Methods of realization of the Project

The idea for the realisation of the Pašman Resort project is to develop attractive high-end tourism potentials.

The implementation of the Project will be performed in two phases. In the first phase (Preparation), the Public Tender will be executed and the Investor will be chosen, whereas the second phase (Realisation) will include the construction of the planned facilities stipulated by the Project’s scope. In the first phase, the Project is developed by the Municipality of Pašman (the land owner) in cooperation with the Consultant Company which prepares the bidding documentation for the selection of the Investor and deals with all the activities until the selection of the Investor is completed.

After the Public Tender and the selection of the Investor have been carried out, the Project is to be realised through the “right of construction model“. The Consultant Company provides all necessary financing of the services and activities in the preparation of the Project until the Investor has been selected. After the selection, the Project will be funded by the Investor’s equity or credit means.

An additional goal of the Pašman Resort project is the inititation of interest for construction of a bridge which would connect the northeastern part of Pašman island with the mainland (in the area of Biograd on Sea), with a length of 2,2 km. The bridge, already designated in the spatial plans of the Republic of Croatia, should ensure further positive effects for tourist resort operations, as well as for overall development of economic and social categories on the islands of Pašman and Ugljan.

The Municipality of Pašman as the land owner will enter into an agreement on the establishment of the “Right of Construction” with the best bidder in the Public Tender. In this stage the potential investors are expected to propose the annual fee for the “Right of Construction” for the project land. Investor (i.e. its SPV) will be granted the “Right of Construction” on approx. 200 hectares for a period of 99 years (tourist zones T, golf zone R1 and logistic zone K).

The Investor (i.e. its SPV) is obligated to pay the Municipality of Pašman (the land owner) an annual fee for the “Right of Construction” which will be defined in the Public Tender when an investor (i.e. its SPV) is selected.

The Investor (i.e. its SPV) will, after construction, be the owner of all objects (hotels, villas, apartments, restaurants, recreational facilities…) while the owner of the land will remain the Municipality in accordance with the Law on Ownership (Property Act). After expiry of the “Right of Construction”  (99 years), the Municipality is required to reimburse the Investor (i.e. its SPV) for the increased land value. If it turns out that, based on the provisions of the Law on Ownership (Property Act), the Municipality, as the owner of the land, is obliged to pay the Investor (i.e. its SPV), as the holder of the building right, compensation for the increased value of its real estate, the relations of the contracting parties will be regulated by a separate contract in the last year of this Contract in accordance with the then valid regulations.

Upon final expiry of the period for the use of the “Right of Construction”, the Investor (i.e. its SPV)     will return the land into the Municipality’s possession and deliver the buildings to the Municipality’s possession and ownership.