MINISTRY APPROVES Excelsa Can Manage Dubrovnik Cable Car Without Paying A Dime

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Olja Ljubišić
Photographer(s): Goran Mratinović
Excelsa Nekretnine received approval for the use of the Dubrovnik Cable Car for one year starting from 8 July of this year, even though they haven't signed a contract with the City of Dubrovnik and settling existing debts. 

The City of Dubrovnik and Excelsa Real Estate owned by Chilean family Luksic (Luksic Group) have been in dispute for years over the use of the Dubrovnik Cable Car.

Excelsa has been managing Dubrovnik Cable Car without paying concession to the City and even without a valid contract with the City, earning millions from the sales of the Cable Car tickets.

Although the Cable Car Act stipulated that the concession fee must be paid to local self-government unit, the City of Dubrovnik in this case, it did not predict what to do if someone refused to pay the concession. Also, Excelsa did not meet all defined preconditions for operations, since they did not sign the contract with the City. Therefore, the approval of the Ministry of the Sea, Transport and Infrastructure raised questions.

‘They are willing to pay for all the past periods, from the very first day since the cable car has begun to operate until today. The length of the concession is the problem. The city council has reduced the concession from 50 to 10 years, and the concession fee is 15 percent. According to Excel's real estate logic, if we reduced the concession period, we should also reduce the concession fee. Of course, this is unacceptable to us,’ mayor of Dubrovnik, Mato Franković said for DD.