It’s quite clear that without any deep understanding of economics, one can realize that renting out umbrellas, hamburgers, drinks, and ice cream doesn’t constitute a groundbreaking business venture that would attract a significant investor. It suggests that there must be larger economic or other interests hidden beneath the surface.

An economist from Ulcinj, Skender Elezagić, shared with “Vijesti” that the company “Eagle Hills”, funded by Arab investors, aims to penetrate the Montenegrin market by leasing beaches in Ulcinj, the southernmost municipality of Montenegro.

The company operates in several countries in the region and is led by Mohamed Alabar.

The Ministry of Tourism did not respond to “Vijesti” regarding the potential benefits for Montenegro’s most significant economic sector and the city of Ulcinj. Similarly, the tourism committee of the Chamber of Commerce (PKCG) opted to refrain from commenting.

“The essence and nature of these hidden intentions will also determine if there are adverse effects on Montenegrin and Ulcinj tourism, as well as their extent. It is already certain that, considering the appealing procedure and possible reactions from past tenants, there is a significant risk that Ulcinj will enter this season with beaches unprepared for visitors. This scenario would spell disaster for the entire economy and the residents of Ulcinj, leading to considerable negative repercussions for the Montenegrin economy,” Elezagić stated.

Arabs offer 19 million for 1.8 beaches

The Arab firm behind Dubai’s iconic “Burj Khalifa” and the “Belgrade on the Water” project registered a subsidiary in Montenegro, “Eagle Hills Montenegro”, on March 6. Five days later, on March 11, the bids for the Ulcinj beaches were opened. Unofficial reports from “Vijesti”, confirmed by various sources, indicate that the Arab company submitted bids for 19 beaches in Ulcinj, valued at a total of 1.884 million euros. The Public Company for Coastal Zone Management must assess all bids, with the rental amount accounting for 75 of a possible 100 points.

Sources revealed to “Vijesti” that “Eagle Hills” presented the highest bids for over 10 beaches, although others would outmatch them due to higher offers. Notably, the highest monetary bids, confirmed by Prelja Škrelja, president of the Association of Beach Tenants in Ulcinj, were made for the well-known Ulcinj beaches, including “Saranda”, “Adritaica”, “Imperial”, “Hill”, “Mojito”, “Habana”, “Safari”, “Tropikana”, “Koral”, a section of “Pearle Beach”, and “Barbose”.

According to a “Vijesti” source, the Coastal Property generated 1.052 million euros in total from leasing all Ulcinj beaches in 2019, while “Eagle Hills” alone offered 1.8 million euros for 19 beaches.

The results of the bid opening sparked strong public reactions, particularly from the Municipality of Ulcinj and Albanian parties in parliament, which met with Prime Minister Milojko Spajić and Minister of Spatial Planning, Urbanism, and State Property Slaven Radunović to demand the annulment of contracts and renegotiating existing leases. Participants, including the Mayor of Ulcinj Genzi Nimanbeg, emphasized the lack of failures in the tender’s implementation and that the government sees no basis for cancellation.

However, the Prime Minister stated, “If anyone believes that there has been a regulatory violation and can prove it, we are willing to review it.”

Post-meeting, Nimanbegu mentioned to reporters that while they hadn’t contemplated involving the prosecutor’s office yet, they would definitely consider taking steps in that direction.

SDT awaits criminal complaints

Unofficially informed sources from “Vijesti” indicated that no criminal complaints have yet been filed with the Special State Prosecutor’s Office (SDT) regarding potential discrepancies in beach lease tenders.

One source claimed that they did not initiate a case based on their own accord and expressed reluctance to address daily “demands” to investigate alleged irregularities.

The Coastal District has urged the prosecutor’s office to investigate offerings worth millions for beach leases in Budva, expressing concerns that these figures may not stem from rational business decisions…

“We urge the Special State Prosecutor’s Office to check whether these offerings are attempts to launder money or to render the tender procedure ineffective, or if they genuinely arise from sound business judgment. We will decide on subsequent action in collaboration with the relevant Ministry and the Government of Montenegro to maintain the integrity and legality of the entire process,” the state-owned company announced three days ago.

The department led by Minister Radunović remained silent regarding the alleged irregularities, although “Vijesti” sought clarity from the Coastal District Administration regarding the substantial bids and suspicions about potentially modifying tenders with previous tenants.

Elezagić argues that welcoming renowned, powerful investors is often a major development for more affluent nations, but less so for Montenegro’s small and less developed market, with generally positive effects on economic flows.

“However, in our context, this pertains to the scenario wherein potential investors arrive to finance substantial development projects and build luxurious tourist facilities that our domestic market lacks the capital or investors to realize. This certainly doesn’t apply to the leasing of several beaches on Velika Plaza, where local businesspeople have the interest and experience needed,” Elezagić contended, emphasizing that the services and offerings on Ulcinj’s beaches represent a standout feature of Montenegro’s tourism product.

The Ministry of Tourism did not respond to “Vijesti’s” inquiries regarding the economic benefits that “Eagle Hills” might bring to the Montenegrin market, particularly for domestic tourism and Ulcinj, nor did it address potential adverse impacts from “Eagle Hills” entering Montenegro’s economic landscape. The Tourism Committee of PKCG also failed to respond.

“We conveyed the consensus of the Albanian Forum, the Albanian Alliance, the Democratic Union of Albanians, and the Municipality of Ulcinj to Prime Minister Spajić, stating that this tender and its results are unacceptable. We clearly expressed why we believe this runs counter to Ulcinj’s interests, likening it to a hostile takeover of Ulcinj by an investor who was only established five or six days ago and who, additionally, has faced issues in other municipalities with similar million-euro offers. This is further evidence that we must prioritize the welfare of our citizens, rather than pursuing actions that do not serve local community interests under legal pretenses,” Nimanbegu commented to reporters.

Prophet Mehmed Zenka noted that “it isn’t overly complex to answer whether a billionaire should be involved in selling deck chairs and umbrellas or if there’s a deeper agenda.”

“They are encroaching upon the 50 million euros that have been invested by citizens and tenants in Ulcinj over the last two decades. They are intruding on the most developed sector of both Ulcinj and Montenegro, taking over 4.5 kilometers overnight. Those who have invested here for 10 to 15 years are left with uncertainty… It’s unclear how a new investor intends to restore the beaches, a process that has taken existing operators up to 15 years,” Zenka highlighted, also stating that they had requested changes to the Law on the Marine Domain, which aligns with demands from all coastal municipalities.

No legal grounds for tender cancellation.

The Prime Minister’s Office announced after the meeting that Spajić emphasized the transparency and openness of the tender process, stating that rules are explicit and that the citizens of Ulcinj and Montenegro’s interests must be prioritized.

“What matters most is the local community’s satisfaction, yet legality is paramount as well. Based on current information, no procedural errors were identified in this process. Nevertheless, we acknowledge the concerns voiced by part of the local community and remain open to further discussions involving potential new tenants,” remarked the Prime Minister.

The local government representatives, led by Mayor Genci Nimanbegu, reiterated their call to annul the tender, amend existing lease agreements, and introduce a new Coastal Property law since the current regulations have been in place since 2008.

“The government does not identify any legal basis for annulling the tender; however, if any individual believes that a regulatory breach has occurred and can substantiate it, we are open to considering it,” the Prime Minister reaffirmed.

He suggested that if the Municipality representatives feel it necessary, they should initiate a dialogue among all involved parties to ensure a proper welcome for the upcoming tourist season.

Minister of Urbanism, Spatial Planning, and State Property, Slaven Radunović, pointed out that the bid openings have confirmed the need to renew the tender process, as the state stands to gain significantly from rental income compared to last year, and he will inform the public once the procedure is completed.

Locations for which “Eagle Hills” has submitted bids

“Eagle Hills” submitted a lease bid for the beach area marked as 10E (located on Velika Plaza, 170 meters long) with a minimum seasonal lease price of 69,445 euros, offering 108,000 euros.

For leasing a portion of Velika Plaza (location 10F), spanning 266 meters with a minimum price of 68,350 euros, the Arab company’s offer was 106,000 euros.

Its bid included a lease for another section of Velika Plaza (location 10G), 173 meters in length with a minimum price of 62,255 euros, coming in at 97,000 euros.

For leasing another section on Velika Plaza (location 10H), measuring 165 meters with a minimum price of 52,396 euros, Eagle Hills Montenegro offered 81,500 euros.

For a 140-meter section of Velika Plaza (location 10I), starting at 40,097 euros, their offer was 62,500 euros, while a neighboring stretch (location 10J) of 100 meters with a starting price of 30,320 euros saw an offer of 47,000 euros.

Additionally, a bid was made for a 10-meter section on Velika Plaza (location 1N20) which started at 2,327 euros, with a final offer of 3,625 euros. Another bid for a beach on Velika Plaza (location 10N2), where nine offers were received, with a starting price of 28,952 euros, saw the Arab company bid 45,000 euros.

For a beach on Velika Plaza (marked 308K) with a starting price of 124,945 euros, Eagle Hills’ offer was 194,000, which, as “Vijesti” confirmed, was not the highest bid.

For the Velika Plaza beach (location 10L), which stretches 304 meters with a starting price of 110,112.5 euros, “Eagle Hills Montenegro” proposed 181,000 euros, while its bid for another beach (location 10M) that started at 107,990 euros amounted to 168,000 euros.

Moreover, the company submitted a bid for another part of Velika Plaza (location 10N), which is 232 meters long with a starting price of 58,022 euros, setting an offer of 90,000 euros. For a beachfront area (location 10O) of 260 meters at a starting price of 94,589.7 euros, their bid was 147,000 euros.

For the beach on Velika Plaza (location 10Q) starting at 49,657 euros, “Eagle Hills Montenegro” offered 77,000 euros, and for the beach (location 10P), which is 205 meters long with a starting price of 56,820 euros, the bid was 88,500 euros. For another 260-meter stretch starting at 82,440 euros, they proposed 128,000 euros.

“Eagle Hills Montenegro” made an offer of 91,500 euros for a bathing area on Velika Plaza (location 10R1) starting at 58,770 euros, also bidding on a neighboring area (location 10R2) with a starting price of 40,602 euros and an offered amount of 63,000 euros.

The Arab firm also learned of interest in a section of Velika Plaza (location 10S1), which is 200 meters long and has a starting price of 46,653 euros, with an offer of 72,500 euros.

Although they have submitted bids for 19 beaches on Velika Plaza, “Vijesti” has evaluated, after reviewing competing offers, that it is improbable for “Eagle Hills Montenegro” to acquire even half of their interested sites, given their bids for individual beaches are lower than those of other contenders.

Local parliament’s Civic Movement URA representatives submitted a request to Municipal Assembly President Ivana Popović to urgently call a session to address the issues arising from the beach rental tenders.

Constitutional Court to decide on tenants’ initiative

Yesterday, Nimanbegu appealed on Facebook for the Constitutional Court to expedite ruling on the tenants’ initiative regarding the 20 beaches in Ulcinj.

“This is especially crucial as it pertains to public interest, and any resolution aimed at preventing further governmental misconduct by the Coastal Zone, which could adversely affect the citizens of Ulcinj,” he stated.

In the tenants’ initiative submitted to the Constitutional Court, they argue that the Coastal Zone’s actions announcing the tender were based on a now-defunct law, namely the Law on Spatial Planning and Construction of Facilities.

A decree enacting the new Law was issued by President Jakov Milatović and published in the Official Gazette on March 4.

“Article 146 of that law, paragraph three, indicates that the program for temporary facilities must be developed within 12 months from the law’s enactment. Once this program is established, those adopted under the prior law will become void,” their statement outlined.

He’s offering six million for Valdanos, despite a blocked account.

Arben Nimanbegu from Ulcinj has made an astonishing offer of six million euros to lease a beach in Valdanos, despite setting aside just 15,500 euros for the same location in the annex to the 2023 contract with Morski dobro, excluding VAT.

This information was provided to “Vijesti” by multiple sources involved in the tender.

“His proposal received 75 points based solely on price. The second-highest bid was from ‘Valdanos Z&M’ at 28,000 euros, and the third was from ‘Explorer’ at 45,000 euros. ‘Valdanos Z&M’ scored 0.35 points for price and an additional 2.5 points due to references, while ‘Explorer’ only garnered 0.56 points,” a source disclosed to “Vijesti.”

Records from the CRPS show Nimanbegović as a businessman operating with the name “Sur Valdanos” in the beach furniture sector. He was registered in April 2019 and removed his registration on January 15, 2020, still owing 8,792 euros, which creditors are attempting to recover through forced collection.

He subsequently re-registered in June 2021, with this debt persisting.

According to “Vijesti” sources, such instances—as well as recent situations in Budva where certain entities also presented millions for the lease of the “Coco-Beach” and “Lučica” beaches—are perceived as maneuvers by previous tenants to retain their locations.

“The crafty strategies employed by previous tenants to sustain their beach properties, as seen in Ulcinj and Budva with astronomically high offers, are not uncommon in the tender processes of the Coastal Zone, echoing patterns from previous years, particularly where there are lucrative opportunities,” claimed the source.

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