The process of desalination of seawater in Zavala is under the attention of the proper authorities
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The process of desalination of seawater in Zavala is under the attention of the proper authorities
The object of attention was the documentation of another investment project in Budva - the process of desalination of sea water in Zavala. Among other things, the report on the financial audit of the Budva municipality account for 2014, conducted by the State Audit Office, showed that there were violations of the law. Last year, the municipality of Budva paid 763.986.53 euros for its obligations to the bank Hypo Alpe Adria Development, the obligations flowed from the joint guarantee agreement, which was concluded at the end of 2010. The agreement was concluded by the bank Hypo Alpe Adria, the seawater desalination company WTE Desalinizacija morske vode, the consulting company Mediteran WTE, as well as the municipality of Budva and JP Vodovod i kanalizacija.
The project on desalination of sea water from the very beginning was accompanied by numerous disputes, and the beginning of their company WTE Desalinizacija morske vode, with which the city water company in 2008 concluded a contract for water intake, the contract is currently subject to verification. Under the contract, it was planned that the city water supply company Vodovod will purchase 100 liters of secondary water over the four summer months at a price of 98 cents per cubic meter. In May and October, another 50 liters of secondary water would have been taken at a price of 88 cents per cubic meter. But, it happens that the municipality buys the share of the WTE Desalinizacija morske vode seawater desalination company, and transfers water authority to Budva to Mediteran WTE, in which the municipality has a capital of 49%.
A year and a half ago, the municipality of Budva became a full owner of the facility, thus, together with the city water supply company, took over all the debts. Then a new contract was signed, which Mediteran WTE signed with Hypo Alpe Adria Development and WTE Desalinizacija morske vode.
According to the report of the State Audit Company (Državna revizorska institucija, abbreviated DRI), the municipality of Budva on December 30, 2008 decided to join Mediteran WTE, thereby becoming the owner of 49% of the capital. On the same day, a decision was made on guarantees for a long-term loan of Mediteran WTE in the amount of 8.358.369.36 euros, of which EUR 5.3 million was intended for Hypo Alpe Adria bank.
All four parties signed a joint guarantee agreement at the end of June 2010: Hypo Alpe Adria banke, WTE Desalinizacija morske vode, Mediteran WTE, Budva municipality and JP Vodovod i kanalizacija (guarantors) .
The contract stipulated the amount of 5.3 million euros plus accrued interest of 372.399.47 euros, which totaled 5.672.399.47 euros on the day of signing the contract. On August 1, 2013 JP Vodovod i kanalizacija and the municipality of Budva concluded an agreement on delineation of obligations under a joint guarantee agreement with the aim of creating a new debt repayment plan.
The debt, at the date of signing the agreement, was 4.490.336,93 euros, of which JP Vodovod i kanalizacija's liabilities included the amount of 2.124.282.10 euros, and the obligation of the municipality of Budva included the amount of 2.366.054.83 euros.
The DRI report indicates that the audit found that it did not reach the point of signing a joint guarantee agreement, on October 6 last year a new agreement was signed between the municipality of Budva and the company JP Vodovod i kanalizacija to differentiate the obligations. The debt, at the date of signing the agreement, was 3.272.621.91 euros, where the municipal debt is 1.531.197.71 euros, and the company JP Vodovod i kanalizacija - 1.740.424,20 euros. The municipality, as of December 31, 2014, informed the authorities about the debt in the amount of 1.433.811.70 euros.
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