Privatisation Council: Ulcinj Salina remains state property

On 21 July 2021, the Privatisation and Capital Projects Council held its third session, chaired by Prime Minister Zdravko Krivokapić, the President of the Council.

Acting on the request of bankrupt Ulcinj-based salt works Bajo Sekulić of 2 November 2011 for giving the opinion that the company paid market value for the real estate in the privatisation process, the Council unanimously established that no conditions were met for the conversion of the right of use into property right, due to the undisputed state ownership of the company's land.

Deciding on this matter, the Council took into account the detailed data and findings of the Commission's Market Valuation Report, formed as the Council's permanent working body on 30 December 2020, whose first task was to determine within 60 days the true value of company at the time of privatisation.

By examining the entire documentation submitted by the applicant, as well as the documentation obtained by the Commission for the assessment of the market value of assets from the competent state authorities, in particular the documentation from the period of transformation of the Company, the privatisation documents of salt works Bajo Sekulić and the documentation from the bankruptcy proceedings, it was found, among other things, that the total area of 14,524,051m² was registered as the property of Montenegro, while the company has the right to use an asset.

The Council found that no conditions were met for converting the right of use into the property right because:

1) Estimated market value of the land registered in Ulcinjsko Polje with a total area of 14,524,051 m² amounts to EUR 157,513,372.00.

2) The equity of Ulcinj-based salt works Bajo Sekulić in terms of real estate, during privatisation, amounted only to the amount expressed in the company’s book value of 2,142,152.00 euros, and did not cover the land of 14,524,051 m² registered in Ulcinjsko Polje.

3) The estimated amount of securities – the shares of Ulcinj-based salt works Bajo Sekulić, of more than 2,000,000.00 euros, corresponds only to the market value of the company’s property, while according to no basis corresponds to the value of the land registered in Ulcinjsko Polje of 157,513,372.00 euros.

4) The land from Ulcinjsko Polje with a total area of 14,524,051 m² represents the state property of Montenegro, both before the privatisation of salt works Bajo Sekulić in Ulcinj, and after the formation of the company.