Dr. Nina Perko, Ph.D. Ministry of the Sea, Transport and Infrastructure

1. On theprocedures for theaward ofconcessionsfor the ports of nautical tourism in theRepublicofCroatia – de legelata et de legeferenda Dr. Nina Perko, Ph.D.Ministry of the Sea, Transport and Infrastructure

2. THE SIGNIFICANCE AND SIZE OF MARITIME DOMAIN • The Croatian coast is 6278 km long, of which is 4 398 km the length of the island coast • The inner sea waters and territorial sea extend on a surface amounting to 31.479 m2, the surface area of inland waters is 12,498 km2, the territorial sea is 18,981 km2, and the surface of the Republic of Croatiais 56,488 km2 • Due to its significance and the surface, maritime domain is one of the most valuable parts of the territory of the Republic of Croatia

3. LEGAL ACTS The Constitution of the Republic of Croatia The Concession Act Maritime Domain and Seaports Act Regulation on the Determination of Maritime Boundary Regulation on the procedure for granting a concession on a maritime domain Regulation on procedure for granting concession permits

4. MARITIME DOMAIN AND SEAPORTS ACT • Adopted in 2003, it replaced the 1995 Maritime Actand 1994. Maritime Code • Contains special provisions - on maritime domain and seaports • Retained the traditional definition of maritime domain and seaports The law distinguished general, special and economic use: - General use of maritime domain shall mean that anyone has the right to use maritime domainaccording to its nature and purpose. - The special use of maritime domain is any use other than the general or economic use of the maritime domain

5. OBJECTIVES OF PROVISIONS • Main goal: Ensuring balance between the protection of the maritime domain and its economic use • Other goals: • Creating conditions for investment in maritime affairs, especially in port superstructure • Respect and promotionof the highest standards regarding environmental protection of the maritime domain • Systematic and precise legal regulation that monitors contemporary, generally accepted European and world achievements, to provide the necessary preconditions for economic development • Re-examine port management models open to public traffic

6. CONCESSION • Concession encopasses the right by virtue of which a part of maritime domain is partly or entirely excluded from general use and conceded to natural and legal entities for special use or commercial exploitation • Concession as a right unites multiple types of rights • The concession relationship arises at the time of signing the contract

7. THE CONCESSION ACT • The concession contract for the right to exploit a common good or other goods is acontract which regulates the exploitation of a common or other good of interest to the Republic of Croatia, defined as such bythe law; • Public works concession • Public service concession

8. CONCESSIONS ACCORDING TO THE NEW MARITIME DOMAIN AND SEAPORTS ACT • It is proposed to change the jurisdiction and the concession- granting procedure in the maritime domain in order to comply with Concessions Act, as well to implement meansto decentralize maritime management • The subdivision of the concession on the maritime domain is aligned with the Concession Law, which establishes: • concession for the right to exploit a common good, • public works concession, • public service concession • Defines the approval for the special use of the maritime domain • The concessionary permitis abolished; the permit for carrying out activities on the seashore, which is an administrative act, is being issued by the mayor, thereby strengthening the role of local government in the management of maritime domain

9. CONCESSION AWARD PROCEDURE • Intention notice to grant a concession under the Concessions Act is a decision based on public collection of bids for the award of a concession under the Maritime Domain and Seaports Act • The decision contains elements from the Concessions Act, but also encompasses special conditions pursuant to the Maritime Domain and Seaports Act • Expert commission for granting concessions under the Concessions Act is a group of professionals who evaluate bids for awarding a concession to a maritime domain • Preparatory Actions - Evaluation of the Concession Value • Drawing up tender documentation • The procedure starts with the announcement of the intention to grant the concession • All concessions are awarded based on conducted competition

10. TERMS OF OFFICIAL CONTRIBUTIONS The bidder must meet the following criteria: 1. that it is registered for carrying out the economic activity for which he is seeking a concession, 2. to have adequate technical, professional and organizational capacity for utilization of the concessed goods, 3. to have a guarantee for the undertakingof the plan and program needed for the realization of the concession, 4. that there are no unsettled liabilities from previous concessions, 5. That he has not been deprived of awarded concessions so far

11. SELECTION OF THE MOST ADVANTAGEOUS TENDER - CRITERIA • Concession Act accounts for selection of criteria: quality, which includes technical merit, aesthetic, innovation, functional and environmental characteristics, running costs and management costs, cost-effectiveness, after-delivery service and technical assistance, delivery date and delivery period or period of completion of works, price of the service for the final beneficiaries, the amount of the concession fee, orhighest fee offered for the concession. • Maritime Domain and Seaports Act- it will differentiate the criteria in relation to the type of concession, taking into account previous experience

12. LEGAL PROTECTION • The current legal solution is Administrative Disputes - Long-term Procedure • According to The Concession Act legal protection is ensured in accordance with public procurement regulations, which means that disputes are solved by the State Commission for Control of Public Procurement Procedures • Possibility of negotiating arbitration for disputes

13. WARNING MEASURES FOR IMPROVING THE VALORIZATION OF THE MARITIME DOMAIN • Strengthening both the general and individual awareness about the importance of the coastal belt • Regular review of concession conditions • Systematic settlement of the entry of the maritime domain in land registers • By acknowledging the specialty in the economic use of the maritime domain of various subjects (traditional from economic use)

14. Zahvaljujem na pažnji Thank you for attention