Romanians expect Arab billionaire to formally withdraw from beach deal

Although Abar has stated several times that he will withdraw from this project and that his participation in the tender has been “malpractice”, the withdrawal has not yet become official, Ulcinj municipality Deputy Chairman Petar Deliq tells Radio of Free Europe.

If Albar withdraws, as he warned again in mid-May, then we expect the second-ranked bidders to sign contracts to be invited,” said Delic.

The tender included about 60 beaches of Ulcinj's revival. The Albarri company submitted bids for 19 of them, and nine won them as the best bidder.

In most cases, his offer was about 5,000 euros higher than that of the second bidder,” adds Delic.

Negotiations With the Albarbar Company

Meanwhile, one of the previous tenants, whose name is known by editorial, has indicated about REL that part of the tender participants are negotiating with representatives of the Albar Company for bank guarantees.

In addition to the offer, each participants in the tender should also present a bank guarantee at the value of the original price of each location separately. If the first bidder withdraws, the public company Morsko Dobro activates these guarantees.

According to this company, the guarantee for the rent of nine beaches from the company “Eagle Hills” is about 600,000 euros.

One of Albar's retirement options is to share this cost with the second-ranked bidder, according to the same source.

Because of the ongoing negotiations, the source that requested anonymity did not provide more details, adding that “everything would be clarified” later on May 31st.

The company “Eagle Hills” did not answer REL questions about what specifically and what conditions are negotiating with former tenants.

Your rules

If Albar officially withdraws from the four-year contract for the rent of nine beaches, Morsko Dobro will activate bank guarantees and contract with second-ranked bidders.

As for transferring the contract to a third party, the public company says it is possible only with their initial consent.

Subcommittee ʹ operating through another side is allowed only after signing the contract, and the tenant remains responsible for all contractual obligations.

In this case, the tender guarantee is not enabled, but in case of violations, contractual guarantees (chiidbena guarantee) a bank commitment to pay the guaranteed amount if the tenant fails to meet the obligations.

The Arab businessman has not explained why he participated in the tender he's withdrawing from, and didn't answer the question of REL for the reasons for this withdrawal.

From mega-project beach rents

Economist Mirza Krniq from the “Movement Preokret” says that the motives of this action are not clear, while numerous dezinforms vary from day to day in the opinion.

He recalls that Abar's company applied for the tender after the deadline was extended and links this to later announced plans for construction in the Big Beach background.

It seems that everything was prepared for a larger project: construction in the Big Beach, giving state land, providing infrastructure and adopting laws with investor interests. The positive is that opinion came together and exerted just pressure on the prime minister,” praises Krniq.

The Albarni company applied for the tender only after the initial deadline (February 4th) was extended for another seven days. Just two days after that, “Eagle Hills Montenegro” with one euro capital was registered.

According to “Fidelity Consulting” analysis, the company provided documents and 19 bank guarantees worth 1.85m euros for several days.

After the publication that the EHM was ranked first for nine of the 19 beaches, Ulcinj residents and authorities protested triple higher prices and regulations favouring major companies to local operators.

At the end of March, the government announced that, at the initiative of Prime Minister Spajiq, Abar would pass the beaches won by local entrepreneurs.

During his visit to Ulcinj, Spajic said that Albar has a <x0vision for the development of the Great Beach”. It is about an area of 13km where 30 billion euros will be invested, according to the warnings.

This mega-project is part of a co-operation agreement between Montenegro and the United Arab Emirates in tourism and real estate approved in the Assembly on 23 April.

But the agreement has been rejected by civil society, activists and local authorities in Ulcinj, who claim it conflicts with the Constitution, laws and tender procedures.

Montenegro's president, Jakov Milatovic, returned the agreement for review in the Assembly, raising concerns about suspending local laws and lack of risk and benefit analyses.

Revote in the Assembly is scheduled for 29 May.

Suspicions for manipulation with high beach bids

This year's tender was also marked by astronomical offers for some of the small beaches in the Budva revival.

Unbelievable bids have been submitted for 15 locations, up to 6m euros. No contract has been signed for these locations.

Morsko Dobro says that some bidders were not meant to make offers but to influence order.

A very high-priced bidder wins the maximum points, while the previous tenant because of experience ʹ ranks second. After the first bidder withdraws, the second can win the contract at a minimum price.

In these cases, bank guarantees have been activated, and the public company maintains the right to announce new tender with additional protection regulations.

Morsko Dobro's director, Mladen Mickey, has asked the Special Prosecutor to investigate these suspicious offers, but so far there has been no official reaction.

Montenegrin beaches have 563 public beaches, 70 hotel beaches and about 1,500 temporary items in the Morsko Dobro area. From renting these resources, about 35m euros are expected this year. /Periscope/