If the government of Montenegro leases the Velika Plaža area to an investor from the United Arab Emirates (UAE), the expropriation of land in its hinterland would also involve parcels owned directly or through associated companies by Prva Banka, Zetagradnja, Pro-Cons, and Vile Oliva, according to an investigation by BIRN.
Official data analyzed by BIRN show that the Velika Plaža hinterland covers an area of 2,070 hectares, with about 22% of the total area owned by the state or state-owned companies. This includes 360 hectares of land in state ownership, and around 110 hectares and 43,000 square meters of buildings under the state-owned hotel company “Ulcinjska Rivijera,” which also includes a nudist settlement on Ada Bojana.
Private companies own around 54 hectares of land, about 3% of the total area, while the remaining 75% of the land belongs to individual citizens.
Prime Minister Milojko Spajić signed an agreement on March 28 to develop tourism and real estate projects in southern Montenegro and ski resorts in the north. This agreement excludes public procurement laws, raising concerns about transparency and compliance with Montenegrin legislation.
Before the signing, Spajić stated that the UAE was willing to invest €30 billion through the company Emmar Mohamed Alabar to develop a tourist complex on Velika Plaža. Alabar has been involved in controversial projects such as Belgrade Waterfront, Sunčani Hvar in Croatia, and Yachts and Marina in the port of Durrës in Albania.
Prior to the agreement, Alabar’s company, Eagle Hills Montenegro, secured a four-year lease for nine out of 19 beaches on Velika Plaža for a total offer of €1.85 million.
Local protests have erupted in Ulcinj, urging transparency and environmental protection. Montenegro’s President Jakov Milatović and some civil society representatives have called for postponing the ratification of the agreement until the European Commission provides its opinion.
Data from BIRN also shows that the Zatvoreni investicioni fond (ZIF) Trend owns 160,000 square meters of land in the Velika Plaža hinterland, valued at €8.93 million. The majority shareholder in this fund is the construction company Zetagradnja, owned by businessman Blagota Radović.
Additionally, Prva Banka, through its subsidiaries, owns over 70,000 square meters of land, including areas near the Bojana River. The bank’s largest shareholder is Aco Đukanović, the brother of former president Milo Đukanović.
There are also several other companies, such as Pro-Cons and Argos, that own significant parcels in the region, with plans to develop luxury resorts. These projects are being undertaken on land previously belonging to the state-owned Ulcinjska Rivijera, which has already leased parts of Velika Plaža to other companies.
The agreement with the UAE foresees the expropriation of both private and state land, sparking concerns about transparency and fairness in land acquisition. Critics argue that the agreement allows for the potential sale of land under the guise of leasing, with minimal legal safeguards for local landowners.
Infrastructure development for the project, including roads, water, sewage, and electricity, is also part of the agreement, which critics warn could cost the state as much as the entire project.
Experts, including Mladen Grgić, argue that the lack of local involvement in the decision-making process and the risk of legal disputes could block the project and lead to costly delays. Additionally, there are concerns that the project’s financing could end up being a significant burden on Montenegro’s budget.
