What is the value of the land of "Belgrade waterfront"?
News on sales of the construction land "MarinaDorćol", next to the bank of Danubeprovides excellent insight into proportion of damage that Belgrade and Serbia suffered by signing of contract for the project "Belgrade Waterfront".
According to the news, 4 hectare of land next to the river bank, in which 76.000 "of squares" of construction land gross, auctioned (for the starting price) for 32,8billion euros. That means that potential of building one square meter of residential or business space will cost the future investor,431 euros. When this amount is reduced for 30%,for aggregate payment, price reduces to 302 euros. If calculated by the hectare of land, price is 5.740.000 euros with discount.
On the other hand, location of "Belgrade Waterfront", that is more attractive for construction, and where new owner was transferred into its property or free lease series of valuable buildings, construction envisaged is around 1,7 million of meters of residential and business space, on around 170 hectares of construction land. By using the same formula as in the sales of "MarinaDorćol"), the result is that land of "Belgrade waterfront" is worth 975.800.000 euros, or 513.578.947 euros, if calculated by square meter of constructed surface.
Republic of Serbia by investing into land and all other, gained 32% of share in joint company "Belgrade waterfront". On the other hand, private partner paid 150 million of Euros, and provided additional 150 million of euros of credit to joint company. This investment, that is in-between3,5and 6,5 times less than state investment (if the parameter is the price for "MarinaDorćol", and gained double the share in the ownership of the joint company!
Besides, unlike other investors that pay their contribution for landscaping after they purchase the land, in the case of "Belgrade Waterfront", special law envisages that the investor will pay these compensations, around 300 million of euros, with constructing the objects of public purpose. For these procurements investor is not obliged to implement the Law on Public Procurements, so it is free to choose the contractor by its own free will, in direct arrangement. It was never published what was supposed to be constructed from the objects of public purpose and under which price, and by this day it is not published what was constructed in the past four years and of what value.
As consequence of the fact that this is a joint company that is only in minority ownership of the state, there is no obligation to elect the director through job vacancy, as well as no obligation for the company to proceed by the requests for free access to information of public importance, nor any other mechanism of protection of public interest from the anticorruption laws.
