Ćorić Gave 30-Year Concession for Hydroelectric Power Plant in Croatia to Security Company

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Photo: Marko Lukunic/PIXSELL
Photo: Marko Lukunic/PIXSELL

Some entrepreneurs claim that they were ready to give twice the amount, but they simply did not see the tender. Despite everything, Minister Ćorić signed the decision to award the hydroelectric power plant to the company 007 Miletić for 30 years, reports Telegram.hr.

The Minister of Economy and Sustainable Development, Tomislav Ćorić, awarded a concession for the use of the hydroelectric power plant on the Jadro river in Solin to the local security company 007 Miletić, which was registered for the production and distribution of electricity three months ago.

This is the end of the tender for the award of a 30-year concession for this small hydropower plant, which has a capacity of up to 5 megawatts and which, according to Ćorić’s decision, was awarded to a company that has not been involved in the energy business. The competition was out of the public spotlight because it was announced on Christmas Eve and only in one place, which is why there are now complaints about its regularity.

What has 007 Miletić been doing so far?

The company 007 Miletić, chosen by Ćorić, has been known in the security sector for years, and in 2014 it received a 30-year concession for filling water in Vrlika. The founder of the company is Nediljko Miletić, while his wife Zdravka, also appears as a procurator.

The Ministry of Economy and Sustainable Development has not wanted to answer Telegram for 11 days why Mr. Miletić and his company were chosen. While the tender was still in progress, they explained to Telegram that it was “based on the Law on Concessions and the Decree on the Conditions for Granting Concessions for the Economic Use of Water”.

The competition was announced last year on Christmas Eve

It was also noticed the fact that the tender for this concession was published on December 24 last year, on Christmas Eve, and only on the pages of the Electronic Public Procurement Notice (EOJN). Numerous announcements about concessions can be seen on the official website of the Ministry, which is the grantor of the concession, but this tender, mysteriously, has not been published.

It was not in other media either, which is now being questioned by companies complaining about the tender. Quite precisely, the Law stipulates that such a tender is published in the EOJN, and it can also be published “on the website of the concession grantor as well as in other media.” The Decree on the Conditions for Granting Concessions for the Economic Use of Water stipulates that “a public invitation shall be published in the Electronic Public Procurement Notice of the Republic of Croatia, and the day after on the website of the concession grantor”.

Appeals against the decision of Minister Ćorić

The Ministry of the Economy and Sustainable Development told Telegram that they respected the Law on Concessions when publishing, and the Decree on the Conditions for Granting Concessions for the Economic Use of Water when compiling tenders.

However, two complaints that have now reached the State Commission for the Control of Public Procurement Procedures point to a number of omissions. Among them is the controversial announcement of the tender only in the EOJN. One should not lose sight of the fact that this is a concession for as long as 30 years.

By the way, as a one-time fee for the concession, the Ministry asked for HRK 228,608, and another percent per year of the realized average price of electricity produced in each year of use. The Ministry determined HRK 14,288 in the tender as the minimum amount. Complaints about the selection of 007 Miletić point out that these concession fees are too low given the price of electricity, and that some bidders were willing to pay twice the amount. But they just didn’t see the competition. Despite everything, Minister Ćorić is signing a decision on the selection of a security guard company from Solin which has only recently re-registered for the production and sale of electricity.

Miletic’s wife also competed

Telegram found out that in addition to Miletić, the companies Primula company, owned by his wife Zdravka Miletić, and the company Starac doo from Kaštela also applied for the tender. Primula company also registered for energy production and trade only in January this year, while Starac doo is not even registered.

How seriously Ms. Miletić entered the fight for the concession on the river Jadro is evidenced by the fact that despite the estimated value of HRK 228,608, she was willing to pay only HRK 56,200. The company Starac offered 300 thousand kunas, and 007 Miletić 265,200 kunas. As the commission of the Ministry determined that the offer of the company Starac was not correct, since the documentation was not properly numbered or bound, Miletić remained the only one who met the conditions.

However, the company Starac states in the complaint that the Ministry did not ask them at all to supplement or clarify their bid, nor to clarify it within at least five days, as prescribed by the Public Procurement Act. They consider the Ministry’s explanation that their offer was not properly bound to be insufficient.

For more, check out our politics section.


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