25 June 2019 - The European Union has granted an additional 3,6 million EUR to Montenegro for the preparation of project documentation aimed at strengthening infrastructure in the area of railway traffic and digital sector, it was reported by the European Integration Office, says CdM.

Additional funds were approved in the meeting of the Management Board of WB Investment Framework, held in Berlin and organized by European Commission and Federal Ministry of Finance of Germany.

The Montenegrin delegation was headed by the deputy chief negotiator, IPA coordinator, Ms Ivana Glišević-Đurović.

The project worth 3 million EUR will be used for financing the preparation of main projects aimed at the reconstruction of railway section Golubovci-Bar, as well as railway line Bar-Vrbnica, which is part of the main European Union traffic network.

The project is going to cover all the elements of infrastructure that are necessary for regular traffic flow and meet the safety standards determined in accordance with the rules defined at the European Union level.

This is the first time that the European Union supported Montenegro in the preparation of project documentation for the improvement of infrastructure in the digital sector in the amount of 600.000 EUR.

The funds will be used for the preparation of the feasibility study, cost-benefit analysis, conceptual design and technical documentation for the construction of infrastructure required for better internet coverage in rural parts of Montenegro and areas that haven’t got full Internet coverage.

“The European Union is asserting the EU future of Montenegro and the region. Investing in traffic and particularly digital infrastructure, Montenegro proves to be following and investing in new technologies, with the aim of intensifying economic growth and developing society as a whole,” said Ms Glišević-Đurović.

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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 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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