22 June 2019 - Zsuzsanna Hargitai, director for the Western Balkans at the European Bank for Reconstruction and Development (EBRD) has said that the countries of the region will need almost two hundred years to catch up with the average income level of the EU member states if their progress continues in such a slow pace.

Speaking in an interview with Serbian weekly Business Magazine (Nira Press), the Western Balkans director said that complex business regulations and the state capture of public enterprises were the main reasons why the Western Balkans lag behind, adding that the course, however, could change.

Ms Hargitai emphasized that the less involvement of the state and more investment in infrastructure were the primary tasks of the EBRD when it comes to helping the region.

“This (current state), however, can and should change because the countries of the Western Balkans have well-educated people who can be productive as their peers in Western Europe. Better institutions, less government interference, more investment in infrastructure - these are the most important tasks and the EBRD is there to help in all areas,” Hargitai emphasized.

She also explained that the EBRD representatives would like to see improved preparation and implementation of projects in public infrastructure projects - which would contribute to faster achievement of tangible results in this area.

One year ago, Zsuzsanna Hargitai was appointed as Regional Director for the Western Balkans at the EBRD and in one of her first statements, she announced that she would seek to increase EBRD's investments and support in the field of economic policy on the path of the countries of the Western Balkans towards the European Union. She also stated that the process of EU accession is the main driver of reforms.

Now, a year later, Ms Hargitai says that already in the past year, the volume of EBRD investments has increased to close to 400 million, while at the same time, they continued with activities to improve the policy framework.

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22 June 2019 - The gross domestic product (GDP) of Montenegro in the first quarter of 2019 amounted to 876.5 million EUR and in absolute terms, the value added increased by more than 40 million EUR in relation to the same quarter of the previous year, it was announced by the Statistical Office of Montenegro (MONSTAT ).

Statistical Office of Montenegro - MONSTAT is the competent body for the production of official statistics. MONSTAT's role as the carrier of official statistics in the Montenegrin statistical system has been recognized by the domestic and international public.

The report by MONSTAT presents the results of the preliminary calculation of the quarterly gross domestic product, at current and constant prices, using the consumption method for the first quarter of 2019.

The data shows that real GDP growth in the first quarter was three per cent, while the nominal growth rate was 4,4 per cent.

According to EUROSTAT data, Montenegro is at 47 per cent of the EU's development.

"In the first quarter of this year, the most significant growth was recorded in tourism - 38 percent when it comes to tourist arrivals, and 22 per cent when it comes to tourist overnight stays. On this basis, tourism revenues increased by eight per cent in the first quarter, and according to the Central Bank data, they amounted to 47,3 million EUR. Significant growth was also recorded in the services sector, traffic and information and communication," said Gordana Radojević, director of MONSTAT, for RTCG.

The decline in production was recorded in the industrial production sector by 14%.

The representatives of MONSTAT agency said that the increase in GDP in the first quarter was partly a result of the increased inflow of investments, as well as a better collection of taxes, excise duties and customs duties. It was noted that in the first quarter, the unemployment rate was reduced.

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22 June 2019 - Prime Minister of Montenegro Duško Marković recently visited Karisma's Holiday Villages Montenegro tourist resort in Ulcinj, which had been opened a little over a year ago, reported the Government of Montenegro.

The management of the new tourist resort built on the bases of the former Bellevue and Olympic hotels informed the Prime Minister about the activities it has undertaken and expressed satisfaction with doing business in Montenegro.

Prime Minister Marković visited a new part of the complex, which had been opened last month, including 96 spacious luxury apartments, two new swimming pools, one for adults and one for children and other facilities. PM Marković congratulated the management of the hotel and tourist complex Holiday Villages Montenegro on the new facilities and the fact that already in the pre-season they have 80% of the capacity filled, saying that this data, as well as all parameters, indicates that this tourist season will be very successful, as were the previous two.

Less than two years ago, Holiday Villages Montenegro purchased a part of the HTP "Ulcinjska rivijera" property under a contract involving an investment of over 30 million EUR in hotels adaptations and modernisation and creation of new tourist facilities.

This company continues to invest in the further development of the hotel-tourist complex. At its session on 28 March 2019, the Montenegrin Cabinet gave its consent to the request of the company to enable it to establish a first-rate mortgage over buildings under construction in order to build a new facility - a dependence of a four-star hotel, as well as a facility for technical support.

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22 June 2019 - The Government of Montenegro has allocated, through the Capital Budget, around 500.000 EUR for the construction of the town square in Racina-čaršija street in Plav. The Public Works Administration signed a contract with Nikšić-based company "LD Gradnja" LTD on the construction of this square. The deadline for the completion of the works is 120 days from the date of the contractor's introduction into the business.

The square will be built in the place of the current courtyard of primary and secondary schools, on an area of nearly 4.000 square meters. The project solution is based on the modern arrangement of city public areas, while retaining the elements of the traditional. There are plans to maintain a healthy and highly cultivated greenery, while the greenery that is removed during the construction will be replaced with new seedlings.

The plateau contains a manifestation area in form of an amphitheater, stands, a pedestrian zone, and a children's playground, as reported Public Relations service within the Government of Montenegro. For the tiling, they provided a natural stone, which is resistant to wear, impact and low temperatures.

The Government of Montenegro also provided 1,09 million EUR through the Capital Budget for the reconstruction of part of the road Rožaje – Štedim, within the fifth phase of works on this section. According to the announcement of the Government of Montenegro, the construction contract was signed yesterday between the Public Works Administration and Rožaje-based company Tofi. Deadline for completion of works is 150 days from the date of the introduction of the contractor into the business.

This is the final phase of the road construction in a total length of 7.2 kilometers, leading to Štedim, the location where the construction of the base station for the new ski center at Hajla is planned. The realization of this project creates the conditions for starting preparations for the construction of the ski resort.

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18 June 2019 - At the invitation of Deputy Director-General of the Joint Research Centre of the European Commission, Ms. Charlina Vitcheva, Minister of Science of Montenegro Sanja Damjanović participates in the conference Supporting Smart Specialisation Strategies and Transfer of Technology in Southeast Europe at the Polytechnic University in Bucharest, Romania. 

In her introductory address, Vitcheva commended Montenegro's efforts in the development of the Smart Specialisation Strategy, which, after two years, is in the final phase of the process. Vitcheva reminded that last May in Sofia the main theme of the conference on strategies for smart specialisation was the Western Balkans and the development of these strategies in the Balkans region. The first international workshop in the Western Balkans, dedicated to this process, was held in Podgorica on 5 February 2019, organised by the Ministry of Science and the Joint Research Centre of the European Commission. 

During the panel session "Improving Innovation Policies in Southeast Europe through Smart Specialisation Strategies and Transfer of Technology", Minister Damjanovic said that Montenegro was very proud because on Thursday the Government will consider the Smart Specialisation Strategy. 

In Montenegro, there are more than 105 strategies, but the Smart Specialisation Strategy will unite all those that are focused on developing economic, or scientific and technological potential, as stated in the Ministry of Science's report.

As the Minister pointed out, Montenegro is also working on establishing innovative ecosystems by encouraging the creation and development of start-ups. The first Scientific and Technological Park in Podgorica will be a leading institution dedicated to the promotion of technological transfer, and one of the main instruments for the implementation of the Smart Specialisation Strategy.

Based on the strategic vision of Montenegro's development, the Strategy defines four priority areas, three vertical ones: sustainable agriculture and a food value chain, energy and sustainable environment and sustainable and health tourism, as well as a horizontal priority area: information and communication technologies, because it provides business and technical support to other priority areas.

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15 June 2019 - The Privatisation and Capital Investment Council adopted the Request of the Port of Bar AD - Bar for the sale of 100% of shares in Sidro Hotel and accepted the Request of the Hotel Group Budvanska rivijera AD - Budva for giving consent to the Decision on modification of the Decision on sale by public auction regarding the sale of Piva Hotel in Plužine. The Auction Commission should conduct a procedure for the sale of part of the property of the Hotel Group Budvanska rivijera AD - Budva - Piva Hotel in Plužine in accordance with the Decree on sale of shares and assets through public auction in accordance with this conclusion. 

As of 31 March 2019, the fixed assets of Sidro Hotel amounted to 1.172.118 EUR, while receivables amounted to 56.377 EUR, capital 575,929 EUR, accumulated loss 5.944.443 EUR, long-term liabilities and provisions 37.051 EUR, deferred tax liabilities 103.904, and short-term liabilities amounted to 543.859 EUR, as noted in the report of the Government of Montenegro.

The discussion pointed out this facility did not operate positively since the opening in 2010 and that the management of the Port of Bar intends to use the money from the sale of Sidro Hotel for the rehabilitation of Volujica quay construction in the length of 554 m and the construction of a 6,000 m² prefabricated storage facility. The session emphasised that 34 employees at Sidro Hotel were protected by a high-quality collective agreement in the five-year period after the privatisation, and the Council recommended to the Port of Bar to make the final decision on the sale of Sidro Hotel, adding that an integral part of the decision is a social programme that should be implemented by a potential buyer. 

The initial price of Sidro Hotel is set at 1.704.480,02 EUR.

By accepting the Request of the Hotel Group Budvanska rivijera AD – Budva, the Council agreed that the new Decision on sale by public bidding would indicate the price of 152.000 EUR, since the book value of the Hotel amounts to 150.966,98 EUR. The Council instructed the Auction Commission to conduct the sale procedure for the part of Piva Hotel in Plužine in accordance with the Decree on sale of shares and assets through public auction. 

The Privatisation and Capital Investment Council reviewed the Information on the fulfillment of conditions for the issuance of the fourth bank guarantee to Global Ports Holding and proposed to the Government to adopt the Information, which states that this company invested the amount of 2.027.879,05 EUR in the rehabilitation and reinforcement of the construction of the southern coast of Gata 1, which created the conditions for the issuance of the appropriate bank guarantee.

The Council passed the Proposal of Decision on amendments to the Decision on the privatisation plan for 2019, which envisages the sale of the remaining part of 1,45 percent of state-owned shares in the New Tobacco Plant AD Podgorica, after the current majority owner expressed his interest in the purchase of the remaining state-owned shares.

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15 June 2019 - The Summit of finance ministers, governors and directors of the tax administration of the region, organized by the Belgrade’s weekly news magazine NIN, was held recently in Bečići and it included a panel of directors of tax administration devoted to the reform of tax administration and fight against the grey economy.

Director of Montenegro’s Tax Administration, Mr Miomir M. Mugoša, in his introductory speech, emphasized that the Government of Montenegro invested significant funds in the project ‘Reform of tax administration’ having in mind the importance of this institution in the system of public finances. On this occasion, he also noted that he expects that this project will contribute to the reduction of administrative burden and somewhat greater compliance with tax regulations, that is, reduction in the overall tax gap.

“Mugoša presented the activities implemented so far, within the overall reform of taxes in Montenegro, including modernization of business processes, investment in information technologies, greater autonomy and reorganization, all with the aim of establishing a modern tax administration capable of responding to market’s requirements and ensuring high levels of public revenue collection,“ it was said in a statement of the Montenegrin Tax Administration.

At the end of this summit, the panel members concluded that there was a need for even closer regional cooperation and not just in terms of sharing experience and knowledge but for the region to be able to establish a single approach in dealing with common challenges, such as the fight against the grey economy and tax evasion.

Source: Cafe del Montenegro

15 June 2019 - Minister of Public Administration Suzana Pribilović attended the Regional Conference of Europe and Central Asia on building effective, responsible and inclusive institutions, which took place in Ankara. 

The main topics of the first ECA conference were innovations in governance reforms, raising the capabilities and responsibilities of governments, as well as examples of good practice in management reforms and presentation of the latest solutions and applications for society and companies. In addition, the conference divided into six thematic areas that are fundamental for development of capabilities and responsibilities of the governments, discussed strengthening public policies, effective management resources, the improvement of public services, strengthening of the public-private cooperation in order to the effective operation and investment, understanding and engagement with political and economic drivers and Gov. – Tech.

On the sidelines of the Conference, Minister Pribilović met with Vice President of the World Bank for Europe and Central Asia Cyril Muller, who supported Montenegro's public administration reform path. 

Minister Pribilović thanked Vice President Muller for the opportunity to attend the Conference, as well as to discuss important reform processes in the area of public administration. 

"We are aware of the fact that it is not possible to improve the competition and economic growth without quality of public administration reform and I thank you for the World Bank's support for Montenegro and we expect support to be continued in the future," Minister Pribilović pointed out in the public announcement for Ministry of Public Administration of Montenegro.

Vice President Muller emphasised the importance of the financial reform sustainability and highlighted that Montenegro has done much more in this area, bearing in mind the complexity of this process and that it should continue with the initiated processes. 

The Conference that was organised under auspices of the World Bank for Europe and Central Asia (ECA) was attended by about 450 delegates, including senior government officials, international partners, representatives of academia, the private sector and civil society from all the countries of the Europe and Central Asia, including the EU member states. 

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