica, as well as the planned gondola, represent the foundation for the further development of Kolašin as a modern year-round tourist destination.

The company building the hotel says they are satisfied with the cooperation with the Municipality of Kolašin.

"Within our capabilities, we strive to be a partner in the development of the destination and support initiatives that contribute to its long-term development. We believe that cooperation between the public and private sectors is the key to the successful development of Kolašin in the years to come. Every major development project carries certain challenges, especially in the dynamic international and geopolitical environment that has been characterized in recent years by significant changes in the prices of construction materials, equipment, energy sources and labor availability. Such circumstances require continuous adjustment of our plans and responsible project management," explain the investors of the "Montis by Splendid" hotel.

However, they say that "it is necessary to accelerate the implementation of infrastructure projects throughout the destination, as they represent the basis for further development of tourism and attracting new investments."

Their implementation, they estimate, would send a strong message to investors already operating in Kolašin, but also to those considering new investments in the future.

The Ministry is preparing more tenders

The Deputy Mayor of the Municipality of Kolašin, Vasilije Ivanović, says that the implementation of several significant infrastructure projects is underway, including a street on Breza worth around five million euros, a water supply system for the city and ski centers, a city collector, road infrastructure towards Bjelasica, an artificial snowmaking system, a promenade from Lug to Breza, and a garage on Bjelasica.

According to him, some of the projects are already in the implementation phase, while "concrete activities" have been initiated for others.

Ivanovic agrees that the lack of infrastructure is one of the reasons for the delay in the hotel's opening, but that the key problem was not only the infrastructure deficiencies, but also the previous problems with project documentation and property-legal relations, which have now been mostly resolved, or specific activities have been undertaken to resolve them.

"Considering all aspects, the lack of infrastructure is one of the reasons for the delay in the opening of the hotel, but not the main one. First of all, we should mention the lack of project documentation, as well as property disputes, which have been largely resolved at this point or, at the very least, concrete activities have been undertaken to resolve these problems," says Ivanovic.

He explains that one of the more important projects is the street on Breza, worth around five million euros. The implementation is divided into three phases, of which the first and third have been issued building permits and are in the implementation phase, while the second is expected to receive a building permit soon, so that "work is expected to be carried out at full intensity" in the coming period.

He says that tenders are underway by the Ministry of Public Works to re-announce tenders for the construction of a water supply system for the city and ski centers.

According to him, preparations are underway for signing a contract for the construction of a city collector, which is largely financed by the European Development Bank, which, he claims, will significantly improve opportunities for further investment.

Road under dispute and snowmaking project

Ivanovic explains that the road from Kolašin to Bjelasica is in the process of resolving a property dispute.

"These are claims by the bankruptcy administrator, who represents the Ski Center 'Bjelasica' in bankruptcy, and relate to payment for road plots that ended up as part of the bankruptcy estate of that company. It is important to note that the Municipality of Kolašin, in cooperation with the state-owned company Ski Resorts of Montenegro, the Ministry of Tourism and the Ministry of Public Works, has developed a preliminary design for artificial reservoirs for the needs of snowmaking at 'Ski Center 1600' and that this project will soon enter the implementation phase, as well as the procurement of the remaining snowmaking equipment," he announced.

One of the significant projects for hotels, says the Vice President of the Municipality, is the promenade from Lug to Breza, the implementation of which is expected to begin this year.

He also reminds us of the garage on Bjelasica, as an additional incentive for the tourist offer.

"Its opening is possible as early as this year; analyzing the problems during previous winter seasons, a facility of this type will greatly improve the offer," said Ivanović.

Announced compensation payment

Blagota Radović reminds that the road to the tourist zone "Kolašin 1450" has not yet been reconstructed. Due to increased traffic, after the opening of the road to Berane, he claims, the road has deteriorated rapidly, and funds for reconstruction have already been provided.

"Work on the access road to our hotel has begun to a certain extent, but was interrupted more than two years ago, which further fuels our concern since for two full years they have been directly blocking the implementation of the ski resort project worth tens of millions of euros. Despite all the aforementioned problems we are facing, we have embarked on the final phase of equipping with great optimism. We have contracted the management and a renowned hotel brand, the next phase is the recruitment of personnel and the launch of the pre-opening protocol, waiting for better times," says Radović.

In addition to the direct costs of not opening the hotel and lost profits, he claims, the investor is exposed to constant pressure and a breakdown of trust between him and participants in the economic citizenship program, as well as foreign business partners.

He explains that "the problem is further escalating, given the fact that investors in the program have already announced the activation of contractual clauses and the start of the collection of compensation for missed deadlines that the investor was put into through no fault of his own."