Business
20 March 2019 - As a country that is firmly committed to multilateralism, the preservation of peace and boosting mutual trust, Montenegro sees dialogue as a necessary prerequisite for strengthening partnership in order to make the best use of countless potentials in different areas, primarily in tourism, culture, sustainable fisheries, clean energy, said Prime Minister of Montenegro Duško Marković at the Adriatic-Ionian Initiative Conference.
"We appreciate the fact that, as the smallest country in this region, we represent a place of meeting, dialogue and cooperation," Prime Minister Marković pointed out at the conference.
Opening the 16th Conference of Speakers of Parliaments of the Member States of the Adriatic-Ionian Initiative (AII), taking place in Budva and sponsored by the Parliament of Montenegro during the the country's annual presidency of the Initiative, the Prime Minister emphasised the importance of exchanging experience among the AII members, as well as strengthening values and standards that set the basis for close cooperation.
"I think that is of paramount importance, in particular in times of many challenges facing Europe and the whole world. The complex challenges to the stability of our continent cause a wide spectrum of repercussions on our economies and our development projects," the Prime Minister noted.
He added that the Western Balkans is an inseparable part of European values, and Montenegro, as the country that is most advanced in the process of EU accession, will be able to dedicate all its available capacities to its own and common European future.
"Montenegro is a NATO member today and is entering the last and most important stage in the accession negotiations with the EU. We do not move forward only by fulfilling the obligations set out in that process, but by continuously working on our development in order to be, as a stable and developed country, a reliable partner in the Union, as we are within NATO," said the Prime Minister.
The development of the economy, which has been growing at a rate above 4.5% and almost 11.000 more employees for two years, the volume and quality of foreign investments speaks of the solid and stable course of Montenegro - which is primarily determined by the tradition of religious harmony and good relations with neighbours.
19 March 2019 - Montenegro is strongly dedicated to the rule of law and in that area, especially in fighting organised crime and corruption, has achieved serious progress, Prime Minister Duško Marković pointed out at the meeting with Ambassador of Belgium in Montenegro Koen Adam.
“Over the last year, we have launched a brutal crackdown on organised crime, broken up criminal groups and prosecuted their leaders. Montenegro is a safe and stable country” PM Marković noted, highlighting that institutions are ready and capable of tackling all the challenges.
Noting that Montenegro is a reliable partner in NATO, Ambassador Adam praised its results on the path to the EU and stated that it is a forerunner in that area.
The Prime Minister informed Ambassador Adam about the great results of economic policy in the last two years, pointing to the high economic growth, reduction of employment, budget deficits, as well as to the plan to enter the budget surplus: “We have started intensive economic development that should contribute to a better life of citizens.”
Montenegro and Belgium have established excellent relations, the two officials stressed, and agreed on the need to boost economic ties through potential investment in the areas of tourism, agriculture, energy and infrastructure.
The officials also exchanged views on the situation in the region.
During the mid-December 2018 a consulate of Montenegro led by the Honorary Consul Enisa Jarović was opened in Antwerp, Belgium. At the opening of the Consulate, Foreign Minister Srđan Darmanović said that Montenegro and the Kingdom of Belgium have traditionally friendly relations and that the opening of the consulate headed by the Honorary Consul will give additional impetus to a stronger, especially economic and cultural connection of the two countries.
During this occasion Ambassador of Montenegro in Belgium, Vladimir Radulović emphasized that by opening a consulate led by Honorary Consul in Flanders, the two countries, two regions, are additionally connected, creating new opportunities for cooperation in various domains.
The ship Muzzaffer Bey under the flag of Panama left Bijela today with 5120 tons of grit from the former Adriatic shipyard. It will sail for seven days to the Spanish city Seville, where according to the previous contract, the hazardous waste will be deposited. If everything goes as planned, the next ship is expected in the first week of April. It was announced earlier that the hazardous waste would be transported with three ships a month.
We recall that the soil remediation process, conducted by the French company Valgo, will last 21 months, and 150,000 tons of waste will be treated on the surface of 1.7 hectares. The project, worth 23 million euros, should be completed by March 2020.
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Text by Slavica Kosic, on March 18th, 2019, read more at Vijesti
19 March 2019 - Port Kotor should have limitations when it comes to the size and number of ships residing in the port, says the Board of the Association of Naval Captains of Montenegro Kotor.
According to the News Agency RTCG, the reason for their reaction was the project which plans to create adequate infrastructure prerequisites for safe and secure reception and servicing of modern passenger vessels. According to the business plan of Port Kotor, new investments in technical and technological solutions related to the construction of a new system for the mooring of cruise ships on pylons should technologically improve port infrastructure. The realization of this project should increase the capacity to accept vessels to the port safely and securely. The primary goals of the project include installation of mooring buoys, expanding marine capacity by placing new pontoons and creating conditions for the service of passengers of ships tied to the pylon.
After the construction of the planned projects, a berth for two ships of 250-300 metres in length and two smaller ships will be provided, it is stated in the business plan that was accepted by the Montenegrin Government, and by which Port Kotor was awarded the first concession. The construction of the pylon in the sea at about 100 meters from the completion of the current operational coastline at Luža and the installation of mooring buoys for cruisers in the aquatorium in front of Dobrota will cost together about three million euros, while planned investments will improve the marine port capacity of the yacht receipt for about half a million euros.
"These projects dramatically reduce manoeuvring space for mega cruisers in the aquatorium, which greatly increases the risk of marine casualties, including the risk of pollution of the marine environment. By completing them, Port Kotor, as the main carrier responsible for the ships’ safety, accepts this genuine and enormous risk in advance. Acceptance of such risks implies that the Port also agrees to great expenses in relations to damages collection, "said the representatives of the Association of Naval Captains of Montenegro Kotor.
They add that the actual depth alongside Luža (for which Port Kotor guarantees that it is safe) is of questionable safety for mega cruisers and that any increase in depth would call into question the static of Luža itself or the safety of berths for such large ships.
The most guests of the Institute Dr. Simo Milosevic in Igalo, where 223 thousand overnight stays were made last year, are Montenegrin patients, then Norwegians, Swedes, and Germans. This was said to "Vijesti" by the marketing director of the Institute Nikola Mracevic, adding that last year was successful, although not surpassing the record year of 1989, when there were 421 thousand overnight stays.
The Institute celebrates its 70th anniversary this year. Executive Director Gordana Rajovic said that they expect this year to be successful. She said that among the essential programs was the treatment of Norwegian patients at the Institute in Igalo at the expense of their country, explaining that this cooperation has lasted for four decades. The first group of Norwegians, announced Rajovic, will come to Igalo in April.
"This year, an agreement was signed on the treatment of patients from Libya who will come in groups to Igalo throughout the year," Rajovic said.
Negotiations on the sale of the Institute Dr. Simo Milosevic are in progress. The consortium of the Czech company Philibert and the hotel and tourism company from Petrovac Villa Oliva owned by the businessman Zarko Rakcevic, offered ten million euros for 56.48 percent of the state shares of the Institute "Simo Milosevic" in Igalo and 27.94 million euros for the investments in the next five years.
The management of the Institute expects that after the forthcoming privatization, the Institute will retain and develop its core business and that all 607 full-time employees and a hundred more seasonal will continue to work in this renowned institution following general and branch collective agreements. Medical Doctor Marina Delic says that the Institute is recognizable for treating rheumatisms, rehabilitating patients with neurological and cardiac disorders, with respiratory illnesses and after sports injuries.
She pointed out that the Igalo Institute is one of the largest and most well-known institutions for a multidisciplinary spa treatment in the Mediterranean, thanks to the constant improvement of existing and introduction of new treatment and rehabilitation programs. The guests and patients of the Institute were many well-known figures: writers, painters, actors, athletes, scientists and politicians from the former Yugoslavia, but also the world.
Although even in 1875 the Austro-Hungarian military physicians wrote about mineral, medicinal sources in Igalo, the Institute was officially founded in 1949 at the initiative of Dr Svetozar Zivojinovic. The Institute was then called the "Adriatic Natural Spa", and the treatments were initially used at only 55 square meters surface.
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Text by Slavica Kosic, on March 18th, 2019, read more at Vijesti
The company “Port Kotor”, which received a concession from the Government for the management of the aquatorium and the operational coastal area of the port in Kotor for the next 12 years, plans to realize a total investment program worth EUR 5.053.440 during this period.
The port will pay the state a fixed annual concession fee of 250 thousand euros, plus a variable amount of the concession fee of 5 percent EBIDTA (realized profit without interest, taxes and depreciation costs).
In the business plan of this company, majority owned by the Municipality of Kotor, it is stated that out of the total investment program planned, in the first three years of the duration of the concession, 4,328,440 euros will be invested.
The largest part of the investment program (4,546,440 euros) refers to investment in fixed assets, 350,000 will be spent to improve the status of the port system, while 157,000 euros will be spent on the preparation of project documentation.
In order to realize these investments, the joint-stock company “Port Kotor” will invest more than 3.3 million euros of its funds, and plan two credit loans in the amount of one million i.e. 750,000 euros, with a re-payment deadline period of eight years, a grace period of two years and an interest rate of 4.5 percent.
According to the so-called real business plan scenario, the Port of Kotor expects to have a total income of almost EUR 46.2 million and a total profit of over six million during the 12-year duration of the concession.
Estimation of total revenues for the duration of the concession in the so-called optimistic scenario is over 50.3 million euros, i.e., the total profit of slightly over nine million euros.
In addition to the existing ones, they plan to open 18 new permanent and 6 seasonal jobs.
Port Kotor is based almost exclusively on the acceptance and servicing of large passenger cruisers on the so-called circular tourist trips, whereby Kotor is third in terms of traffic in the Adriatic and one of the leading cruises in the Mediterranean.
"According to the Cruise Lines International Association - CLIA, in 2017 nearly 7 million Europeans decided on one of the round trips, and the global number was 26.7 million people, confirming that cruise trips became an alternative to a classic holiday at land. The concept of cruise trip as part of the tourist activity, according to economic, sociological, psychological, political and other connotations, is a phenomenon that will, by the volume of transactions, approach container transport, the oil and car industry," reads the business plan of Port Kotor.
It is noted that the market in which they operate grows at an average rate of 4.3 percent annually and that the accelerated collapse of the cruising industry imposes the need to create adequate infrastructure prerequisites for safe and secure reception and servicing of modern passenger vessels whose size is also continuously growing. "New investments in technical and technological solutions related to the construction of a new system for the mooring of cruise ships on pylons, which will technologically improve port infrastructure, so their realization will increase the capacity to accept vessels to the port in a safe and secure way; installation of mooring buoys; expanding marine capacity by placing new pontoons; creating conditions for the service of passengers of ships tied to the pylon. So far, they have been able to bind two or up to three medium size ships (150-200 meters in length), while ships over 200-350 meters in diameter were at the anchorage.
After the construction of the planned projects, a berth for two ships of 250-300 meters in length and two smaller ships will be provided, it is stated in the business plan that was accepted by the Montenegrin Government, and by which Port Kotor was awarded the first concession. The construction of the pylon in the sea at about 100 meters from the completion of the current operational coastline at Luza and the installation of mooring buoys for cruisers in the aquatorium in front of Dobrota will cost together about three million euros, while planned investments will improve the marine port capacity of the yacht receipt for about half a million euro.
Pylon and mooring buoys for which the technical project is already finished will significantly increase the level of safety of ships residing in Kotor, especially in adverse weather conditions. It will also contribute to the reduction of air pollution from exhaust gases from ship propulsion systems, which, unlike the current situation when large cruisers in Kotor remain mostly anchored with the so-called dynamic maintenance of the position with performance of the machines, the bow, and stern thrusters, will not be so long and intensively used during the ship's stay in the port.
Since the concession act has brought a number of new business opportunities as it guarantees a monopoly status for performing some activities in the leased aquatorium and the land part, AD Port Kotor also plans to carry out significant investments in the purchase of new passenger boat which will transport passengers on buoys of anchored cruisers to the coast and back.
According to the data on the share capital structure of Port Kotor, the joint stock company, as of December 31st, 2017, the largest share - 56,97% is owned by the Municipality of Kotor. The Fund PIO is the owner of 17.51, and to the Employment Agency of Montenegro belongs 5.87% of the shares. After the collective custody account of CKB, there are owners of 10 percent of the capital. Among the individuals, one of the larger owners of Port Kotor is its former employee, SDP leader Ranko Krivokapic, who owns 1.99 percent of shares. Among the shareholders is the former leader of the Port and former Mayor of Kotor, Nikola Konjevic (DPS), who owns 0.86 percent of shares, businessman Vojin Lazarevic with 0.54 percent of total capital. Employees and citizens hold a total of 5.04 percent of shares of AD Port Kotor.
The Director of the Port Kotor Administrative Sector, Snezana Jonica (SNP), announced that the value of Krivokapic's shares increased for one year and a half by 111,917 euros "thanks to our" poor "management of Port Kotor", thus responding to the allegations of the local SDP.
"On the day when the new Board of Directors was elected in July 2017, the shares of Ranko Krivokapic had a market value of 106,398.6 euros, and on March 16th, 2019 - 218,316.2 euros," Jonica made the comparison her Facebook profile.
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Text by Sinisa Lukovic, on March 18th, 2019, read more at Vijesti
18 March 2019 - Croatian multinational oil company “INA - Industrija nafte, d.d.” recently expanded its retail network in Montenegro by purchasing five petrol stations from the company “Pavgord CG d.o.o.”, and after launching all new facilities, it now manages 11 gas stations in Montenegro. This purchase will increase the market share of INA – Industrija nafte d.d. to around 15 per cent, according to the recent statement by the company’s PR service.
The purchased facilities are located in Kotor (in Radanovići and Škaljari), Podgorica, Bijelo Polje and Mojkovac, while INA – Industrija nafte d.d. already has a network of existing locations in Podgorica, Tivat and Pljevlja.
According to News Agency BokaNews, the transaction for the purchase of five retail locations of Pavgord CG, which value is not stated in the announcement, was approved by the regulator for the protection of market competition. These petrol stations are valuable for their desired locations and associated structures, especially stations in the coastal cities of Tivat and Kotor.
With this business move, the company INA further improved its position on the Montenegrin market. Compared to 2017, when INA had a 1% market share, its market share will now reach about 15%.
Management board of INA – Industrija nafte d.d. made this business decision based on a solid knowledge of market conditions in Montenegro, with the aim of further building a leading regional position that could have a positive impact on the company’s business and the placement of its high quality products in that market, said the official statement by the PR service. Also, the company plans to further expand the retail network on the Montenegrin market by introducing a wide range of services, such as the gastronomic concept Fresh Corner.
"Previous business experience tells us that buyers in Montenegro value the quality of INA's fuel and other products and services. Therefore, in the medium term, we want to become one of the most important “players” in the Montenegrin retail market of derivatives. This transaction is in line with INA’s strategy to strengthen its position as a leading regional brand, "said Darko Markotić, Operations Manager of Customer Service for INA Company.
As reported by the company, INA now employs about 150 workers in Montenegro country, with the possibility of increasing their number in the future.
15 March 2019 - Regulation on the allocation of funds for encouraging direct investments and improving the competitiveness of the economy has recently been approved by the Government of Montenegro, as well as the Programme for the improvement of the competitiveness of the economy for 2019. Considering that the existing Regulation concerned exclusively direct investment support programmes, and in practice, the need for constant stimulation and strengthening of the sector of small, medium and large enterprises was identified, which is recognised in several strategic documents as one of the key pillars of accelerated economic development, for which it is necessary to improve their competitive ability, and thus the competitiveness of the economy as a whole, the new Regulation was developed.
The Programme for improving the competitiveness of the economy, for which realisation 1.640.000 EUR has been allocated, prescribes that all previous programmes intended for the development of entrepreneurship and small and medium-sized enterprises are consolidated into a unified programme, which will consist of 10 programme lines.
The Government approved the Information on determining the weighted average retail price of cigarettes for 2019. To ensure the stability of the cigarette market, as well as to preserve budget revenues on this basis, it is proposed to maintain the average weighted retail price of cigarettes from 2018 and 2019 (2,10 EUR per pack). In that context, it was concluded that it is necessary to begin to amend the legal provisions regulating this issue to create conditions for the proposal to be implemented.
The Cabinet within the Government of Montenegro approved the Information on increasing the share capital of Montenegro in the International Bank for Reconstruction and Development through general and selective capital increase and approved the proposal for capital increase, as well as the Indicative plan for subscription and payment of shares.
16 March 2019 - Credit Rating Agency Standard & Poor's recently published a new Report for Montenegro which confirmed the rating of the country, which is marked as "stable" while preserving the rating B + / B.
The fact that the credit rating agency Standard & Poor's has confirmed the rating given to Montenegro in 2018 for the third time, points to the expectation that after the fourth confirmation, the country’s credit rating could increase.
By confirming Montenegro's stable credit rating, another relevant global institution recognized the seriousness of implementing fiscal consolidation measures, as well as the overall increase in economic activity resulting from the improvement of general business conditions within the country. According to the Report, the current position of Montenegro on the rating list is the result of a strong economic growth that continued in 2018, estimated at 4,7%, based on the development of tourism, energy and infrastructure, and more specifically, the progress on the construction of the highway that will, as it is said, contribute to regional cohesion and security improvement.
An important backbone of Montenegro’s future development, the Report suggested, is the implementation of a significant number of foreign direct investments over the past five years, which amount to over 10% of GDP at the average level.
Analysts point to the strong institutional position of Montenegro in the region as well as the potential for further development through the structural reforms that the country is currently implementing to join the European Union. According to the report, the important activities for achieving the Government's goals are the continuation of the implementation of fiscal consolidation measures, the reduction of the budget deficit and the reduction of public debt.
March 16, 2019 - The Directorate for Inspection Affairs has ordered OHM Mamula Montenegro to suspend works on the island of Lastavica, within the Mamula Fort complex, in order to obtain approval for the conservation project, said the Management Board for the Protection of Cultural Property.
The Government of Montenegro has provided another €1 million from the state budget for the municipality of Plav, said the Prime Minister, Duško Marković at the meeting with the local administration.
“I came to Plav in order to change things for the better. Residents of Plav will feel the benefits of the Government regional development policy," said the PM.
The Prime Minister pointed out the importance of the stabilization of local public finances and emphasized the wholehearted support of the Government through direct budget support and investments from the Capital budget, which, by the way, has been the highest ever since the renewal of independence.
Mr. Marković also said that the northern part of the country could expect benefits from the economic citizenship program. Numerous infrastructure projects, worth over €1,5 million, are currently being carried out.
One of the subjects of the meeting was also the importance of roads. They also jointly concluded that the revitalization and protection of the lake in Plav was of great importance since, without it, Plav can’t develop its potentials.
President of the municipality of Plav, Mirsad Barjaktarević, expressed his satisfaction with the visit of the Prime Minister and said that his overall contribution to the development of the north was great.
Text by CDM on March 15, 2019, read more at CDM
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07 Mar 2018, 08:08 AMWelcome to Total Montenegro News!
Interview of the week
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Ranka Vukasovic Botica on Montenegro as a Maritime Country
