Business
29 October 2019 - Prime Minister Duško Marković opened a new 2 million EUR division of the Kurti furniture factory in Ulcinj, which will create 30 new jobs and said that this kind of project will always enjoy his support and the support of the Government.
"This is a great opportunity and a great moment not only for the municipality of Ulcinj, but for the entire country and for every entrepreneur who works in the interest of their family, their city and the State of Montenegro," the Prime Minister stressed at the opening ceremony, adding that this factory division testifies to the fact that the synergy of local government and the State can lead to yielding such results.
“There are many capable and hardworking people in Montenegro who can create new value in our country, not to always seek support and help from outside. The Kurti family has shown that their ability, their strength, their potential, their hard work can create new added value for Ulcinj and Montenegro as a whole,” Prime Minister Duško Marković noted.
Addressing the owner of the factory Kabili Kurti, the Prime Minister said that the Government will always support this kind of project.
"What you have done is not just a business venture, it is a message to all those who need to create new value in Montenegro, that they will continue to enjoy my personal and the Government's support," Prime Minister Duško Marković underlined.
Speaking to the broader business community, PM Marković said that Montenegro has been performing exceptionally well in recent years.
“This is not only an achievement of the Government but of all stakeholders: employers, entrepreneurs, companies, business associations and, of course, investors. That is why we are experiencing a growth rate among the highest in Europe. In 2017 and 2018, we experienced an average growth rate of 4.9% and 5.1%, respectively, which is the third growth rate in Europe. Nothing happens in Montenegro by accident. This is the result of a thoughtful policy and a commitment. Therefore, the Government has no doubt about whether it must stand by the people who create. Today, I am feeling like I am in my natural environment, where new value is being created, with a man who will create 30 new jobs by opening this factory division, thus enabling young people not only to work and earn money, but to start and raise their families and stay in Montenegro as well. We are sending a message to our compatriots that we have not forgotten them, that they are in our thoughts, and that we will create conditions for them to return and build Montenegro with us, and make it better than it is today,” Prime Minister Duško Marković pointed out.
Speaking about Ulcinj, the Prime Minister said that the policy of his Government is to bring back to Ulcinj its old splendor and all those opportunities that existed when tourism was blossoming in this municipality. In that regard, he referred to numerous investments in this municipality, adding that he understands the issue facing the local government and that they will have the support of the Government.
"The Government stands by you in your bid to overcome the problems for the benefit of Ulcinj and the citizens of Ulcinj, for the benefit of Montenegro and its development," Prime Minister Duško Marković concluded.
Mayor of Ulcinj Ljoro Nrekić stated that this event proves that there is a business environment in Montenegro and in Ulcinj where it is possible to invest and that it foretells new high-quality investments that will create hundreds of jobs, writes Office of the Prime Minister of Montenegro.
The owner of the Kurti furniture factory thanked the Government and Prime Minister Duško Marković for the dedication and opportunities created by the Government for businesses in Montenegro.
Read more news about business in Montenegro at TMN's dedicated page.
28 October 2019 - A consortium of the German WPD AG company and Vjetroelektrana from Budva is the only bidder for the construction of Brajići wind farm, offering 100 million EUR.
As Cafe del Montenegro reported, five companies have purchased tender documentation in the public tender invited for the lease state-owned land. Only one bid was submitted within the established deadline.
The bid encompasses the construction of a wind warm with a capacity of 100,8 MW, a 100 million EUR investment. The lease of the land will be 2,50 EUR per square meter for a total of 220.770 square meters of land.
WPD AG, a renowned German company, is experienced in the implementation of similar projects in many world countries, with a 4.400 MW portfolio of installed capacity.
The bid also envisages the participation of national companies for 21,6 million EUR, which will further enhance the multiple effects of the project.
Research and measurements of wind potential in Brajići were carried on the grounds of licenses issued by the competent Ministry, between May 2013 and May 2015 and between November 2016 and November 2017.
German WPD expressed its interest in the construction of the Brajići wind farm at the beginning of this year. Andreas Scholl, WPD Director for Europe, met in February with Montenegro’s Prime Minister Duško Marković and said that they wanted such investment in Montenegro.
Similarly, the wind farm Gvozd project was recently estimated at 58 million EUR, rated at 55 megawatts and, according to the estimates, it will have 13 turbines. Shareholders in the state energy company supported the decision on the construction of the Gvozd wind farm. Executive manager of the Directorate for Development and Engineering in the Electric Power Company of Montenegro Ivan Mrvaljević said that development of the Study on the potential of wind and energy production assessment, and the Study on the market and business model of Gvozd wind farm had been carried out before the investment decision.
Read more news about business in Montenegro at TMN's dedicated page.
27 October 2019 - Marriott International, Inc. recently announced the signing of a milestone agreement with Northstar D.O.O. to bring The Ritz-Carlton brand to Montenegro. Under the plan funded by Al Yasra, The Ritz-Carlton, Montenegro and The Ritz-Carlton Residences, Montenegro is scheduled to bring the brand’s unrivalled elegance and legendary service to the country in 2023.
“With its striking views of the Adriatic coast, Montenegro has quickly become a favourite Mediterranean destination for global travellers,” said Carlton Ervin, Chief Development Officer – Europe, Marriott International. “The signing of The Ritz-Carlton, Montenegro, highlights the demand for our luxury brands in this exciting region. Combining the country’s serene, natural beauty, together with the brand’s legendary service, makes Montenegro the perfect destination for The Ritz-Carlton guest.”
Slated to rise in a prime position on the Western tip of the chic Luštica Peninsula, the hotel and residences are expected to boast panoramic views over the glittering Adriatic Sea. Planned to be accessible by car in 30 minutes from Tivat International Airport or two hours from Dubrovnik International Airport, the coastal property is expected to allow guests and residents to have an unforgettable entrance via the sea at a planned private jetty.
Design plans for the hotel’s 120 elegantly appointed guestrooms and suites envision relaxing sanctuaries for guests, with simple local design planned to merge discreetly with contemporary technology, all to enhance the natural beauty of the location. The project’s plans call for low-rise buildings that would blend into the terrain while maximizing sea and sunset views for guests, residents and visitors alike. The powerful backdrop of the Adriatic is expected to highlight planned recreational amenities, including the property’s main restaurant, two specialty restaurants, a beach bar, indoor and outdoor pools, a salt-water Lido pool, a world-class spa and fitness room, and well-equipped Ritz Kids and Teen clubs.
Plans call for expansive outdoor event spaces with unobstructed views to create ideal settings for hosting memorable gatherings, alongside creative pop-up activations offering seasonal bar and restaurant options. Adventurous activities, such as mountain biking and nature trail hikes, are also being planned for guests to enjoy. Ambassadors of the Environment, a hands-on, educational program developed by Jean-Michel Cousteau’s Ocean Futures Society in collaboration with The Ritz Carlton, is expected to offer programming that highlights the extraordinary natural reserves surrounding the property, striving to encourage guests of all ages to understand how their actions can help preserve natural resources for future generations.
“The success achieved on this project, bringing the legendary Ritz-Carlton brand to Montenegro, is a result of dedicated work by all parties involved, both from our company, Marriott International, and the Government of Montenegro,” said Mohamed Al Sager, Chairman, Al Yasra. “This is not only a business success, but a personal accomplishment as well. When I first visited Montenegro on holiday, I fell in love with the natural beauty of the country and knew I wanted to be a part of its future development. What began as just a dream has today become a great project on a clear path of execution."
The hotel and residences are planned as part of a mixed-use development that is poised to include sprawling villas, manicured gardens, a yacht club and a sparkling beach cove. The Ritz-Carlton Residences, Montenegro, is expected to offer 180 apartments and 48 villas and is scheduled to complete the first phase of construction in 2023, with the final phase scheduled for completion by 2028. Residential sales are slated to begin in 2020.
"Germany is ready to give Montenegro support and assistance in efforts to further improve the environment," it was concluded after a series of meetings were held in Berlin between the Minister of Sustainable Development and Tourism Pavle Radulovic with representatives of the Bundestag and the ministry.
At a meeting with the Federal Minister for the Environment, Nature Protection and Nuclear Safety, Radulovic requested expert assistance, especially for the projects related to the environment and sustainable development.
A ministry delegation led by Radulovic presented the results of the protection of Ulcinj's “Solana” (Salt Plant), and also discussed the conservation of protected sites such as Tara Canyon, Skadar Lake, and national parks.
There was a high degree of agreement on the above issues, with the decision to deepen further cooperation with operational meetings between the two countries' institutions. Radulovic and Minister Schulz noted with satisfaction that the Government's efforts so far have been fruitful and that since the opening of Chapter 27, there has been significant progress, among other things, that “Solana” is now protected both locally and internationally.
At a meeting with the Chairman of the Bundestag Tourism Committee Sebastian Mince Maker and the members of the committee, Radulovic presented the results of the tourism industry, which is improving year by year.
The German side is pleased that an increasing number of their tourists are visiting Montenegro, emphasizing their willingness to cooperate in tourism through the opening of new direct flights between the two countries.
The Minister also met with members of the Working Party on the Environment, Alliance 90 / Greens, as well as with President Zilvia Koting-Ul and members of the Committee on the Environment, Nature Conservation and Safety of the Bundestag Nuclear Reactors.
Text by Vijesti online, on October 24th, 2019, read more at Vijesti
Several construction companies from Cetinje will participate in a €34.5 million tender to build the part of the road that will connect Cetinje to Niksic.
The Traffic Administration has selected a bid from the company "Briv construction" from Kotor, including several subcontractors, out of the four bids received for the construction of the section from Cetinje to Cevo.
"The long-awaited road construction project that will connect Cetinje to Niksic should finally begin. This has particularly pleased Cetinje's business people because the construction of this road is of the utmost importance and is a prerequisite for a more dynamic development of the area. Some of them will engage in the construction by employing their own construction plant.
"Vectors"(Photo: "Vectors")
The companies 'Vectors', 'Krivokapicinvest' and other construction companies from Cetinje have agreed to cooperate with the selected contractor and believe that by their engagement, they will give their full contribution to this project," stated “Vectors”.
"Vectors" will hire about 60 people, while other companies from Cetinje are expected to hire 40 more.
Illustration (Photo: "Vectors")
About 100 Cetinje citizens will be engaged in this project.
“Vectors” says that this will mean a lot to Cetinje and the whole of Katun Nahija in the further development.
The section of the road from Cetinje to Cevo should be completed in three years.
Text by Promo, on October 24th, 2019, read more at Vijesti
The government has approved a proposal for a concession contract for the construction of three small hydropower plants (SHPP) - Crnja, Ljubaštica and Crni potok - located on the Crnja watercourse in the municipality of Kolašin.
The concessionaire with whom the contract is to be signed is the company Dekar, represented by Momcilo Miranovic.
The contract proposal defines the concession to be granted for 29 years.
"The Concessionaire is obliged to pay to the Budget of Montenegro the concession fee established in the tender procedure, which amounts to 10 percent of the sales value of electricity produced annually. The municipality in whose territory the HPP is located shall pay an amount of two percent of the selling value of electricity produced annually for the improvement of the infrastructure, following the bid that is an integral part of this contract.
Text by Marija Mirjacic, on October 24th, 2019, read more at Vijesti
24 October 2019 - According to the new World Bank Report - Doing Business 2020, Montenegro took 50th place on the list of 190 countries ranked using the “ ease of doing business ” criteria. Compared to last year's Report, Montenegro increased its rating for 1.07 points (from 72.73 to 73.8) and maintained the same rank.
Doing Business 2020 is the 17th in a series of annual studies investigating the regulations that enhance business activity and those that constrain it. Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 190 economies— from Afghanistan to Zimbabwe—and over time.
The report covers indicators affecting 12 areas of the life of a business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency, employing workers, and contracting with the government. The indicators are used to analyse economic outcomes and identify what reforms of business regulation have worked, where, and why. Data in Doing Business 2020 are current as of May 1, 2019.
In terms of Montenegro’s ranking, the most significant progress was made in the area of building permits, where Montenegro improved 35 places in the rankings in this area, now reaching the 40th place on the ease of getting a building permit list. In comparison to last year, according to the methodology used by the World Bank, Montenegro significantly reduced the cost and time required to obtain a building permit. Such progress is a confirmation that the World Bank recognizes continuous efforts that Montenegro makes in the area of getting building permits, and above all, the effort to establish a new legal framework in this area, which was achieved in 2017.
Montenegro’s progress has also been evident in the area of cross – border trade. This indicator treats the procedures for import and export. Montenegro has improved six places in the ranking by reducing the time and costs required for import and the costs of export.
In the area of obtaining connections for electricity, Montenegro reduced the necessary time and costs, but the rank remained unchanged.
For other indicators, there was no change in the ratings compared to last year, and corrections in the rank are the result of the intensive reform processes implemented by other countries.
Read more about the business environment in Montenegro at TMN's dedicated page.
Traders largely respected the legal norm on introducing non-working Sundays, as a total of three violators, that is, two companies and one entrepreneur, were found in the entire territory of Montenegro within 24 hours, the Inspection Directorate announced.
On Sunday, the Market Inspectorate conducted an inspection to enforce the agreed obligation under the Internal Trade Act that wholesale and retail trade cannot work on Sundays.
“In all three cases, the inspectors charged the company for a fine of EUR 1,000 and a responsible person in the company EUR 200 for the offense committed. For the two companies, the total amount of the fine was 2.4 thousand euros," the statement said.
The entrepreneur was fined 300 euros.
"In addition to the fine for the offense, the inspectors in all three cases closed the shops for the period during which the work was not allowed," the Administration said.
The supervision, they recalled, included all wholesale and retail facilities in all municipalities.
"The surveillance was organized throughout the day and began in the early hours of the night, that is, from Saturday to Sunday, from midnight and lasted 24 hours," the statement said.
All market inspectors were engaged in this supervision, who visited all the shops located on the terrain where they were in charge of.
"The work of the duty inspector was organized at the headquarters of the Market Inspectorate in Podgorica, which received phone reports and answered the citizens' questions during the day," the Administration said.
In Montenegro, October 20th was the first non-working Sunday for employees in the trade sector.
On Sundays and public holidays, the wholesale and retail trade may be carried out in pharmacies, specialty shops or kiosks for the sale of bread, bakery products and cakes, flowers, souvenirs, press, plant protection products or funeral equipment, gas stations and retail stores within the gas stations.
Wholesale and retail trade can also be carried out at green markets, stands - counters, showcases and vending machines outside the markets and mobile shops, kiosks and vending machines located within closed areas of bus and train stations, airports and ports, stands and kiosks which sell goods during events, festivals and manifestations, fairs and during the public display of cinematographic works, as well as warehouses for the wholesale trade.
Specialty shops or kiosks are considered to be shops or kiosks where the sale of mainly one type of goods is carried out.
Text by MINA Business on October 22nd, 2019, read more at Vijesti
22 October 2019 - The Gvozd wind farm will be of even better quality than Krnovo, due to its great energy potential as the wind speed reaches 17 meters per second in that area. This wind farm will produce electricity enough to meet the needs of 25.000 households, said Krešimir Čondić, CEO of Austria’s IVICOM Holding GmbH.
Renewable energy resources, as strategic commitment of the Electric Power Company of Montenegro and the Gvozd wind farm project, were considered today in the meeting of the Committee on Energy and Mining.
Only one part of the wind potential of the Krnovo plateau has been used in the construction of the Krnovo wind farm.
Gvozd wind farm is expected to have 54,6 MW and to produce approximately 150 kWh of electricity.
The beginning of the construction is the spring of 2021. Works are expected to take 18 months and the wind farm is expected to become fully operational in autumn of 2022. This investment is worth around 60 million EUR, reports Cafe del Montenegro.
Individual wind generators will have 4230/4430 KW of nominal power.
The future wind farm will require the construction of infrastructure, reconstruction of the existing roads and construction of new ones, with the aim of connecting certain wind aggregates.
"Gvozd will be of great quality, even higher than Krnovo," said Čondić.
Director of the sector of Electricity transmission Jagoš Pupović said that they were considering variants for the optimal solution for connecting Krnovo to the energy system.
Head of development and engineering at Electric Power Company of Montenegro Ivan Mrvaljević acquainted members of the Committee with the renewable energy resources to be valued through some modernization projects and ecological reconstructions. He added that the modernization of hydropower plants represented a very important project. Reconstruction of the oldest plant "Perućica" will increase its installed power by 58,5 MW.
Read more news about business in Montenegro at TMN's dedicated page.
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