The concessions the Government of Montenegro to the future buyers of Queen’s beach that relate to legislation, taxation and fees, spatial planning and regulation of the regime for the use of the coastal zone is something that is not seen in the privatization process of Montenegrin resources since the famous contract of sale of the Aluminum Plant to the Russian oligarch, Oleg Deripaska.
Work on the sale of the Queen’s beach is a textbook example of corrupt contracts and has all the characteristics of an agreement that in the first place puts private and profit interests of investors to the detriment of the public interest and the budget of Montenegro.
Certain provisions relating to the obligations of the Government of Montenegro in relation to the purchaser of land and guarantees that during that occasion the Government provides, incredibly remind of what was done in the case of AP, under the pretext of “attracting a strategic investor”. Then the Government guaranteed that it will not adopt or change laws and regulations, whose application may endanger the investor and his interests, while in the case of Dubovice a step further was made. The Government, in the draft of the contract in which MANS had access, to the future buyer guarantees the adoption of laws, regulations and plans that “Customer considers acceptable.”
In fact, regardless of the different interpretations of this agreement by the political parties, its contents unambiguously confirms that the Government fully waives management part of its territory on Dubovica and the corresponding maritime zone in the the favor of the land buyer. This prove controversial provisions on managing marine zones, and as well complete project management.
In addition to the requirement for the complete autonomous management of the marine zone, and that the purchaser, in addition to the existing laws of the state of Montenegro, adopts internal rules relating to the model of use of beaches and waters, from the Government are requested and other concessions to ensure that the location on Dubovica exists within Montenegro as a separate entity in which it is not allowed access to everyone and where are applicable different rules than in the rest of Montenegro.
In the part of the contract relating to the protection of the environment during construction on Dubovica, the Government is obliged to prepare a strategic assessment of environmental impacts which “confirms that the location and the zone of the coastal zone can be build and develop fully in line with the development plans of the buyer”. This represents a direct violation of the existing Law on Strategic Environmental Assessment of the environmental impact because such a concession to the buyer does not provide that the mentioned study is objective and impartial document, and it is direct prejudge to the findings of the study, of course in favor of the buyer.
By the contract land and sea to Dubovica are also excluded from the protection regime and the obligations that Montenegro has taken by signing international agreements such as the Barcelona Convention and other conventions that protect the coastline.
In addition, the Government has pledged to adopt urban plans that will completely match the projects and requirements of investors, a practice which is often used so far, especially when it comes to Budva’s territory. However, with the proposed contract, the Government has committed to adopt other laws, regulations and rules that will not diminish or threaten the interests of the buyers, actually their project on Dubovica, while in the document the limits are not set in regard on which laws are in question . To illustrate, if the Government next year increases the rate of VAT or income tax, the buyers of land on Dubovica under this contract can expect to be exempt from the application of these laws. Similarly, it is happening to the planning documents, laws that protect the environment, and define other obligations of legal entities or regulating economic environment of the country.
To what extent is going subservient attitude of the Government towards the buyer testifies and the undertaken obligation, or guarantee that the Government or the municipality where is the future resort, will never carry out the expropriation of the land, which means that also in the future the private interest at that location will have an advantage over the public interest or the interest of the state. It is a privilege that does not have any legal entity or individual in connection with its assets, and further confirmation that the Government of Montenegro with this sale irrevocably waives the right to manage a part of its territory.
That this right is not only connected with the boundaries of land that is sold under this contract testifies and clause in the contract by which the Government is obligated to ” at any land within 1 km of borders of the location there are no permits for quarries, mines or minerals or other excavation projects which could adversely affect the ability of the buyer to deliver the project”.
Agreeing to such conditions of the buyer of land on Dubovica can not be the product of ignorance, especially since for a long time on this topic is going very live public debate, and from a number of addresses is pointed to the harmfulness of this contract. However, if the agreement is adopted in this form, it will be a confirmation of suspicion that the interested buyer founded a way to somehow corrupt the key decision makers in the Government and the DPS, and to provide conditions for the business which does not have any other company in Montenegro.
Even if it is not adopted in this form, this contract as a proposal deserves attention of the Supreme State Prosecutor because of the obvious intention of the signatories from the local and national levels to in advance and deliberately inflict multimillion damage to the interests of Montenegro.
MANS invites the Government to withdraw from this contract from the procedure, and from the Parliament of Montenegro expects that, despite the usual pressures when it comes to jobs of this type, it will be able to fulfill its basic function and protect the public interest.
Dejan Milovac
Deputy of the Executive Director
