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HomeEconomyTender for beach lease postponed to November 1st

Tender for beach lease postponed to November 1st

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Deadline for Beach Lease Tender Moved to November 1st

Budva (illustration), Photo: Shutterstock

The Budva Catering Association expresses concerns over the delay of the tender for beach leases. They suggest it should be delayed until November 1st and propose that current contracts be extended to ensure the safety of the upcoming season.

“Following the conclusion of the public call, the specified deadline is insufficient to secure the necessary documentation, such as the bank guarantee. The subsequent process of bid opening and evaluation could extend for several weeks, influenced by the number of proposals and the complexity of the locations. An appeals period of eight days follows, concluding in early March. Should the existing tenant bid lower and lose, they must revert the location to its original state, which takes a minimum of two weeks,” stated the Association.

Furthermore, they highlighted that the new tenant, within ten days after signing the contract with the Coastal Zone, must present urban planning and technical prerequisites, a conceptual design, multiple approvals from relevant authorities, several studies and certificates, along with a building permit before operations can commence.

“We are acutely aware of the duration required to compile each of these documents,” remarked the Budva Catering Association.

They also conveyed the necessity of developing essential infrastructure—roads, water, and electricity—since previous tenants are obligated to restore everything to its prior condition.

“Construction work in the first coastal zone of Budva is prohibited starting May 15th. Heavy machinery such as trucks, excavators, and rollers are frequently employed to enhance beaches through filling, which directly contradicts the construction ban. Consequently, this will lead to beaches being inadequately prepared as stipulated in the contracts, as they can only be ready by July 1st at the earliest under optimal conditions,” the Association noted.

They believe that the coastal zone holds too much significance for the destination to prioritize the financial aspects of leases alone.

“Some tenants have contributed to shaping Montenegro’s image for decades, consistently paying taxes and being responsible users without any discrepancies. It’s crucial to consider values beyond mere financial metrics. We have also observed that the involvement of certain foreign investments has jeopardized local employment by withdrawing citizenship and disturbing not only the market dynamics but also various social dimensions,” stated the Association.

They reiterated their viewpoint that the tender has been postponed unfairly and that it would be both socially and politically responsible to delay it to November 1st and to annex the existing contracts.

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