CONCESSION OF MARITIME DOMAIN IN CROATIA
Maritime domain is in general use, and a domain of special interest for the Republic of Croatia. It includes internal sea, territorial sea, the seabed and underground, parts of mainland intended for public use, and everything permanently connected to this part of mainland on or under the surface.
The maritime domain is governed, maintained and protected by the Republic of Croatia directly or through its counties and districts/towns. A special case of government and commercial use of the maritime domain is it’s concession to a private entity.
The maritime domain is intended for the general use by its nature or by prescription. The concession is a right under which a part of maritime domain is partially or fully excluded from general use and is given for special use and/or economic exploitation to physical and legal persons, registerd as an artisan. A concession may be granted for the economic exploitation of the maritime domain, or for the special use of the maritime domain.
The concession for economic exploitation of a maritime domain alows performing of economic activities, with or without using of the existing buildings and other structures on the maritime domain. The concession for special use and economic exploitation of a part of maritime domain can be granted to the user upon his request on the basis of a public tender.
In order to be granted the concession for economic exploitation of maritime domain a legal or physical person should meet the following conditions:
1. that he is registered for performing of a business activity for which he requests concession,
2. that he has at his disposal adequate technical, expert and organizational capacities for realization of the concession,
3. that he has a guarantee for realization of the plan and program for realization of the concession,
4. that all liabilities arising from earlier concessions have been settled,
5. that the concession has not been previously revoked.
Eligibility to the requirements of paragraph 2 and 3 shows with the study of economic feasibility, which includes the amount of investment and the amortization method.
The concession can be granted for a period from 5 to 99 years, depending on the purpose the required investment and it’s overall economic effects.
A concession for economic use of maritime domain and for use or construction of buildings of county importance can be granted by county government, for a period not longer than 20 years, while the preliminary procedure is conducted by the regional administrative office.
A concession for economic use of maritime domain, which includes building of structures of national importance is be granted by the Government of the Republic of Croatia for a period of up to 50 years, while the preliminary procedure is carried out by the Ministry. A concession that includes construction of new buildings of national importance, which requires major investments and its overall economic effects cannot be achieved within a period of 50 years, shall be granted by the Government of the Republic of Croatia for a period up to 99 years, with a consent of the Croatian Parliament.
2) CONCESSION APPROVAL
In addition to the concession, the legal institute that allows the economic use of maritime domain the concession approval. The concession approval is a document on the basis of which maritime domain is given to use to physical and legal persons for performing of activities that do not exclude nor limit the general use of maritime domain. Concession approval can be issued at request for a period of up to five years.
The activities for which a concession approval can be issued are determined by the Government of the Republic of Croatia, on the basis of the annual plan of management for the maritime sector. The activities for which was so far been possible to obtain a concession approval include transportation of passengers, boat rental, transportation of goods, beach cleaning, restaurants and shops (kiosks, buildings terraces etc), commercial and recreational activities (water parks, amusement parks, rental of umbrellas and chairs etc), sailing, boating, swimming, scuba diving, scuba diving training and others.
Concession approval can be given by the Concession Approval Council (hereinafter referred to as: the Council). The request must be submitted to the Council, through the town or municipal councils. The applicant may be any natural or legal person registered for the activity for which he requests concession approval.