Started in 2019 as a project of public interest with the support of the Municipality of Ulcinj and the Ministry of Agriculture, today, “The Olive House” is a luxury hotel with a private restaurant and apartments, built in the heart of the olive grove in Valdanos, where any construction of this type is strictly forbidden.
In November 2019, the Municipality of Ulcinj issued a building permit to Hurija Cungu for the construction of “The Olive House – facility of public interest” and it provided for the construction of a facility of nearly 700 m2, with a basement for olive processing, ground floor for tasting, sitting and receipt of goods, while offices, archives and a meeting room are on the first floor. In September this year, the Secretariat for urban planning of Ulcinj issued a use permit for this facility.
However, the situation on the ground is significantly different and reveals that a luxury hotel was built on a plot in the heart of the olive grove in Valdanos, whose construction, dimensions and purpose do not correspond to what is officially listed as “The Olive House – facility of public interest”.
There is a facility called “Mashtra – The Olive House” on the ground, and data from the Booking.com website show that since August this year, it has been possible to rent apartments in that building. The facility is managed by the company “Olimare”, owned by Hurija Cungu.
Hotel in the middle of olive groves photo: Booking.com
That this story is not about a public interest is also confirmed by the satellite images, from which it can be concluded that during the construction of the facility, olive trees were cut down or moved. While cutting and moving old trees is prohibited by the law, moving younger trees requires a permit.
However, the line Ministry of Agriculture states that such requests were not submitted, while the company “Olimare” did not answer journalists’ questions whether they cut or moved olive trees in the process of building the facility.
“The Olive House” facility was built in the olive grove Valdanos, where the Spatial and Urban Plan of Ulcinj prohibits construction, and which is the umbrella planning document for the municipality of Ulcinj intended exclusively for olive growing. Additionally, according to the Law on Olive Growing, in olive groves, among other things, “construction of residential buildings is prohibited except in the case of reconstruction and upgrade of existing facilities”, but facilities necessary in the olive production process can be built.
Support of the Ministry of Agriculture
In July 2020, the company “Olimare” and the Directorate for Payments of the former Ministry of Agriculture and Rural Development concluded an agreement which provided for the allocation of aid in the amount of nearly 140,000 euros within the program “IPARD 2 2014-2020”. This programme is intended exclusively for financing projects in the field of agriculture. The contract states that the grant is intended for the purchase of equipment and equipping the space for olive oil production, as well as for product promotion. The contract does not state the possibility of the hospitality feature of the facility.
An annex to the contract was concluded in June this year, the amount of aid was reduced to 125,000 euros, and the investment was supposed to be completed by December 10. The possibility of using a down payment in the amount of 50 % of the total amount has been added.
When asked to submit all acts on payments of “Olimare” LLC, the Directorate for Payments of the Ministry of Agriculture, Forestry and Water Management replied that according to their records, “Olimare” LLC has not yet submitted a request for payment of support funds, thus, the support funds could not be paid to it.”
Hotel interior photo: Booking.com
The obvious hospitality purpose of the facility raises the question of whether the obligation under the contract has been violated, according to which within five years of signing the contract , “Olimare” “shall not make a substantial change in the investment that is the subject of the contract, which would affect its nature, goals and conditions for application which would diminish its original goals.”
When asked whether the Ministry and the Cabinet of Minister Aleksandar Stijović believe that this provision of the agreement has been violated, they did not answer.
The contract precisely defines that the money can be spent in the following way: nearly 55,000 euros for parts of olive growing equipment, 68,000 euros for various construction works, and more than 2,000 euros for waste management costs. According to their calculations, total value of the investment with which “Olimare” applied was nearly 300,000 euros. However, the Ministry set the amount of 250,000 euros as the actual costs, of which it approved half of that amount.
In turn, “Olimare” undertook to develop capacities for the production of olive oil in the amount of at least 500 kilograms per year by December 10 this year. The company did not answer the question whether they started production in that capacity, and if not, when they intend to do so.
The directorate contractually obliged to control the investment on the spot. When asked how many times the project was inspected, it was explained that the controls were not carried out “because the request for the payment of aid funds has not been submitted yet”.
This explanation is not in accordance with the contract, which stipulates that the Ministry has the right to control the project “on the spot at any time and at any stage of implementation”, starting from the date of signing.
When asked to express their position on this case, Stijović’s cabinet decided to remain silent. They did not answer the questions whether they were previously acquainted with the situation, what they did regarding it, and whether they would do something in the future.
Inspections – neutral within their competences
Of the three inspections to which MANS reported this case, none found irregularities. Thus, the agricultural inspectorate responded that during the inspection in December 2020, it was determined that “the facility for production and tasting of olive oil was built on the basis of the municipal decision, and that during the inspection, it was found that there was no logging or destruction of olive trees.” In the response signed by inspector Dragana Kandić Perović, it is noted that no document that the Valdanos olive grove is a protected area was found.
The Directorate for Inspection Affairs and Licensing of the Ministry of Ecology, Spatial Planning and Urbanism has shown a lack of interest in addressing the issue, distancing itself from its official duty, which by its nature falls within the competence of this institution.
Built rooms and apartments photo: Booking.com
In January, MANS first submitted an initiative to initiate proceedings due to construction in the protected zone, to which the urban and planning inspector Jovan Martinović stated that “the construction of the facility is underway, which has a building permit issued to Cungu H. Hurija from Ulcinj for the construction of a local facility of general interest – the Olive House”.
When asked why the inspectorate did not respond to several letters and requests from local NGOs – MOGUL and MSJA, which continuously warned about illegal construction, they did not answer. When it comes to the extended initiative, submitted in September this year, they again stated that appropriate permits had been issued for the facility, but also clarified that they are not in charge of the control the facility, that it is the duty of the Communal Inspectorate of the local government.
Finally, the Environmental Inspectorate of the Directorate for Inspection Affairs stated that an environmental impact assessment was conducted for the project, as well as that a decision was obtained according to which “it is not necessary to prepare a study for the project.”
In its response to the inquiry regarding the construction of a facility in a protected area, the Environmental Protection Agency states that the olive tree is not a protected species, as well as that the said cadastral parcel is not under protection either.
Authorities were silent for a year, now they would like to ban any construction by amending the law
In December 2020, the media reported on the construction of the “Olive House”, which received a building permit, although the Spatial and Urban Plan of the Municipality of Ulcinj does not envisage construction in the Valdanos olive grove. Then, the Secretariat for Spatial Planning of Ulcinj, at the request of the NGO MOGUL, submitted the answer that the permit was issued because it is a facility of public interest. Activists Džemal Perović and Zenepa Lika warned that this was a devastation of the area, and that it was very likely a case of corruption.
There was no response of the competent institutions to the question of Vijesti. Now, after almost a year, the hospitality facility is completed and fully equipped, with a capacity of luxury accommodation for about fifteen people.
“The decision to build a facility of public interest called the Olive House in the heart of olive grove, right next to the gate in Valdanos Bay, set a precedent that is devastating for this whole area and olive growing,” explains Zenepa Lika, chairperson of the NGO MSJA.
Lika photo: Keno Verseck
“It is not just about the fact that this is an agricultural land, this is also a cultural, historical and natural asset that has preserved its function for nearly 2,000 years, only to be devastated in the 21st century.”
The construction of numerous tourist facilities that are listed as “temporary agricultural facilities” has been a problem for Valdanos for years.
The office of the President of the Municipality of Ulcinj did not answer the question whether they were aware of this issue and how they plan to deal with it.
At the end of November this year, at the initiative of MSJA and MOGUL, the Environmental Protection Agency initiated the procedure of preventive protection of Valdanos and olive groves in Ulcinj.
“This protection includes a ban on the construction of facilities, a ban on the logging of olive groves, and more active maintenance of terraces and dry-borders in order to prevent erosion”, the Agency said in a statement.
Olive Sector of the Ministry of Agriculture, Forestry and Water Management claims that amendments to the Law on Olive Growing and Olive Oil are being drafted, thus, if the amendment is adopted, the construction of all types of facilities in olive groves will be banned in the future – including facilities necessary for olive oil production.
“It is precisely because of the construction problem in Valdanos that we have proposed these amendments. We hope they will be adopted by the end of the year. “
A quote that it is a family tradition all that remained of the olive growing
On Facebook and Instagram pages of the facility, “MashtraTheOliveHouse” is presented as a restaurant, and on the Booking website, there is an offer of luxury rooms and apartments for rent. An overnight stay in a room with a double bed costs 59 euros, and there are also apartments at a price of 70 euros per night. The website also states that their Mediterranean gourmet cuisine is “boundless combination of ingredients, techniques and dishes”.
Grand stone villa is almost completely surrounded by olive trees, and is close to the beach. The spacious terrace, as well as the lounge bar with a wide range of drinks, are additional details presented on the website. The internet photos show a spacious hall with stone and wooden elements, amphorae and a fountain. The only indication that the building is essentially in the function of olive growing are the quotes on the official website: “The Cungu family has been cultivating and processing olives for centuries… and we are continuing this family tradition with this Mashtra project”.
This article was prepared within the project “Support to investigative journalism in Montenegro”, which is implemented by the NGO MANS with the financial support of the U.S. Embassy in Podgorica within the 2020 Media Professionalization Assistance Program. Any opinions, findings, conclusions or recommendations expressed herein are those of the author and do not necessarily reflect the views of the State Department/U.S. Government.
Đurđa Radulović (MANS)
