Legal Challenges Related to the Development of Marina Projects in Montenegro

1. Legal Challenges Related to the Development of Marina Projects in Montenegro Publicenterprise for coastal zone management of Montenegro Budva. Ul. PopaJolaZeca, MONTENEGRO www.morskodobro.com

2. LEGISLATIVE FRAMEWORK • Coastal Zone Law • Law on ports • Law on concession • The Law on State Property • Law on Tourism • By-laws and Regulation

3. COASTAL MANAGEMENT IN MONTENEGRO • 1992 established Public enterprise for coastal zone management • Adopted Coastal Zone Law (public maritime domain) • Sea coastline is public asset and state ownership • Coastal land can only be rented in accordance with plans and programmes adopted by the Governament • Rent collected from the coastal zone has to be reinvested into the management of the coast • 2007 Spatial Plan for the area of special purpose – public maritime domain • New Coastal Zone Law in preparation • Spatial plan for coastal area in preparation

4. PORT MANAGEMENT IN MONTENEGRO • Port management in Montenegro is regulated by the Law on ports • Ports of national importance – Port Authority of Ministry of Transport and Maritime Affairs • Ports of local importance – Public enterprise for coastal zone management (JP Morsko dobro) • Decision on determing the ports by importance assigned 7 ports of local importance are managed by JP Morsko dobro • Problems with the obligaton to implement the concessions for ports • Problems with legal use in ports • Usage of ports is not regulated (problems with local boats berths) • Absence of sublegal (by-law) regulations etc.

5. PORT OF BUDVA PORT OF KALIMANJ 42°16ʺ55ʺN 18°50´29ʺE 42°25ʺ45´N 18°42´07ʺE -approximately 400 berths - 337 berths - beside nautical berths – includes only berths for local boats port includes local boats berths - implementation of the concession is in progress

6. PORT OF PORTO MONTENEGRO PORT OF SHKVER 42°43’34’’ N  18°69’35’’ E 42°27ʺ04ʺN 18°32´06ʺE - only nautical berths - nautical berths and local boat berths - luxurious marine - mooring site for 40 berths up to 25m length - It is an international port for yachting tourism - accommodate taxi boats up to 30m length. • 450 berths, maximum length up 250m. -problems with legal use of maritime domain • long term contract

7. PORT OF ZELENIKA PORT OF RISAN 42°27´05ʺN 18°34´19ʺE 42°30´44ʺN 18°41´44ʺ - Spatial plan -Merchant port of Zelenika - Spatial plan - Merchant Port of Risan - port for international maritime affairs - settled nearby cruising port of Kotor - problems with legal use of maritime domain - Initiative to change into nautical port

8. Law on ports • Usage of ports – Concession • The process for the concession of the port of local importance is initiated by • Public enterprise for coastal zone • management • Annual Plan of Concession is prepared by • Public enterprise for coastal zone • management and adopted by Governament • of Montenegro

9. PERIOD OF CONCESSION Collision between laws: • Law on ports • Concessions for using port or parts of the port, port infrastructure and superstructure shall be granted for a period of 30 years  - adpted by the Government • The concession for the provision of port services shall be granted for a period of 10 years. • The concession for the provision of port services, which includes investments may be granted for a period of 30 years.  • Duration of the concession may be extended for a period for which the concession holder could not use the concession due to the force majeure. • Lawon concession • Decision on granting a concession for a period no longer than 30 years - adopted by the Government • Decision on granting a concession for a period no longer than 60 years - adopted by the Parliament • The concession may be extended after the expiry of the original contract period for not more than half of the period prescribed in the concession agreement

10. Criteria for evaluation depending on the subject of the concession:  • The term of the concession • offered amount of concession • offered Tariff provide services  • - Reference bidders : • technical and / or financial conditions; • previous experience in the implemetation of concession • activities andothers.  • Service Quality  • - Program and degree of environmental protection and • measures to improve energy efficiency- Other criteria established by the grantor

11. According to the concession contract the concessionaire pays a concession fee. Law on Ports defines: Users of nautical ports (marinas) pay for services in ports 1. Fees for port services is income of the consessionaire2. Fees for docking, demurrage and anchorage 2.1. The ports of national importance fees are income of the State Budget 2.2. In the ports of local importance fees are income of Public enterprise for coastal zone management Fees for docking, demurrage and anchorage are used for reinvesting in new or existing maritime infrastructure in accordance with the Law

12. Law on ports (article 12) • In ports of local importance maximum amount of fees for port services determined by Public enterprise for coastal zone management, taking care not to affect the public interest and the business of the concessionaire • The concessionaire is obliged to make public the price list for each type of port services

13. OTHER MARITIME INFRASTRUCTURE (docks, mooring sites, traditional small infrastructure in Boka bay “ponte , mandraći”) • Marine structures which do not have a legal status of the port (docks and moorings) • Parts of Coastal Zone can be made available for the use of physical or legal person, domestic or foreign, for the economic or other permitted activities or for mooring of the vessel (Article7 of Costal zone Law)

14. Renting of coastal zone is implemented by: • - Sesonal contracts or • Longterms contracts • Based on by-law act of Law on port: • -Regulation on maintaining orderin ports • and on other parts of the coastal sea and • inland waterways • JP Morsko dobro issues: • CONDITIONS FOR EQUIPMENT AND MAINTENANCE OF PUBLIC ORDER AT SEASONAL DOCKS AND MOORINGS

15. Ports of local importace and other maritime infrastructure consist: • Local boats berths: • Small boats (barke) • Taxi baoats • Fishing boats • Nautical berths: • In order to protect the interests of the local boats berths, based of the article 9 and article 12 of the Law on portsPublic enterprise adopted: • The criteria for determining the amount of fees for docking and mooring the vessel in the ports of local importance and other maritime infrastructure

16. INVESTMENT PROJECTS • projects made for 30 years • Currently three large investment projects are at the phase of realization through the contracts with Public Enterprise for coastal zone management • Each project contains building of marina • Use of the marinas is defined by urbanistical and technical requirements and by building permits

17. Marina Lazaret provides also zone for fishing boats berths • Currently Marina Kumbor is at final phase of building • Initiative for declaration of nautical port • Administrative steps for declaring a port in Montenegro: • Determine port according to the importance (local or national importance) • Determine port according to the type maritime traffic (open for internaional or domestic traffic)

18. LEGAL CHALLENGES • 1. Spatial plans and legislative framework is not harmonized • Spatial plan for coastal zone area (2007) defines commercial moorings and marinas, for which no legislative regulation exist • Law on ports regulates only ports. There is no legal regualtion for other maritime infrastucture. • Law on Tourism partially regulates ports of nautical tourism – marinas and yacht • Sublegal act of Law on Tourism: Regulation on the types of nautical tourism, minimum technical conditions and their categorization • – classifies other maritime infrastrucure (terminology is not harmonised between Law on Tourism and Law on Port) • - offers terms and conditions only for marinas categorization

19. The weakness of the legislation: • Lack of regulationin certain areas • Application in practice requires different organisation and additional staff within the Public enterprise for coastal zone • management • 3. Identify and define objects along the coast with regard to the activities: renting of bearths, chartering, dry marinas, ship repairs, shipyards, etc. • 4. Classify other maritime infrastructure • Define usage (marina, dock, mooring...) • Type of useage (commercial usage, community usage (local boat berths), yacht clubs usage, fishing boat usage etc)

20. 5. Standardize terms and conditions to be implement for the each ports and other maritime infrastructure(ports, marinas, moorings, docks, dry marinas etc.) • 6. Approval for the implementation of requirementsfor facilities7. Permit or license for work • 9. Harmonization of spatial plans and legislation in terms of terminology and definition • 10. Solve problems with legal use of public martime domain • 11. Jurisdiction of the inspection competencies - need for coopearation of different inspections

21. THANK YOU FOR YOUR ATTENTION www.morskodobro.com Public enterprise for coastal zone management of Montenegro