How much do obstructions cost us?

#Valdanos #Opstrukcije #KraljičinaPlaža #Maljevik


Unsolved property and legal issues and large delays in acquiring construction permits, mixed with personal and political obstructions, cost Montenegro more than 750 million EUR during the last ten years, Dnevne Novine daily writes.

The best examples of how we should not treat foreign investors are Maljevik and Kraljičia plaža near Bar, and Valdanos in Ulcinj.

180 million EUR lost due to obstructions

Political obstructions can create lot of damage to Montenegro and send a negative message to future investors. We could see this best when Royal Group from UAE abandoned project on Kraljičina plaža between Bar and Budva.

Luxurious tourist complex worth 180 million EUR that would employ 200 Montenegrin citizens became nothing more than a dream, and the reason for it lies in compromising Royal Group, royal family and UAE by certain high officials and media in Montenegro.

The main break in this project was SDP. Leader of this party Ranko Krivokapić claimed that Kraljičina plaža should not be sold due to suspicions of corruption that were never proven.

British gave up on Valdanos

Similar situation happened in Ulcinj as well. British company Cubux Lux was planning to invest over 220 million EUR in Valdanos, where they were supposed to build a tourist complex in 4 years.

The investment was phased to three periods, and it entailed construction of three five stars hotels, luxury villas, conference halls, spas, pools and similar. The problem was when certain documentation and guarantees not included in the tender were asked for. It all resulted in postponing and in the end, definite departure of British from the project.

Star of Montenegro also gave up on construction of new facility on the ruins of Hotel Jadran in Ulcinj.

Failed investment was in the amount of 50 million EUR.

Investor waiting for DUP amendments

The most extreme example is one of Maljevik project, that has been postponed for ten years already.

During 2011, company Sonuba Montenegro, that bought the land in Maljevik in 2007 and announced an investment of 300 million EUR, changed the owner. New owner, Russian Merkur Group, asked for detailed amendment to detailed urbanistic plan DUP, but the investors requests had not yet been met. The investor plans to build exclusive facilities in 150.000 square meters, while DUP entails the construction for a larger parcel.

Recently, it seemed as though things might move from a standstill, but amendments to DUP were supported only by DPS and Bosnian Party in Bar’s assembly. Against were representatives of SDP, Demos, DF and SNP. Positive Montenegro and SD refrained from voting.

The reason for being against amendments, opposition found in the fact that Bar stands to lose almost ten million for communal works.

To make the matter more interesting, the investor paid the Municipality 32,5 million EUR for the land, but the issues regarding DUP postponed the project.

According to the contract, the investor was supposed to build hotel capacities on 80.000 square meters, tourist condos, villas, marina and hospitality facilities of four and five stars.

Construction to happen soon on Plavi horizonti

Although the matter of investment of Qatari Diar company in Plavi horizonti was often under discussion, Mayor of Tivat Ivan Novosel recently said that the construction would start after tourist season.

According to Novosel, Prime Minister Đukanović met director of Qatari Diar Greg Bankhurst in Tivat recently. Director explained to Prime Minister that preparations have already begun, and that construction permits are being awaited. The construction should start in September, and the project is worth 350 million EUR. It will entail construction of elite hotel and exclusive villas.

Unsolved property and legal relations are postponing the construction of aqua park in Ulcinj, worth 7,5 million EUR.

After several months of agony with administration, British Cubux Lux gave up on Valdanos project, that was worth 220 million EUR.

Royal Group gave up on Kraljičina plaža project after two years. The project was worth 180 million EUR. The reason to give up was alleged slander against Royal Group, royal family and UAE.

Maljevik has been ten years late due to issues with DUP, although investor Merkur Group paid 32 million EUR for the land.

Source: Cafe Del Montenegro