This year, the Public Company for Coastal Zone Management has allocated a budget of 810,462 euros for investments in the municipality of Tivat.

This is outlined in the Fund Utilization Plan for 2025, which was recently sanctioned by the Government.

Morsko dobro, under the leadership of Executive Director Mladen Mikijelj (Nova), and Board Chair Zvezdana Janović (PES), has announced in its business strategy for this year an expected revenue of 1,720,378 euros from lessees of coastal areas in Tivat, with Tivat’s share in 2024 totaling 10.21 percent of the overall revenue generated by this state-owned company from coastal and water area rentals.

“After accounting for the regular operational costs of the Public Enterprise, the funds earmarked for investment in the Municipality during 2025 amount to 810,462 euros,” indicates the Fund Utilization Plan from Morsko dobro.

However, the anticipated revenues from the Tivat municipality are significantly higher, comprising half of the projected nine million euros expected this year from the operation of the Kamenari-Lepetane ferry line, which is managed by Morsko dobro following a decision by the former Prime Minister Dritan Abazović (HURRY).

When the state assumed control of the ferry service from the previous private operator, Pomorski saobraćaj from Herceg Novi, in February 2023, local leaders from the Coastal Region, along with the municipalities of Tivat and Herceg Novi, promised that the profits generated by this monopolistic endeavor—post-nationalization—would largely finance the development of coastal infrastructure and other public facilities in both cities. However, that has not occurred, and neither municipality has seen any tangible benefits over the past two years as revenue from the ferries now goes to the Coastal Region rather than to the former private owners, with no subsequent investments back into the local areas.

Morsko Dobro’s 2025 Fund Utilization Plan once again highlights projects that have long been promised to the residents of Tivat but not fulfilled. This year, they have reiterated plans to invest 200,000 euros in “the restoration of the area from the ‘Mimoza’ hotel to Kalimanj harbor, covering 150 meters,” and another 200,000 euros for “the rehabilitation of the area in front of the ‘Kamelija’ hotel in Donja Lastva, spanning 1,500 square meters.” Both investments were previously included in the 2024 Plan but were not realized.

Similarly, the Plan includes 50,000 euros for “initiatives related to the development of the Tivatska solila Special Nature Reserve,” also carried over from last year’s agenda with no real progress.

A new item this year is an allocation of 80,000 euros for “the preparation of project documentation and the completion of work on the sports field and outdoor gym on the Island of Flowers.”

Notably absent this year is any funding for potential investments by the Coastal District in extending the lungo mare promenade in Krašići, Belani, and from Donja Lastva to Lepetane—projects that leaders of this public enterprise have consistently vowed to the citizens of the smallest municipality in Boka Kotorska over recent years.

“In light of Tivat’s extensive coastal zone, the municipality’s requirements, and the enhancement of the tourist market, the Public Company intends to initiate around 3.5 million euros in projects starting in 2023, which is four times greater than revenue accrued from this municipality in 2022. Besides the previously mentioned initiatives, the Public Company will allocate funds for area development, urgent repairs, and cleaning up unvisited beaches and coastal facilities,” stated Director Mladen Mikijelj in a meeting with Tivat Mayor Željko Komnenović and his associates just before the New Year 2023. However, none of these promises materialized in 2023, and indications suggest they won’t in 2025 either.

Meanwhile, Coastal State officials have defended the company’s lack of investment in Tivat’s coastal infrastructure by stating they had to allocate unplanned millions of euros upon taking over the ferry operations in Kotor Bay. They asserted that this takeover would yield tremendous benefits not just for Tivat, but for all Montenegrin coastal towns, as profits would be reinvested into coastal infrastructure rather than into private hands.

Last year, Mikijelj indicated that 400,000 euros would be transferred to the Municipality of Tivat as Morsko Dobro’s contribution to the construction of the lungo mare promenade in Belani. However, this amount has yet to be deposited into the Tivat city treasury. Consequently, the municipality has financed the preliminary phases of this project with over one million euros of its own funds. A tender is imminent for the third, final phase of the work, estimated at 800,000 euros, for which Tivat’s city leadership is still expecting Morsko Dobro to finally provide the long-promised 400,000 euros for establishing a refreshment facility on the Belani waterfront, which the state-owned entity continues to stress the importance of.

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