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GOVERNMENT OF MONTENEGRO MINISTRY OF SUSTAINABLE DEVELOPMENT & TOURISM

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PRELIMINARY DESIGN FOR WWTP CETINJE & SEWERAGE NETWORK WITH FACILITIES MUNICIPALITY OF CETINJE / MONTENEGRO

BOOK 5 WASTE WATER TREATMENT PLANT PART 5.6 PREVIOUS EXPROPRIATION STUDY

IOV10-17 IK CONSULTING ENGINEERS APRIL 2012 PAGE 1

GENERAL PROJECT CONTENT

No. NAME OF PROJECT PART

GEOTECHNICAL STUDY

HYDROLOGICAL STUDY ON RAINFALL AND FLOW

BOOK 1 GENERAL BOOK

BOOK 2 SEWAGE NETWORK

BOOK 3 ATMOSPHERIC NETWORK

BOOK 4 HYDRAULIC TUNNEL BELVEDER

BOOK 5 WASTE WATER TREATMENT PLANT (WWTP)

Volume 5.1 Process design

Volume 5.2 Hydraulic design

Volume 5.3 Architectural design

Volume 5.4 Mechanical design

Volume 5.5.1 Electrical design new TS

Volume 5.5.2 Electrical design electrical equipment for the treatment process and SCADA

Volume 5.5.3 Electrical design additional installations

Volume 5.6 Previous expropriation study Note: All general documentation of project is located in Book 1 General book.




TERMS OF REFERENCE




TABLE OF CONTENTS

1. INTRODUCTION AND METHODOLOGICAL APPROACH................................................................ 4

2. LEGISLATION.................................................................................................................................... 8

3. SOCIO-ECONOMIC ANALYSIS....................................................................................................... 14

4. REVIEW OF PLOTS PER OWNERSHIP, PURPOSE AND AREA.................................................... 15

5. FEE ESTIMATION FOR PIPELINES INSTALLATION (EASEMENT OF PASS) .............................. 19

6. PERMANENT EXPROPRIATION..................................................................................................... 20

7. FEE FOR CHANGING THE USE OF AGRICULTURAL LAND......................................................... 22

8. SUMMARY AND CONCLUDING REMARKS ................................................................................... 23

9. LITERATURE ................................................................................................................................... 25




1. INTRODUCTION AND METHODOLOGICAL APPROACH

Cetinje is by Law on Local Self-Government defined as the Capital of Montenegro.

Cetinje is located in South-East Europe, at 42 23' 27'' north latitude and 18 55' 45'' east longitude. It is situated in karst area (Cetinjsko field), dimensions of about 7 km, with an average altitude of 671 m. Cetinje is located 12 km air line from the Adriatic Sea and 15 km air line from Skadar lake. Today it is on the highway Podgorica Cetinje Budva, that opens it to trafic of the interior of Montenegro and the Montenegrin coast. Cetinje is 29 km far from Budva, and 31 km far from Podgorica, from the airport in Podgorica 37 km, from the airport in Tivat 49 km and 67 km from harbor in Bar.

FIGURE 1 CETINJE-GEOGRAPHICAL POSITION

Cetinje field was formed in the east karst-continental foothill of the mountain Lovcen, which highest peaks are Stirovnik (1749 m) and Jezerski vrh (1660 m) where mausoleum of Petar II Petrovic Njegos was built. From all sides, defoliated limestone slopes close view. Extremely karst field conditioned forming a couple of caves at the edge of Cetinjsko field. Their channels length, number of rooms and halls and cave decorations make them very attractive, especially Cetinjska in the town itself and Lipska near it.

Municipality of Cetinje encompasses area of 910 km2, or 6.6% of the total area of Montenegro (13,812 km2). The town itself occupies area of approximately 5 km2. According to the census of 2011, in the Municipality of Cetinje live 16,757 inhabitants, which makes 2.67% of the total population of Montenegro. In the town of Cetinje, there are 13,991 inhabitants. In terms of ethnicity, 90% of populations are Montenegrins.




At the territory of the Capital Cetinje there are two urban settlements (Cetinje and Rijeka Crnojevica) and 92 rural settlements.

Census 2011 data on population, households and dwellings show that in the area of the Capital Cetinje there is one settlement with more than a thousand inhabitants, then four settlements with more than one hundred inhabitants. Also, according to the available data, seven settlements are uninhabited. According to the census of population, households and dwellings, realized in April 2011, in urban settlements live 14,166 inhabitants and in other 2,591.

FIGURE 2 - CETINJE

In Montenegro there are waste water treatment plants that are in operation in Podgorica, Mojkovac, as well as several small systems at the Skadar Lake, while in other municipalities, most of the waste waters have been discharged untreated into the recipient.

Recognizing that the issue of wastewater management with the respect of appropriate standards, represents one of the prerequisites for environmental preservation, as well as increase in touristic offer quality, the Government has adopted two important strategic documents within this area:

Master plan for wastewater drainage and treatment for the coast of Montenegro and the Municipality of Cetinje (2005), for whose implementation in three phases should be provided over 280 million euros, and

Strategic Master plan for sewerage and waste water in the central and northern regions of Montenegro (2005), for whose implementation should be provided over 270 million euros.




The main objective of the Preliminary Design for Waste Water Treatment Plant Cetinje and sewerage network with facilities is improving the quality of groundwater in Cetinje and the water of Skadar Lake, reducing flooding caused by atmospheric water and improving environmental condition, especially groundwater and surface streams that flow into Skadar Lake.

The existing sewerage network of Cetinje was made as a mixed system. There are two main collectors which drain water into the Main pit: AC 600 going Boulevard Lenin and concrete collector 800 going Baja Pivljanina Street. The channel 600 exists from the factory "Obod" and his previous purpose was probably for industrial waste water of that factory. Channel 800 which is parallel to channel 600 accepts wastewater from the settlement Donji kraj (600), but in it there is one bottleneck section with diameter 300 at the stadium of FC "Lovcen" that should be replaced. Both main collectors come to the Main pit.

According to information gathered on the field, around 30% of households are currently cnnected to the Cetinjes sewerage network. Realistic assumption is that all households will be connected to the sewerage network at the latest in year 2020. It may be noted that most of the major tourist and industrial facilities being in operation are connected to the sewerage network (coverage of 100%). It is necessary to ensure that, under EU regulations, effluent or industrial waste waters discharged into the sewage network and delivered to the future WWTP have the quality with the maximal value of 300 mg/l BPK, which provides qualitative and sustainable operation of the WWTP.

Regarding planning document for the town of Cetinje there are General Urbanistiki Plan (GUP) from 2007 and Detailed Urban Plan (DUP) for the settlement Aerodrom, while the DUPs for settlements Donje polje and Donji kraj are in the process of preparation. This will cover much of the GUP Cetinje, while other DUPs are in the preparation phase. According to the Feasibility Study location of the future CWWTP is defined outside the area of GUP Cetinje, i.e. in the area of Cadastral Municipality of Dobrsko selo.

Within the preparation of the Preliminary Design it is envisaged the separation of the existing mixed system sewerage network into fecal and storm sewerage, which will be led from Cetinjsko field by special drains in future tunnel "Belveder" to the CWWTP, i.e. after the treatment, both waters will be led by combined channels to the Crnojevica River.

When proposing a solution for new collectors, the existing unique collectors, which are dimensioned to accept both, the storm and fecal waters, were left in the future for storm water transportation. For receiving the used fecal waters new collectors are designed, generally parallel with the existing one along the existing streets. On them will be connected all existing and future users. For areas which do not have built sewerage nor atmospheric network it is envisaged setting up of the same ones along the routes of the future main roads whose preparation of planning documents is in progress. For these pipelines in the expropriation study are envisaged investments for covering the expropriation costs. Also for the route of drainage pipelines to the CWWTP location in Dobrsko selo, it is defined a corridor seizing the space to set up these pipelines of cca 2,000 m2. For the very location of CWWTP in Dobrsko selo it is envisaged an expropriation of the total area of cca 1 ha, covering partially or totally 12 plots. These plots are not engaged now, i.e. meadows and pastures of 5th and 6th class, karst and rocks are on them.

Within the activities of the project, one of the tasks is to prepare an Expropriation Study (temporary and permanent), where a special emphasis will be given to the legislation analysis, expropriation zone shooting along the pipeline and in the area of facilities and definition of compensation value.




Here it should be noted that the Real Estate Administration of the Republic of Montenegro is in charge for implementing an expropriation process of the real estate for which the public interest is determined. Real Estate Administration will carry out the expropriation procedure at the request of Investors. Real Estate Administration is required to consult with property owners regarding the facts on expropriation, before issuing permits for expropriation. Put differently, determining the actual costs of expropriation will be possible only after the Commissions coming to the terrain, their evaluation and after completion of possible lawsuits related to determination of compensation for damages.

The result of this Expropriation Study will be, therefore, only an estimation (as accurate as possible based on available data) of expenses related to fees to the owners regarding the project implementation, so-called Previous Expropriation Study.

Grounds for assessing the expropriation expenses are laws, regulations and decisions governing this area, the data obtained from the municipality, the Real Estate Administration of the RoM, and Investor, as well as information obtained from the terrain through which the pipeline passes, i.e. where the future WWTP will be located.

Regarding the expropriation, the legislation defines the procedures related to land acquisition, that is compensation for damages to be caused within the project activities. The basic law is Law on expropriation. Also, important are: Law on state property, Law on ownership and legal rights, Law on state survey and real estate cadastre, Law on spatial planning and object construction, Law on agricultural land, Law on olive growing, Law on roads, Law on forests, as well as regulations and decisions that regulate the domain of fees related to the expropriation.

From the municipality is obtained the information regarding the methodology for determination of compensation for the easement of pass (pipelines installation), data on real estate prices, as well as the data on cadastral income ladders.

From the Real Estate Administration of RoM are obtained valuable data regarding the owners, purpose and size of the land.

Investor provided scanned geodetic plans of underground installations from year 1988, of scale R=1:1000. On such grounds, newly designed digitized route was added, based on which the data regarding plot numbers have been taken.

From the Investor are also obtained the data regarding land prices per cadastral municipalities.

The percentage of the reduction of land market price in order to calculate the compensation for the easement of pass was taken from the similar project in Montenegro (Regional water supply for Montenegro coast, Waste water treatment plant and sewerage network Bijelo Polje).

The calculations that are used for expropriation expenses assessment, as well as the necessary explanations are given in the following chapters.




2. LEGISLATION

2.1. LAW ON LEGISLATION (OFFICIAL GAZETTE ROM, NO. 55/00, 12/02)

According to the Law on expropriation, article 1, the expropriation is the deprivation or restriction of property rights on real estate when it is required by the public interest, with the compensation according to the real estate market value. Public interest for the expropriation can be determined by special law or a Government decision.

The real estate expropriation procedure, for which the public interest is established, is conducted by the republic administrative authority that is in charge for property and legal affairs (article 13).

By the expropriation, under article 4, it can also be established an easement on real estate and lease on the land for a limited time up to three years (incomplete expropriation).

Compensation for the expropriated real estate is determined in terms of money terms, unless otherwise determined by this law (article 36).

With a proposal for the expropriation, a certificate or other document required by the law should be submitted, as an evidence that the user of the expropriation has provided funds set aside in its special deposit account in the amount necessary to provide compensation for the expropriated property (article 22).

Compensation for the expropriated buildable and town-buildable land is determined in terms of money according to the market price of such land.

The compensation fee for a vineyard or orchard, according to article 40 is determined by defining remuneration for the land under article 36, then adding the market value of non-depreciated investments generated for lifting and maintaining of such a vineyard or orchard and pure yield amount this vineyard would produce, given the age and fertility, for as many years as it takes for a new vineyard or orchard to be raised and to enter into maximum fruitfulness. Regarding a young vineyard or orchard, that do not give the fruits, the compensation fee is determined by setting the fee for the land according to article 36, and adding the value of investments generated for land lifting and pure yield amount to be achieved for as many years as a the vineyard or orchard is old until the moment expropriation takes place. The fee is determined for trees or vines.

The compensation for expropriated mature or nearly mature forest represents the value of forest assortments and other forest products at market prices determined in accordance with the market prices at the truck road or other loading or redemption place, reduced for production expenses (expenses of cutting, production and transport of forest assortments from the forest to the truck road or other loading i.e. redemption place).

The compensation for establishing the easement is determined, according to article 48, in the amount for which is, due to the establishment of the easement, reduced market value of land or buildings.




2.2. LAW ON STATE PROPERTY

The owner of things being state property is Montenegro. Certain powers over things in state property are performed by municipalities in the manner prescribed by this Law. Powers over things in state property are also carried out by other entities such as government bodies, local authorities and public services founded by Montenegro or local self-government and other authorities and organizations that use budget funds or manage state assets.

Things and other goods at state disposition are natural resources, goods in public use (roads, railways, infrastructural facilities of importance for Montenegro), other goods of general interest (buildable land, agricultural land, land water etc.) and other goods in state property (property acquired by purchase, exchange, expropriation, etc.).

Things and other goods at municipal disposition are natural resources, local goods in general use (water and sewerage networks, local roads, streets in the settlements, plazas, buildable land, agricultural land, land water, as well as other goods at municipal disposition (property acquired by purchase, exchange, expropriation, etc.).

The Government may decide, at the request of municipality, to cede movable and immovable things and other goods in the property of Montenegro to the municipality for temporary management and use with or without compensation. Also, the municipality may decide, at the request of the Government, to cede immovable and movable things in the municipal property, that are not in use, to the Government for temporary management and use with or without compensation.

If a certain immovable property held by a municipality is necessary for realization of public interest of Montenegro, the municipality is, at the request of the Government, required to return that immobility to the disposal of Montenegro without compensation. A certain immovable property held by the Government can be, upon request of the Municipal Assembly, given to the use or disposal of the municipality without compensation.

2.3. LAW ON OWNERSHIP AND LEGAL RIGHTS

The state may be the holder of property rights like other legal entities and natural persons (dominium). Certain items of property (natural resources, goods in general use, the funds of state authorities, cultural resources) are managed and disposed by the state or state agencies and organizations in accordance with the law (imperium). Property powers over the state-owned things are held by the Government of Montenegro, unless regulated otherwise by particular law. Property powers over the state-owned assets, which serve to satisfy the interests and functions of the municipalities are held by municipal authorities in accordance with the law and statute.

The property right may be restricted in accordance with the law. No one shall be deprived of property right except when required by the public interest established by law or under the law, with a fee which can not be less than justful.

Easement is a right whose holder is entitled to exploit another person's property to a certain extent or to require from its owner not to use it in a sort of way.




The property owner is required, for a fee, to allow setting the lines on his land (water and sewage pipes, gas lines, electric and telephone cables, poles, wires, etc.) if setting the lines on other place requires the disproportionate expenses. The land owner has the right to require from the owner of lines, gas lines and other devices to repurchase that part if its use value is significantly reduced. The land owner has the right to, at his expense, move the lines somewhere else on the same property, if the conditions do not deteriorate on that other place.

Setting the lines and other devices (electrical, sewer, gas, water, hot water, telecommunicational etc.) on someone else's property without the consent of its owner, it is possible in the public interest pursuant to the law.

2.3.1. APPLICATION OF THE LAW ON OWNERSHIP AND LEGAL RIGHTS AND THE LAW ON STATE PROPERTY IN THE PART OF REGISTERING THE OWNERSHIP RIGHTS IN REAL ESTATE CADASTRE

Law on ownership and legal rights, entered into force on 21 March 2009, and Law on state property on 28 arch 2009.

In article 419 of the Law on ownership and legal rights it is prescribed that the Right to manage, use or permanent use and disposal of publicly owned land, now state-owned land, becomes, by an entry into force of this law, property right of until then holder of right to manage, use or permanent use, unless regulated otherwise by particular law or unless interested person proves that before coming into force of this law has acquired the property right on certain land. Exceptionally, land for which in the process of privatization or bankruptcy has not been paid the market compensation remains state-owned where the facilities owners have the preemptive right or preferential right to lease.

The procedure for registration of property rights, in the above mentioned sense, is prescribed in article 420 of this law and pending are procedure of appropriate adjustments and change of ownership rights in real estate cadastre arising upon entry into force of this law in the mentioned sense. Regarding that, it is necessary to proceed upon all property titulars natural persons and legal entities that submit an application and to enable the registration of property right in the real estate registry, i.e. deletion of right of use and similar rights on buildable land, etc. as a recidive of public property.

2.4. LAW ON STATE SURVEY AND REAL ESTATE CADASTRE

This law regulates the state survey, real estate cadastre and registration of rights, lines cadastre, the basic state map and topographic maps, survey of the state border and other issues of importance for the state survey and cadastre.

According to this law, real estate includes: land (agricultural, construction, forestry and other), facilities (commercial, residential, residential-business, economic and other objects), separate parts of facilities (dwellings, business premises, garages, basements and garages), other above-ground facilities (road structures, electric power facilities, railway structures, air traffic facilities, industrial plants, telecommunications facilities, facilities for sport and physical culture and other) and underground structures (garages, reservoirs, pedestrian passageways, tunnels, shelters, subways, etc.).

Real Estate Cadastre is a unique public record wherein are inscribed immovable properties, real rights on properties and obligation rights in accordance with the law.




Lines are above and under ground with the appurtenant devices and plants (water supply, sewerage, heating, oil, gas, electrical, telecommunications, drainage, industrial and other lines). The appurtenant devices include devices that are constructed or under construction on the lines, which enable the functioning and suitable use of platoons (manholes, poles, fittings, etc.).

The holder of the right is a natural or legal person, that is entitled to property, closer real law or obligation law on a particular property, while the user of an immovable property is a natural or legal person that has some real right or obligation right in order to use or collect fruits.

The property right shall be registered on the name of the real estate owner. During the registration of the property right, a legal basis for acquisition of property right is registered as well (contract of sale, gift, exchange and other, unilateral legal transactions for the transfer of property rights, judicial decision, the decision of the competent authority). State-owned properties are registered as state property with the titleholder of property rights and authorizations in accordance with the law.

2.5. LAW ON SPATIAL PLANNING AND OBJECT CONSTRUCTION

By the adoption of planning document (spatial plan, urbanistic plan etc.) it is determined the public interest for the expropriation of property for construction of planned facilities and spatial planning.

2.6. LAW ON AGRICULTURAL LAND (OFFICIAL GAZETTE ROM, NO. 15/92, 59/92 AND 27/94)

Agricultural land, under this law, includes: arable land, gardens, orchards, vineyards, meadows, pastures, swamps, ponds and wetlands, as well as other land which, by its natural and economic conditions, can serve the general interests, if it is used or can be used for agricultural production.

For arable agricultural land, under this law, shall be considered: arable land, gardens, orchards, vineyards and meadows (Article 2).

According to Article 6 of the above-mentioned law, in order to protect agricultural land, in case of its temporary use for non-agricultural purposes and to convert the purpose of arable agricultural land, the fee is paid, unless otherwise provided by this law.

Agricultural land which is temporarily used for non-agricultural purposes should, after such exploitation, recultivate technically, chemically and biologically, for being brought to the original purpose. Under the permanent change of use of agricultural land, under this law, it is considered any use of arable agricultural land which permanently disables the use of land for agricultural production (construction of facilities, planting, releasing harmful and dangerous substances in quantities that can damage or change the production capacity of arable land etc).




The compensation fee for temporary use of agricultural land for non-agricultural purposes is determined in the amount of the average cadastral income for that land on the municipalitys territory for the period within which the land is not used for agricultural production. The fee is paid for each year of use of that land and in the first year when the decision is made. The compensation fee for permanent change of use of arable agricultural land is determined in the amount of the average cadastral income for arable agricultural land on the municipalitys territory multiplied 100 times. Funds are paid into a special Republic account for promotion of agricultural development.

2.7. LAW ON OLIVE GROWING (OFFICIAL GAZETTE ROM, NO. 55/03 FROM 01/10/2003)

This law regulates the terms and conditions of cultivation, protection of olive trees, harvesting and processing of olive fruits, and marketing of edible olive oil. Pursuant to article 19 which is important for the project, in the olive groves there is a ban on felling of olive trees and seedlings, as well as their damage.

2.8. LAW ON FORESTS (OFFICIAL GAZETTE ROM, NO. 55/00)

According to article 38 of this Law, it is forbidden the construction of facilities and other works execution in the forest that are not in the function of forest management. Exceptionally, the construction of temporary facilities and other works execution in the forest can be done only with the approval of the competent local self-government authority and with the consent of the ministry responsible for forestry, for a compensation fee pursuant to the law. Natural persons and legal entities that cause the damage to the state-owned forests are required to compensate it in the manner and under conditions prescribed by the ministry of forestry.

2.9. LAW ON WATERS (OFFICIAL GAZETTE ROM, NO. 27/07 FROM 17 MAY 2007)

This law regulates the legal status and the way of integral management of water, water and coastal land and water facilities, the conditions and the way of performing water activities and other issues of importance for water and water good management.

On the basis of article 115 of this Law it is necessary to ensure, by the competent Ministry, water requirements for the facilities and works related to regional and public water supply systems. When submitting application, it is necessary to draw the attention to the competent Ministry on the fact that the pipelines will pass across the stream, or in some cases along the stream.

2.10. LAW ON ROADS (OFFICIAL GAZETTE ROM, NO. 42/04)

Pursuant to Article 4, paragraph 1, line 37, road belt is a belt of land on either side of the road belonging to this road and whose width outside of the settlements is for highways, main roads and regional roads at least 2 m and 1 m for the local roads counting from the lines that make the end points of cross section road profile (from the outer edges of the cut and embankment feet if there is no ditch). Thus, hull of the road is paved portion of the road plus at least 2 meters on either side of the road.




2.11. RULEBOOK ON COMPENSATION FOR DAMAGE CAUSED TO THE STATE-OWNED FORESTS BY INDIVIDUALS OR LEGAL ENTITIES (OFFICIAL GAZETTE ROM, NO. 56/01)

Private and legal entities compensate the damage they cause to the state-owned forests in the manner and under conditions prescribed by this rulebook. Compensation for the damage for certain forest product is calculated by raising the selling price of certain forest product, on the site where the damage is done, for the amount obtained by applying the percentage specified in this rulebook on the selling price of that product. The selling price is calculated without margins and taxes and is determined based on the prices achieved by forestry companies. For damages caused to the forest products, which the committer did not arrogate, the amount of compensation is reduced for the selling price of these products.

2.12. REGULATION ON THE USE AND COMPENSATIONS FOR THE USE OF ROAD BELT AND OTHER LAND BELONGING TO PUBLIC ROAD (OFFICIAL GAZETTE ROM, NO. 73/04 FROM 03/12/2004)

This Regulation provides, inter alia, the amount of the fee for installment and annual fee for using the pipelines, water mains, sewers, electric, telegraph and other lines on the public road etc.

2.13. REQUIRED OPINIONS AND APPROVALS

In the case of pipelines passing through the town streets, it is not necessary to pay the fees, but it is necessary to obtain the opinion or approval of the Municipal Secretariat for investments and communal housing. This secretariat provides the time period for the digging of streets and returning to their original state.




3. SOCIO-ECONOMIC ANALYSIS

The design for construction of sewerage network and WWTP does not result in displacement of people or complete expropriation of significant area of land. Specifically, for the construction of CWWTP, it is necessary to permanently expropriate 6 plots, as well as parts of another 6 parcels of 9,800 m2 (fields V class, forests V class, pastures IV class, meadows VI class and carst) in Cadastral Municipality of Dobrsko selo.

In most cases, the pipeline will pass through the streets, while the portion of the expropriation refers to the easement of pass. Namely, people will be affected by the fact that the pipeline will pass through their property (to a greater or lesser extent). If these people are provided with an adequate compensation, major problems or objections should not be expected. Here it is necessary to emphasize that if a property is damaged during the excavation (orchards, garden, vineyards), the damage that is caused must be compensated to the owners. There will not be many such cases, considering the type of the land through which the pipeline passes.

In order to reduce potential negative impacts, it is necessary that the population is on time introduced to the project and its significance, so that harassment of the inhabitants is reduced to a minimum ad the consequences of land diggings, removal of gardens, orchards or vineyards are mitigated.




4. REVIEW OF PLOTS PER OWNERSHIP, PURPOSE AND AREA

The following tables show the plots through which the sewerage pipeline will pass, and where the Central Waste Water Treatment Plant will be placed (CWWTP), which is why the owners of these parcels will have a right of fee for an easement of pass or for the complete expropriation. There are given data regarding plot numbers, municipalities and cadastral municipalities where the plots are located, plot size and purpose, the owners, the pipeline length and expropriation belt area.

The total length of a new sewerage network is cca 8,300 m, out of which about 7,000 m refers to the pipes that will be installed under the streets (84%) and 1,300 m through public or private plots.

The total belt area, for which the fee for easement of pass is to be calculated, amounts to about 6,600 m2, out of which about 31% (2,000 m2) refers to natural persons, and 69% (4,600 m2) refers to the state property.




TABLE 1 - PIPELINES PASS, THE OWNERS AND EXPROPRIATION BELT FOR FEE CALCULATION

CetinjeCetinje IPipelines pass (easement of pass)

plot no. size (m2) owneridentification

number address

1 4695 38,389 D.S. Prestonica Cetinje 2005115000000 Bajova 2 unclassified roads 1,019.60 1,019.60 state property, legal entity2 4698 23,862 D.S. Prestonica Cetinje 2005115000000 Bajova 2 unclassified roads 1,629.20 1,629.20 state property, legal entity3 1551 1,626 D.S. Prestonica Cetinje 2005115000000 Bajova 2 unclassified roads 243.90 243.90 state property, legal entity4 4696 3,077 D.S. Prestonica Cetinje 2005115000000 Bajova 2 unclassified roads 84.30 84.30 state property, legal entity

D.S. Prestonica Cetinje 2005115000000 Bajova 2 state propertyVujovi Bajjo Krsto 3003979254989 Predgradje 10 utilization D.S. Prestonica Cetinje 2005115000000 Bajova 2 state propertyDjurii Vasiljka 6206000000634 Cetinje utilizationD.S. Prestonica Cetinje 2005115000000 Bajova 2 state propertyMrvaljevi Jakov 6206000000631 Cetinje co-utilization 3/10Mrvaljevi Bosna 6206000000632 Cetinje co-utilization 4/10Mrvaljevi Nevenka 6206000000633 Cetinje co-utilization 3/10

8 1808 643 D.S. Prestonica Cetinje 2005115000000 Bajova 2 karst, rocks 8.00 40.00 state property, legal entity9 1809 422 D.S. Prestonica Cetinje 2005115000000 Bajova 2 karst, rocks 11.60 58.00 state property, legal entity

10 1810 1,467 D.S. Prestonica Cetinje 2005115000000 Bajova 2 unclassified roads 5.70 5.70 state property, legal entity11 1811/2 59 Markovi Bogdan Lazar 6206011101952 Omladinska 2 infertile land 11.80 59.00 property12 1811/1 82 D.S. Prestonica Cetinje 2005115000000 Bajova 2 infertile land 5.70 28.50 state property, legal entity13 1813 392 D.S. Prestonica Cetinje 2005115000000 Bajova 2 orchard 2nd class 13.90 69.50 state property, legal entity14 1822 352 D.S. Prestonica Cetinje 2005115000000 Bajova 2 orchard 2nd class 13.20 66.00 state property, legal entity

Boti Zvonko Irena 2106972255017 P.Rovinjskog 20 co-ownership 1/12Boti Zvonko Mirela 2708973255018 P.Rovinjskog 20 co-ownership 1/12Kato Jano Jano 3105956250010 Predgradje 1 co-ownership 6/12Kato Slavica 6206011101853 Predgradje 1 co-ownership 3/12Boti Zvonko Ivana 6913000000950 P.Rovinjskog 20 co-ownership 1/12

16 1839 2,001 D.S. Prestonica Cetinje 2005115000000 Bajova 2 unclassified roads 6.00 6.00 state property, legal entity

17 1845/2 20,425 D.S. Prestonica Cetinje 2005115000000 Bajova 2land along residential-commercial building 46.30 231.50 state property, legal entity

18 1845/1 2,470 D.S. Prestonica Cetinje 2005115000000 Bajova 2 unclassified roads 6.30 6.30 state property, legal entity

19 2049 885 D.S. Prestonica Cetinje 2005115000000 Bajova 2land along residential-commercial building 42.10 210.50 state property, legal entity

20 4696 3,077 D.S. Prestonica Cetinje 2005115000000 Bajova 2 unclassified roads 71.90 71.90 state property, legal entity21 4700 8,596 D.S. Prestonica Cetinje 2005115000000 Bajova 2 unclassified roads 18.50 18.50 state property, legal entity22 4702 16,752 D.S. Prestonica Cetinje 2005115000000 Bajova 2 unclassified roads 387.30 387.30 state property, legal entity23 4090 570 D.S. Prestonica Cetinje 2005115000000 Bajova 2 unclassified roads 88.00 88.00 state property, legal entity24 4091 42,180 D.S. Prestonica Cetinje 2005115000000 Bajova 2 naturally infertile land 119.80 599.00 state property, legal entity25 4096 23,679 D.S. Prestonica Cetinje 2005115000000 Bajova 2 meadow 2nd class 319.70 1,598.50 state property, legal entity

D.S. Prestonica Cetinje 2005115000000 Bajova 2 state propertyVui Veselin 0612948880011 Novi Sad co-utilization 3/24Cvetkovi Savo Jasna 0912959255015 settlement IV Juli 9 co-utilization 3/12Miloevi Radoje Olga 1405957255020 Gruda 4 co-utilization 1/12Miloevi Miomir Natalija 2001979255024 Gruda 4 co-utilization 1/12Vui Predrag 2210951710034 Cetinje co-utilization 3/24Mrvaljevi Bosna 2404932255023 Budva co-utilization 3/12Miloevi Miomir Dragan 2512980250014 Gruda 4 co-utilization 1/12

MUNICIPALITY:ADASTRAL MUNICIPALITY:EXPROPRIATION:

No.PLOT

DESCRIPTION pipeline length (m)expropriation belt

(m2)expropriation

belt (m) REMARK

15 1824/ 1,2,10,11 346

7 1678 1,001

249.50

93.00

9.20 46.00

49.90

18.605 1675

orchard 2nd class 26.80

6 1677 210 field 2nd class

153 yard

4155 2,216 meadow 1st class

134.00

orchard 2nd class 16.70 83.50

26





number address

Cetinje 2005115000000 Bajova 2 state property, legal entityCetinje I 2408929710017 Beograd co-utilization 2/4Pipelines pass (easement of pass) 2602931715280 Omladinske brigade co-utilization 1/4Lackovi Gavro Olga 6913000000732 Grude 3 co-utilization 1/4

28 4709 6,774 D.S. Prestonica Cetinje 2005115000000 Bajova 2 unclassified roads 854.20 854.20 state property, legal entity29 4180 1,026 D.S. Prestonica Cetinje 2005115000000 Bajova 2 unclassified roads 131.70 131.70 state property, legal entity30 4243 1,074 D.S. Prestonica Cetinje 2005115000000 Bajova 2 unclassified roads 194.10 194.10 state property, legal entity

D.S. Prestonica Cetinje 2005115000000 Bajova 2 state property, legal entityCetinje turist dd 0000002004828 Njegoeva utilizationD.S. Prestonica Cetinje 2005115000000 Bajova 2 state property, legal entityMonastery of St.Peter 6913000001577 Cetinje utilization

33 4710 4,472 D.S. Prestonica Cetinje 2005115000000 Bajova 2 unclassified roads 657.20 657.20 state property, legal entity34 4570 1,595 D.S. Prestonica Cetinje 2005115000000 Bajova 2 unclassified roads 258.90 258.90 state property, legal entity35 4711 3,079 D.S. Prestonica Cetinje 2005115000000 Bajova 2 unclassified roads 827.00 827.00 state property, legal entity36 3931 579 D.S. Prestonica Cetinje 2005115000000 Bajova 2 meadow 1st class 97.30 486.50 state property, legal entity37 4019 1,481 D.S. Prestonica Cetinje 2005115000000 Bajova 2 unclassified roads 121.30 121.30 state property, legal entity38 4478 371 D.S. Prestonica Cetinje 2005115000000 Bajova 2 unclassified roads 75.50 75.50 state property, legal entity39 4479 962 D.S. Prestonica Cetinje 2005115000000 Bajova 2 unclassified roads 90.40 90.40 state property, legal entity40 4449 1,674 D.S. Prestonica Cetinje 2005115000000 Bajova 2 unclassified roads 188.30 188.30 state property, legal entity

D.S. Prestonica Cetinje 2005115000000 Bajova 2 state property, legal entityPrlja Mitar Ljubomir 1203938250016 Cetinje utilization D.S. Prestonica Cetinje 2005115000000 Bajova 2 state property, legal entityLjekovi Blao 1104978250010 Cetinje utilization D.S. Prestonica Cetinje 2005115000000 Bajova 2 state property, legal entityBogdanovi Duan Kosta 0306941250019 D.polje 46 utilization D.S. Prestonica Cetinje 2005115000000 Bajova 2 state property, legal entityDurovi Dragoljub Zoran 1804972250010 D.polje 46 utilization D.S. Prestonica Cetinje 2005115000000 Bajova 2 state property, legal entityJovovi Radovan Slobodan 0307954710325 Danilo Bojovi 3 co-utilization 1/2Jovovi Radovan Milutin 2505950250010 D.polje 46 co-utilization 1/2D.S. Prestonica Cetinje 2005115000000 Bajova 2 state property, legal entityPetrievi Milorad Filip 1911978254981 L.Ivanievia 7 co-utilizationPavievi Blao Rajko 0408956250012 Podgorica co-utilizationNovovi Radosav Ljubomir 0404979250065 Kue u nizu bb co-utilizationJankovi Jelena 3109822255014 Bul. Crnogor.junaka 98 co-utilizationD.S. Prestonica Cetinje 2005115000000 Bajova 2 state property, legal entityMiloevi Dragan Duan 0410987250155 Donje polje 44 co-utilizationMiloevi Rajka 1106963255019 Donje polje 44 co-utilizationMiloevi Dragan Mirko 1802995250015 Donje polje 44 co-utilizationMiloevi Dragan Marko 2103989250028 Donje polje 44 co-utilization

48 4458/1 80 D.S. Prestonica Cetinje 2005115000000 Bajova 2 pasture 3rd class 9.30 46.50 state property, legal entity49 8,278.70 6,597.00 6,959.30

41 4521 236 orchard 1st class 37.50 187.50

32 4082 3,834 land along the non-economic building, yard

PLOT

31 4084 11,392

27

REMARKexpropriation belt (m)

269.00

land along the non-economic building, yard 156.00 780.00

DESCRIPTION pipeline length (m)expropriation belt

(m2)

orchard 2nd class

40.20 201.00

49.00 245.00

41.70

4160 2,755

63.20 316.00

orchard 1st class 208.50

20.60 103.00

47 4458/2 669 pasture 3rd class

46 4476/ 1,2,3,4 1,192meadow 3rd class, karst and rocks

44 4513 386 yard

45 4477 351

53.80

No.

94.50

18.60 93.0042 4512 413 orchard 1st class

43 4515 470 yard 18.90

Total




TABLE 2 PARTIAL OR COMPLETE EXPROPRIATION

CetinjeDobrsko seloRedemption of land for Waste Water Treatment Plant


number address

Vuki Stevo Danilo 0305931710007 Bul.Avnoja 66 co-ownership 1/2Vuki Mihajlo Budimir 3008951220010 J.Stojanovia 6 co-ownership 1/2Vuki Stevo Danilo 0305931710007 Bul.Avnoja 66 co-ownership 1/2Vuki Mihajlo Budimir 3008951220010 J.Stojanovia 6 co-ownership 1/2Vuki Marko Djordje 6913011105599 Bijela co-ownership 1/2Vuki Marko Petar 6913011105600 Novi Sad co-ownership 1/2

4 2102 1,462 Mrvaljevi Gospava 1609948255047 Bajice 52 karst, rocks 1,462.00 property 100.00%5 2103 226 Mrvaljevi Gospava 1609948255047 Bajice 52 pasture 4th class 226.00 property 100.00%6 2104 1,712 Mrvaljevi Gospava 1609948255047 Bajice 52 pasture 4th class 1,712.00 property 100.00%6 2105 559 Mrvaljevi Gospava 1609948255047 Bajice 52 meadow 6th class 559.00 property 100.00%7 2106 234 Mrvaljevi Gospava 1609948255047 Bajice 52 meadow 6th class 21.75 property 9.29%8 2107 395 Mrvaljevi Gospava 1609948255047 Bajice 52 karst, rocks 231.66 property 58.65%9 2108 547 Mrvaljevi Gospava 1609948255047 Bajice 52 meadow 6th class 547.00 property 100.00%

10 2111 1,114 Mrvaljevi Gospava 1609948255047 Bajice 52 meadow 6th class 1,114.00 property 100.00%11 2112 2,593 Mrvaljevi Gospava 1609948255047 Bajice 52 pasture 6th class 906.49 property 34.96%12 9,799.32

12.09%

50.68%

1.07%

3 2101 22,175 forest 5th class 2,681.87

216.94

1 2095 238 field 5th class 120.61

2 2099 20,185

expropriation belt (m2)

MUNICIPALITY:

REMARK % of redemption

EXPROPRIATION:

No.PLOT

DESCRIPTION

ADASTRAL MUNICIPALITY:

expropriation belt (m)

Total

pipeline length (m)

forest 5th class




5. FEE ESTIMATION FOR PIPELINES INSTALLATION (EASEMENT OF PASS)

The expropriation belt, is calculated by multiplying pipeline length by trench width which includes pipe diameter and area for trench works manipulation. The total trench width, based on construction standards, equals 5 m.

Based on practices in municipalities wherein the assessment was conducted for expropriation purposes, the fee value is calculated by multiplying the expropriation belt area, in square meters, by the reducted market price. This reduction amounts 85%. Therefore, the fee estimation for pipelines pass through plots is 15% of the land market price.

The land market prices, in the area through which sewerage pipeline passes, range from 10 to 100 /m2.

Regarding calculation of fees, the consultant applied the prices of land that differ per cadastral municipalities and which amount to:

Table 3 Land market prices and fees for pipelines pass

No.

Cadastral municipality

Land market price in

/m2

Fee for pipelines pass in

/m2

1 Cetinje 1 100.0 15.00

2 Dobrsko selo 10.0 -

The fee for easement of pass for private owners/users equals 30,998 euros and 67,958 euros for legal owners. The calculation is shown in the following table.

TABLE 4 FEES FOR PIPELINES PASS

private state total1 Cetinje I 2,066.50 4,530.50 6,597.00 30,998 67,958 98,955

No. Cadastral Municipality

Expropriation belt in m2 Fee for easment of pass in

private property /

use

state property total




6. PERMANENT EXPROPRIATION

For construction of Central Waste Water Treatment Plant in the Municipality of Cetinje, Cadastral Municipality of Dobrsko selo, it is necessary to redeem part of the land plots or all plots, which are privately owned by families Vuki and Mrvaljevi, size of 9,800 m2. Regarding the structure of land for complete expropriation, there are mainly forests, pastures, meadows and karst. The structure of land for redemption is presented in the following graph.

Structure of land for complete expropriation

pasture6thclass9%

meadow6thclass23%

pasture4thclass20%

karst,rocks17%

field5thclass1%

forest5thclass30%

The redemption expenses of this land have been estimated with the price of 10 /m2 and they amount to 97,993 euros.

TABLE 5 - COMPLETE EXPROPRIATION EXPENSES

aream2 EUR %

1 Vuki Danilo & Budimir 337.55 3,375 3.4%2 Vuki Djordje & Petar 2,681.87 26,819 27.4%3 Mrvaljevi Gospava 6,779.90 67,799 69.2%4 Total 9,799.32 97,993 100.0%

No. Familyfee




FIGURE 3 - DOBRSKO SELO




7. FEE FOR CHANGING THE USE OF AGRICULTURAL LAND

Based on the Law on agricultural land, changing the use of agricultural land must be compensated to the Republic for stimulating agricultural development. This fee is calculated as 100-year cadastral income for the type of land whose usage purpose is changing.

Based on the data from the Decision on cadastral income valoration, Official Gazette of RoM, no. 24/00, we came to approximate amount of cadastral income for pastures, forests, fields and meadows in Montenegro, which is on average 0.0045 /m2.

Total fee for changing the use of agricultural land is estimated at 3,648 euros.




8. SUMMARY AND CONCLUDING REMARKS

Having in mind the laws, regulations and practices, it is quantified the redemption and compensation which arise as a consequence of the design for sewerage network and waste water treatment plant in the town of Cetinje.

In order to reduce potential negative impacts, it is necessary to adhere to the following: Disturbance of the population should be reduced to a minimum Lost property should be compensated to the people Contractors should commit to reduce the property damage to a minimum.

Namely, it is necessary to pre-define the damage that will occur during the pipelines installation and to compensate it to the owners. That damage to orchards, gardens, etc. is estimated at 10% of the sum of values of the fee for easement of pass, complete expropriation expenses and fee for changing the use of agricultural land. Everything beyond this, which is caused unintentionally, negligently, or deliberately needs to be borne by contractors themselves.

In cases when there is a number of the owners of one plot through which the pipeline passes, all of them should be paid out proportionally to the share of each in total ownership. No one should be forgotten.

The physical contingencies are estimated at the amount of 15% on total redemption and compensation expenses. These costs include expropriation commission costs as well.

In the following table it is presented the recapitulation of redemption and compensation expenses. Total expenses amount 254 thousand euros.

TABLE 6 RECAPITULATION OF REDEMPTION AND COMPENSATION EXPENSES

Price level: June 2011

30,998 67,958 98,9552 97,993 0 97,993

4 128,991 67,958 200,596

and orchards 10% of 4 12,899 6,796 20,0606 141,890 74,753 220,6557 15% 21,283 11,213 33,0988 163,173 85,966 253,754

No. ITEM

Sewerage network and WWTP Cetinjeprivate

owners / users

state owners total in

1 Fee expenses for pipeliness pass through plots (easment of pass)Complete expropriation expenses

3 Fee for changing the use of agricultural land

Physical contingenciesTotal

0

5 Fee for causing the damage to farms

3,648Total (1+2+3)

0

Total (4+5+6)




Redemption and compensation expenses, Design for sewerage network and WWTP Cetinje

Physical contingencies13.0%Fee for causing the

damage to farms during excavation

7.9%

Fee for changing the use of agricultural land

1.4%

Complete expropriation expenses

38.6%

Fee for easement of pass39.0%




9. LITERATURE

1. Law on expropriation

2. Law on state property

3. Law on ownership and legal rights

4. Application of the Law on ownership and legal rights and the Law on state property in

the part of registering the ownership rights in real estate cadastre

5. Law on state survey and real estate cadastre

6. Law on spatial planning and object construction

7. Law on agricultural land (Official Gazette of RoM, no. 15/92, 59/92, 59/92 - regulation

and 27/94 - other law

8. Law on spatial planning and development (Official Gazette of RoM, no. 28/05),

9. Law on nature protection (Official Gazette of RoM, no. 36/77, 38/77, 2/89, 39/89, 48/91,

17/92, 27/94)

10. Law on forests (Official Gazette of RoM, no. 55/00)

11. Law on olive growing (Official Gazette RoM, no. 55/03 from 01/10/2003)

12. Law on roads (Official Gazette of RoM, no. 42/04)

13. Rulebook on compensation for damage caused to the state-owned forests by

individuals or legal entities (Official Gazette of RoM, no. 56/01)

14. Regulation on the use and compensations for the use of road belt and other land

belonging to public road (Official Gazette of RoM, no. 73/04 from 03/12/2004)

15. Republic of Montenegro: Sustainable tourism development project in Montenegro,

Annex 15, Resettlement policy framework

Documents

Expropriation CT ENG