Dubrovnik Water Utility Sets New Development Fee Tariffs Through 2029

The Assembly of Vodovod Dubrovnik d.o.o. has adopted a new decision setting the development fee (naknada za razvoj) for service area 40, which covers the City of Dubrovnik and the surrounding municipalities. The decision was published in Narodne novine no. 92 of 21 August 2026 (article 1137) and enters into force on the first day of the month following its publication.

The decision is based on Article 52 of the Law on Financing Water Management, Article 23(1)(4) of the Law on Water Services, and Article 31 of the company’s founding agreement of 3 April 2025. It was adopted by the company’s Assembly at a session held on 24 July 2026, chaired by Marija Šimunović.

A new tariff for service area 40

The fee is paid by every user of the public water supply service in service area 40, where Vodovod Dubrovnik d.o.o. acts as the public water service provider. The basis of the fee is the cubic metre (m³) of delivered water, and it is charged in a common part and a special part, with tariffs expressed in euros per cubic metre:

• City of Dubrovnik: common part 0.10 EUR/m³ (households and business), special part 0.36 EUR/m³ (households) and 0.47 EUR/m³ (business).
• Župa dubrovačka municipality: common part 0.10 EUR/m³, special part 0.03 EUR/m³ (households) and 0.05 EUR/m³ (business).
• Dubrovačko primorje municipality: common part 0.10 EUR/m³, special part 0.03 EUR/m³ (households) and 0.05 EUR/m³ (business).

Non-profit organisations and users of agricultural connections pay the common and special parts at the household rate. The common part is set under Article 58(2)(1) of the Law on Financing Water Management and the special part under Article 58(2)(2) of the same law.

How the fee is charged

The development fee is calculated through the water service bill, on which it is shown separately, and is due within the payment deadlines of the water service price. It is calculated on the delivered quantities of water for human consumption, in the same way those quantities are computed under the decision on the price of water services. The public provider must record the collected funds in its business books on separate accounting accounts.

Where the money goes

Revenues from the development fee finance the construction of communal water structures in line with the Plan of Construction of Communal Water Structures 2026–2029, published on the provider’s website. The covered expenditure (CAPEX) includes feasibility studies, environmental and nature impact assessments, design and permitting work, public procurement, expropriation and property procedures, geodetic work, construction, supervision, project management, testing and trial operation, and related legal proceedings. The revenues may also be used to repay loans and credits taken out for the construction of communal water structures, in line with the provider’s financial plan.

Entry into force

The decision is valid for the period of the Vodovod Dubrovnik d.o.o. Business Plan 2026–2029 and remains in force until 31 December 2029. It enters into force on the first day of the month following the month of its publication in Narodne novine, and repeals the previous development fee decision for the area of water services of Vodovod Dubrovnik d.o.o. (Narodne novine no. 85/22). Unspent funds collected before its entry into force will be used in line with the new rules.

The new tariff directly affects every household and business in the City of Dubrovnik and the surrounding municipalities, who will see the development fee itemised separately on their water bills. By earmarking the revenues for the construction of communal water structures through 2029, the decision ties the fee to concrete infrastructure investment across the region.

Source: Narodne novine, no. 92, 21 August 2026, section I (official reference: article 1137).