Budva's water supply owes millions, and makes extra profit

"The consequences of this relationship of the Budva water supply can be disastrous for the state budget as well, because international creditors can activate guarantees in the amount of around 30 million euros in the event of a delay in the payment of loan installments", warned the Regional Water Supply
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Budva, taxi, Photo: Boris Pejović
Budva, taxi, Photo: Boris Pejović
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.
Ažurirano: 05.07.2015. 13:53h

The regional water supply company warned the Budva Water Supply Company to settle its debt of millions for the water taken from that water supply system, because the liquidity of that state-owned public company was called into question. They warned that local coastal waterworks owe more than two million euros.

"In June 2015, a record amount of water was delivered from the Regional Water Supply of 1.178.046 cubic meters, which represents a 97 percent higher delivery than the largest water delivery to date in June 2012, when 598.245 cubic meters were delivered, or a 107 percent higher delivery compared to June 2014, when 567.884 cubic meters were delivered. The above confirms the justification of the vision of the Government of Montenegro that, after several decades of the dilemma whether Montenegro needs a regional water supply system or not - and in times of global economic crisis, it should prioritize the construction of a regional water supply system, by making a decision in 2007 to intensify activities and that by 2010 In 80, they invest around XNUMX million euros in this, so far, the second most valuable and important infrastructural facility built in Montenegro. The record delivery of water was achieved thanks to the fact that this year, for the first time, a business agreement was reached between the Regional Waterworks and all six local waterworks on the Montenegrin coast, which for the first time simultaneously delivered water during the last months, and even to the municipality of Herceg Novi during June. However, another more significant reason should be found in the fact that this year is characterized by very little precipitation, which contributed to the instability of local sources on the Montenegrin coast, while the abundance of the water source 'Bolje sestre' is constant even in these weather conditions", they stated. are in the Regional Waterworks.

In addition to the mentioned fact about the record delivery of water, the Regional Waterworks, as they state in recent months, also records another, but infamous, record, which is reflected in claims from local waterworks, which today amount to over two million euros.

"Receivables from the previous period are around 1,8 million euros, while around 26 million euros refer only to the debt of the Budva water supply. To make matters even more absurd, for two whole years DOO Vodovod i kanalizaje Budva has been refusing the initiative of the Regional Waterworks to settle the undisputed debt, in accordance with the signed contracts, in installments according to the dynamics proposed by the local waterworks. Such a proposal was unanimously agreed upon at the meetings of the Management Board of the Regional Waterworks, which has been trying to solve this problem for two years together with the management company with the constant support of the President of the Municipality of Budva, who made an effort to reach an agreement. To make this business situation even more intriguing, on January 2015, 0,29, the Budva water supply company initiated proceedings with the Agency for the Protection of Competition to protect itself from the Regional Water Supply monopoly. The question is why? Because of the monopoly of the Regional Water Supply, which is reflected in the generosity of the "Bolje Sestre" springs, even when the local springs dry up, the Budva Water Supply "must" buy water from the Regional Water Supply? Or because of the high quality of the spring water of "Bolje sestre"? Or because of the price, which is XNUMX euros per cubic meter, and which as such is several times lower than the water price of the Budva water supply system?", asked the Regional Water Supply.

According to them, if there is any logic in this story, if anyone should be prosecuted by the Agency for the Protection of Competition, it is the Budva waterworks, which, thanks to the high prices of water and other services, makes extra profit, especially on the "resale" of water it takes from the Regional Waterworks.

"Namely, the Budva waterworks billed the citizens and business entities of Budva for several million euros more, which can easily be checked based on the official water prices, for water worth a million euros. Or maybe the Waterworks in Budva is seeking protection from competition from a business partner who, in addition to making a small profit, also enables it to fully carry out its basic activity, which is reflected in the orderly water supply of citizens and tourists who, thanks to the existence of the Regional Waterworks, can forget about the tourist seasons before 2010 when we welcomed tourists with the slogans 'there is water'! The aforementioned business relationship of the Budva water supply system with the Regional water supply system also calls into question the liquidity of our company, which regularly services credit obligations in the amount of around three million euros annually, i.e. the entire 70 percent of the JP's income in 2014. The consequences of this relationship of the Budva water supply can be disastrous for the state budget as well, because international creditors can activate guarantees in the amount of around 30 million euros in case of late payment of loan installments. Whether it is a question of responsible business policy and protection of the interests of the population of Budva and tourist workers, let everyone decide for themselves, but we certainly want to announce that this attitude does not inherit a responsible attitude towards this important state project, without which the living conditions during the summer months would be inhumane in Budva, as well as on the entire Montenegrin coast, they would not even be able to discuss the development of tourism", warned the Regional Waterworks.

They also warned the decision-makers in DOO Vodovod i kanalizacija Budva, that they will treat such a relationship with non-payment of debt from the previous period as a relationship of "disorderly payer".

"Due to non-compliance with the Agreement, we will take other measures available to us in accordance with Article 13 of the Law on Regional Water Supply. Nevertheless, we express the expectation that the decision-makers in Budva, with their active attitude towards this problem, will influence the local water supply to responsibly approach the realization of its business obligations. Because of all of the above, and not only because of the business interests of the Regional Waterworks, but above all because of the public interest that is reflected in the further development of Budva as a prestigious tourist destination, and through the public, we once again call for an urgent meeting to agree on a correct business policy , because the Regional Water Supply, in addition to providing the missing amounts of drinking water to the Budva Water Supply, is not established to finance it additionally," they state from the regional water supply.

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