Concession for Exploitation of Sources of Drinking Water and Sources of Mineral Water in Croatia

Conditions for awarding the concession

The conditions for awarding the concession, according to the Regulation on conditions and procedure for awarding the concession on waters and public water good, regulate the volume of the concession works, purpose of awarding the concession, conditions for using the concession, time period of concession, amount of the concession charge, special conditions or obligation of concession user, deadlines for termunation of works necessary for using the concession, documents and other evidances that has to be submitted.

The body that conduct the procedure has the obligation to inform interested investors about place and time where they can get more detail informations about the conditions and criterias forawarding the concession and the access to all necessary documentation.

Concession agreement

Concession agreement is regulated in Law on waters (from 1995) and Regulation on conditions and procedure for awarding the concession on waters and public water good from 1996(with changes and additions from 1998).

It regulates purposes of awarding the concession, special conditions which has to be considered when using the concession, terms for payment of concession charge, guarantees of the user of the concession and other rights and obligations of the user of the concession, ways of termination of the concession agreement and other issues.

The Concession agreement is entered in the Unique register of concessions at the Ministry of finance of the Republic of Croatia.

Rights and obligations of the user of the concession can be transferred to other person only with the consent of the body which awarded the concession, under the terms of the Law on waters (Article 148.), and they can be transferred on the basis of inheritance.

Concession agreement ceases upon expiration of time period for which concession was awarded, because of the death of the user of the concession, if the rights and obligations from the concession agreement are not transferred to successor, and in the case when it is lastingliy forbidden user of the concession to perform the activities for which concession was awarded by valid verdict of the court or other relevant administration body.

Concession agreement can also cease by consent of the parties.

User of the concession has the right of exploitation of water sources in the manner and under the conditions laid down in the contract.

The obligations of the user of the concession are to regulary pay the concession charge, to respect the conditions and deadlines from the contract about performing the construction works necessary for using the concession. In the case of dissregarding of these obligations the contract can be terminated before expiration of the time period concession was awarded to.

The user of the concession also has the obligation to take the measures for protection of human lives and health, environment, and property from the dangers that can come from constructions and devices on waters for purposes of using the concession, and to follow the instructions f the concession awarder or the person he authorized in the cases of modifications in the water regime when it is necessary, in public interest, to limit or modify the conditions of using the concession to new conditions.

Time period for which concession can be awarded and amount of the concession charge

Detail provisions that relates to concession charge and the time period for which concession can be awarded are also in the afore -mentioned Regulation on conditions and procedure for awarding the concession on waters and public water good from 1996 (with changes and additions from 1998.

Concessions for exploitation of sources of drinking water can be awarded for time period of 60 years the most. Usually they are given for period from 10-20 years.

Concession for exploitation of sources of mineral water can be awarded to time period of 30 years the most.

Concession charge consists of annual charge , and one- time charge.