Port Authority of Dubrovnik Again Terminates Contract with Concessionaire of Passenger Terminal

Total Croatia News

The concessionaire was supposed to operate a passenger terminal in Dubrovnik.

The Governing Council of the Port Authority of Dubrovnik decided on Tuesday to once again terminate a preliminary contract with concessionaire Dubrovnik International Cruise Port Investment (DICPI) for the passenger terminal in the port of Gruž, reports politikaplus.com on February 14, 2017.

The decision came after the Ministry of Sea, Transport and Infrastructure a few weeks ago partly adopted an appeal filed by DICPI.

Member of the Governing Council Marko Potrebica is convinced that the decision will not be overturned this time. We had two options: to initiate an administrative procedure that would probably take over a year, or to adopt a new decision on the termination of the preliminary contract. We have adopted a new decision where we noted that the contract is being terminated as of 15 July at 00.01 am, said Potrebica. He added that the Council in its explanation had removed all the ambiguities which the Ministry noted in its explanation for the annulment of the initial decision.

According to him, the new decision protects the national interest and interest of citizens of Dubrovnik, and sends a clear message that the current model for construction of the terminal will not continue.

The government recently dismissed some members of the old Governing Council of the Port of Dubrovnik. At the end of January, it dismissed former president Žarko Koboević, and members Željan Matić, Jelka Musladin, Nina Perko and Nikola Beusan. The government appointed as the new president Kristijan Pavić, and as new members Marko Potrebica, Jelka Musladin, Baldo Tomašević and Sven Jesenković. In addition to them, members of the Council are director of the Port of Dubrovnik Božidar Memed, as a representative of the concessionaire, and Andro Vlahušić, as a representative of the Town of Dubrovnik.

At its last session, the old Governing Council adopted a decision to initiate administrative proceedings against the decision of the Ministry, but the new Council has made the new decision, which means that it has abandoned the administrative proceedings.

The new decision establishes that, as of 11.59 pm on 14 July 2016, the parties did not execute the final and agreed concession contract for the Gruž passenger terminal, and that the preliminary concession contract for the terminal is terminated as of 00.01 am on 15 July 2016.

Today’s decision restores the old decision of the Governing Council, which on 20 July terminated the preliminary contract since the text of the main contract was not agreed by 15 July 2016, which activated a provision about termination of the contract without obligation for any of the parties.

The deadline for the conclusion of the draft contract expired in April last year, but after its first approved extension, DICPI, founded by Global Ports Holding from Turkey and Bouygues Batiment International from France, asked for a new postponement to 1 November, which was not accepted. Transport Minister Oleg Butković, who was the minister then as well, said earlier that the preliminary contract was terminated, among other reasons, because DICPI sought guarantees from the government about the terminal project, which was completely contrary to the conditions of the concession tender.


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