Montenegro’s government has launched procedures to reverse approximately 11,000 square metres of coastal reclamation in Baošići, bringing renewed regulatory scrutiny to waterfront development in the environmentally sensitive Bay of Kotor.
The case concerns land reclaimed for a development associated with Carine, including an artificial beach constructed along the coastline. The government has instructed the Spatial Planning Ministry to prepare the urban-planning documentation required to initiate restoration procedures. The decision marks the beginning of a regulatory process and does not confirm that physical removal of the reclaimed land or existing structures has started.
Planning and Environmental Requirements
The development has faced objections relating to cultural-heritage protection, coastal planning and environmental impacts. The government’s move places the project within a wider debate over the compatibility of waterfront construction with the Bay of Kotor’s protected landscapes and heritage obligations.
Coastal reclamation can increase the usable area and commercial value of waterfront properties. Reversing such interventions can have the opposite financial effect, potentially generating significant losses where buildings, commercial activities or investment plans depend on the reclaimed land.
Implications for Property Investors and Lenders
The Baošići case highlights the importance of assessing regulatory risks associated with coastal development. Property ownership alone may not eliminate exposure where planning approvals, environmental permits or heritage-related authorisations are subsequently challenged.
For banks financing waterfront projects, due diligence extends beyond verifying ownership and construction permits. Lenders also need to assess the legal durability of shoreline interventions and existing development approvals, particularly where projects involve reclaimed land or areas subject to environmental and cultural-heritage requirements.
Increased Scrutiny of Coastal Development
Montenegro’s EU accession process is expected to bring continued scrutiny of environmental protection and spatial planning. For developers, this can mean longer permitting procedures and greater legal exposure, especially for projects involving reclamation or construction affecting protected landscapes. The Baošići proceedings extend beyond the individual development, raising questions about the continued regulatory status of previously reclaimed or developed coastal land where authorities determine that planning or environmental requirements have not been adequately satisfied.
